How to Get an 800 Credit Score: Definition and Benefits
Is an 800 credit score good, or should you aim higher?” This is a very pressing question for anyone who’s ever struggled to attain (or re-attain) creditworthiness. The good news is that while you can indeed aim for even higher numbers, having an 800 score is already impressive. At this level, you can access high-quality financial services, such as decent credit cards and low-interest loans.
Read on to learn about what this credit score can do for you and how you can reach and maintain it.
800 Credit Score Fundamentals
So, is 800 a good credit score? One may say the sky’s the limit (850 is the limit, to be precise), but a credit score of 800 is given only to individuals whose creditworthiness is really high. It is a great position to start applying for loans and try to negotiate good terms. Reaching a credit score of 800 means you possess adequate money-management skills.
How to get an 800 credit score? On paper, it’s quite simple: just make payments on the due date and limit your credit use. Having a lengthy credit history is another qualifying factor, as well as experience in handling various loan types. However, once you reach the credit score of 800 you’ll unlock higher loan limits and better insurance premiums.
Benefits of Credit Score over 800
For lenders, this score implies a minimal risk of default and, as such, grants you many opportunities and advantages:
First, we should mention that with a credit score of 800, your interest payments are likely to be lowered, potentially saving you thousands of dollars.
Second, it signifies borrowing power. Lenders are more flexible with the size of credit lines for a good scoreholder. Having a credit score this high gives you a good starting point during negotiations, allowing you to secure better terms, such as lower interest rates or waived service fees.
Third, you can get both premium and prime-rated cards. These, too, may be associated with great reward plans, travel benefits, and other privileges that can bring color to your life.
A high credit score can also be a lifesaver during crises, as it increases the likelihood of getting approved when you need to get a loan quickly.
To put it in a nutshell, though the benefits of a credit score exceeding 800 may be even greater, from the lender’s viewpoint, an 800 mark is a guarantee of your financial discipline.
Ways to Achieve and Maintain an 800 Score
All the standard methods of increasing your creditworthiness apply here:
Paying bills on time
Your payment history must be impeccable. Always pay your bills on time, as non-regular or late payments reported to credit bureaus impact your score negatively. Auto payments can make this task easier to manage.
Low Credit Utilization
Your credit utilization ratio should be less than 30%, just to be on the safe side. Make sure that you pay off your balances most of the time and don’t max out your cards.
Long and Diverse Credit History
Besides the long credit history, you should also mind the types of credit you have opened.
Limit New Credit Inquiries
Despite the need for a diverse credit history we outlined above, you should also remember that each of your applications triggers a hard inquiry and lowers your score. Request new credit only if you really need it, and try to spread your applications across several lenders.
Regular Credit Monitoring
Review your reports periodically to identify mistakes. If you discover any disputes, be sure to handle them as soon as possible.
Patience and Consistency
Shaping a good record usually takes at least several years. Practice sound financial habits, and after some time, you’ll surely see your score moving in the right direction.
Remember, practicing good financial discipline is the first and most important step toward building and maintaining a high score.
Epilogue
A credit score of 800 is a significant achievement and should be celebrated as such. It proves that the customer has been paying bills on time, maintains reasonable credit utilization, and is experienced enough to handle large loans.
The pros of having a high are numerous. Firstly, you’ll get low interest rates, thus improving your ability to take loans. Secondly, it allows you to secure better credit cards and get quick loans in times of need.
The most important thing to remember about credit rating is that it can’t be changed overnight. Consequently, impatience and impulsiveness are the main obstacles on your way to creditworthiness.
Although getting to 800 is certainly an impressive accomplishment, you can still aim even higher, as after reaching this point, the list of benefits available to you will only continue to grow.
