An 800 credit score is perfect credit. You get the best mortgage rates, fast approvals, and qualify for the best credit cards and loans.
Although it might sound difficult to get there, it’s easy to accomplish when you pay all of your bills on time, pay down debt, and make vigilant decisions on applying for new credit. If you’ve already done the work to get yourself to the 750 mark, then 800 is no sweat!
The same habits that got you to 750 will help you earn that coveted perfect credit score. We’ll go over how you can improve your credit score by that extra 50 points.
Pay Your Bills On Time
Anyone with a good credit score knows you have to pay your bills on time. That’s the most basic principle to improve your credit score since payment history makes up 35% of your FICO score. Your credit score indicates how much risk a bank takes on when lending money to you.
Missed payments on your credit report are never a good sign for any financial institution. The more late and missed payments you have, the more risk you pose to credit bureaus and banks. And the less likely they are to lend you money.
People with 800 credit scores pay 100% of their bills on time. Every time. Why? Because a single payment that’s 30 days late can drop your FICO credit score by up to 100 points.
Give your credit score a fighting chance by making all of your bill payments on time. Enroll in autopay if you need to or keep track of payments through a budgeting app or spreadsheet.
Pay Down Your Debt
According to a 2021 study by Experian, The average American has an estimated $5,525 worth of credit card debt and an average utilization rate of 25%.
Debt is expensive. You pay an interest rate on top of the original amount of the loan. With credit card debt, the interest is compounding. Making it much more expensive than other financing options. The best action to take when aiming for perfect credit is to pay down your debts.
Not only does this free up extra income for other purposes, but it also lowers your credit utilization rate, which impacts your credit score. Another factor lenders pay attention to when applying for credit is your debt to income ratio.
While this isn’t technically a part of your credit score, it does affect your approval odds for obtaining credit as well as how much credit you’re approved for. Take action to decrease your debt by using the following tactics:
- Find a 0% APR balance transfer offer to pay down high-interest rate credit cards.
- Develop a budget that allows you to contribute more to monthly payments.
- Use the avalanche or snowball method to pay down debt faster.
Limit Your Credit Utilization
Credit utilization is the second most important factor in your credit score. In the FICO credit scoring model, it contributes to 30% of your overall score. So it’s no wonder why Experian found that the average credit utilization rate for someone with an 800 credit score is 11.5%.
Your credit utilization is the comparison between how much available credit you have and the balances you currently owe. It tells lenders how much additional debt you can sustain when you apply for new credit accounts.
Credit reporting agencies suggest keeping your utilization ratio below 30% for a healthy credit score. Once you start paying down credit card debt, it’s easy to get carried away and bring your credit utilization down to 0%, but that could lower your credit score in some cases.
Instead, it’s best to keep a small revolving balance of about 7-10% for optimal credit scores. You can also make strides here by getting a credit limit increase on your cards. The trick is not to use the additional credit limit.
Maintain a Good Credit Mix
Your credit history gets run through an algorithm that calculates your score based on a multitude of factors, including what types of credit accounts you have in your credit profile. This is called your credit mix and it’s 10% of your credit score.
When you have multiple types of accounts in good standing, that system associates you with other consumers who have excellent credit. Healthy credit history might include:
- Credit cards
- A mortgage
- Student loans
- Car loans
- Personal loans
Managing multiple types of credit shows that you’re able to keep everything running smoothly with different due dates. It can also demonstrate your experience with revolving unsecured credit compared to secured fixed-rate loans.
Credit bureaus value diversity when it comes to your credit history, so if you need additional types of credit to improve your credit mix, it might be worth it to apply for a new account.
Don’t Close Any Old Credit Accounts
When paying down debts and lowering your credit utilization ratio, a common mistake is to close out an old credit card that’s been paid off. In some cases, it still might make sense to do it:
- A credit card that’s been open for a short amount of time
- A card with a small credit limit
- A secured credit card that you no longer need since you have regular credit cards
- Credit cards with a high annual fee
However, when you have a credit card that’s been in your credit history for a long time, it raises your length of credit history. This accounts for 15% of your total credit score. Often when this type of card is closed, your credit score lowers for several reasons.
