The Highest Credit Score And How To Get It
A credit score value is a crucial number for you as this 3-digit value is a measure of your creditworthiness. In other words, it is the likeliness of your repayment of the money borrowed. A general credit score range from 300-850. The highest credit score gives you an approval for new credit. Under an ideal situation, using the FICO model, the possible highest credit score can be 850. So, if 800-850 is an excellent credit score then 670-739 is a good credit score.
The importance/need for the highest credit score
A credit score depends on total debt levels, open accounts numbers, and repayment history, and so on. Anything over 740 credit score is great and places you in the best of the rates of interest on mortgages, credit cards, car loans, and some other loans. They give you the scope of development of financial stability and sustain the credit score for better financial prospects.
It is not necessary to have a perfect credit score, however, a realistic credit score falling in the range will certainly reap you advantageous with many financial needs such as mortgage rate of interest or other interest rates on different loans. So, maintaining at least 800-850 credit score range will be beneficial.
As per FICO, your credit score depends on the following:
- Payment history-35 percent
- The amount owed-30 percent
- Credit history tenure-15 percent
- New credit and accounts inquires-10 percent each
Advantages of 800 credit score
- Your applications approve faster due to your creditworthiness.
- This helps in the prediction of repayment of the money borrowed by the lender.
- You are placed in a less risky slot as a borrower.
- You can qualify for an interest rate that is lower than with lower credit scores.
- It saves lots of money, particularly on larger loans that are taken for longer repayment time such as auto or mortgage loans.
- You get a credit card with better offers with lesser interest rates to pay. It put you on credit card qualification with a zero percent promotional rate on balance transfers and purchases made.
How to Get an 800 Credit Score and Above?
Anyone who can maintain their credit appropriately can attain and sustain the 800 credit score.
Some tips to get an 800 Credit Score and Above
- Low balances on credit cards: You should keep your credit card balance to about 30 percent of the overall credit limit. It is a big influence on your credit score. For example, if 10,000 dollars is your card limit then your card balance is best below 3000 dollars. To attain a 800 credit score, your balances have to be below this amount. An individual with credit scores over 800 makes use of 11.5 percent of the overall credit.
- Pay on time: Your credit score is built or collapsed with your payment history. If you maintain timely payments, it reflects on your credit score in a big way. The more you are on time, the better the score.
- Minimal/No credit inquires: When a credit check application is filed for, a credit report is checked for. There can be inquiries regarding your credit score. About 10 percent of the inquiries constitute them. So, to avoid multiple inquiries, you ought to work out the loan requirements such that you apply only once.
- Credit monitoring and clear the voids: Your credit report gives your credit score information. If there are any errors, your credit score also impacts likewise. So, monitoring your credit report is equally essential to void any errors associated with it. This will keep your credit score safe.
- Negativity off the report: For people who could not maintain timely payments and other associated things to maintain a good credit score, the negativity will drop after 7 years with constant good efforts. Apply for any loan post the negativity for better results.
- Closing a credit account: Stop using rather than closing a credit account as this can impact your credit score.
- A good credit score is primarily for getting a loan from a potential lender.
- To reach a credit score of 800-850, pay all the bills timely, maintain your debt low, and use 7 percent of the credit available on all of your accounts. Keep the oldest of your accounts open and maintain them. Monitor your credit report and manage your debt ratio to available credit.
- The FICO scoring system determines the credit score which is majorly used by several financial companies.
- Credit Score is determined based on the loan type, repayment history, credit history, and its time and total debt owed by the person.
- The credit score is also influenced by the utilization of the credit and available credit percentage being used.
- Do not close a credit account as this can decrease the credit score of an individual.
How are FICO basic scores ranged?
FICO scores are used by the majority of financial companies.
The FICO scores range as below:
- 800-850: Excellent
- 740 - 799: Very Good
- 670 - 739: Good
- 580 - 669: Fair
- 300 - 579: Poor
You are creditworthy for anywhere above and equal to 740.
How much time can it take to attain an 800 credit score?
It can take some years to get a credit score of 800 and above. However, to make this possible, you need to sustain a good payment history with timely payments. A good credit accounts mix that has been maintained and managed properly will add to your credit score.
How can I raise my credit score from a lower to a higher credit score?
Add in accounts that are missing, pay down the largest balance, use your credit cards, shield and blend your credit, dispute errors, and pay by your report and not the due date. These are some ways to raise your credit score to a higher value.
The highest credit score is not an impossible thing to do if you monitor your credit report timely, pay bills on time, keeps the credit to a low balance, and sustain the credit score. This number can help you get the lowest repayment rates of interest to the borrower on different loans such as auto loans, mortgage loans, credit card loans, and so on. This way your credit score saves you money, time, and risk. A high credit score is 800-850, but sustaining it to 800 will help you get hands-on better financial prospects.