Gettingyour credit scoreabove 800 earns you elite status.
Just 21% of consumers have a credit score of 800 or above, according to Experian.
An 800 credit score means youll qualify for the best lending terms.
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That can lead to serious savings over time.
But just how hard is it to get an 800 credit score?
All Smart Credit Card Users:
Debt can get out of control fast.
(Inflation, amiright?)
That doesnt mean you have to let your debt run your life.
Habit 1: They Never Miss Payments
This one isnt exactly secret.
Your payment history accounts for 35% of your FICO score, more than anycredit factor.
But a lot of them find that making more frequent payments manually is key to their success.
Many make payments weekly, biweekly or as soon as the balance posts if theyve made a major purchase.
Doing so has helped him attain a nearly perfect credit score of 840.
On the 30th, I pay all of my bills that are due between the 1st and the 15th.
Keeping a set schedule helps me remember.
Your utilization ratio is the percentage of your open credit that youre currently using.
A couple of years ago I was carrying about 30% balances and my score was below 700.
I especially urge [against] closing card accounts that have no annual fee, Chen said.
If you dont use a card regularly, the credit card issuer can cancel you for inactivity.
That will decrease your credit limits and your credit age, both of which are bad for your score.
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New accounts can lower your age of credit.
Also, when you apply for credit, it results in a hard inquiry to your credit report.
Too many credit inquiries or multiple credit inquiries within a short time frame can damage your credit score.
A limit increase lowers your credit utilization without lowering your credit age.
Often, you’re able to avoid a hard inquiry as well.
it’s possible for you to contact each of the three credit bureaus to set one up.
Its free to freeze and unfreeze your credit.
This used to cost $10 per action, Chen said.
Since its now free, there is no reason to not freeze your credit.
Many use a free credit-reporting service and pull all three of their credit reports on a weekly basis usingAnnualCreditReport.com.
But beyond that, they really arent obsessing too much about their scores.
Their scores are high because of the good financial habits theyve developed over time.
Beyond that, Ive never done anything special to try and artificially boost my credit score.
I just dont spend money I dont have.
Heard of These Credit Card Debt Tips?
But millions of Americans overlookthese easy tipsthat could help them manage credit card debt even more wisely.
Read moreto boost your credit knowledge and keep your credit score in check.
Do You Really Need an 800 Credit Score?
An 800 credit score will certainly get you bragging rights, but dont panic if youre not there yet.
But think of it as a long-term goal.
Improving your credit score will increase your odds of approval when you seek financing and lower your interest rates.
Thats worth celebrating, even if you dont hit the 800 mark.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