- Your length of credit history is shortened
- Available credit decreases
- In turn, credit utilization increases
Keeping your old credit card open and choosing not to use it could be the best option here. Some credit card issuers have a policy that allows them to close cards not being used for an extended time so you may need to periodically make a small purchase and pay it off.
Use a Credit Builder Loan
We’ve already covered why your credit mix and payment history are so important to achieving excellent credit. Sometimes, all you need are the right tools to get you there. A credit builder loan is a secured installment loan that reports your payment history to the credit bureaus.
It helps you by improving your credit mix and adding positive payment history to your credit report. If you’ve struggled with on-time payments in the past, this could help you balance the scales in your favor.
The loan is secured through a deposit made into a savings account and the funds are released to you when you’re done repaying the loan. CreditStrong offers one of the industry’s best credit builder accounts.
They have flexible loan terms and payment options that make it an affordable way to improve your credit score. CreditStrong doesn’t require a credit check to qualify you for their credit builder loans so you won’t have to worry about a drop in your score from a hard inquiry.
As long as you keep up with your payments, you could see a significant boost in your FICO score in as little as three to six months. Discover how CreditStrong can help you reach perfect credit and choose the credit builder loan that’s best for you at no risk!
Don’t Apply For New Credit Too Frequently
When you have excellent credit, credit card issuers and lenders will offer you the best deals, incentives, and interest rates just to open a new account with them. Because they know you’re the most likely consumer to repay their debts on time.
Adding new credit accounts to your profile is tempting, especially when you know you’ll be approved on the spot. However, the amount of new credit in your credit file can negatively affect your score. So it’s important not to apply for new credit unless you need it.
If you decide that it’s worth it to get that new car loan, credit card, or home loan, try to space out your credit inquiries to minimize the impact they’ll have on your credit score. When you apply for new credit after six months the effect of the inquiry on your score is reduced.
Even though inquiries only equate to a five-point deduction or less, they can easily add up if you’re not disciplined with applying for new credit.
Sometimes the issue isn’t how many inquiries you have, it’s how closely the inquiries are grouped together. Too many inquiries at once is usually a negative factor for credit bureaus and banks.
It tells them there are potential financial troubles that could impact your ability to meet payment obligations. Consider spacing out any hard inquiries for new credit over six months to a year so it has less of an effect on your credit score.
This requires waiting a little longer to get what you want but it brings you closer to attaining a perfect credit score in the process.
How Long Does It Take To Get an 800 Credit Score?
The time it takes to get to an 800 credit score depends on where you’re starting. Credit scores range from 300 to 850. Your credit score can fall into one of the following categories:
- 300-579: Poor credit
- 580 -669: Fair credit
- 670-739: Good credit
- 740-799: Excellent credit
- 800-850: Perfect Credit
The average credit score is about 711, which is considered a good credit score. If you fall in a lower credit score range, it may take much longer to earn an excellent credit score. That doesn’t mean it can’t be done.
If you have bad credit and are looking to improve your score, check out these companies for help with credit repair. From there, you can build credit with the help of:
- Credit builder loans
- Secured credit cards
- On-time payments
- Low utilization rates
- Paying down debts
If you’re starting at a 750 FICO score, it won’t take long for you to make it to 800. To increase your score by 50 points would take about three to six months to achieve if you’re focused. So it’s possible to raise your credit fast.
Getting to a 750 score is no small feat. It takes a consistent payment strategy, years of maintaining accounts, and watching your credit report like a hawk. Keeping the same habits will continue to carry you to an 800.
So paying down credit card debt or lowering your utilization rate is likely the most effective to raise your score to the next level.
Overall, it takes discipline, consistency, and planning to earn perfect credit. Even if you’re starting with bad credit, it’s still possible to get there with some extra time and effort.
The most effective way to get there is simple. Pay bills on time, lower your credit utilization, and be mindful about applying for new credit.
