Different types of credit accounts, such as revolving credit accounts, installment loans or retail accounts, account for 10% of your credit score. A longer credit history can help boost your credit score, so try to avoid closing old credit accounts even if you don’t necessarily use them every day.Ī scarce mix of credit accounts can also make it hard to turn a good credit score into an exceptional one. And as your existing credit accounts age, so does your credit score. Your length of credit history accounts for 15% of your credit score. If you feel like you’ve exhausted your options when it comes to building your credit because you consistently pay your credit card bills on time but haven’t hit 800 yet, it’s time to sit back and wait. And most lenders find that to be a solid indicator of what kind of borrower you are when it comes to credit. Still, an 800 credit score is something to be proud of because it shows you put in the work to maintain healthy credit accounts. They consider any indicator of your ability to repay a debt, including your income, employment history and existing debts. When you apply for a new line of credit, a lender needs to grasp what kind of borrower you are. But having a near-perfect credit history doesn’t guarantee automatic approval for new credit products because lenders consider more than just your credit score. If you have an 800 credit score, you likely pay your bills on time, have a healthy mix of credit (meaning accounts other than just credit cards), use a small percentage of your available credit and limit new credit inquiries. That means not missing payments and keeping your credit utilization, the ratio of debt to available credit, well below 30%.įICO calculates your credit score based on five factors: payment history, amounts owed, length of credit history, credit mix and new credit. But to achieve this level of success, you must have a nearly perfect credit history. Your credit score is considered exceptional if you have an 800 under the FICO system - one of the two main credit scoring models used in the US. What does it mean if you have a credit score over 800? Below we’ll look at what it means to have a high score, how to get there and the best ways to maintain one. But only 21% of people with a FICO credit score have a score of 800 or above, according to a report by FICO, while the average has remained steadfast at 714 since September 2021.Īlthough it isn’t a perfect credit score, an 800 is pretty close. It’s not about having lots of accounts or high credit limits.”Ĭonsidered “exceptional” by FICO, an 800 credit score or higher can help you get approved for larger loans with more favorable terms and lower interest rates - a compelling concept in our current rising rate environment. So, it’s all about how you manage the credit you have available to you and doing it well over time. “From a lender’s perspective, they don’t like surprises. “It takes three things to build strong credit: being diligent about making payments on time every single time, being consistent and being dull,” said Rod Griffin, senior director of public education and advocacy for Experian. But building a solid credit score takes time, particularly if you have your eyes set on that elusive 800 to 850 credit score. Your credit score helps determine whether a lender will approve you for a loan or line of credit, and the terms of that loan, including your interest rate. The three-digit number that makes up your credit score helps lenders deem your creditworthiness - or the likelihood that you’ll default on your payments, or not pay back what you borrow. They say Rome wasn’t built in a day, and neither is your credit score.
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