How to get a credit score of 800
As a consumer, having a good credit score is crucial to your financial well-being. A high credit score can help you secure better interest rates on loans, credit cards, and mortgages, saving you thousands of dollars in interest charges. A credit score of 800 is considered excellent and shows that you are a responsible borrower. Here are some tips to help you achieve a credit score of 800.
Timely Payments are Vital for an 800 Credit Score
First, pay your bills on time. Your payment history accounts for 35% of your credit score and is the most critical factor in determining your creditworthiness. Late payments can stay on your credit report for up to seven years and can significantly lower your score. Always pay your bills on time, and if you can’t, contact your creditors to see if you can work out a payment plan. Experian reports that late payments rarely appear on credit reports with an 800 FICO® credit score.
Your Credit Utilization
Second, keep your credit utilization low. Your credit utilization ratio is the amount of credit you are using compared to the amount of credit you have available. It accounts for 30% of your credit score and is the second most important factor. To maintain a good credit score, aim to keep your credit utilization below 30% at all times. For example, if you have a credit limit of $10,000, try to keep your balance below $3,000. According to Experian, the average utilization rate is 11.5% with consumers that have a FICO® credit score of 800. That data suggest that an even lower utilization rate may be helpful for getting to the big 800. If you’re new to credit utilization find why a higher credit utilization decrease your credit score.
Credit Mix
Third, have a diverse credit mix. Having a mix of credit accounts, such as a mortgage, a car loan, and a credit card, can show lenders that you are capable of managing different types of credit. This accounts for 10% of your credit score. However, don’t open new credit accounts just to add to your mix. Only open accounts that you need and can manage responsibly. Understanding revolving vs Installment credit can impact your scores.
Credit Length
Fourth, keep your credit accounts open. The length of your credit history accounts for 15% of your credit score. The longer your credit accounts have been open, the better it is for your score. If you have a credit card that you no longer use, don’t close it. Keeping the account open and using it occasionally can help improve your credit score. Building a long credit history takes time and dedication, but the rewards are well worth it.
Check For Errors Often
Fifth, check your credit report regularly. Errors on your credit report can lower your credit score. Check your credit report regularly to make sure there are no mistakes. If you find an error, contact the credit bureau to dispute it.
How long does it take to get an 800 credit score?
So, how long does your credit history need to be to achieve an 800 credit score or FICO score? The answer is not straightforward, as it depends on several factors, including your current credit profile and your overall creditworthiness. While there is no set timeline for achieving an 800 credit score, it typically takes several years of consistent credit management. In the past, we’ve saw credit history’s of about 10 years achieving an 800 credit score.
The takeaway, achieving a credit score of 800 requires responsible credit management. Paying your bills on time, keeping your credit utilization low, having a diverse credit mix, keeping your credit accounts open, and checking your credit report regularly are all key factors to achieving an excellent credit score. Learn more about the difference in FICO scores and credit scores too. By following these tips, you can improve your credit score and enjoy the financial benefits that come with having excellent credit.