While there are many different credit scoring models on the market, and some lenders even use their own internal models, you are more likely to come across FICO and VantageScore models when it comes time for a credit check.
Both of these models consider a credit score of 800 as the highest level: FICO scores of 800 to 850 are in the upper range (excellent) and VantageScores of 781 to 850 are the highest (excellent).
Having such a good credit score makes it easier to get loan products and secure the best interest rates and loan amounts. Let’s take a closer look at what it means to have an 800 credit score, what you can do about it, and how to get such a high credit score.
Benefits of an 800 Credit Score
There are a number of ways a good credit score can come in handy, and it’s especially easy to claim these perks when it hits 800.
borrowing money
Your credit score signals to lenders how creditworthy you are: the higher your credit score, the more likely they are to lend you money on better terms. Your credit score can affect your interest rate, loan amount, and down payment. When you have a credit score of 800 – one of the highest scores you can have – you are much more likely to qualify for the best loan products with the lowest interest rates, which can save you a lifetime package. loan.
Work searches
Employers often review the credit reports of candidates who will handle finance if they are hired. Even if you don’t manage money as part of your job, some employers review credit reports to see how reliable and responsible you are.
Having a clean credit report (which usually results in a high score) will confirm that you can manage your finances, are secure, and are likely not to run into distracting financial issues that could hurt your job. This type of credit check will not be considered a hard request, so your credit score will not be affected in any way if they remove your report.
Finding an apartment, insurance and utilities
Landlords check applicants’ credit reports to make sure they paid their bills on time before allowing them to move in. Utility companies also look for up-to-date payment history before deciding to work with a consumer. And insurance companies check credit reports to see how responsible a potential customer is, and tend to offer better insurance rates for customers with higher scores.
What to do with an 800 credit score
If you have a credit score of 800, congratulations are in order. Here’s what you can do with it:
Ask for lower interest rates, higher credit limits
The first thing Wayne Sanford, owner of Texas-based credit advisory firm Credit Bureau Investigations, recommends is to contact your current credit issuers to see if they can offer you a better deal.
“Call and say, ‘I just checked my credit score and it was over 780, so why am I still paying such a high interest rate?’ Most of them will lower the rate for you,” he says. And if that doesn’t work and you have a high interest rate balance, it might be time to look into a zero interest balance transfer card deal or consider applying for a new card with a low annual interest rate.
While you are talking to your credit card issuer, you can also request an increase in your line of credit. If successful, this is a good win, as it can make it a little easier to maintain a high credit utilization ratio (more on that in a minute) if you tend to have balances on your cards from time to time.
Go to the best credit cards
Some people like the status quo, stick to the same cards they first discovered in their 20s. While this is great for the length of your credit history, you may be missing out on great rewards and benefits, especially with a high score.
“A great credit score will get you the latest rare metal or expensive gemstone cards—whether platinum, diamond or black,” says Rod Griffin, director of public education at Experian, one of the top three credit bureaus. To find out which cards you are now eligible for, use the CardMatch tool at CreditCards.com. By entering a few key details, CardMatch will pull up card offers based on your creditworthiness, and there will be no hard requests.
“In addition to prestige, there are VIP perks that you can unlock,” says Michael Foguth, founder of Foguth Financial Group, a Michigan-based retirement planning firm. “These cards give you access to exclusive airport lounges, access to your own concierge, free breakfast at hotels, and more,” he says.
Make credit and insurance checks
From home mortgages to auto loans to student loans, a great credit score can also put you in a good position to refinance at a better interest rate, Vogut says. “Look at the biggest interest rates you pay and review them.”
Similarly, Griffin recommends contacting your auto and home insurance companies and comparing quotes from other insurance companies. “Credit scores were developed for the insurance industry and they use that information to set rates when you first become a customer,” he says. Sometimes switching after your credit has improved can pay off.
How to get an 800 credit score
Achieving a credit score of 800 takes time, work and a lot of patience. Here are a few steps you can take to start improving your credit score.
Reduce your credit utilization ratio
Your credit utilization ratio compares how much credit you have with how much you currently use – the lower this ratio, the more your credit score will benefit. Paying off debt on a revolving form of credit, such as a credit card or a home equity line of credit (HELOC), can help you reduce your utilization rate.
Typically, you want this ratio to be below 30%, but the lower you can get it, the more your credit score will improve. Lowering your credit utilization ratio is one of the quickest ways to improve your credit score—you should see an improvement soon after you lower it by paying off your debt.
Become an authorized user
If a poor credit score prevents you from qualifying for the loan products needed to improve your credit score, you can ask a trusted friend or family member to add you as an authorized user to one of their credit card accounts. When they make timely payments to their credit card, your credit score will benefit.
However, be careful: if they don’t pay on time, you risk ruining your credit score. The account owner will have the option to provide the authorized user with a copy of the credit card or prevent them from making any payments.
Open a credit builder loan or secured credit card
Another way to get help building your credit score when you can’t qualify for more standard loan products is to take out a home loan or a secured credit card.
With a secured credit card, you make a deposit before you can use it and your credit limit is set to the amount of the deposit. For example, if you made a $500 deposit, you can only spend $500 until you pay off the card and reset your credit limit. While a secured credit card acts more like a debit card, you can get information about your payments from three major credit bureaus (Experian, TransUnion and Equifax).
Credit builder loans are designed to help improve credit scores. They are usually issued for small loan amounts and you take out one only for the purpose of paying it off and building up your credit history.
Make timely payments
Paying your bills on time is the most effective way to improve your credit score. Pay all your debts on time, month after month, and you’ll see your credit score improve over time.
Limitation of credit requests
If possible, avoid applying for more than one type of loan product at the same time. When you apply for a loan, the lender will make a tough loan request that can damage your credit history. However, if you buy one type of loan product (such as a car loan) within a short period of time, all of these applications count as just one tough loan request because the credit bureaus know you are a savvy consumer for shopping at the best prices.
If you run into problems if you start applying for new credit cards, personal loans, auto loans and home loans in the same time frame. Applying for too many loan products at the same time signals to the credit bureaus that you need to borrow money and that you may be in financial trouble.
bottom line
An 800 credit score can make your financial, work and personal life much easier. This signals that you have one of the highest credit scores, which means that you are much more likely to get the best loan products and the lowest interest rates. Another bonus is that you shouldn’t have any problems with potential employers, landlords or utilities.
Editorial disclaimer
The editorial content on this page is based solely on the objective judgment of our contributors and is not based on advertising. It was not provided or ordered by credit card issuers. However, we may receive compensation when you click on links to our partners’ products.
