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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Personal Credit

How To Build Personal Credit

How To Build Personal Credit

 


In order to have the best opportunities for attaining financial freedom and independence, you should understand credit landscape. In the loaning sphere, your credit profile talks about your worth. Your record of previous credits is a direct reflection of your credibility as a worthy credit holder or not. In order to attain this worthiness, you must have a personal credit. So, here is how you can build personal credit:

Filing for the Secured Credit Card

Getting standard unsecured credit card may be hard, so you may consider the secured credit card. Secured credit card requires a collateral security and protection against the default, you will have to deposit a sum of amount into the account. Most individuals use the secured credit card who are willing to grow or fix their current credit score.

Becoming an Authorized User

This is one of the most important steps of all in building personal credit. Owning an authorized user of a good and healthy credit account makes you a credible and worthy user. After using a secured credit card or a credit account for six months, you should be able to receive a good credit history. With the passage of time, your worthiness and credibility will increase as your credit account becomes aged.

Note: It is very important to have a primary credit in your name, otherwise your authorized user account will be disregarded.

Applying for a Retail Credit Card

You can also apply for a retail credit card, which are very easier to obtain than any other form of credit card. Lower limits are offered by the credit cards along with high interest rates, so you must always be aware of the terms and the conditions before you finalize the deal. You should learn every rule, and then use the card wisely.

Retailers report to the three bureaus directly.

Applying for a Credit Builder Loan

You can also apply for the credit builder loan, which gives you a good amount of $500 to $1000 for your project. Typically, you are required to pay back the loan in a year. If you do not pay back, your amount is withheld until loan dues are paid. So, it is a good option anyway.

Use Cards Wisely

In order to build personal credit, you should not squander, spend on unnecessary things and keep your balance low and limit of the credit card high.

Thus, you will be able to build personal credit.


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