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So You Want a FICO Score of 800 – Here’s How

Your credit score; a little three-digit number that has a substantial role in your financial life. Most people know that the higher your credit score is, the better. It makes it easier to obtain credit if you have a great score, allowing you to purchase homes, vehicles, and more with greater ease. Having a FICO score of 800 or better can open doors. But, reaching that level can seem incredibly difficult.

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Luckily, there are ways to accomplish the feat. Here are some tips that can help you achieve a FICO score of 800 or more.

Income Doesn’t Dictate Your Credit Score

Some people believe that only the rich can have a FICO score of 800. However, this simply isn’t true.

Many consumers with excellent credit scores make less than $40K per month. Many consumers that make more than $100K can have some of the worst credit scores.

An 800+ FICO score is achieved by great credit choices not higher incomes.

Ultimately, having a higher income may make it easier to pay your bills on time (which does impact your score), but it isn’t a requirement for reaching the seemingly elusive 800 mark.

Pay on Time to Reach a FICO Score of 800

Your payment history is a large part of the credit score equation. Missing a payment can send your score tumbling, and it can harm it for years.

If you want to have a FICO score of 800, you must pay your bills on time. Otherwise, your payment history takes a hit, and it will take time for it to recover.

Watch How Much Credit You Use

Your credit utilization ratio is another significant component of your credit score. This metric compares how much revolving credit you use to how much you have available. And, generally, keeping it at or below 30 percent is a must. But, if you want a FICO score of 800, below 10 percent is better.

For example, if you have a total credit limit of $10,000, then you should use no more than $3,000 to stay within 30 percent utilization. If you want to have an 800 FICO score, then staying below $1,000 would be best.

Avoid Hard Inquiries to Keep Your Credit Score Up

If a credit application requires a credit check, you can expect a hard inquiry on your report. A hard inquiry occurs when a lender runs your credit, and the number of inquiries you have impacts your score.

To get a FICO score of 800, you need to limit your hard inquiries. The easiest way to do that is avoiding applying for credit you don’t need. Also, if you do need credit, doing your research, so you only need to submit a single application instead of multiple.

Monitor Your Credit So You Can Correct Errors Fast

Sometimes, inaccurate information ends up on people’s credit reports. For example, a lender may say a payment is missing when you were on time. In some of the worst scenarios, someone else’s information can even end up on your report.

By monitoring your credit report, you can spot errors quickly. Then, dispute the erroneous information to get it fixed.

Ultimately, achieving a FICO score of 800 is completely possible. However, it may take time, depending on your current situation. Just be patient and diligent in your efforts. If you focus, you can get their faster than you think.

Do you have a tip for improving credit scores? Share it in the comments below!

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