S To Improve Your 808 Credit Score
Improving your 808 credit score can take a lot of work, but following these steps can make all the difference. It will take time, but you can see your credit score go up within a year, which could save you countless amounts on interest rates. Dedicating the effort to improving your credit is worth the investment.
Number Of Americans With No Credit History
According to the Consumer Financial Protection Bureau , approximately 26 million adults are considered to be credit invisible, meaning they have no credit history as theyre without credit cards, loans, and other lines of credit.1
Of course, if you have a credit card, that doesnt necessarily mean you will have a credit score. Around 19 million adults lack a score altogether due to credit reports with minimal credit usage or out-of-date credit history. Nows the time to open a credit card or loan to build your history.
The Three Credit Reporting Agencies And Different Types Of Credit Scores
Equifax, Experian, and TransUnion are three major credit reporting bureaus. Each credit agency provides you with a credit score, and these three scores combine to create both your 808 FICO Credit Score and your VantageScore. Your score will differ slightly among each agency for many reasons, including their unique scoring models and how often they access your financial data. Monitoring of all five of these credit scores on a regular basis is the best way to ensure that your credit score is an accurate reflection of your financial situation.
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How To Get An 808 Credit Score
If youre not yet a member of the 800+ credit score club, you can learn how to join by checking your free personalized credit analysis on WalletHub. Well tell you exactly what you need to change and exactly how to do it. Paying your bills on time every month and keeping your below 15% are the keys to success in most cases. But you cant beat a customized credit improvement plan.
But good advice can be priceless when it comes to your credit, so we asked a selection of WalletHub users with 800+ credit scores to share the secrets of their success. You can check out their tips below.
Your Credit Score Can Fluctuate
You may see some short-term movement in your credit score. This happens as information is added or falls off your report, which can happen frequently. Our latestConsumer Pulse revealed one-third of consumers monitor their credit at least weekly. Its encouraging to see people take an active approach to managing their credit health. But when it comes to your credit score, theres no need to obsess over minor, day-to-day changes. Nor is it necessary to achieve a perfect score. Trying to stay within a certain credit range is a smart, less stressful way to monitor your score.
Also, your credit score may not be the only thing a lender looks at when making a lending decision. For example, if you apply for a mortgage, lenders may also verify your income, personal assets and employment history. Because lenders look at multiple factors, its important to strive for overall financial wellness in addition to any credit score goal you may have. Building an emergency savings account and creating a plan to pay down debt, if you have any, will help you be more financially secure and can reflect positively in your credit health.
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Why You Should Be Pleased With An Exceptional Fico Score
A credit score in the Exceptional range reflects a longstanding history of excellent credit management. Your record of on-time bill payment, and prudent handling of debt is essentially flawless.
Late payments 30 days past due are rare among individuals with Exceptional credit scores. They appear on just 6.0% of the credit reports of people with FICO® Scores of 808.
People like you with Exceptional credit scores are attractive customers to banks and credit card issuers, who typically offer borrowers like you their very best lending terms. These may include opportunities to refinance older loans at better rates than you were able to get in years past, and excellent odds of approval for credit cards with premium rewards programs and the lowest-available interest rates.
How Can I Get My Credit Score
Since theres so much mystery surrounding credit scores, you might be wondering how to find yours. Luckily, you can get a free credit score check with the Canadian financial technology company Borrowell, and looking it up wont affect your credit score.
You can also order your credit report from either of the two credit bureau websites: Equifax.ca and TransUnion.ca.
Its worthwhile to review your credit report for errors, which can ultimately impact your score. If you do find any errors, contact the credit reporting agency and ask them to investigate.
You can also check out our credit score calculator which can give you an estimation of where your credit score stands at.
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Your 808 Credit Score Compared To The Average Score By Generation
Gen Z
| Charge cards | Eligible |
In addition to allowing you to qualify for the best credit card and loan terms, your good credit can help you snag your dream job or apartment. This is because many landlords and employers run credit checks. It can also save you money on services like insurance.
You probably wont gain any additional benefits from trying to get your score beyond 808 because most lenders will look at an 808 score the same way theyd look at a perfect 850 credit score. 1 Nevertheless, if youre aiming for perfection, then you may be able to further improve your credit score.
The first step is learning more about how credit scores work and how theyre calculated.
