Is 800 a Good Credit Score?
Whether an 800 credit score is considered good is a matter of opinion. It can be hard to get a perfect score, but it is possible to obtain credit card offers and favorable loan terms. While only a small percentage of Americans have perfect credit, a recent FICO report found that only 1.6% had a credit score of 850 or higher. Even so, it’s still a good idea to work to improve your credit score. Fortunately, the process is usually not complicated and can be done over time by making timely payments and managing your credit card bills.
The secret to getting a good credit score is to avoid taking on too much debt. Though the temptation to take on more debt may seem irresistible, it can harm your credit score. Higher credit scores don’t necessarily mean you’ll be able to repay debt, so be careful not to get into more debt than you can afford.
According to FICO, 35% of a person’s FICO(r) score is determined by their payment history. The higher your credit score, the more likely lenders are to grant you a loan. In fact, only 6% of individuals with a score of 800 have late payments.
Although an 800 credit score is an impressive number, it is important to remember that it isn’t a permanent number and varies. To maintain a high score, you should monitor your credit reports often and follow good credit habits. Paying your bills on time and not exceeding your credit limit are two of the best ways to maintain a high credit score. Experian also has a tool to raise your FICO(r) Score based on your payment history.
While an 800 credit score will not hurt your score, you will have a better chance of receiving the best credit card offers. You can even qualify for premium travel credit cards if your score is this high. You can also earn cash back on your purchases and get airline miles or other rewards faster than the average person.
An 800 credit score will help you qualify for lower interest rates. In fact, people with exceptional credit scores can expect interest rates to be significantly lower than the national average, which is over 16 percent. This can help you save thousands of dollars over the life of your loan. If you are applying for a larger loan, this number can be especially beneficial. If you plan to pay the loan off over a long period of time, the 800 credit score will be a valuable asset.
In order to achieve an 800 credit score, it’s important to follow a few simple habits. The first is to always pay your bills on time. This is because your payment history accounts for up to 35% of your credit score. Also, avoid maxing out your credit cards.
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