How to Get Your Credit Score Above 800

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One of the best things you can do for your finances is to have a good credit score. Having a good score will help you get some good deals on credit, but the best deals come to those with credit scores of 800 or more. Along with it, you can enjoy the 800 credit score benefits.

In today’s world, your credit score can affect you in many ways. A good score is needed to get lower interest rates on personal loans, car loans, and credit cards. You may also need it to obtain rental agreements, home loans, life insurance, and even some jobs require a good credit score.

Depending on your situation, LendingTree says you may be able to increase your credit score by as much as 100 points within 30 days. Here are some tips showing you how not only to raise your credit score but also how to get an 800 credit score.

Check Your Credit Reports

Start by looking over your credit reports for any discrepancies. Mistakes can get added to credit reports, which could affect your credit score. Two other things that can affect your score are fraud and identity theft. You may also have accounts you forgot about—but collection agencies may have that information. If so, pay off old debts that are still outstanding before applying for any new credit.

If there are any mistakes on your report, you can quickly raise your score by correcting them, but it will take a minimum of 30 days to reflect any changes. Each of the three major credit bureaus—Equifax, Experian, and TransUnion—offers one free credit report per year. You can get all three credit bureau reports for free from AnnualCreditReport.

Some things on a credit report will not be removed for some time. Late payments, Equifax says, can stay on your credit report for as long as seven years. A Chapter 7 bankruptcy can stay on your report for up to 10 years. If these things are there, it will affect your ability to get new credit anytime soon—or it may come with a high-interest rate.

Pay Your Bills on Time

The biggest factor the credit bureaus use when calculating your credit score is whether you pay your bills on time or not. Each payment must also be at least for the minimum amount due. This factor counts for 35 percent of your credit score. Raising your credit score to 800 or more depends primarily on this one thing.

If you have a late payment, it probably is not a cause for concern. Experian says that most lenders will not report a missed payment to the credit bureaus until it is 30 days late. Despite this, you want to try and get your payments sent in regularly before the due date.

You can eliminate late payments, Equifax suggests, by setting up automatic payments with your bank. It will solve that problem—even if you tend to forget.

Keep Credit Card Balances Low

Having a lot of credit card debt has a negative influence on your credit score. Another factor used to determine your score is how much debt you have compared to your credit limit. If you have a credit limit of $3,000 and owe $900 on a card, that is a ratio of 30 percent credit utilization. It is the maximum you want to have to get a credit score above 800.

Experian mentions that people with a FICO score of 800 typically have a credit utilization of less than 11.5 percent. Lenders do not like to see high credit utilization because they are afraid borrowers may be unable to keep up with payments. Having high credit card balances could also reveal uncontrolled spending habits.

Reduce Your Balances

LendingTree says that reducing the balances on all loans and credit cards is the best way to increase your credit score. It will enable you to see a big increase in your score if you do not have late payments and other significant problems.

If you cannot pay off your debt completely, consider getting a personal loan. LendingTree says that a personal loan is installment credit and unlike revolving credit (credit cards) does not count as part of your utilization rate.

Keep Your Old Accounts Open

How long you have had a credit card makes up another factor in your credit score. It means that if you close old credit cards—even the ones that you have not used for some time—you may be hurting your credit score. Lenders like to see that you have a long credit history of making payments consistently.

Apply for More Credit

If you already have a good credit score, you may be able to apply for more credit. When you get new credit, your credit utilization ratio is lowered—which will raise your credit score.

Avoid sending in many applications for credit at the same time because it produces a hard inquiry. It will lower your score by a few points, but a new card will offset it. Too many of these will reduce your credit score even more. When applying for more than one card, make all your inquiries during a one—or two—week period.

Another way to get more credit may be to contact all your credit card companies and ask for higher credit limits. You can do this rather quickly, and if your payment record is good, they may do it.

If you have high credit utilization, getting more credit may only offer limited help. It depends on how much credit a new credit card gives you.

Bringing your credit score over 800 is not going to happen overnight. It will take discipline and patience. By following the above steps, you will soon be able to enjoy the 800 credit score benefits.

The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.