Take Out A Mix Of Credit
While you dont want to be taking out every type of loan under the Sun, diversifying your credit can be an easy way to boost your credit score towards that excellent rating.
However, bear in mind that this isnt always possible.
So, unless you dont already have a credit card, the best way to help with credit mix is to take out an auto loan the next time you need to get a new car! This new account might drop your score in the beginning, but having the additional loan type will reap rewards over time.
Hard Hits Versus Soft Hits
Hard hits are credit checks that appear in your credit report and count toward your credit score. Anyone who views your credit report will see these inquiries.
Examples of hard hits include:
- an application for a credit card
- some rental applications
- some employment applications
Soft hits are credit checks that appear in your credit report but only you can see them. These credit checks don’t affect your credit score in any way.
Examples of soft hits include:
- requesting your own credit report
- businesses asking for your credit report to update their records about an existing account you have with them
Dont Apply For Tons Of Credit Cards
Again, the idea of just because you can, doesnt mean you should definitely applies here, too. Youll likely receive lots of credit card offers in the mail or straight to your email inbox. If this happens, youll have been pre-approved, which doesnt count as a hard inquiry. However, if you go out and apply for tons of credit cards every month, it will count as a hard inquiry.
These hurt your credit score, and if youre trying to get your credit score to 800, theyre a big no-no. Instead, we suggest using a credit monitoring app like Float Credit to check your credit score and all of the factors influencing it. Then, do your research regarding which cards youre most likely to be approved for.
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Monitored My Credit Report
My bank does a good job of keeping me updated on my FICO® Score and sends me monthly reminders and updates free of charge. Its worth looking into that feature with your bank or getting alternative free credit reporting and reading the details if theres a change in your score. The report explains why the change happened, and you can follow up with the business or reporting agency to challenge any unfavorable action.
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Now, the only thing impacting my credit score, slightly, is the ratio of my mortgage loan balance to the loan amount because I rolled some of the money I needed to buy out my husband into the mortgage. Part of that decision was rooted in keeping cash in my bank account to feel extra secure should something change with my job. Happily, that has not happened, so I can always make a lump sum payment on my mortgage in the future.
Currently, I have an impressive credit score close to 820, but have no need for another loan at the moment, so I am set for a while. Plus, my high credit score will give me many more financial options for my future, as I may need.
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What It Takes To Earn An 800 Credit Score
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A FICO Score between 800 and 850 is considered exceptional and can open financial doors for consumers.
Analysts looked at anonymized credit reports of more than 100,000 LendingTree users to provide insight into the profile of people with credit scores of 800 or higher. Its no surprise that those with exceptional credit have solid habits, including paying their bills on time every month.
Matt Schulz, LendingTrees chief credit analyst, says having an 800 credit score is great to aim for but isnt necessary.
Generally speaking, once your FICO Score hits 750 or 760, youre pretty much going to get the best terms on most any loan that you apply for, Schulz says. At that point, an 800 credit score is really little more than gravy.
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Free Credit Reports From Credit Karma
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Read our full review to find out more.
What It Means To Have A Credit Score Over 800
Is 800 a good credit score? Having a credit score over 800 isnt just good. According to the FICO credit scoring system, its exceptional. Although both the FICO and VantageScore credit scoring systems go all the way up to 850, you actually dont need to hit 850 to reap the same benefits as those with a perfect credit score.
If you have an 800 FICO score, you have an extremely positive credit history. There are no missed payments or issues to lower your credit score from its exceptional ranking. Youve likely been using credit successfully for many years, and probably have a healthy mix of credit accounts that includes both revolving credit and installment credit .
In short, youre the ideal credit consumerresponsible, financially savvy and unlikely to default on your credit obligations.
Essentially, having a credit score over 800 means there isnt anything else you can do to make your credit score better. All you can do now is maintain the healthy credit habits that got you your 800+ credit score in the first place.