What Does A Credit Score Of 800 Mean
When you have a credit score of 800, that means you have an exceptional score. Since you have a credit score well above the average, you’ll probably have an easy time getting the very best credit offers when you apply for new credit. For example, if you want to buy a home, you may qualify for the lowest mortgage interest rates on the market.
Therefore, you may wonder what will happen if you slip to 799 or slightly lower. Remember, 799 is still categorized as a “very good” score and you’ll still have ample opportunities to qualify for good credit offers. That said, hitting the 800-850 range will still get you the best possible offer options.
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Excellent Credit Qualifies You For Top
Years before Kevin King, a credit consultant business owner and personal finance podcaster, became known by the moniker The 800 Credit Score Man, the only plastic he could get with his 585 credit score was a JC Penney credit card with a $100 limit. He made improvements over time, and was pleasantly surprised when he took advantage of a free credit score check and discovered it had climbed to 805.
The first thing I did was call my brother because he was the only person in the world who knew how low my score was. It was a great feeling. It gave me a sense of pride, swagger, and I felt that I had clout, he says.
Beyond clout, high credit scorers such as King also gain access to top-notch consumer benefits.
Excellent credit gives you leverage to take advantage of the best kinds of offers that lenders and other businesses might make to get you and keep you as a customer, says Rod Griffin, director of public education for Experian, one of the three major credit bureaus.
Ready to start taking advantage of your top-notch credit status? Here are three big moves you should consider once you join the excellent credit score club.
Mortgage With 808 Credit Score
Mortgages are ideal to have when a person wants to purchase a first home, a second home or even a vacation home. For those that want to use the home for other purposes, this loan would be ideal. When the person has a 808 FICO score, they are then able to qualify for a wide variety of mortgage loans. They have to provide proof of income, but as far as the credit score, you should have no issue. Just ensures that your debt to income ratio is lower.
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Shield Your Credit Score From Fraud
People with Very Good credit scores can be attractive targets for identity thieves, eager to hijack your hard-won credit history. To guard against this possibility, consider using credit-monitoring and identity theft-protection services that can detect unauthorized credit activity. Credit monitoring and identity theft protection services with credit lock features can alert you before criminals can take out bogus loans in your name.
Nearly 158 million Social Security numbers were exposed in 2017, an increase of more than eight times the number in 2016.
Auto Loans For Excellent Credit
Having excellent credit can mean that youre more likely to get approved for car loans with the best rates, but its still not a guarantee.
Thats why its important to shop around and compare offers to find the best loan terms and rates available to you. Even with excellent credit, the rates you may be offered at dealerships could be higher than rates you might find at a bank, credit union or online lender.
You can figure out what these different rates and terms might mean for your monthly auto loan payment with our auto loan calculator.
And when you decide on an auto loan, consider getting preapproved. A preapproval letter from a lender can be helpful when youre negotiating the price of your vehicle at a dealership, but be aware that it might involve a hard inquiry.
If you have excellent credit, it could also be worth crunching the numbers on refinancing an existing auto loan you might be able to find a better rate if your credit has improved since you first financed the car.
Compare car loans on Credit Karma to explore your options.
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Percent Of Adults Who Never Check Their Scores
One study conducted by Javelin Strategy & Research and sponsored by TransUnion revealed that 54 percent of adults never check their credit scores8.
Checking your credit score is a crucial aspect of reaching your financial goals and correcting any mistakes in your credit report.
Whether you regularly use a credit card or are paying back loans like student loans, always check your score on a regular basis, whether its through a third-party application or using an established credit reporting company like Experian.
Staying The Course With Your Very Good Credit History
Your 758 credit score means you’ve been doing a lot right. To avoid losing ground, be mindful of avoiding behaviors that can lower your credit score.
Factors that can have negative effects on Very Good credit scores include:
Utilization rate on revolving credit Utilization, or usage rate, is a measure of how close you are to “maxing out” credit card accounts. You can calculate it for each of your credit card accounts by dividing the outstanding balance by the card’s borrowing limit, and then multiplying by 100 to get a percentage. You can also figure your total utilization rate by dividing the sum of all your card balances by the sum of all their spending limits .
| Balance | |
|---|---|
| $20,000 | 26% |
Most experts recommend keeping your utilization rates at or below 30% on individual accounts and all accounts in totalto avoid lowering your credit scores. The closer any of these rates gets to 100%, the more it hurts your credit score. Utilization rate is responsible for nearly one-third of your credit score.
