How to get a credit score of 800

A credit score higher than 800 can obtain elite status. Experian data shows that only 21% of consumers have a credit score of 800 or above. A credit score of 800 means you will qualify for the best loan terms. Over time, this may result in substantial savings.

But how hard is it to get a credit score of 800 points? Penny Hoarder interviewed several people with credit scores above 800 to understand what they did to get a high credit score.

9 habits of people with 800 credit scores

Although many people with a credit score of 800 have struggled to manage their funds for years, many admit that they have made credit mistakes in the past-so even if you are not perfect, you can recover. If you want to know how to get a credit score of 800 points, please copy the common habits of these nine people with nearly perfect credit scores.

Habit 1: They never miss a payment

This is not entirely a secret. But the first thing that people who reach the 800 mark have in common is that they will never miss a payment or delay paying a bill. According to data from Experian, only 6% of people with a credit score higher than 800 have no or delayed payments in their credit reports.

your Payment history 35% of your FICO score, more than anyone Credit factor. Missed or delayed payments will be kept on your credit report for seven years, but the damage to your credit score was the most serious in the first two years.

Habit 2: They set their own payment schedule

Many people with credit scores in the 800s only need to use autopay to pay their bills once a month. But many of them find that more frequent manual payments are the key to their success. Many people pay weekly or biweekly, and if they make a major purchase, they pay as soon as the balance is posted.

Phillip Godinez, financial coach Personal financial guidance to achieve your goals Payment is made on the 15th and 30th of the month after he gets paid. Doing so helped him get a nearly perfect credit score of 840.

“On the 15th, I logged in and paid all the bills due between the 15th and the 30th,” Godines said. “On the 30th, I paid all the bills due between the 1st and the 15th. Keeping a fixed schedule helps me remember. Since I’m unlikely to make more money between salaries, I I prefer this method to handle everything without worrying about a few more weeks.”

Habit 3: They don’t have a balance

One of the best things you can do for your credit score is to maintain your credit score Credit utilization low. Your utilization is the percentage of the outstanding credit you are currently using.

The standard recommendation is to keep it below 30%, but most members of the 800 club said they keep it below 10%. Most people report paying off their entire credit card balance every month, but a few people occasionally make exceptions for large purchases, especially if they have a temporary 0% interest period.

Antonio Talledo, the founder of Limon Financial, has earned a credit score of 807 since getting his first credit card about 12 years ago. Although he used to make a balance, he now pays his bills in full on the first day of each month.

He said: “I think the biggest impact on my credit score was initially reducing my balance to below 10%, and now it’s down to 0%.” “A few years ago, I held about 30% of my balance, and my The score is less than 700.”

Habit 4: They don’t cancel old credit cards

People with first-class credit rarely cancel old credit card accounts, even if they have already paid off their balance. There are two reasons: when you close the card, you will reduce the available credit, thereby increasing your utilization.Unless it’s one of your newer cards, you can also lower Average credit age, Which determines 15% of your score.

Andrew Chen, founder of the website Crack your wealth If the credit score is above 800, it is recommended to cancel the old account only when it is determined that the card is no longer used. The annual fee is expensive and the card is relatively new, preferably less than two years.

“I particularly urge [against] Closing a card account that does not have an annual fee,” Chen said. “Keeping the card does not cost anything, and having an experienced credit account in your credit file will help your credit score. “

Habit 5: They often use their cards

Once you have an excellent credit score, you are eligible for some very sweet cards Credit card rewardsBut people with high credit scores usually use all their cards from time to time-even those old cards that don’t offer gorgeous privileges. If you do not use a credit card often, the credit card issuer can cancel your inactivity. This will lower your credit limit and credit age, both of which are detrimental to your score.

Alli Williams, founder and CEO Focus on finance, So keep her oldest card open and use it only for subscriptions. “This card is not the best choice for bonus points, so I won’t miss too much by making some small subscriptions on it,” she said.

Habit 6: They apply for new credit selectively

People with excellent credit scores will have a choice when applying for new credit. A new account can lower your credit age.In addition, when you apply for credit, it will cause Hard inquiry To your credit report. Too many credit inquiries or multiple credit inquiries in a short period of time may damage your credit score.

Most people with a credit score of 800 said they apply for a new credit account no more than twice a year — and many people apply much less frequently.

Annette Harris, owner Harris Financial Coach, Said she and her husband have maintained a credit score above 800 for the past five years. They apply for new credits approximately every three years, usually only for credit cards that offer bonus points.

Harris said: “When we apply for a credit card, we are very selective and make sure that the card has no associated annual fees and the interest rate is less than 13%.”

Habit 7: They ask for frequent increases in credit limit

People with a credit score of 800 usually don’t open new accounts frequently, but often seek to increase the credit limit of their existing account—and when their credit card issuer provides a credit limit, they never refuse to increase it. Increasing the limit will lower your credit utilization rate, but not your credit age. In general, you can also avoid difficult questions.

Habit 8: They use a credit freeze

The credit freeze is a popular tool for people with near-perfect credit scores.A kind Credit freeze Block access to your credit report, making it more difficult for crooks to apply for credit on your behalf. You can contact each of the three credit bureaus to set it up. Starting from September 2019, you can freeze and unfreeze your credit for free.

Chen said: “This used to cost $10 per operation.” “Since it is now free, there is no reason not to freeze your credit. It protects you by prohibiting unauthorized access to your credit file, and it protects you An effective way of credit.”

Habit 9: They don’t pay too much attention to their credit score

People with good credit tend to be vigilant about monitoring their credit.Many people use the free credit report service and use it every year Annual Credit Report.comBut other than that, they really didn’t care much about their scores. Their scores are high because they develop good financial management habits over time.

Tyler Ellis, founder Don’t panic, do it!, Is 28 years old and has a credit score of more than 800 years. He only uses a credit card to earn points and then pays off immediately, but he will keep it for one second in case his main card is lost or stolen.

“I bought the car with cash and quickly paid off the student loan, so my only debt was a mortgage,” Ellis said. “Other than that, I have never done anything special to try to artificially improve my credit score. I just don’t spend money I don’t have.”

Do you really need a credit score of 800?

A credit score of 800 will definitely give you bragging rights, but if you haven’t reached it yet, don’t panic. The good news is that if you have a good credit score, you will be eligible for the best loan conditions and the lowest interest rate-in the mid-700s. Regardless of your credit status, to improve your credit score, you need to do the following:

• Pay on time. By paying on time for six months to a year, you will start to see an increase in FICO scores. Within two years, the losses caused by late payments will also begin to fade.

• Reduce your credit usage. Paying your credit card balance and requesting a higher limit will increase your credit score. Reducing credit card debt has a greater impact than repaying a car loan or student loan because it reduces your credit utilization.

• be patient. Credit history takes time to establish. No one gets a credit score of more than 800 overnight. Stick to your oldest account to maintain the highest possible credit age.

• Stay vigilant. Use the free credit monitoring service so that you receive alerts about any changes to your credit report. Also, be sure to use the three major credit bureaus (Equifax, Experian, and Transunion) to check your credit report every year. Annual Credit Report.com. Arguing directly with credit bureaus for any inaccurate information.

By finding a payment system that suits you and living within your means, you can also get a credit score of 800 or higher. But treat it as a long-term goal. When you seek financing and lower interest rates, increasing your credit score will increase your chances of being approved. This is worth celebrating, even if you do not reach the 800 mark.

Robin Hartill is Penny Hoarder’s certified financial planner and senior writer. She wrote a column of personal financial advice for Dear Penny.Send your tough money questions to [email protected]

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