Credit score is the most important number that you will encounter in order to perform your financial transactions. Your credit score indicates the credit risk you have and how you paid back the loan. The credit score usually ranges between 300 and 850, and the 800 credit score is one of the best credit scores. High credit scores are the best.However, there is one important thing to know about this; There is no universal credit score. So everyone has multiple credit points. Credit scores vary according to the scoring system used and the credit reference organization that performs the calculation (Equifax, Experian and TransUnion).
Benefits of 800 credit score?
How important is it to get 800 credit score? Are the advantages you earn with 800 credit score equal to your efforts to earn this score? The 800 credit score advantages that enable these questions to be answered are;
The first advantage of achieving 800 credit score; You’re more likely to have your applications approved. A credit score indicates the extent to which you are responsible for paying the credits you receive. Individuals with a high credit score are those who make their payments on time and have a lower credit risk. Therefore, creditors approve loan applications because they think you will make your payments on time.
The second advantage of achieving 800 credit score; You’ll qualify for lower interest rates. Credit score is one of the important factors determining credit interest rates. lenders give loans at lower interest rates to individuals who make their payments on time and to people they think have a low credit risk. Especially in long term loans, you can save with the help of low credit interest rate that you will get by using 800 credit score.
The last advantage you will get with 800 credit points; Pay no interest when you carry a credit card balance. Everyone can get rid of interest when pays full credit card debt on time, but when you have 800 credit score, you get the chance to qualify for a promotional credit card with an interest rate of 0. Thus, if your payments reach very high numbers at that moment, you can pay your debts without paying interest by making a credit card balance transfer.
What is done to achieve and maintain 800 credit score?
You don’t have to earn a lot of money to bring your credit score to 800 credit score. Once you know the right methods, anyone can get 800 credit score. These methods can be listed as follows;
- The first method to obtain 800 credit score; Pay everything on time.
The most important factor in the credit score is the payment history. Payment history makes up 35% of your credit score. The more you pay on time, the higher your credit score.
- The second method to obtain 800 credit score; Keep your credit card balances very low.
Another important factor constituting the credit score is the loan utilization rate. Credit utilization rate should be maximum 30%. Using 30% of the total credit balance ensures a good credit score, while your credit utilization rate must be less than 10% to have 800 credit score.
- The third method to obtain 800 credit score; Avoid too many credit inquries.
When you apply for a loan, you are faced with a hard credit inquiry. Hard credit inquiries affect 10% of the credit score. Therefore, before applying for a loan, you must make preliminary preparations and receive your loan with a single application. Otherwise, hard credit inquiries will decrease your credit score considerably.
- The fourth method to obtain 800 credit score; Monitor your credit and act quickly to clear up errors.
The credit score is calculated based on the credit reports. Therefore, it is important that you review your credit reports and find the problem whenever you see a decrease in your credit score. Wrong information about you may prevent you from reaching 800 credit score. Therefore, if you see an error, you should immediately use the credit report dispute process.
- The last method to obtain 800 credit score; Let negative information age off your credit report.
Each element that negatively affects the credit score is removed from the credit reports in different time periods. While many negative information is removed from credit reports within 7 years, hard credit inquiries are removed within 2 years. During these processes, you should make your payments fully and on time and wait for the negative effects to be deleted from the credit reports.
How long does it take to get 800 credit score?
You shouldn’t be impatient to reach 800 credit score. This process may take several years. During this period, you must make your payments complete and on time and take into account all the factors that make up your credit score. Any negative situation in any credit score factor will extend your time to reach 800 credit score.
Is it necessary to reach 800 credit score?
The higher your credit score, the more credits you get or the higher your credit card limits. Credit interest rates will also decrease. However, in order to have the advantages of 800 credit score, it is sufficient to have 750 credit points. Lenders provide these advantages for each credit score of 750 and above. For these reasons, it is unnecessary to make an effort to reach 800 credit score. It makes more sense to reach and maintain 750 credit score.