So How Can You Get an 800 Credit Score? Well, today we are here to give you some good tips.
You’ve probably heard someone boast about how they have “perfect” credit. That would mean they have a FICO score of 850. In order to have achieved that they would have to have at least five credit card accounts, at least one mortgage or auto loan, 30 years of credit history, 20 years of positive account history, no late payments for the last seven years, and a debt level that doesn’t exceed 35 percent of their total available credit. So, the next time some 30-year old loud mouth tells you he has perfect credit, you’ll know he’s full of it. While having perfect credit is a laudable goal, most people would be ecstatic to be able to cross the 800 score threshold. It doesn’t happen overnight, but it’s also not that difficult if you know what to do.
Here’s how you can get an 800 credit score:
Never, Ever Miss a Payment
Needless to say, the path to 800 is paved with a continuous string of on time payments. Your payment history comprises a whopping one third of your credit score. Just one missed payment can drop your score by as much as 110 points. The only thing worse than a missed payment, which remains on your credit report for seven years, is a bankruptcy. A late payment, made within 30 days or the creditor’s grace period is recorded as a missed payment.
Maintain a Low Debt-to-Credit Limit Ratio
Credit utilization is the next biggest factor in scoring your credit. The less debt you have in relation to your available credit, the higher your credit score. To keep you score moving higher, it’s recommended that your debt ration be no more than 35 percent; 25 percent is better. To give you an idea of what it will take to get to 800, the average ratio for those who score that high is about 7 percent. This is one reason why you should try to expand your overall credit limit through increases or adding new credit accounts. It’s always recommended that you don’t apply for credit you don’t need, but if credit line increase offer or a 0% balance transfer opportunity comes along, take them up on it.
Diversify Your Credit
Your ability to handle a variety of types of credit is another big scoring factor. An 800 score cannot be achieved with credit cards alone. You will need a good mix of credit, such as credit cards, installment loans, an auto loan or a mortgage. If you’re currently limited in your mix, you might consider going to a bank or credit union and taking out a small, secured personal loan using your savings as collateral, or purchase your next appliance on an installment loan.
Keep Your Accounts Open and Active
People with a lot of credit cards are sometimes tempted to close accounts they don’t use or that have high fees or interest rates. While that may seem the prudent course, it can also hurt your credit score; because it lowers the amount of available credit which could increase your debt-to-credit limit ratio (see credit utilization above). In order to achieve a high credit score, you need to have credit. Not only that, you need credit activity that can be scored each month, so it’s important to use as many of your credit cards as possible. If you assign each credit card a specific spending category, such as groceries, gas or utilities, you’ll be generating credit activity, and with the balance paid in full each month, the activity will be reported positively while not increasing your debt ratio.
Monitor Your Credit
Everyone likes to keep score. At the very least you should avail yourself of your three free credit reports each year to not only check your score, but also to ensure there are no errors. Credit reporting errors occur more frequently than we’d like to think, and any incorrect item – a wrong Social Security number, a misreported payment or credit limit, or a rouge inquiry – could hurt your score. If you are real serious about reaching 800 sooner, you should consider subscribing to a credit monitoring service for about $10 a month.
Give Yourself Some Time
Even if you apply these essential credit building rules, you may not be able to break 800 for a few years. It usually requires at least 10 years of a “perfect” credit history to achieve an 800 score. While it may not actually take that long, you need to give yourself the proper time horizon and know that your score will grow each day. The only thing you have to do is manage the four essential credit building tasks.
The sluggish economy has take the wind out of credit card sales, and, as a result, debit cards have become the vehicle of choice for credit wary consumers. While the use of debit cards has increased due among consumers who ran into credit problems, they have also become a vital tool for people who simply want to change their credit habits and control their debt.
Undoubtedly, debit cards can be effective in keeping people honest with their credit habits; however, consumers may be missing out on some key benefits that credit cards offer when making transactions. The credit cards vs. debit cards debate needs to consider the key differences between the two.
Both types of cards provide some layer of liability protection in case the card is lost or stolen; however credit cards provide added security because of the way the transaction is covered. With a credit card, the transaction is covered by the credit card issuer who pays the merchant directly. In a debit card transaction, the monies are debited directly from your checking account, so, in the event of a dispute or fraud, you could have a difficult time retrieving your money. At the very least, you will be out the money until the problem is resolved. In the case of a credit card, the credit card issuer works to resolve the dispute and you aren’t out any money.
