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Everyone wants to find out how to get a perfect credit score. The better an individual’s credit score is, the easier it is to be approved for loans and other types of credit. An 800 credit score is considered to be an excellent score in the pretty much perfect range. With that in mind, it is important to gain a better understanding of how credit scores work so it’ll be possible to improve your overall creditworthiness.
Let’s take a closer look at how credit scores are ranked, the benefits of having an excellent credit score, and various factors that play a part in credit ratings. Then we’ll take a look at some tips on how to obtain an excellent credit score.
Understanding the Range of a Credit Score
Each of the three different credit reporting agencies use a different range for credit scores. Some give a FICO score or VantageScore, while others give a PLUS score. Both the VantageScore and FICO score ranges from 300 to 850, while a PLUS score is from 330 to 830.
According to Experian, the categories of credit scores approximately range from bad to excellent as follows:
- Excellent (super prime) – 781 & above
- Good (prime) – 661 to 780
- Fair (near prime) 601 to 660
- Poor (subprime) 500 to 600
- Bad (deep subprime) – 499 & below
When getting a copy of your consumer credit report there may also be a credit score included. This helps consumers see where they fall within these ranges. The better a credit score is, the easier it will be to apply and be approved for credit.
Potential Benefits of Having an 800 Credit Score
Having an 800 credit score can really have its advantages. First, it helps consumers obtain lower interest rates and ideal terms on loans and other lines of credit. Oftentimes, getting a better term on a loan product usually involves saving money, so it is easy to see why people would want to have good credit.
Aside from better interest rates, consumers with an excellent credit score also have a better chance of getting approved for loans or credit cards in the first place. Even with fair credit, approval isn’t guaranteed. Being turned down for a loan can be embarrassing to say the least, so a better score can help prevent consumers from being turned away from a lender.
Just about everything these days requires a credit check from renting an apartment to even getting a new job. Your credit history may play a big role. Those with higher credit scores may find it easier to get approved for an apartment or home lease.
How to Obtain an Excellent Credit Score
Now that we have covered the reasons why an 800 credit score is ideal, it may be time to get to work on your own personal credit report. Improving credit is definitely possible, but it will take some work. There really is no quick fix or instant gratification when it comes to improving credit ratings.
To obtain an excellent credit score, simply start by monitoring your credit report and paying your bills on time each month. A good payment history, meaning payments are made on time, is a significant and impactful factor of your credit score. It is also important to keep an eye on balances and credit limits in order to keep your credit utilization ratio in check. Using up too much of your credit line could be viewed as a negative. On top of that, try to stick with the same credit card accounts over time since length of history with a given card could be a helpful factor in credit score determination.
Don’t get discouraged when trying to improve your personal credit score. It is not something that is going to happen overnight, no matter how much consumers with less than perfect credit may hope it would. Stay on course with responsible payments and keep a close eye on your credit report.