This article explains the steps on how to increase credit score to 800. The average credit score in the U.S. is 690. Here are 5 ways to increase your credit score to 800.
How to increase credit score to 800
You might be wondering why I am writing about a credit score of 800 when most people just want their credit score to be as high as possible.
The reason is because most people have never had an 800 credit score before and they don’t know how it feels like or what it means.
The truth is that if you want an 800 credit score, it’s not going to happen overnight. It’s going to take time and effort but it’s definitely doable if you follow the steps on how to increase credit score to 800 below:
1) Monitor your credit report regularly
2) Pay all your bills on time
3) Don’t open too many accounts at once
4) Pay off any delinquent accounts immediately
5) Don’t close old accounts
Now, let’s go into the details on how to increase credit score to 800.
How fast can you get 800 credit score?
How fast can you get a credit score of 800?
This is one of the most frequently asked questions about improving your credit score, and the answer might be surprising: it depends on where your score currently sits.
If your score is below 500, for example, it would take some drastic measures (and potentially years) to bring it up to an 800. If it’s hovering around 650 or 700 though, this could happen in less than six months!
According to FICO’s website, there are many factors that determine how quickly you’re able to raise your credit score – the main ones being:
- What stage of debt management do you fall into?
- How old are the oldest accounts on your report? Are they still open or closed? The older and more established they are (i.e., longer-standing relationships with creditors), the better off they’ll likely be in terms of improving their scores over time.
How long does it take to get 700 credit score to 800?
As you can see, there’s a lot of factors that go into getting your credit score to 800.
If your credit score is 600, it could take you anywhere from 6-12 months to get to 800.
If your credit score is 700, it could take you anywhere from 4-6 months to get to 800.
How rare is an 800 credit score?
A credit score of 800 is the highest possible, and it means that you are in the top 7% of all credit scores. In other words, out of 100 people who have a credit score, only 7 would have a higher number than someone with an 800 score.
In case you’re wondering what it would take for your own credit score to reach 800, here’s some good news: There are several ways to increase your credit rating and see your number soar!
How do I get my credit score from 600 to 800?
This article is for you if your credit score is in the 600-700 range and you want to increase it to 800. It’s designed to show you exactly how to do that, step by step.
The first thing we’ll look at is why a high credit score matters so much. We’ll also discuss some of the best ways to boost your credit rating, including:
- Paying bills on time and keeping balances low on credit cards
- Applying for new credit only when needed (ideally once per year)
- Keeping unused accounts open rather than closing them out
- Reviewing your free annual report from each of the three major credit bureaus (Experian, TransUnion and Equifax) regularly
Keep the balances low on both credit cards and other revolving credit.
Most credit cards have a limit of around $9,000. It’s important to keep your balance below 30% of that limit, and ideally less than 10%. For example, if you have $9,000 available on your card, it would be wise to keep the amount you spend each month under $2,700.
Keep in mind that this is just advice for people who want to increase their score as quickly as possible.
If you’re planning on paying off all your debt in full every month (which we recommend), then using more than 30% of your limit may actually help you build up some extra equity in case of emergency medical expenses or job loss.
However, if those aren’t things that concern you now – and they shouldn’t be at this point – then it’s best not to take any unnecessary risks with credit scores by maxing out cards every month just because they’re there.
Pay bills on time.
It’s important to remember that your credit score is determined by several factors. It might not be the only factor a lender considers when deciding whether or not to approve you for a loan, but it’s certainly one of them.
If you want to increase your credit score, there are some steps you can take:
- Pay bills on time. A late payment can lower your score by as much as 100 points – and if you have too many in a short amount of time, it could mean bad things for future loans and other lines of credit.
- Pay off debt. Having balances on any type of account (credit cards or loans) will weigh down your FICO® score until they’re cleared up; so get rid of those balances as soon as possible!