Build Your Credit Score
Debit cards may seem to be the better solution if you are working on controlling your debt and cash flow; however, if you ignore your credit cards, you could be hurting your credit score. With debit cards, nothing is reported to the credit bureaus. Your credit score relies on continuous credit usage to create a payment history. At the very least, you should consider using your credit card to make some regularly budgeted payments each month and then pay the balance in full.
While you can use a debit card to book travel, it can wreak havoc on your checking account. Typically when you rent a car or book a hotel, the merchant will “charge” your account an amount that will hold the car or room. This amount is often in excess of what the actual charge you will pay. So, even before you travel, the money will come out of your checking account. And, when you book air travel, you typically need to pay for a ticket well in advance which means you will lose the use of funds while waiting for your travel date. With a credit card, your checking account isn’t affected, plus you are provided with certain types of travel protections like lost luggage insurance and accident coverage.
When you use a debit card to set up scheduled payments, such as with inusurance payments or an installment loan, it can sometimes create problems when your cash flow becomes tight. The one time your checking balance runs low when a scheduled payment hits will cost you a bank overdraft charge fee, which suddenly increases the cost of your purchase.
It is often recommended that you use a credit card when making a big purchase, especially with such things as electronics. The extended warranties provided with credit cards can provide you with twice the amount of protection of the manufacturer’s warranty.
Cash Back Rewards
Although an increasing number of debit cards are beginning to offer rewards programs, they have yet to match the richness of credit card rewards, especially with cash back rewards. If you can use your rewards credit card responsibly, there are significant savings to be had which can boost your cash flow each month. Just be sure to pay your balance in full each month or you’ll negate the benefits of the rewards.
With so many credit cards to choose from, consumers are left to fend for themselves in finding the best credit card deals. Fortunately, the Internet, which is loaded with online credit card search and comparison sites makes the task far less daunting than it once was. Still, unless you know with a fair amount of certainty what it is you are looking for, that “best deal” may remain elusive. Herewith are some tips on how to find the best credit card deals.
Assess Your Credit Needs and Circumstances
In the vast universe of credit cards, there are as many different types as there are varying individual needs. What may be a good deal for one person may not be so good for you. You can quickly narrow down the choices by carefully assessing your particular needs and what it is you want to accomplish by getting a new credit card.
If you are trying to build or rebuild your credit, you will be choosing from among a completely different type of credit card than someone who wants to upgrade to a premium credit card with more benefits and a higher credit limit. Many people want to enhance their rewards programs while others are simply trying to lower their overall credit costs. It is important to know what it is exactly that you need from your credit card in order to zero in on the one that is right for you.
Assess Your Credit Standing
In most cases, the credit card deals you will qualify for will be dictated by your credit standing. What initially appears as a great deal, may look entirely different to you when you are approved for a card. The reality is that not everyone qualifies for the best deals.
If you have good to very good credit, you could qualify for rewards cards and some with better terms. It is important to know your credit standing so you don’t apply for credit cards for which you have little or no chance of qualifying, otherwise you will hurt your credit score. If you know your credit score, and what is generally required for premium credit cards, you can work to improve your score before applying.
Know How You Use Credit
People use credit in different ways which can be a determinant in the type of credit card to select. Some people will need to carry a balance for period of time. Obviously they would want to select credit cards with the lowest APRs or look for low or no ARP balance transfer cards. Some people prefer to pay their balance off each month, so they could choose a charge card, such as American Express Gold, or a credit card with a higher APR but a robust cash back program.
Know How Fees Work
Since the financial crisis banks have come under heavy attack for their revenue generating practices, specifically as they apply to credit cards. While the banks have been forced to rein in the APRs, they have simply massaged the numbers on the fee side in order to offset the loss of interest revenue.
So, not only are banks adding fees, they are becoming more adept at bumping them when you least expect them. With that said, you need to understand the tradeoffs in credit card costs. If you want the best cash back rewards or the lowest APR you can expect higher fees. Be sure to read the fine print very carefully to know how all fees will be applied.
Shop and Compare
While this ought to be able to go without mentioning, it’s important to recognize the valuable tools available to you online for thoroughly shopping and comparing credit cards. There are a lot of moving parts within credit cards and one great feature could be completely negated by a couple of stealth fees or two many restrictions on the rewards program.
