On the credit score scale of 350 to 850, where you land up impacts your finances hugely! The lenders use your credit score to determine whether to approve your loan and what interest rate they should offer. While a high credit score attracts lenders and offers the most attractive rates, the borrower with a low credit score faces difficulty in loan approval and bears a high-interest rate, too!
Only an elite group of people have a credit score of more than 800, the excellent category! According to the Livemint report, only 3 in 10 individuals in India had a credit score of more than 800 in Dec’21. Maintaining a score of 800 plus is not unachievable. Anyone can attain this credit score through good credit management.
800 plus Credit Score: Top Benefits
An exceptional credit score sets you apart and offers you innumerable financial benefits. Some benefits of 800 plus credit report are listed below:
- You get faster loan approval, as the lenders view you as less risky.
- You will get a line of credit at a much lower interest rate than others.
- Your credit card limit will be higher.
- The lenders offer attractive deals, best loan offers, whether a mortgage, a car loan, a credit card interest rate, etc.
- You get other benefits and perks like free access to airport lounges, free hotel breakfast, free movie tickets, discounts on shopping, a chance to earn cash back, airline miles, etc.
- If you have an existing loan, your high credit card score qualifies you to get it refinanced at a lower rate.
- An excellent credit score can also help you land a good job, as some employers run a credit check as a part of the employment process.
800 plus Credit Score: Getting There
Credit building does not happen overnight. You need to invest your time and efforts in ensuring impeccable debt management. According to the experts, here is what it takes to reach the 800 plus Credit Score Club.
1. Financial Discipline
Following healthy financial practices can get you there! People with high credit scores usually have their finances on track. They do careful budgeting, allocate funds for routine expenses, and never indulge in extravagant spending. Other than being mindful of their spending, they pay their bills on time and remain financially disciplined at all the times.
2. Do not delay or miss payments.
Delayed or Missed payments are a strict NO for those aspiring to become ‘High Achievers’. Timely payment constitutes the major part of your credit health. No other factor can help your credit score shoot up more significantly than prompt payments. 95% of the 800 plus peoples have never been delinquent.
3. Hold your Credit Card
Some 800-plus score members opened their credit card accounts at a young age and kept paying their dues timely each month to build a robust credit history. Length of credit history plays a key role in determining your score. Even if you do not use your credit card much, don’t close it. When you close it, your credit limit and credit utilization will also change. So, keep your credit card for a long, pay your dues, and leave a chance to delight yourself with an 800-plus score.
However, if the card has been charging an annual fee, consider closing the card.
4. Avoid Hard Inquiry
While soft inquiry or checking your credit does not affect your credit score, a hard inquiry can bring your score down. A hard inquiry is when the lender runs a credit check on you. Though the impact is not as high, multiple hard credit checks can hurt your score badly. To avoid, try not applying for a loan with various lenders.
5. Keep Credit Usage Low
Try not spending more than 30% of your available credit balance for credit repair. Follow this thumb rule to maintain a great credit card score. Low credit utilization is among the strongest factors determining a high credit score. Keeping your utilization low can get you to the 800 threshold. Also, if you can manage to use less than 10% to 20%, your score will be higher quickly.
6. Monitor Credit
Despite maintaining healthy credit habits, is your credit card score still low? Have you thought about it? The potential reason could be the error in your credit report. Check for anomalies like payment history has incorrect or missed entries, if the credit limit or credit balance is incorrectly updated, etc. If you find any error after credit monitoring, report the same to the credit bureau. Disputing errors will take your score up quickly.
7. Evaluate your Debt Composition
The scoring system favors a diverse credit mix for credit improvement. You can improve your score if you have a mix of revolving credit and installment loans.
8. Seek Professional Help
Rely on your credit repair partner for credit counseling and ensuring a high score! DueFactory helps you gain deep insights into your credit health, pull your credit report for free, analyze your credit profile, and recommend the best course of action to boost your credit score.
Wrapping up
A credit score over 800 demonstrates your exceptional loan repayment abilities. 800-plus credit score can get you better offers and faster loan approvals. Most people in the top tier credit score of 800 plus are diligent with their finances. You can also get there by attaining good credit knowledge, paying bills before the due date, maintaining a low card usage, keeping the credit cards for long, monitoring your credit frequently to ensure the report is correct, and more.
FAQs
1. Who has an 800 plus credit score?
Ans. The people who pay bills on time, maintain a low credit card usage, keep their credit cards for long, monitor their credit report frequently, dispute errors, etc., can obtain an 800 plus score.
2. What benefits will I get with an 800 plus score?
Ans. A credit score over 800 will get you faster loan approvals, competitive interest rates, higher credit limits, better credit offers, and several perks and benefits like airport lounge access, free hotel breakfast, etc.
3. Can I lower my interest rate if I recently got an 800 plus credit score?
Ans. Yes, you can. You can speak to your lender with an updated credit report and ask them to lower your interest rate. This can lower your EMI, increase savings, and boost purchasing power.
4. Is an 800 credit score rare?
Ans. Only 3 in 10 people in India have a credit score in the 800-850 range. This scoring range allows the consumers to avail of the best credit card offers, loans on favorable terms, etc.
5. Can DueFactory help me enter the 800 plus credit score range?
Ans. DueFactory helps you gain deep insights into your credit health, pull your credit report for free, analyze your credit profile, and recommend the best course of action to augment your credit score.