800 Credit Score: A credit score is a numerical expression of three-digit, ranging from 300 to 900, representing your creditworthiness. Whenever you Apply for a Loan, the lenders look at your credit score as an assurance before giving approval to your credit application. In simple words, you can say that your loan or credit approval is largely dependent on your good credit score.
A credit score that ranges between 750 and 900 is highly considered to be an excellent score. Therefore, 800 is also a good credit score that many people want to attain in order to get easy loan approvals and low-interest rates. Today, we will discuss about the 800 Credit Score and its benefits, so keep reading….
Table Of Contents
- 1 Credit Score Range
- 2 The 800 Credit Score Benefits
- 3 How You Can Build and Maintain an 800 Credit Score?
- 4 Making Payments On Time
- 5 Set Up Automatic Payments
- 6 Keep Low Credit Card Balances
- 7 Monitor Your Credit Report To Clear Errors Quickly
- 8 Avoid Too Many Credit Inquiries
- 9 Final Words
Credit Score Range
- Credit Score between 750 and 900 is considered excellent which makes you eligible to get easy credit approval and low-interest rates.
- Credit Score between 700 and 749 is considered good which makes you eligible to get better interest rates.
- Credit Score between 650 and 699 is considered fair which makes possible chances of credit approval.
- Credit Score between 600 and 649 is considered doubtful and you have to pay high-interest rates and have fewer chances of credit approval.
- Credit Score between Below 600 is considered poor and approval chances become very low.
The 800 Credit Score Benefits
There are many advantages of having an 800 credit score and you must know all of these to know what you are going to get if you have such a score. To know what are the advantages of having an 800 credit score read these points given below:
High Chances Of Application Approval
One of the best things about having an 800 credit score is that it shows your creditworthiness which helps you to get credit easily as compared to those having less credit score. The lenders also get an idea of your financial stability from your credit score from which they can estimate whether you’ll repay the borrowed money on time. A high credit score makes you a less risky borrower than others and it automatically increases your chances of credit application approval.
Get Low-Interest Rates
If you are not aware, your credit score is a major factor that helps in determining the interest rate on the loans. And, if you have a high credit score, the chances of your loan getting low-interest rates exceed. If you have an 800 credit score, then it will probably help you to qualify for lower interest rates. Hence, it will definitely help you financially by saving thousands of dollars throughout the lifespan of your loan. You can easily notice the impact of this benefit with large loans like mortgage and auto loans as you get a longer period for repaying the credit. And, getting low interest on such long-period loans will really benefit you in many ways.
Get Better Credit Card With Less Interest
Having an 800 credit score helps you to qualify for much better credit cards that offer a 0 percent promotional rate on the balance and purchases transfers. If you have such kinds of credit cards, it will give you more flexibility to pay your credit card balance over time and it will also eliminate the finance charges on your balance.
How You Can Build and Maintain an 800 Credit Score?
Having a credit score of 800 doesn’t mean that you will get its benefit throughout life, but instead, you have to maintain it properly so that you can preserve your score and gets its benefits even further. Also, 800 credit score is not for such kind of people who make lots of money or someone who has some kind of privilege with the credit bureaus. An 800 credit score also shows your superb credit habits, but your one mistake can downgrade this high score. So, we are here to provide you with some tips through which you can build an 800 credit score along with maintain it.
Making Payments On Time
Your payment history directly affects a large portion of your credit score. Even a single late payment has an adverse effect on your score as around 100 points will be deducted from your credit score. Therefore, if you have a maximum number of on-time payments on your credit report, it will turn out to be much better for your credit score.
Set Up Automatic Payments
As we said above, making payments on time will help you out to build up your credit score, so in order to avoid any late payments you must set up automatic payments. So, even if you forget your payment date, the auto-payment option will automatically deduct the amount from your account and the payment will be done on time.
Keep Low Credit Card Balances
If you want to build and maintain a credit score of around 800, then you must try to keep your balances below 30 percent of your credit limit. However, if you want a higher credit score, then keeping your credit card balance even lower than 30% will help you out to reach your desired score.
Monitor Your Credit Report To Clear Errors Quickly
Even a slight change in your credit report can cost you to lose your excellent credit score instantly. So, it’s all up to you to check your credit information quite frequently to detect any error. There are many free and paid resources such as AnnualCreditReport.com, CreditKarma.com, myFICO.com, and more that keep an eye on your credit details. Once you spot the error, you have to go through the credit report dispute process instantly for clearing it straightaway.
Avoid Too Many Credit Inquiries
Even though hard inquiries are only around 10 percent of your credit score, but not being a large amount it can still make a lot more difference in your credit score. So, you must avoid making too many applications for inquires, particularly which require a credit check. Make sure to have your research before the inquiry and ask all the queries at once instead of making it in multiple turns.
This was all about the 800 Credit Score and its benefits. Overall, having a credit score of 800 is excellent and if you will follow our given tips, you may probably reach this score. One must take note that the banks usually update your data which involves your name, contact details, address, as well as your family member’s details when you sanction a loan. If in case a default is found on your loan, then it will directly impact your family members as well. Also, if you have applied for a loan and have a good credit score, the process is still going to take some time as the lender will check your financial status, credit history, etc. for assurance. However, you may get personal loans instantly as compared to long-term loans like home or auto loans.