- Don’t close unused cards unless necessary (if they’re with companies that charge annual fees). Closing unused accounts can hurt your FICO® score since closing an old card indicates that there may be something wrong with the way you use or manage money overall – but it’s okay to cancel one that has an annual fee if it isn’t worth using anymore!
Get credit for paying rent and utilities.
A big mistake people make is paying rent and utility payments on time, but not reporting them to the credit bureaus. For example, many landlords will bill you for your monthly rent payment through a company called Rent Payment.
This company bills you for your rent and then deposits that money in an account on behalf of your landlord. The landlord then withdraws that money from the account and uses it to pay their mortgage or other expenses.
Rent Payment is great because it makes it easy to pay your rent online or over the phone – all you have to do is input some basic information (your name, address, etc.) and they’ll send out a check every month with the amount due on top of any late fees incurred by paying late (if any).
Unfortunately, though Rent Payment does keep track of all of this information internally, they don’t report any payments made through them as debt owed by you.
So, while they might be helping you pay down your credit score by making sure everything goes smoothly each month without fail…
…it won’t help build up points towards increasing yours if no one else sees those records!
Apply for and open new credit accounts only as needed.
You should only apply for credit when you need it. If you’re shopping around, try to limit your applications so that they don’t exceed two or three per year – or even longer if possible.
This isn’t as strict a rule as it sounds: If you’re looking at buying a house or car, applying for more than one mortgage or auto loan will likely be necessary.
But if you aren’t planning on buying anything big soon, avoid making unnecessary applications just to “try out” new cards and see what kind of offers come in.
The reason behind this? It’s all about the mix of credit accounts on your report; opening new accounts can help lower your average age of accounts by reducing the number of older ones (and thus injecting some freshness into the mix).
Don’t close unused cards as a short-term strategy to improve your credit score.
It’s tempting to think that closing unused credit cards will improve your credit score, but it won’t. Your credit score is based on the information in your credit report, not the number of open accounts you have or the amount of debt you carry.
In fact, closing unused cards could actually hurt your overall score by lowering the average age of all open accounts and by reducing available credit.
The latter can make it seem like you are using more than 30% of your total available credit with each different lender – even if that isn’t true!
When it comes down to it, improving your overall financial health is much more important than chasing a perfect 850 FICO score.
Focus on creating and maintaining healthy habits like paying bills on time every month and keeping low balances across all forms of debt (credit card balances, auto loans, student loans).
These actions will help ensure that over time – and with a little bit of patience – you’ll be able to build up good habits that can keep helping you long after high school ends!
Review your credit report regularly.
Reviewing your credit report is a great way to stay on top of your finances, so it’s important that you do it regularly. It will also help you make sure that all the information in your report is correct and up-to-date.
You can check for signs of identity theft or credit card fraud, which are both serious offenses that could have a negative impact on your score.
If you notice any errors in your report, contact the company responsible for reporting them (which will be listed) immediately so they can fix the mistake and update their records.
Here are the steps to take you’ll need to take in order to increase your credit score
Here are the steps you’ll need to take in order to increase your credit score:
Pay down credit card balances.
The most important factor in determining your FICO score is how much debt you have on your credit cards. The lower the balance, the better off you are.
To start improving your score, pay down existing balances immediately by making minimum payments on all of them until they’re paid off completely, then send a check for any additional amount owed (this will help prevent new accounts from being opened).
Only then should you open another account and carefully manage it so that its average age aligns with that of other accounts on which it reports.
In other words, don’t have a revolving line of credit with an average age of four years while having only two or three years of history across all other remaining lines combined!
Pay off overdue bills before applying for new ones;
This will bring down what’s called “credit utilization ratio,” which makes up 30% percent of one’s FICO score (and 35% percent on Vantage Score 3).
You can find information about these two types here.
Now, you have seen how to increase credit score to 800.
Having a low credit score is the most common reason people aren’t able to secure loans or lines of credit.
However, it’s entirely possible to increase your score with the right action plan. The tips above should help you get started, but remember that improving your credit doesn’t happen overnight.
It takes time and patience, but it can be done!