Credit Check Financial Banking Economy Concept

How To Get An 800+ Credit Score


Not that many people know because it is so rare but your FICO score is able to reach 850. Today we live in a world of instant gratification. GIMME NOW! …….. CHARGE IT!……By having a little self control you too can be in the 800+ credit club
Having a high credit score can drastically save you hundreds of thousands over the years in money from interest from mortgages, credit cards or purchasing a vehicle etc.
Here are 7 steps how to get above an 800+ credit score:

ON TIME PAYMENTS– Just paying on time is 35% of your score. NEVER make a late payment. The higher your credit score, the more it can drop with a late payme

INQUIRIES– Inquiries are only 5% of your score. Although this is a smaller factor it’s still important. 72% of people with 800 credit haven’t applied for “credit” in a year. I bet you didn’t know that fact!

MIX OF CREDIT– This is most likely the most important and less understood to obtain an 800+ credit score. FICO wants to see that you have a credit mix of BOTH revolving and installment loans. Revolving are credit cards or line of credit. Installments vary from personal loans, auto loans, mortgages, student loans etc.

It takes a long time to build a high credit score but one late payment can bring you crashing down. I know, I know life’s not fair… ;(

UTILIZATION – This is mostly taken into consideration from your revolving debt (credit cards & line of credit). The standard everyone knows is to have your utilization at 30% or less but if you really want to increase your score, have it less than 10%. Example: For a $10,000 credit card to have a utilization of 30% or less you need it under a $3,000 balance. Under a 10% or less utilization is a $1,000 balance or less.

INQUIRIES– Inquiries are only 5% of your score. Although this is a smaller factor it’s still important. 72% of people with 800 credit haven’t applied for “credit” in a year. I bet you didn’t know that fact!

MIX OF CREDIT- This is most likely the most important and less understood to obtain an 800+ credit score. FICO wants to see that you have a credit mix of BOTH revolving and installment loans. Revolving are credit cards or line of credit. Installments vary from personal loans, auto loans, mortgages, student loans etc.

If you just have one form of credit on your credit report such as just credit cards only, you’re most likely not going to be in the 800 club. A mix shows FICO you’re responsible with EVERY form of credit therefore a higher score like an 800+.

NUMBER OF ACCOUNTS – The average 800 credit score has 5 credit cards ALONG WITH a credit mix of a couple of installment loans (mortgage, auto, student loan, personal loan etc)

NEGATIVES – I think it is pretty understood to not have any derogatories/late payments/public records to be in the 800s. Not even one. If you have a derogatory or late you’re probably going to get knocked down to the 700 club and that’s if you’re lucky.

AGE OF ACCOUNTS – Think twice before you cancel your longest credit card! The longer the better is how FICO sees it. The oldest “average” credit card an 800+ person has is a $19,000 limit credit card and is 10 years old. Some people cut up and cancel their credit cards to get out of debt which is fine but remember FICO wants to see that you’re responsible with this so they give more points to people who have long credit history with credit cards.


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Credit Bureaus

Major Credit Reporting Agencies That Control Your Credit Reports


Credit reporting agencies or credit reporting bureau that manage historical credit information about individuals and their businesses. The information that they receive is compiled into a credit report. This report shows the credit score that helps potential employees rate their credibility. Usually, the credit score is measured by Vantage Score and it’s the most modern way of calculating the credit score. It uses letters instead of numbers to calculate the credit score. Credit reporting has done its job for a century but with time local agencies were transformed into three main categories named Central US, Experian the West and Equifax.

Experian:

Experian is one of the biggest names in credit reporting agencies. It’s an Irish based multinational agency. It maintains more than 235 billion individuals and businesses. The company is based in Ireland with its offices in three major countries named as United States, the United Kingdom, and Brazil with 17000 employees. The company creates analytics based on the information collected from the users. This report can be used to predict whether to continue giving mortgages or not etc. The company provides free credit reports to US persons once in a year. Whenever a person buys a new car take a loan or purchase a house. He or she has to undergo a credit check. This credit check is very important. It proves a person’s financial condition to the seller. This check is in a form of credit report and these reports are generated by big names like Experian.

TransUnion:

TransUnion is another name in the Big three credit reporting agencies. A US-domiciled agency based in Illinois and has more than one billion individuals in their community. Like all other credit reporting companies, this company also provides a FREE credit report to its users once in a year. The cost of getting TransUnion is 9.95$ but it cost also depends on the area where you live.

Equifax:

Equifax, with more than one 800 million individuals it is another name in big three. Like other companies, it also provides demographic analytics, sells credit statistics and fraud prevention gigs to its customers. The company takes credit information and then creates analytics that shows the changes of a person to pay back loans and mortgages.

Big credit companies like Chase sapphire, Citi double cash and Discover it uses services of Equifax. Equifax has a good score of 760-850 and good score rating of 660 to 724.

Conclusion:

Summarizing all the above credit reporting agencies take useful credit information from its users and create a credit report and this report is extremely important for the business owner in checking the financial health of a person while he/she is purchasing mortgages, renting a house or maybe purchasing a car. Three big names control all the credit reports and among them, two big are Experian and Equifax. Besides creating report these companies also provide credit monitoring and fraud prevention services.


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