You want to make sure you have a strong credit score, as it is essential for your financial well-being. A bad credit score can make it hard to get a loan, buy a home, or even get certain jobs. So, what if you have an 800 credit score?
An 800 credit score is one of the better ratings you can have. Since 850 is the highest and best credit score possible, 800 is nearly as good. But achieving an 800 credit score will take a lot of hard work.
In this guide, we'll discuss some of the things you can do to make sure your credit rating remains high. If you're trying to reverse a bad credit score and get to 800, you'll want to stick around to see what you need to do.
What Is a Credit Score?
A credit score is a number that measures your monetary responsibility. Basically, the higher the number, the better. The lower it is, the worse. Furthermore, a credit score reflects how much debt you have and how punctual you are when paying off said debt.
There are five main factors that go into determining your credit score. These include:
- Types of credit in use (credit mix)
- Length of time in accounts
- Payment history
- Amount owed
- New credit
Lenders look at these things to gain insight into whether you will be good for loans and things of that nature. They call this "creditworthiness." Ideally, you want your creditworthiness to remain high throughout your life.
But things sometimes happen that cause your creditworthiness to go down. To improve your credit score, it's essential to pay all your bills on time every time. You also want to avoid maxing out your cards or using too much available credit.
You should also have at least one checking account that has been open for at least six months with no errors. It's also important to keep your balances low-to-moderate, paying off your card every month if possible to avoid high-interest rates.
Is 800 a Good Credit Score?
There are many different credit score ranges that ensure your approval or rejection by lenders. Some are more lenient than others, while some are incredibly strict about what they allow. A typical credit range is between 300 and 850, with 300 being the lowest and worst credit score and 850 being the highest and best.
A credit score of 700 or higher is considered ideal. With a credit score of 700 or higher, you'll be eligible for some of the better interest rates on loans and other financial products. A credit score under 500 would be considered bad, but there are ways to improve your credit score if it's in that range.
So if you have a credit score of 800, you're doing really well. Remember, 850 is the best score you can possibly have, so 800 is near excellent. If you have an 800 credit score, it's very unlikely that you would be turned down for loans and credit-based purchases.
Moreover, you're in a great position to plan for things like buying a home, getting a new car, and more. Lenders who see a credit score of 800 are going to want your business. They know you're likely to be a reliable person and will therefore approve you for the things you need.
But a credit score of 800 doesn't just land in your lap. You need to work to build good, reliable credit. If you're determined to get to an 800, there are some essential things you can do to improve your rating. Please note that the journey to higher credit is one of consistency and commitment. So with that, let's see how to get to 800.
How to Get 800 Credit Score
Credit bureaus determine your rating by a variety of factors. Your payment history, debts, and credit utilization are all factors that go into determining your credit score. To ensure that you get to an 800 credit score, you need to do focus on certain aspects of your finances.
First is your payment history. Each month, make sure to pay at least the minimum payment on your card. Failure to do so can result in late fees and higher interest rates. Ideally, though, you should pay more than just the bare minimum, as this will help you reduce debt.
And speaking of debt, be sure to pay off your balances as soon as possible. This will allow you to increase your available credit limit and decrease the amount of money you owe overall. Both factors will help you boost your credit rating.
Another key step is your overall credit utilization. One of the most important things you can do with your credit is to not max out any cards or loans that you have. This is because it negatively impacts your credit score.
It's good practice to keep your balance below 30% of what you're allowed for each card or loan, which will likely be between $10k and 15k per account if you have good credit. By getting your credit and spending under control, you stand a much better chance of avoiding compounding debt.
Additional reading: What Is The Minimum Credit Score Needed to Buy a Car?
Fundamental Tips for Improving Your Credit
We know that a high credit score is often a requirement to apply for loans, mortgages, and other forms of private financing. In the United States, consumers with good credit scores are more likely to be offered lower interest rates when applying for these forms of credit.
In addition, it takes less time to get approved for a loan with a good score. So if you want to be able to borrow money from various sources in the future, it might be best to start working on your credit now. Improving your credit score can be challenging but not impossible. There are a few things you can do to help improve your credit score.
Your payment history is incredibly important to your credit rating. One of the easiest ways to improve your credit score is by making the minimum payments on time. But if you charge a lot of purchases on your credit card, then you might need to lower your limit or start paying off the balance each month rather than making minimum payments.
Pay Bills on Time
Paying bills on time will go a long way in improving your credit score. When you pay your bills, it shows that you are responsible and can be trusted with money. This will make people want to extend more credit to you in the future.
If you have a good credit score now, then it would not be advisable to miss or postpone any payments. Moreover, if you know you're going to miss a payment, you should make other arrangements. Late payments that are older than 30 days will lower your credit score, so be sure to communicate any potential delays.
Lower the Limit of Your Cards
One way to improve your credit is to lower the limit on your cards. By lowering the limit on your cards, you will have less available credit at any given time. This is a great strategy if you want to build up a good credit score but don't want to use a lot of money in the process.
Lowering your credit card limit can also help you build a good credit score if you're using all of your available credit with other loans or lines of credit that are in good standing. If you ever need an emergency line of credit, this would be perfect for such circumstances. You won't get stuck with high finance charges and late fees if it's only sitting there unused for emergencies.
Related post: How to Improve Your Credit Score in 30 Days
Make Payments Off-Cycle
When you make payments off-cycle, you are making payments on your credit card balance at different times throughout the month. For example, if you made a payment in the middle of the month, then one at the end of the month, and one at the start of the next, this would count as three separate payments. This way of paying can help to improve your credit score because it will affect less than 30% of your available credit limit at any given time.
Check Your Credit Report Regularly
Another way to improve your credit score is to check your credit report regularly. When you do this, it allows you to catch mistakes in your report. Mistakes do happen, but if you don't catch them, they can wreak havoc on your credit, making it harder to improve your score and achieve an 800 or higher rating.
A credit score of 800 lets lenders know that you are reliable and more likely to repay debts. But attaining a score this high doesn't come easy. You need to stick to a dedicated plan to keep your credit strong. It's easy to fall behind and hurt your credit, so be sure to follow our guidelines above to avoid credit trouble and help you reach an 800 credit score.
Shawn Manaher is a former financial advisor, has founded 5 online businesses, and is a coach, speaker, podcast host, and author. He's been featured on Forbes, The Consults Corner on TAE Radio, The Writing Biz, What's Your Story, and more.