Do you want to increase your credit score to 800? You know how important your credit score is in getting the things you need and want in life. Whether you are looking to buy a new car, a new home, or pay for a vacation, you want your credit score to be the best it can be. We can show you how to get your score up to 800.
Your credit score is a 3-digit number that demonstrates your credit-worthiness. Credit scores range from 300-850 and the higher your score, the better. Creditors use this score to determine whether or not to extend you a loan or credit card. Your score allows them to weigh the risk they are taking and whether you’ll be able to pay back the loan. Creditors also factor your score into what interest rate they opt to charge for the loan. So it’s in your best interest to have the best score you can have. Why not shoot for the best and increase your credit score to 800? It may seem out of reach but we’ll show you how.
What are the benefits of having an 800 or better score?
You may be wondering, do I really need an 800? In fact, while a credit score has an upward limit of 850, once you reach 800, you have earned the best credit opportunities and rates possible. Here are some benefits of having an 800 credit score:
Better approval rate on loan and credit card applications.
Remember that with a high credit score, you are demonstrating you are creditworthy. Creditors and lenders will see you as a less risky borrower. Therefore, if you have an 800 or better score, you’ll be much more likely to be approved for loans and credit cards.
Lower interest rates.
Your credit score also will make you a desirable customer for lenders. The creditor will use your score to determine your interest rate. If you have an 800 credit score or higher, you’ll be more apt to be offered a lower interest loan. This is great news for you because it will save thousands of dollars over the life of your loan, especially for mortgages and auto loans which are larger loans.
Promotional interest rates.
Many times, having an 800 credit score or better will cause creditors to offer you incentives for becoming their customers. You may qualify for promotional interest rates, such as 0% on purchases and balance transfers. This is a great option for you. You can have the choice to use a credit card and not have to pay any fees (as long as you pay off the balance within the promotional period).
How do I find out my current credit score?
The first thing is to know what your current score is. Where does your credit stand? Make sure you know what you’re dealing with by getting your free report (this is the data that your score is based on). Also, get your FICO score, which is the score that most lenders use. Get all your finances in order so you set yourself up for success.
How do I increase my credit score to 800?
Getting a score of 800 or above may seem unattainable. But if you manage your finances correctly, you can reach an 800 credit score. Here’s how:
1. Pay on time, every time. Your payments are the most important thing you can do for your credit. Your payment history makes up a large part of your credit score. The more you pay on time, the higher your score will climb.
2. Maintain balance. Try to keep your credit card balances very low. A large part of your score’s calculation is your credit utilization or the amount of debt in relation to your credit limit. To get to an 800 credit score aim for 10 percent or less of the credit limit.
TIP: If you’re a good customer, ask your credit card company to increase your line of credit. This way your credit utilization rate improves and ultimately your credit score.
3. Avoid too many credit inquiries. Try to avoid credit card and loan applications unless you absolutely need them. Each time you apply, this will cause a hard inquiry to be placed on your credit report. While this only lowers your score a small amount, it can make a difference especially if you are trying to get your score up to 800.
4. Make sure your credit portfolio is mixed. If your credit is not mixed with both secured and unsecured loans, you might want to consider applying for a line of credit such as a secured auto loan, or a credit card.
5. Give it time. Your credit score is also largely based on your credit history and the length of time. Keep accounts open and use your credit cards regularly. (Just make sure you pay them off.)
6. Monitor your credit. Make sure you are aware of your credit information and make corrections when needed. Remember that your score is based on your credit report info. If there is an error, your score can take a hit.
How long will it take for my credit score to rise?
While you may want your credit score to change quickly, it will take some time for it to build up to 800. In fact, it can take a few years. Rest assured though, you will see positive results if you pay on time and have a good mix of accounts with a good credit utilization ratio.
In Conclusion
While having a credit score of 800 is not a guarantee of approval, it certainly provides more credit opportunities. Even if your credit past is not perfect, you can take action to improve your credit score. Remember, making efforts in your financial wellbeing is the first step in raising your credit score. And if you stick with it, your score can climb to 800.