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How To Get Your Credit Score To 800 Or Higher: Complete Guide
Do you know your credit score? The three major credit bureaus, Equifax, Equestrian, and TransUnion, compile information from credit reporting agencies to calculate your credit score.
Our credit score determines our level of creditworthiness. When we want to take on debt, such as a car loan, mortgage, or a credit card facility, lenders look at your credit score to assess their risk in loaning you money.
If you have a credit score under 500, the chances of you obtaining any credit facility are slim. If a lender does decide to take a chance on you, then the facility will undoubtedly come with unfavorable terms, such as high-interest rates. This strategy helps banks to discourage you from taking on debt that you cant afford to repay.
However, if you have a credit score over 750, then lenders view you as a prime customer, offering you the best APR rates, and rewards programs to encourage you to use the facility. People who have a credit score of 800 or more are in the best financial position to apply for new credit facilities. Banks see these clients as low-risk, and they are willing to open any credit facility the customer requires.
So, how do you get your credit score over 800? Follow this brief guide of tips to help you reach the upper-echelon of creditworthiness.
How To Get Your Credit Score To 800
A credit score in the 800s is a remarkable milestone. Although it will take time, its completely possible to achieve. Heres how to get started:
- Pay all of your bills on time.
- Never max out your credit cards.
- Dont apply for every credit card you see.
An 800 credit score is a great goal but itll likely take many years to reach this elite status as credit scores factor account ages into the score. As your average account age grows, so can your credit score.
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How To Improve Your 800 Credit Score
A FICO® Score of 800 is well above the average credit score of 711. It’s nearly as good as credit scores can get, but you still may be able to improve it a bit.
More importantly, your score is on the low end of the Exceptional range and fairly close to the Very Good credit score range . A Very Good score is hardly cause for alarm, but staying in the Exceptional range can mean better chances of approval on the very best credit offers.
Among consumers with FICO® credit scores of 800, the average utilization rate is 11.5%.
The best way to determine how to improve your credit score is to check your FICO® Score. Along with your score, you’ll receive a report that uses specific information in your credit report that indicates why your score isn’t even higher.
Optimize Your Credit Utilization Ratio
If you already have one or more credit cards, this could be the biggest move to make if you want to get to 800+. Its the second most important factor that affects your credit score, since it accounts for about 30% of your score. You can change it quickly, and it has a major impact if you get it right.
Ideally, you want a credit utilization ratio of below 10%.
First, if you carry a credit card balance from month to month, pay that off asap. The interest rates are horrendous and its negatively impacting your credit utilization ratio.
Second, if you have two cards that each have, say, a $7,500 credit limit, and you have $6,000 in debt on one card and only $1,000 in debt on the other card , then try to balance them out. Pay down the higher debt one first, so that none of your individual cards have a very high credit utilization ratio.
Third, even if you do pay off your credit card balance each month, your payment timing might be unfairly hurting you. Credit card issuers usually report your credit information to the credit rating agencies once per month, around the end of your billing cycle. But what if you just paid for a major $3,500 car repair on your $5,000 limit card right before they report your credit utilization? Theyll say you have a 70% credit utilization ratio, which is bad, even though you always pay your card off every month.
There are two main ways to fix that:
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What Percentage Of The Population Has A Credit Score Over 840
Your 840 FICO® Score falls in the range of scores, from 800 to 850, that is categorized as Exceptional. Your FICO® Score is well above the average credit score, and you are likely to receive easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.
Negotiate A Lower Interest Rate
A lower rate can help you pay off your balance faster, because more of your payment can be applied to your principal balance than interest. Lower balances can mean a lower credit utilization ratio . Learn more about how to negotiate a lower interest rate.