With your in depth assessments of your needs, circumstances, credit standing and use of credit, you can use these tools to quickly shrink the universe of credit cards that might best fit your specific situation.
It may just be a sign of the times when we see credit monitoring services proliferate across the Web becoming one of the high-growth industries of the decade. Chalk it up to a massive increase in fraud and identity theft as well as the need in this time of tight lending to micro-manage credit scores to gain those critical 20 or 30 points needed for a loan approval.
Like it or not, your financial life is an open book with creditors, lenders, auto insurers, employers, and yes, fraudsters and thieves clamoring for a look; so, why not you? You may be writing the book, but you still need to be able to see what everyone else is seeing.
More importantly, you need to know when it doesn’t read the way you intended. One error, a misapplied payment, or a misuse of your Social Security or credit card number can turn your life upside down if you are in the dark.
While a credit monitoring service won’t necessarily prevent problems, it can ensure you know about it quickly so you can minimize the damage.
As you might imagine there’s a plethora of credit monitoring services selling their wares all over the Internet.
When considering a credit monitoring service there is a threshold that the better ones typically meet that includes:
• Free (or $1) credit scores from all three credit bureaus
• Free 30-day trial
• $1 million ID theft insurance
• Instant alerts when changes occur
• Monthly consolidated monitoring reports (weekly available for higher fee)
• Tiered pricing based on the level of service desired
Of the first 20 credit monitoring services that popped up in a Google search query, the following meeting that threshold:
• Identity Guard
• Privacy Guard
• Trusted ID – offers the lowest cost plus a family plan for $20 per month
• Smarter Credit
• Protect my ID (Experian) – low cost monitoring but no credit scores
• LifeLock – includes free monthly credit score from TransUnion
All six of these credit monitoring services charge less than $15 per month for the basic level of service, and all offer a 30 day trial which should be sufficient for determining whether their service can be of value.
I am sure you have seen the commercials for FreeCreditScore.com or FreeCreditReports.com. Now free credit reports are really not free at these sites and neither is the credit scores, yet they are different by definition. You do not have to go to these sites to get your free credit reports that are mandated by law.
The catch to the sites you see advertised on TV is that they are upselling you for a monthly monitoring service for you credit reports. There is absolutely no need to do this and I have supplied the real link below in the credit report section.
Now the Credit Score is different as explained below and you do have to pay for it, but it is your option if you want to get it. After you submit the request for you real 3 credit reports, you will be able to order the free credit score from any of these if you want it. All you really need to review your credit history or to check for errors is the 3 free ones.
See the information highlighted below to understand the concept better showing the difference between a credit report and score.
Federal law requires that all 3 major credit reporting agencies have to give you a free credit report each year.
1) Your credit report reflects actual performance in your credit history. It looks at when and where you applied for credit, who you borrowed from and whom you still owe.
2) A credit report is free through the official website at AnnualCreditReport.com.
1) Your credit score determines your creditworthiness and is based on several factors. Your FICO score is a review looking at if you pay your bills late and how much credit you are using based on the available credit you are allowed. It will also look at how long you have had accounts open and the years you have been at your employer. It will also look at how many times your credit has been checked over a period of time. The factors are combined and a score is determined. The range is 500 – 850 with anything under a 600 considered bad credit and over 700 a good credit score.
2) You will have to pay around $15 to get your credit score.
In regards to credit cards, excellent credit cards require a credit score of 749 or above. A good credit score is between 700 and 749. Fair credit is 650 – 699. Once you know your credit score you can apply for the credit cards for that quality score right here on the website.
We hope this article has helped you to answer this question.
First, if you do not know your credit score there are various places to get it. You should run this just to know where you stand. If you are ever down at a car dealership and are applying for credit, they are going to run your credit score. Take advantage of that and get it from them just so you know it as of that date. If not just go online and pay the $15 one time fee per year to run it.
The various credit categories are listed below:
Excellent Credit (750+)
Good Credit (700 – 749)
Fair Credit (650 – 699)
Poor Credit (600 – 649)
Bad Credit (Below 599)
We have links below that provide a page for the credit categories between Excellent – Fair Credit
Depending on your credit score, you can click on the links above and compare and review all the credit cards available. When you have decided on a credit card for you, just click on the apply here button to be taken directly to that issuers online credit card application. It is easy to fill out and get approved.
We also recommend reviewing the interest rates, annual fees and benefits of each card before applying.