If you have made the correct moves like consistent payment of bill I time, eliminating debt, and carefully opening new credit, then your credits score should have hit 800+. Having hit this milestone is an indication that you are an incredible borrower, and lenders can have confidence in you. The most common credit score is the FICO score, which ranges from 350 to 850. It is calculated using your payment history, length of credit history, credit mix, the amount owed, and new credit.

How to get to the 800 plus credit score club

To improve one’s credit score, it is important to pay bills on time because failure to meet the obligations or paying late can hurt the score. If you fail to pay your bill and a third party buys your debt, the information is sent to credit bureaus. Payment history accounts for 35% of your score.

Also, it is important to avoid utilizing all your credit limit, and if you want to build your score to 800+ club the use around a third of the limit to avoid damaging your score. Basically, credit card use should be less than 10%. Your outstanding debt will account for 30% of your score.

It is important to avoid a lot of credit card inquiries because the application of a new credit card accounts for 10% of the score. Equally, you should avoid overspending or rolling expenses to the following. To get to the 800+ club, you should be spending what you can afford.

Benefits of the 800+ credit score

With a score of 800+, you are an exceptional borrower, and lenders can easily approve your application for new credit. The score reflects your creditworthiness, and lenders see you as a less risky borrower.

Another benefit of having a high score is you will qualify for high limits and low-interest rates. Since you are likely to repay your debt, you easily qualify for better deals from lenders. For instance, if you are taking an auto loan or mortgage, you will get better rates from lenders.