800 Credit Score. How to Obtain a Credit Score of 800 Points or More. What are the characteristics of a person with a score of 800 or higher? An FICO® score of 800 or more points means an excellent score and admission to the exclusive club of 800 points.
This is not an average score, but one obtained by a minority of people in the United States. These people generally have no trouble getting credit with a good interest rate. The reason is that based on credit history, they have low chances of not paying their debts.
Who are these people who have obtained a FICO® score of 800 or more. What are the characteristics that contribute to this excellent rating. Although it is not necessary to have this high score to obtain credit, it is important to understand some of the things we can do to get it.
Better credit gives us more control over our money and contributes to the appreciation of our finances.
Know the factors for credit score (estimates)
- Payment history. Payments on time and late payments. This factor is estimated to contribute to your score by 35%. It is best not to delay your payments, even if you only make the minimum payment.
- The amount of your debts. The amount of your debts compared to the total of your authorized credit. In general this factor is estimated to be 30% of your rating. It is not good to have too much debt to not look like a person with risks of not paying.
- How long have you had a credit history? The time taken by each of your credit accounts contributes to 15% of your score. Many times it is not good to cancel old card accounts because they contribute to your history.
- The variety or mixture of different credits. The types of credit, such as cards, short-term or long-term loans, mortgages etc. They contribute 10% to your rating.
- New credit application . The frequency with which you request new credit (approved or not) contributes 10% to your score. Here are the “inquiries” or queries to your history.
How do people with 800 credit score points handle these factors
There is a direct relationship between good management of credit factors and a high score. People who get 800 or more in their credit rating do so as follows.
- Pay each of your bills on time. Payment history is the most important factor in your rating. So making your payments on time, even if this is the minimum, is very important. Try not to delay your payments so that your score starts to rise.
- Do not use all approved credit. The percentage of credit used against the approved one is the other factor of great weight in your qualification. The less of your approved credit you use, the better it influences your score. Generally, it is recommended not to use more than 25-30% of the approved credit to maintain a good rating. However, people with scores over 800 tend to have a use below 10%.
- They have a long credit history. Generally, people with high scores have a long history of credit. It’s like your score becomes a long-term investment. This is why it is not good to cancel old card accounts, they contain a history that disappears when you cancel them.
- They have a variety of account types. These people also have a variety of credit, such as car loans, cards, mortgages etc.
- Make new loan and credit card applications very carefully. People with high grades do not apply for credit very frequently. They are also very selective when authorizing queries to their history for loan purposes.
People with an FICO® score of 800 or more handle all 5 credit factors very carefully. They know the actions that improve and those that damage their credit history and make decisions thinking about the long-term consequences. Among the advantages of having this qualification include; better interests, loan approval facilities and better payment terms. This means big savings with your money when using credit.