Paying Your Bills On Time
While paying each of your bills on time may seem like the most obvious way to improve your credit score, its also the most important one. There is nothing that will harm your credit score as much as having a series of late payments on anything from car loans to mortgage loans. This is why it is extremely critical that you always make the minimum monthly payments by the determined date each month WITHOUT ANY EXCEPTIONS.
Even skipping just one mortgage payment is going to have a detrimental effect on your credit score. Sorry if that sounds cruel, but its the truth, and it should serve as your primary source of motivation for making your payment on time.
Heres an important fact to keep in the back of your mind: every time that you fail to make a monthly payment when you are required to do so, whether it be on a car or your home or anything else, it will be on your credit history and thus impact your credit score for up to seven years. Seven years. Think about that.
Now, one primary benefit to using a credit card here is that you can choose how much money you spend while using them, and then also determine how much you pay back each month, so long as that amount is equal or greater than the minimum payment you owe.
The reason why this is a benefit to you is because it allows you to budget your money accordingly and make the smartest financial decisions you can. In other words, you can avoid going into serious debt.
Auto Loan Rates For A New Car 810 To 819 Credit Score
Dont be tricked into applying for the advertisements promising unbelievably low APR percentage rates on your next new car auto loan.
Those rates only exist theoretically and in our research are only given to small group of members with large investment savings held by the bank, not based on credit score..
If you inquire they will tell you that they are sure you qualify but will have to double check.
But it gets worse!
Most of these companies are using practices to lure you in and charge you a much higher interest rates than what you could have gotten from a reputable lender.
It is impossible for a lender to even guess what interest rate you will qualify for until they perform a soft pull on your credit records and see your credit score.
The interest rates we use in our sample auto loan monthly payment charts, are current rates for super prime borrowers, like you, with credit scores in the 810s, such as 812, 813, and 817.
If you have a credit score in this range than this article was written just for you!
If you have a credit score around 812 to 815, it is considered a super prime credit score, which includes ranges from 780 to 850.
Generally, all people in this credit range will be offered similar interest rates.
As you move into the super prime market with your credit score rising to 810 to 850, you would be eligible for the absolutely best rates.
Best Used Car Rates 810 To 819 Credit Score
According to a Federally funded study on used auto loans, people with a credit score of 815 were likely to save over $4,000 as compared to a prime borrower.
Grandpa always said that as soon as you buy a new car and drive it off the lot, it loses thousands of dollars in value.
Stands to reason, that getting the best used car rates should further help save you potentially thousands of dollars by choosing to purchase a used car over a new one.
But heres the thing
If your credit score is in the 810s, you should qualify for a super prime APR rate, which should be the best rates available.
| Used Auto Loan Amount | |
|---|---|
| $557 | $415 |
*Sample Quote For Credit Scores Of 811, 812, to 816, & 817: Assumes $2,000 down payment. Scores sourced from Nerd Wallet site and are accurate as of 10/11/19. All loan payment amounts are based on a used car loan APR interest rate of 4.34% for prime borrowers with a credit score of 780 to 850. The loan terms included in this chart are for 3 years , 5 years , and 7 years . However, speak to your lender about additional loan options, including mortgage loan terms that cover 1 year , 2 years , 4 years , 6 years , 8 years , 9 years , and 10 years . This is not an offer for a loan or a loan approval. Rates and stipulations change by state, income, credit score, and a variety of other factors. For informational purposes only.
Say you have a credit score of 813 or 815
You can definitely refinance with this score!
| Refinance Auto Loan Amount | |
|---|---|
| $657 | $449 |
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Average Age By Credit Score Tier
| West | 687 |
The South has the worst credit, on average , whereas the Midwest has the best . In fact, three of the five states with the highest average credit scores are in the Midwest. With that being said, every region has at least one state whose residents boast good credit, on average.
So, while job opportunities, living costs and other local factors definitely affect credit-score averages, its also true that credit scores can flourish anywhere.
What Is The Highest Credit Score
For most situations, 850 is the best FICO score possible. It’s extremely difficult to reach a perfect credit score, though. Only 20% of Americans have a credit score of 800 or higher. Even if you’re one of the people with the best credit score in the country, you might not reach 850.