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What Goes Into An 800 Score
If you want to achieve an 800 , you can learn from LendingTree users. Analysts found that consumers with credit scores of 800 or higher pay their bills on time every month. Also, they keep their credit utilization ratio low and tend to keep older accounts open .
| Everyone | |
| 2.4 | 2.3 |
For this studys purposes, Gen Zers are ages 18 to 24 in 2021, millennials are 25 to 40, Gen Xers are 41 to 55, baby boomers are 56 to 75, and silent generation members are 76 and older.
Check Your Credit Report
The best advice I can give for people starting to look into this is to sign up for a FREE credit monitoring service. It used to be that this was almost impossible to get and would often cost money, but today there are services that are free and easy to use.
Ive used , they are not paying to say this. Ive used them for years, Ive recommended them to all my family members. Its 100% free, I just log in every few months and just go over the reports to make sure everything is looking good.
Ill put a link in the description, sign up asap, you dont need a credit card, they make their money by recommending you products that you might find useful, but they are not annoying about it, which is nice.
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Credit Score: Good Or Bad
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An 800 credit score is firmly in the excellent range of scores. Lenders use your credit score to decide if you qualify for financial products like credit cards and loans and to set your interest rate.
Only 23.3% of Americans had a score of 800 and above in 2021, according to credit scoring company FICO.
Heres how your 800 credit score can affect your financial life.
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Youll Qualify For Better Credit Cards With Better Rewards
Using the same credit card youve had for decades can be good in terms of length of credit history, but you could be missing out on valuable benefits. With an 800-plus credit score, you might qualify for perks such as access to airport lounges , free breakfast in hotels, and the ability to earn cash back and airline miles at a faster ratefor example, one-and-a-half miles per dollar spent instead of the standard one mile per dollar.
One easy way to find a better deal is to call your existing credit card issuer and ask if you qualify for a different card with better rewards and benefits. If so, your issuer can explain the application process and get you switched over to the new card. You can also research credit cards online to find one that work best for you.
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How To Control The Number Of Credit Checks
To control the number of credit checks in your report:
- limit the number of times you apply for credit
- get your quotes from different lenders within a two-week period when shopping around for a car or a mortgage. Your inquiries will be combined and treated as a single inquiry for your credit score.
- apply for credit only when you really need it
What Are Some Of The Perks Of Having An 800+ Credit Score
For starters, you will enjoy easier and faster loan approvals whether youre applying for a mortgage loan or an auto loan. It wont take the bank too long to approve you with a FICO score of 800 or above.
You will also receive much better credit card offers that offer the best rewards, exclusive access to concerts, sporting events, etc., and the lowest interest rates. On top of that, you will also receive the best insurance premiums.
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Get Your Credit Score To 800 With Float Credit
Monitoring the positive changes in your credit score after all your hard work to improve it is a great way to stay motivated to continue on your financial journey. At Float Credit, were more than delighted to help you stay encouraged.
Checking your credit score with Float Credit is free, and we update it every two weeks for you. Were also the first app that allows you to control how much information your share, making it fun and easy to learn where your friends and family are in their credit journey.
Habit : They Dont Carry A Balance
One of the best things you can do for your credit score is keep your low. Your utilization ratio is the percentage of your open credit that youre currently using.
The standard recommendation is to keep it lower than 30%, but most members of the 800 club say they keep theirs below 10%. Most report paying off their full credit card balance every month, though a few make an occasional exception for major purchases, particularly if they have a temporary 0% interest period.
Antonio Talledo, founder of Limon Financial, has achieved an 807 credit score since getting his first credit card about 12 years ago. Though he used to carry balances, he now pays off the bill in full on the first of every month.
I would say the biggest impact to my credit score was lowering my balances to below 10% initially and now 0%, he said. A couple of years ago I was carrying about 30% balances and my score was below 700.
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Check Credit Reports For Errors
One measure you can take immediately is to check your credit report for errors and inconsistencies. Your credit record is calculated by credit bureaus, using your payment and account history, but the report could be subject to mistakes.
Contest some of the black marks on your credit record, such as late payments that werent late, and you may be able to earn yourself a few extra points.