Congratulations if your credit score is 800 or higher, as this puts you in an elite category of exceptional borrowers above the average U.S. consumer. Achieving an 800 credit score not only gives you bragging rights but also opens doors to the best offers and quicker approvals when seeking new credit. To make the most of your 800-plus credit score and learn how to reach this milestone if you’re not there yet, here’s what you need to know.
How Credit Scores Work
A credit score, typically ranging from 300 to 850, reflects your credit risk based on data in your credit reports. Commonly used FICO scores are calculated from five categories, each with a different weight:
- Payment History (35%): Timely bill payments
- Amounts Owed (30%): Debt levels and credit utilization ratio
- Length of Credit History (15%): Account age
- Credit Mix (10%): Variety of credit types
- New Credit (10%): Credit inquiries and new accounts
To elevate your credit score towards 800 or higher, focusing on these areas, especially payment history and amounts owed, is key.
The 800 Credit Score Club Is Growing
In 2022, the U.S. average FICO score stood at 716, the highest to date. More individuals are now achieving “exceptional” scores between 800 and 850, with 23.3% falling within this range compared to 16.2% in 2005.
If your credit card issuers or lenders offer auto-pay, leverage it to ensure consistent, timely payments.
The Benefits of an 800 Credit Score
An 800 credit score offers numerous financial advantages beyond just pride, including:
You’re more likely to be approved for new credit.
Lenders perceive you as less risky, increasing your chances of approval for credit cards, lines of credit, or loans.
You’ll qualify for lower interest rates and higher credit limits.
With an 800+ score, lenders offer better terms for mortgages, auto loans, and credit card interest rates.
Improving your credit score can also facilitate refinancing existing loans at more favorable rates, but ensure the math adds up considering any associated fees.
You’ll qualify for premium credit cards with enhanced rewards.
Elevating your credit score could unlock valuable benefits like airport lounge access, hotel perks, and accelerated cash back and mileage accumulation with rewards credit cards.
Exploring opportunities for better credit card deals through your issuer or online research can optimize your rewards and benefits.
How to Check Your Credit Report and Credit Score
Access one free credit report annually from each major credit bureau (Equifax, Experian, TransUnion) through AnnualCreditReport.com. Rotate requests every four months to monitor your credit report regularly.
Participating credit card issuers may offer free FICO score access through online accounts. Otherwise, explore alternate avenues to obtain your score at no cost.
The Bottom Line
Achieving a strong credit score is vital due to its impact on credit availability, terms offered by lenders, loan interest rates, insurance premiums, job prospects, and housing choices. Maintaining smart credit habits to sustain a score over 800 is crucial.