Late and missed payments matter a lot. More than one-third of your score is influenced by the presence of late or missed payments. If late or missed payments are part of your credit history, you’ll help your credit score significantly if you get into the routine of paying your bills promptly.
36% Individuals with a 758 FICO® Score have credit portfolios that include auto loan and 33% have a mortgage loan.
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Regularly Read Your Reports
Since your credit score is based off of the information in your credit report, take time to review your reports regularly. You want to be sure everything is an accurate, true reflection of your financial story. As you become more comfortable reading and understanding the data in your report, the easier it is to identify which information is potentially causing changes in your credit score.
To help you understand your credit report, weve created an interactive guide that breaks down each section and explains how the information may impact your credit score.
Disclaimer: The information posted to this blog was accurate at the time it was initially published. We do not guarantee the accuracy or completeness of the information provided. The information contained in the TransUnion blog is provided for educational purposes only and does not constitute legal or financial advice. You should consult your own attorney or financial adviser regarding your particular situation. For complete details of any product mentioned, visit transunion.com. This site is governed by the TransUnion Interactive privacy policy located here.
Can You Pay Off Your Balance Each Month
Never apply for a loan or credit if you dont first believe that you can afford to pay off the balance at the end of each month. This may sound obvious, but youd be surprised at how many people apply for credit or loans without asking themselves this question.
Ask yourself how you will use the credit card. Will you carry a balance, or can you indeed pay it off each month? Will you pay it off some months and not in others?
Roughly three fifths of all Americans who possess a credit card have a balance on that card. Despite this, you may want to pay off your balance at the end of each month so you can definitively avoid additional interest charges.
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What Are The Average 808 Credit Score Car Loan Rates In 2022
For those that have excellent credit scores, they can ensure that they will qualify for just about any type of loan that they wish to take out, whether it is an auto loan or a mortgage. Personal loans are also something that are easier for them to borrow with such a high credit score. It is important to provide proof of your income when applying for any loan, though.
| FICO Credit Score |
|---|
| 3.34% |
All the calculation and examples below are just an estimation*.Individuals with a 808 FICO credit score pay a normal 3.4% interest rate for a 60-month new auto loan beginning in August 2017, while individuals with low FICO scores were charged 14.8% in interest over a similar term.
So, if a vehicle is going for $18,000, it will cost individuals with excellent credit $326 a month for a sum of $19569 for more than five years at 3.4% interest. In the meantime, somebody with a lower credit score paying 14.8% interest rate without an upfront installment will spend $426 a month and wind up burning through $25584 for a similar auto. That is in excess of a $6015 distinction.
The vast majority wont fall in the highest or lowest class, so heres a breakdown of how an extensive variety of FICO scores can influence the aggregate sum paid through the span of a five-year loan:
| FICO Range | |
|---|---|
| $7,582 | $25,584 |
Correct Outdated Or Wrong Information
Look at your credit history for any errors or omissions, any open credit lines, or negative info thats older than seven years. If you see anything wonky, get it fixed ASAP. According to Borrowell, theres a statistical correlation between regularly monitoring your credit report and improving your score.
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Can I Get A Mortgage & Home Loan W/ A 808 Credit Score
Getting a mortgage and home loan with a 808 credit score should be extremely easy. Your current score is the highest credit rating that exists. You’ll have no issues getting a mortgage or home loan.
The #1 way to get a home loan with a 808 score is just to apply for that loan and wait for approval!
After a few short months of repairing your credit , youâll be in a much better position to get your ideal home loan terms.
Getting Mortgages With 808 Credit Score
808 FICO credit score qualifies you for the best mortgage terms available, which can mean saving up to 1% on your mortgage interest overall. Over the course of your loan, this means thousands of dollars in savings. Interest rates should hover around 4%. While improving your credit wont make much of a difference at this point, you can decrease your interest rates further in a variety of ways, such as making your home environmentally friendly or making a larger down payment.
Considering these things, your credit score is one of the most important numbers in your life. It can affect every action you take, from the house you live in to the car you drive. Taking steps to improve your 808 credit score is the best way to save money and make your life easier down the road. Theres no excuse to not improve your credit score!
How is a 808 credit score calculated?
The three major credit bureaus rely on five types of information to calculate your credit score. They collect this information from a variety of sources, and compile it to give you an overall score. The score is comprised of 35% payment history, 30% amount owed, 15% credit history, 10% new credit, and 10% credit diversity.
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