Your Complete Guide on How to Increase Credit Score to 800

Your Complete Guide on How to Increase Credit Score to 800

These tips will get you to the prized high credit score giving you opportunities for better loan and credit terms while saving you some money.

how to increase credit score to 800

Credit scores are probably one of the most important factors when considering your own financial freedom.

A good credit score lets people know that you are a good borrower and that you can be trusted to pay for items and services especially for expensive or high-ticket items like cars and houses.

It also opens up better rates for you in the long run so many aspire to get a great score.

However, even if you do well financially, it may not be as easy to get to the higher scores of 800 to 850.

Today, we’re going to explore what we can do and how to increase credit score to 800 and above. If you want to know more, let’s read up.

What Exactly Is a Credit Score?

A credit score is a three-digit number that gives a numerical grade to how reliable you are as a borrower.

This number is between 300 to 850, with obviously 300 being the lowest number indicating that you are high risk while 850 lets people know that you are good with money.

It lets lenders know your ability to pay back loans and debt on time or if they would even get their money back.

It’s a risk assessment tool for lenders and is one of the most important factors of your financial life and stability.

The higher your credit scores, the more likely you can get a loan or credit card and get it with the best payment terms with low interest rates.

This means higher credit scores actually allow people to save because they are paying less for their loans and premiums.

However, we need to take into account that it’s fairly easy to get your score to a decent range above 300 but then it can get difficult as you aim for higher scores, and the closer to 800 or 850, it becomes kind slower.

You’re not alone though as many are striving to get their scores up not many really know the tips on how to increase credit score to 800 or 850.

First of all, let’s look into some basics of how the credit score is graded.

Basics of Credit Scores

how to increase credit score to 800

So the credit score is a report or summary of your credit risk which is based on your current credit data and your history of borrowing.

The most common credit score is the FICO score which is calculated from five categories that affect your credit history. 

  • Payment History (35%) – this refers to how you regularly pay your bills and whether or not you are paying them on time. 
  • Amounts Owed (30%) – this is based on how much credit and loans that you currently have outstanding. 
  • Credit History Length (15%) – how long you’ve had credit and how long you’ve been making payments can affect your credit negatively and positively.
  • Credit Mix (10%) – this is how diversified and how many credit items that you have currently like mortgages, credit cards, and loans
  • New credit (10%) – how often you open new credit accounts and receive credit inquiries. 

Sadly credit scores don’t consider your age, education, employment history, gender, income, marital status, race, or zip codes when calculating your final score which is why

it’s important to actually have regular credit that you are paying for to establish some sort of history.

Knowing this will help on how to increase credit score to 800 or more.

The 800+ Credit Score Club

The average credit score in the US today is 704 which is a good rating and the highest it’s been for some time now and has increased in the past 8 years.

This shows the kind of credit quality US citizens have.

However, more and more people are also hitting the 800+ range with around 21.8% or around 1 out of 5 citizens getting an excellent rating.

This means that while it might be difficult, it’s not impossible how to increase credit score to 800 or more.

Those who hit the 800 to 850 credit score range have shown some qualities including the following:

  • Many profiles nowadays have negative blemishes. Consumers with debt hitting third-party collections have gone down significantly. Most of those profiles that hit the 800+ score also do not show any delayed payments or debt in arrears. 
  • People seek credit responsibly as many consumers no longer just sign up for credit cards and loans but unless absolutely necessary. This also means people are being more responsible for the debt they owe and that they are paying regularly.
  • Better consumer education has created awareness with many consumers which led to higher credit scores and better financial decisions.

Knowing all these, here are some tips on how to increase credit score to 800.

how to increase credit score to 800

1. Set Automatic Payments

As we want to avoid you being late for your payments, you should set automatic payments for your credit card and loan payments.

This ensures that you won’t forget to make a payment ensuring that you have a positive payment history.

Remember that missing a payment can actually lead to credit score deductions of up to 100 points.

But if you make payments on time and regularly will definitely assist how to increase credit score to 800.

2. Lower Your Balances and Pay Them Off ASAP

The larger your debt and the longer it is unpaid can and will have a negative effect on your credit scores.

What you want to do is devote a huge portion of your budget to paying this off right away to show your capability as a reliable payer of debt.

3. Credit-Builder Loan Are a Way to Go

Credit-builder loans are also available for you to increase your credit score to 800 or more.

These loans are designed specifically to build your credit score by allowing you to loan an amount that will actually just be used to make monthly payments.

This can have from six (6) to twenty-four (24) month terms.

These loans often create savings accounts where the loan money taken out go into but will then be used to pay back the loan.

Please note, however, these loans often come with interest so you may need to pay the interest for taking up the loan.

4. Get a Secured Credit Card

credit cards ftr
Credit card of VISA, AMERICAN, and Master are arranged for a photograph on 11 September 2017, in Hong Kong, Hong Kong. Photo by (studioEAST/Getty Images)

Secured credit cards are credit cards that you can get by placing a deposit amount.

This allows you to get a credit card without the need of doing a credit score check.

Note that credit inquiries actually carry penalties every time it is checked.

This then allows you to use the card like a regular credit card as normal and if you pay the balance on time regularly, it will positively affect your credit score.

The deposit is also there to ensure that your card balance is paid for.

Responsible payers can even get your card upgraded to a regular credit card. 

5. Register for Experian Boost

This service allows you to register your utility and phone bills to be reported to credit reporting bureaus.

If you regularly pay for your utility and phone bills then it will definitely boost your credit score and you’ll see it get to 800+ in just a few months. 

how to increase credit score to 800

Final Thoughts

Trying to get a high credit score is not easy.

But if you know the basics on how to increase credit score to 800, it can easily and quickly be done.

The key is to avoid anything that will cause penalties in your credit score while ensuring you have a positive payment history by always paying on time.

These tips will get you to the prized high credit score giving you opportunities for better loan and credit terms while saving you some money.

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Author: John Benares

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