Achieving a credit score of 800 is no easy feat. It requires a long credit history, good credit habits, and a combination of different types of credit accounts. Depending on where you start, it can take several years or longer to get a credit score of 800. To get an 800 credit score, you need to have a positive payment history for a few years and a good mix of credit accounts that shows you have experience managing different types of credit cards and loans.
You should also have an extensive credit history, make all your payments on time, use only a small percentage of your total available credit, and have a good combination of credits. Analysts have found that consumers with a credit score of 800 or more pay their bills on time every month and have a low credit utilization rate (5.7%). They also tend to keep their oldest accounts open (their oldest account has an average age of more than 27 years). In addition to having good credit habits, such as making timely payments every month, some consumers may be getting help from mom or dad.
When you apply for insurance, some insurance providers consider your credit rating when calculating your insurance premium. When you take out a secured card, you'll have to make a cash deposit that will be deposited in an escrow account, which is equivalent to your credit limit. Credit scoring models can take into account the age of your oldest account, the newest account, and the average age of all your accounts. A good credit mix includes some of the major credit cards, a home loan, and another type of installment loan.
To achieve an 800 credit score, it's important to monitor your credit score and reports frequently, keep your credit utilization low, and pay your bills on time. Forbes Advisor can help you understand what it means to have an 800 credit score and the benefits that come with it.