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Yes - An 800 credit score is more than just good. It’s considered exceptional and means your credit is well above average. It shows that you have made your payments on time, and have a low credit utilization ratio. An 800 credit score can open the doors to easy approvals, low rates, and favorable terms.
Highlights/ Key Takeaways
- An 800 credit score is an exceptional credit score.
- With an 800 credit score, you can enjoy better credit offers, lower rate, and higher limits.
- To land and maintain an 800 credit score, you’ll need to do things like pay your bills on time, keep your credit utilization low, and only apply for new credit when you need to.
What Does it Mean to Have an 800 Credit Score?
An 800 credit score means you have been using credit responsibly for many years and have a good mix of credit accounts, including installment credit and revolving credit. Put simply, an 800 credit score proves that you’re a financially savvy consumer that is unlikely to default on any loans or credit cards. It positions you as an attractive borrower for loans and credit cards.
Benefits of Having an 800 Credit Score
In most cases, an 800 credit score comes with the same benefits you’d receive if you had good or excellent credit, including:
- Better credit offers: An 800 credit score can help you get approved for just about any credit card or loan. Banks and other lenders should have no problem accepting your application for a premium credit card with great rewards or a mortgage, car loan, or personal loan.
- Lower interest rates: One of the greatest perks of an 800 credit score are lower interest rates. Lower rates can save you hundreds or even thousands on the overall cost of a loan. This is particularly true if you’re able to lock in a low fixed rate on a longer loan, like a mortgage.
- Higher credit limits: With an 800 credit score, you can access to higher credit limits. If you have a large purchase to finance, like a kitchen remodel,, your credit score will come in handy. Depending on the lender and loan type, you may be able to borrow tens of thousands or even a hundred thousand dollars.
How Do You Get an 800+ Credit Score?
It’s not easy to get an 800+ credit score. To do so, it’s important to keep these factors in mind:
- Payment history: Your payment history is the most important factor in your credit score. Even one late or missed payment can take a toll on your credit. That’s why it’s crucial to keep a close eye on all your due dates. If you do happen to miss a due date, reach out to your lender or creditor to ask if they’ll remove the late payment from your record.
- Credit utilization ratio: The amount of credit you’re using divided by the amount of credit available to you is your credit utilization ratio. For a high credit score like 800, do your best to keep this figure under 30%. Higher credit limits and low credit card balances can keep your credit utilization ratio in good shape.
- Credit mix: Credit mix is the different types of credit accounts you have, such as credit cards, mortgages, car loans, and personal loans. The more diverse your credit mix is, the better your credit score will be. However, it’s not a good idea to apply for loans to simply build your credit.
- Age of credit history: The age of your credit history or how long your accounts have been open also plays a role in your credit score. If you’ve had a credit card for a long time, it’s in your best interest to keep it open, even if you don’t use it. Otherwise, you may shorten the age of your credit history.
- New credit: When you apply for a new loan or credit card, the lender or credit card company may perform a hard inquiry. This can temporarily bring down your credit. Hard inquiries are particularly harmful to your credit if you have too many of them in a short period of time. Therefore, you should be mindful of how often you apply for new credit.
Tips to Maintain Your 800+ Credit Score
Once you achieve an 800 credit score, you’ll have to work hard to maintain it. Here are some tips to help you out.
- Check your credit reports: Visit a website like AnnualCreditReport.com to pull free copies of your credit reports from Experian, Equifax, and TransUnion. If you notice any errors or inaccuracies, dispute them immediately with the appropriate bureau.
- Enroll in autopay: Many lenders and credit card companies will allow you to sign up for autopay so they can automatically debit your payments from your bank account. This strategy is ideal if you’d like to avoid late or missed payments.
- Keep your credit balances low: As we previously mentioned, your combined credit balances should be no more than 30%. Don’t rely on minimum payments and pay as much of your balances as you can before the billing month closes.
- Limit your requests for new credit: It may be tempting to apply for new credit whenever you need to fund a larger purchase. Doing so, however, can bring down your score. Only apply for new credit when you absolutely need to.
- Don’t close old credit cards: Continue to keep all your credit cards open, even if you don’t use them. This will lengthen the age of your credit history and keep your credit in good shape.
Reasons Why Your Credit Score Might Suddenly Drop
There are a few reasons your credit score may decrease, such as:
- Hard credit inquiries: If you apply for a new credit card or loan and the lender or credit card company pulls your credit and they pull a hard inquiry, the hard inquiry may temporarily lower your credit score by a few points.
- Missed payments: Your credit score will likely drop even if you miss one payment. Unfortunately, this will occur despite your previous history of consistent on-time payments.
- Paying off loans: While paying off a loan is a great accomplishment, it can also have a negative impact on your credit. This is because it will take one credit account away from your name and hinder your credit mix.
- Charging a large payment on a credit card: If you purchased something expensive, like new furniture and put it on your credit card, your credit utilization ratio will go up, and your credit will likely go down unless you pay it all off at once.
Is 800 a good credit score? Most definitely! But even if your credit score is a bit lower, you can still qualify for low rates and favorable terms. That’s why your goal should be to practice responsible credit habits and do whatever you can to achieve and maintain a high credit score. Best of luck in your journey to great credit!