Yes, an 800 credit score is considered an excellent score as it shows lenders that you are a reliable borrower with a history of paying back debts on time. Having an 800 credit score also gives you access to better interest rates and terms when applying for loans and credit cards. To put this into perspective, FICO reported that only 21% of all consumers have a FICO score between 800 to 850. So, having such an excellent score gives you an edge when taking out loans.
So, what does an 800+ credit score mean? Being in the 800 credit score category makes you a Super-prime borrower. For this reason, you will get approved for credit cards, loans, and mortgages much faster and qualify for the lowest interest rates on your loans. You will also have negotiating power on the terms of your loans.
If you are looking for business services, for example, you will easily qualify for those services. For example, when I was looking for an apartment, my landlord waived the security deposit due to having an 825 credit score. If you are applying for jobs that require a credit check, having an 800 credit score will help you get the job.
Here are different ways to make the most out of an 800 credit score.
How to make the most out of an 800 credit score?
What I like about an 800 credit score is that it gives you an edge when taking out loans and getting business services. For example, you can bargain lower rates, and better terms, and get discounts on some products simply because you are an excellent credit score. Here are 8 ways to make the most out of an 800 credit score.
1. Take advantage of better credit card offers
With an 800 credit score, you’re almost guaranteed to be offered the lowest interest rates on loans and credit cards. Don’t settle for average credit card offers if you have an excellent credit score. Use your score as a bargaining tool for better credit cards your lenders have on the portfolio.
An 800 credit score is so good that you can get the lowest interest rate on your credit card, a better balance transfer rate, a lower Cash advance APR, and many perks such as cashback, miles, and points.
2. Bargain for higher credit card limits
One of the biggest benefits of having a credit card is having direct access to funds to buy products and pay for services. The higher the credit limit you can qualify for, the more money you can spend on your credit card. Credit card issuers are more likely to trust you with higher credit limits when you have a higher credit score.
Credit limit refers to the highest amount your card issuer allows you to spend on the card. Your credit score, debt-to-income ratio, and income help determine your credit limit.
If you have an excellent credit score, request a higher credit limit on your next credit card. You can also apply for a higher credit limit on existing credit cards after hitting the 800 credit score milestone. As your credit profile improves, lenders take more chances on you. So, having an 800 credit score is a great way to prove that you are reliable and responsible, pay your bills on time, and therefore, qualify for a higher credit limit.
3. Get approved for your next apartment
A high credit score makes it easy to get approved for apartments, as landlords often use credit scores to vet potential tenants. An 800 credit score shows you’re reliable and likely to pay rent on time. Most landlords also waive a security deposit or ask for a small percentage simply because you have a good credit score.
You might also like: 9 ways to get an apartment with bad credit
4. Quality for better car insurance rates
Do you have an 800 credit score and are looking for car insurance? If so, use your score to bargain for cheap insurance premiums. Since insurance companies want customers who pay on time without getting into an accident, an excellent credit score can justify these two factors.
A good credit score shows that you pay your bills on time and are financially responsible. That is why having a higher score could help you get a lower premium. Even if you save a few dollars on your premium, they can add up to a huge saving over time.
5. Get approved for a mortgage fast and qualify for a lower rate
One of the biggest reasons many people cannot afford a house and others default on their mortgages is mortgage rates. Interest represents the cost of borrowing the principal. The higher the interest, the more expensive the house becomes.
Paying a higher interest rate on your mortgage increases your monthly payments and costs you more money over time. Millions of people also default on their mortgages because higher rates make their homes unaffordable.
If you are buying a home with an 800 credit score, it is time to shine. Not only will you get easily approved for a mortgage, but you’ll also qualify for the lowest interest rate, saving you potentially tens of thousands over the life of the loan. If you are not getting the lowest interest rate possible with an excellent credit score, shop around for lower rates.
6. Pay negligible security deposits on utility and phone services
Besides interest rates, loans, and credit cards, having an excellent credit score helps you qualify for services without security deposits. With a strong credit score, you can often avoid security deposits on utilities and mobile phone contracts. Companies see you as a trustworthy and reliable client which leads to waiving or reducing security deposits.
High credit scores open the door to elite credit cards that offer fantastic rewards, from extensive travel miles and points to cash back. Keep this point in mind when applying for the next credit card. With an 800 credit score, you should get the best credit cards your lender has to offer.
Read more: Cash back vs. points and miles: Which one is best for you?
8. Get easily approved for large loans
The lending industry is a game that relies on the balance between risk and rewards. Lenders usually ask the following questions: How much risk are they taking for the rewards they are getting? Your credit profile helps lenders examine your creditworthiness which also helps determine how much to qualify for and the interest rate you pay.
The more money the lender approves you, the more they will lose if you default on your loan. That is why having a high income, excellent credit score, and a solid credit history is essential when taking out a jumbo loan. As the amount you want to borrow increases, the lender also tightens requirements.
If you are starting a business or have a big project, having an 800 credit score will open up doors for large loans. Again, having an excellent credit score makes you a low-risk borrower, and lenders reward you with more money, lower rates, and better terms.
Is it hard to get an 800 credit score?
Getting an 800 credit score is not difficult when you understand what needs to be done. It all starts with meeting requirements on each factor that affects your credit score. These factors include payment history, credit utilization, age of your credit, credit mix, hard inquiry, and derogatory marks.
If you establish a history of on-time payments, keep your credit utilization under 7%, avoid excessive borrowing to keep hard inquiries off your credit reports, and have a good credit mix, you should reach an 800 credit score milestone in no time.
A good credit mix is usually made of installment loans such as car loans and mortgages and revolving credit accounts such as credit cards, personal lines of credit, and HELOCs. Time also plays an important role in getting an excellent credit score. According to Bankrate, the average age of credit for people with an 800+ credit score is 128 months or 10.5 years.
The good news is that you can shorten this credit age by following all credit score factors by the book. For example, I reached an 800+ credit score in 4 years using only 3 credit cards. Other factors to help you get an excellent credit score include cleaning up your credit reports regularly by disputing errors, inaccuracies, or fraudulent activities on your reports.
Read more: How to get an 800 credit score the easy way?
How rare is an 800 credit score?
An excellent credit score is not rare. According to FICO, 21% of all consumers have an 800+ credit score which translates to millions of people. While it is difficult to get there if you are not consistent in your credit activities, you can easily get an excellent credit score by following the credit score strategies I mentioned above. You can easily reach the 800 milestone by consistently paying your bills on time, keeping your credit utilization low, having a good credit mix, avoiding excessive borrowing, and keeping your debt-to-income ratio low.
How long will it take to get an 800 credit score?
How long it takes to get an 800 credit score depends on your credit account activities and the age of your credit. While the average credit age for consumers with an 800+ credit score is over 10 years, it does not mean it will take 10 years to get an 800 credit score. Also, you can not get an excellent credit score in a few months either.
If you are consistent with your credit account activities and do not violate the terms of your loans, you should get an 800 credit score in a few years. While many factors affect your credit score, certain factors will wreck it the most, and it could take many years to recover from them. For example, it is OK to have one hard inquiry on your credit report as it only stays on your credit report for 24 months and affects your credit score for 12 months on top of the 5 to 6 points you lose when it is first reported.
But, it is never OK to have derogatory marks such as a late payment, collection, foreclosure, bankruptcy, or charge-off on your credit reports. Any of these negative items will drop your credit score by more than 100 points and will stay on your credit reports for 7 to 10 years. In other words, negative items on credit reports push you many years back before you can reach an excellent credit score.
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