The amount of time it takes to go from a 700 to 800 credit score can vary greatly, depending on your financial habits and credit history. While it can take several years or longer to reach a credit score of 800, there are some steps you can take to accelerate the process. Fortunately, if you don't pay a bill before its due date, you can correct the error and avoid negative consequences on your credit rating. Lenders generally don't report late payments to credit bureaus until 30 days are due, so be sure to pay outstanding bills before that date.
To increase your credit score from 700 to 800, you should have a few years of only positive payment history and a good combination of credit accounts that show that you have experience managing different types of credit cards and loans. While a general rule of thumb to avoid a serious impact on your credit rating is to keep your credit utilization rate below 30%, consumers with a credit score of at least 800 have an average utilization rate of 11.5%. The time you've managed your credit represents 15% of your credit score. Generally, the longer your credit history, the higher your credit scores will be.
Credit scoring models can take into account the age of your oldest account, the newest account, and the average age of all your accounts. You could benefit from an additional credit account, especially if it's a type of credit you don't have yet. For example, if you only have installment loans, such as an auto loan or a personal loan, adding a new credit card can help diversify your credit mix, which determines 10% of your credit rating. In addition, by increasing your credit limit, you can also lower your overall credit utilization ratio.
This can be done by updating your profile with lenders if you've had a card for several years and now have higher incomes. You may also qualify for preferential interest rates on mortgages, auto loans, and credit cards when you get a credit score of 800. Contrary to popular belief, closing an old credit account can harm your credit score rather than improve it. Closing your account could reduce the length of your credit history and your overall credit limit, which could affect your score.
If you're building credit out of thin air, you can usually get a credit score within three to six months. By making consistent payments on your debt and using tools like CreditBoost to declare rent payments, you can accelerate the process of improving your credit rating. Whether you're just entering the world of credit and building from the ground up or re-entering after a bankruptcy, building your credit from the bottom up takes time.The elusive 800-credit-score isn't reserved for people who earn a lot of money or have special privileges with credit bureaus. With a high enough score, you'll receive most of the same benefits as someone with an 800-credit-score.
This includes an incredible option for those looking to quickly rebuild their scores without worrying about annual fees or high interest rates: secure-credit-creation cards that allow you to set up automatic payment for their balance.Depending on your situation, with some proactive actions and staying on top of your credit reports, you can improve your credit rating within three months to a year.