How to Get and Keep an 800 Credit Score
If you’re like the majority of people, you likely believe that a credit score is simply a number generated at random by a computer program in a dimly lit area. However, the way you manage your finances is actually reflected in your credit score. And you’ve come to the proper site if you want to get a credit score of 800.
Let’s first look at the credit score range chart, though. Credit scores range from 300 to 850, with anything over 700 and anything over 800 being considered good and exceptional, respectively. Hence, striving for an 800 is like reaching for the moon. But you can get there with a little bit of work and a lot of comedy.
The four elements that go into your credit score are broken down below, along with suggestions for how to raise it:
Financial History
Payment history is the first consideration. Considering that it accounts for 35% of your credit score, this is the most significant aspect. You’re on the right track if you consistently pay your payments on time. Yet, if you frequently miss payments, your credit score will suffer.
What can you do, then, to make your payment history better? To ensure that you never again forget to make a payment, you can start by setting up automated payments or reminders. If you discover that your current due dates don’t coincide with your paydays, you might also think about requesting a due date change. If everything else fails and you don’t pay your bills on time, you may always hire someone to break your legs. Kidding! Avoid doing that.
Usage of Credit
Credit utilization, which makes up 30% of your credit score, is the second element. This is the ratio of the credit you have available to the credit you are now using.
Consider the scenario when your credit card has a $10,000 limit. Your credit score will decrease if you constantly use all $9,000 of that available credit. Yet, your credit score will be significantly better if you’re only utilizing $1,000 of that cap.
So, how may your credit utilization be increased? You can start by reducing your credit card debt and refraining from making large purchases with them. Another choice is to request an increase in your credit limit, which will provide you more usable credit. If everything else fails, you can always ask a wealthy friend to settle your credit card debt.
Credit History Duration
The third element, which contributes 15% to your credit score, is the length of your credit history. This shows the number of open credit accounts you have, as well as the age of your oldest account.
Your credit score may suffer if you’re a young individual just getting started with credit due to your limited credit history. You still have hope, so don’t worry.
Opening a new credit account, such a credit card or personal loan, is a good place to start. But be careful how you use it, and always pay your bills on time. If all else fails, you can always travel back in time to open a credit account earlier using a time machine.
Variety of Credit
The types of credit you hold make up the final and fourth factors, which together account for 10% of your credit score. Your open credit accounts, including credit cards, loans, and mortgages, are included in this.
Your credit score may suffer if you only have one sort of open credit account due of your lack of variety. Your credit score will be significantly better if you have open accounts with several different types of credit.
So how do you increase the types of credit you have? Start by thinking about opening a different kind of credit account, like a mortgage or a personal loan. So be cautious to only apply for credit that you need and can afford to repay after doing your homework.
Optimizing Your Credit Score
After discussing the four components that affect your credit score, let’s discuss how to maintain a high credit score:
Keep an eye on your credit report.
Monitoring your credit report on a regular basis is one of the best strategies to maintain a high credit score. The three main credit reporting companies, Equifax, Experian, and TransUnion, each offer free copies of your credit report once a year. Examine your report carefully for any mistakes or inaccuracies, and challenge any that you discover.
Use credit wisely.
Using credit responsibly entails only using it when absolutely necessary and ensuring that you have the resources to pay it back. Avoid using all available credit on your cards, and always pay your bills on time.
Limit the number of credit accounts you open.
Your credit score may potentially suffer if you open too many credit accounts. Make sure you are capable of handling the responsibilities of having more accounts before opening any credit accounts.
Keep a low credit card balance.
Credit use, as we previously said, has a significant impact on your credit score. Strive to maintain modest credit card balances and refrain from utilizing more than 30% of your credit line.
In Conclusion
Maintaining a credit score of 800 is a difficult task. But, by using the strategies we’ve provided here, you can be well on your way to achieving a flawless score. Just keep in mind to manage your credit wisely, keep an eye on your credit report, and make your payments on time every single time.
And hey, if all else fails, you can always request a flawless credit score from a genie.