Wondering how to get a 850 credit score? Here are some ways to improve your credit score — and move closer to the highest credit score you can get:
- Paying off your credit card balance every month
- Correcting errors on your
- Keeping an old credit card open, even if you don’t use it often
- Paying your bills on-time
- Requesting an increase to your credit limit
If you reach a FICO credit score of 800 or higher, you should congratulate yourself. Raising your credit score takes hard work, dedication, and patience. Even if you don’t have perfect credit, an excellent credit score is something to be proud of.
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What Does A 810 Credit Score Mean Pros And Cons Of Having This Credit Score
Those that have this credit score do not really have any cons, as this is one of the highest scores they can get. Though they are not at the very top of the ladder, they have a couple ways they can improve the score to get it to the top such as paying their payments on time, using the right amount of credit and never defaulting on their loans.
In terms of pros, a 810 credit score shows that you are a trustworthy, reliable borrower and that you would be ideal to loan money too for mortgage loans, vehicle loans, credit cards, lines of credit and a wealth of other money loaning services offered through various financial institutions.
How Do You Get A 800 Credit Score
5 Habits To Get 800+ Credit ScorePay Your Bills on Time All of Them. Paying your bills on time can improve your credit score and get you closer to an 800+ credit score. Dont Hit Your Credit Limit. Only Spend What You Can Afford. Dont Apply for Every Credit Card. Have a Credit History. What an 800+ Credit Score Can Mean.
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Who Has The Best Auto Loan Rates Credit Unions Banks Or Online Lenders
Trying to figure out who has the best auto loan rates can feel like an impossible task.
It is natural to want to use your local Credit Union or Bank because you feel loyalty to the financial institution who you trust with your monthly banking needs.
In some instances, going directly through your Credit Union or Bank can be your best bet for the lowest interest rates.
However, local Credit Unions and Banks often times are limited on the loan programs they can offer or cant compete with the lowest online auto loan rates.
You also have to consider the time it takes to go to your local financial institution to obtain a quote for an auto loan.
It seems like for the past 20 years, Banks and Credit Unions have been cutting the numbers of employees there to help you and have been replacing them with fancy ATM machines.
Be Careful!Be careful if you get an auto loan from a Credit Union or Bank that you have a checking, savings, or CD account with. Some financial institutions require you to sign a document allowing them to take payment without your permission if you do not pay.
In comparison, you can obtain four loan offers within two minutes of filling out a short, one-page application with LendingTree.
Even if you decide to see what your Bank or Credit Union has to offer, getting an online lender quote is free and takes next to no time.
Best Auto Loan Lenders in 2021
Compare multiple auto lenders at one time, pick the best option, and get approved for your loan.
Understanding Credit Score Ranges Is Really Important
Knowing where you fall on a credit score range can be immensely helpful because it can give you an idea of whether youll qualify for a new loan or credit card. Your credit scores can also help determine the interest rates youre offered higher rates could add up to lots of money over time.
Lets take a deeper look at the different credit score ranges and what they can mean for you.
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You Can Do More Harm Than Good
If Ive said it once Ive said it 1000 timescredit scores move like water. Theyre going to take the path of least resistance. That means a score of 780 is easier to turn into a 680 than it is to turn it into an 800.
This is especially true for people with young or thin credit files. The good people at Mint.com have told me that many of their MintLife readers are in their 20s. And if you look at the comments to my student loan debt story, I kind of get that same idea.
Something that you wont see from reading online stories about credit scoring models is the fact that young people generally have younger credit reports . Thats determined by calculating the average age of the accounts on your credit reports by looking at the date opened of your accounts. And the younger the credit file the more volatile the score. In English this means your scores are going to react to changes in your credit data more significantly than someone who has had credit for decades. So this story is especially meaningful to Mint readers because of their age and their younger credit files.
If you apply for and open a new account, apply for a credit line increase, max out a credit card, miss a payment, have a collection show up on your credit report, or experience a variety of other credit incidents, your scores are likely to be damaged disproportionately to someone who has a well-aged credit report. This is because you dont have as much positive compensatory information to offset the bad stuff.
Youll Qualify For Lower Interest Rates And Higher Credit Limits
With an 800-plus credit score, you are considered very likely to repay your debts, so lenders can offer you better deals. This is true whether youre getting a mortgage, an auto loan, or trying to score a better interest rate on your credit card.
