The 800 Credit Score: What It Means and How to Get There

How to improve credit score

May 5, 2022
800 Credit Score

Credit score varies from poor to an exceptional range of 800 and beyond, the highest tier of FICO Scores. Read this blog if you’re trying to get there as we share details on how to make that happen.

But before we go any further, what does it mean to have an exceptional credit score?

The 800+ credit score badge may not guarantee you approval for all sorts of credits, but some perks include:

Credit Offers

The higher your credit score, the more lenders get comfortable lending you or offering you credit. And as soon as you hit the 800 mark of the FICO score, more than 90% of the lenders find you a safe bet to lend money.

Interest Rates

A good credit score can certainly help you get loans or credits at lower interest rates as it shows lenders that you are reliable. 

Insurance Rates

A good credit score could help you get a lower premium on your home or auto insurance. 

Credit Approval Odds 

A score of 800 likely surpasses a lender’s minimum credit score requirement. So as long as you meet other eligibility criteria, you have a higher chance of getting approved.

Credit Limits

Having a FICO score of 800 and above allows you to access higher credit limits, improving your purchasing power. It can also help you keep your credit utilization ratio low.

So, how to reach that excellent credit range of 800 and above? 

5 Steps To Improve Your Credit Score

Before we discuss that, remember these important factors making up your credit score.

1. Payment History: 35%

2. Amount Owed: 30%

3. Length of Credit History: 15%

4. New Credit: 10% &

5. Credit Mix: 10%

1. Make Timely Payments 

Payment history accounts for the biggest chunk of your credit score, and that’s understandable because every lender wants to know about your payment habits.

As a borrower, if you’re trying to boost your credit score, all you have to do is pay back all your dues on time, every time.

2. Maintain Low Credit Card Balances

It is suggested to keep your credit utilization ratio (also known as the balance-to-limit ratio) lower than 30%. 

From a lender’s point of view, it can be risky to lend you something when you tend to borrow almost as much as your available credit. You become a more favorable borrowing candidate if you don’t use much of your credit. 

Ideally, consumers with a score of 800 and above maintain an average utilization rate of 11.5%.

3. Pay Attention To Your Credit History

The older your credit history, the better it is as it makes up for 15% of your overall credit score. 

Experts suggest that even if you don’t use a credit card anymore, don’t close that account because if you do, it can reduce the length of your credit history.

4. Review Your Credit Report

One of the reasons you have a low score may be because of errors or inaccurate remarks on your credit report.

By reviewing your credit report, you can identify and dispute any errors with the lender who reported the information or take it up with the credit bureaus to get corrections. You can also take the help of credit repair service providers who’ll manage the task for you for a nominal fee.

5. Upgrade Your Credit Mix

Being able to handle different types of credits is appealing to lenders, and this credit mix accounts for the last 10% of your credit score. There are three major types of credits:

1. Revolving Credit

2. Installment Loans &

3. Open Credit

To win this part of your score, you need to be juggling this credit mix.

  • Use a credit card to have a Revolving Credit.
  • If you have a mortgage or a car loan to pay off, your monthly installments suffice the Installment Loans part of the credit mix. 
  • Your monthly utility bills or your phone bill varying a little each payment cycle can be considered a part of your Open Credit.

Endnote

Some of you may already have taken some of these measures and still struggling to get to the 800 mark. 
Fortunately, Cool Credit is here to help. Connect with the team of professionals at Cool Credit to get a free consultation right away.

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