In general, youll automatically be offered better terms on a mortgage or car loan if you have an exceptional credit score . If you have an existing loan, you might be able to refinance at a better rate now that you have a high credit score. Like any refi, crunch the numbers first to make sure the move makes financial sense.
Credit cards are different, and you might have to ask to get a better deal, especially if youve had the card for a while. If your credit score recently hit the 800-plus rangeor if youve never taken a close look at your terms beforecall your existing credit issuers, let them know your credit score, and ask if they can drop the interest rate or increase your credit line. Even if you dont need a higher limit, it can make it easier to maintain a good .
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Sometimes A Few Points Can Make A Big Difference
Slight day-to-day fluctuations in your credit scores are common and arent necessarily an indication that youre doing something wrong. The difference between a few points might not even matter.
Say you have a credit score of 810, and youre eligible for a lenders best rates and terms. If your score increases to 815, it might not matter the lender was already offering you the best deal.
But some lenders underwriting criteria require an applicant to meet a credit score threshold. In these cases, a rise or drop of a few points could make a big difference. So if you dont make the cutoff, your application could automatically get rejected.
Knowing where you stand in relation to a lenders threshold or recommended credit range can help you find the financial products youre eligible for and give you a goal if youre working on building your credit.
Credit Score Is It Good Or Bad How To Improve Your 810 Fico Score
An 810 credit score is excellent. Before you can do anything to increase your 810 credit score, you need to identify what part of it needs to be improved, plain and simple. And in order to identify what needs to be improved, you should probably be aware of all the things that count and dont count towards your score.
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Some Lenders Use Their Own Ranges
Many lenders adopt the ranges used by FICO® and VantageScore. Others may develop their own classifications. Major lenders may use different ranges to classify potential borrowers by risk level. Many lenders publish their credit score ranges or provide them on request.If youre considering applying for a credit card or a significant loan, find out what score ranges the lenders youre considering use. Check your score and see where you fit. Dont just consider the minimum standard for approval. Check the ranges that the lender uses to determine interest rates.
Understanding Your Credit Score
Your credit score is a “snapshot” of your credit history that is used by lenders, insurers and others to assess your creditworthiness and the likelihood that you will pay your bills and repay outstanding loans. This publication explains how to learn your score, how to interpret it and how to maintain or improve it.
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Is Your Credit Score Brag
Where you land on the 300-850 credit score scale can have a major impact on your finances. Lenders use the score to decide whether to lend you money, and at what interest rate.
“A strong credit score is integral to borrowing at the most attractive terms,” said Greg McBride, chief financial analyst at Bankrate. That means a high credit score can save you thousands of dollars in interest.
While any score above 700 tends to be considered “good,”an elite group of people have excellent scores that will snag them the most favorable rates.
Only about 20% of Americans that have a credit score land above the 780 mark, which is considered the top tier, according to credit reporting agency TransUnion.
Even fewer are above the 800 mark.
Anyone can attain a strong credit score simply by practicing the tried-and-true methods of good credit management: pay your bills on time and keep your debts modest.
But there are some habits people in the 800-plus club tend to have in common, experts said:
Why Your Credit Score Matters
There are real benefits to staying on top of your credit score.
Thats because a strong credit score can translate into real perks, like access to a wider range of products and services including loans, credit cards and mortgages. You could also enjoy better interest rates and more generous credit limits. Meanwhile, if your credit score isnt quite where you want it to be, knowing the score is the first step to improving it.
Either way, it pays to know your credit score. Its your financial footprint the way companies decide how financially reliable you are. A higher credit score means lenders see you as lower risk.
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Credit Score Mortgage Rate: What Kind Of Rates Can You Get
An 800 credit score usually comes with low mortgage rates and can help you save thousands of dollars over the life of your loan.
Kim PorterUpdated April 28, 2021
Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
If youve managed to earn a credit score of 800 or higher, congratulations! Youve achieved one of the highest scores out there. Credit scores stretch from 300 to 850, and the average Americans score sits at 711 as of October 2020.
Generally, a high credit score shows youve managed debt responsibly in the past and it comes with benefits. Aside from bragging rights, an exceptional credit score makes you an attractive borrower for mortgage lenders and puts the best interest rates within your reach.
Heres what you need to know about credit scores of 800 or higher: