General

Building a Strong Foundation: Why an 800 Credit Score Matters

Building a Strong Foundation

Just like the foundations of a building, your credit scores are vital for achieving long-term success. But the higher you want to climb, the stronger your foundations must be.

Having an 800 credit score is considered exceptional, meaning you’re a responsible and financially savvy consumer. It takes a lot to reach this level of excellence, so maintaining it should be your top priority.

It Will Help You Get Approved for Credit Cards

Lenders look at credit scores in the 800s as near-perfect. This means you’re likely to get approved for just about any type of credit card, including rewards cards with exclusive perks like airport lounge access and travel credits. You’ll also find that lenders are more than willing to loan you money, such as a mortgage or car loan, as long as you meet the lender’s other criteria, such as income and debt-to-income ratio.

People with an 800 credit score typically don’t miss payments, and they keep their debt utilization low by paying off their credit card balances on time. They also regularly scan their credit reports for errors and immediately act against negative information.

If you’re not in the 800 club yet, working up to this level of exceptional credit can take a while. But you can get there by implementing the same responsible credit habits that got you this far, such as paying on time and keeping your credit utilization low.

It Will Help You Get a Mortgage

A credit score of 800 demonstrates to lenders that you’re an exceptionally reliable and low-risk borrower. This typically translates to more access to credit and more favorable loan terms.

People with exceptional credit scores often pay their bills on time, have a healthy mix of accounts, and use only a small percentage of their available revolving credit lines, according to Kiplinger. That’s why far fewer than 1% of Americans with an 800 credit score go delinquent on their debt obligations.

These responsible credit habits are one of the reasons why borrowers with an 800 FICO Score tend to get approved for mortgages with lower interest rates than other applicants. This can save tens of thousands in loan payments over the life of the mortgage.

It Will Help You Get a Car Loan

Exceptional credit scores like an 800 credit score qualify you for some of the best loan approvals, interest rates, and perks. Those with this kind of credit often qualify for car loans with better terms, including 0% financing from the auto manufacturer or bank and credit cards with higher credit limits and upfront bonus offers.

Consumers with exceptional credit typically don’t miss payments and use only a small portion of their available credit limits. This helps them maintain their high credit score, especially because payment history accounts for 35% of their credit scores.

To achieve an 800 credit score, you must follow excellent financial habits, including paying your bills on time and checking your credit reports regularly for inaccuracies. All consumers are entitled to a free credit report annually, a great way to stay on top of your credit. If you do this consistently over time, you can build a near-perfect 800 credit score.

It Will Help You Get a Loan for a Home Renovation

When you want to renovate your home, financing the project with a loan is often an option. And you’ll likely get the best terms and rates if you have an 800 credit score or higher. An 800 score is considered “exceptional,” according to the FICO credit scoring system.

People with these scores are also more likely to pay on time. According to LendingTree, the oldest active accounts of millennials with 800-plus scores average about 15 years, while baby boomers average nearly 22 years.

However, credit cards are typically one of the worst ways to fund renovations because of their high interest rates and short repayment terms. That’s why it’s essential to understand the lending landscape for home improvement projects and find a lender that meets your specific needs. This can include comparing rates, fees, and eligibility criteria. For example, options may be limited if you live in a co-op. However, you can still buy the property and finance the renovation through other means, such as an unsecured retirement loan, a home equity line of credit, or cash-out refinance.

Written by
Cosmo Jarvis

Cosmo Jarvis is a multi-talented artist excelling in various creative realms. As an author, his words paint vivid narratives, capturing hearts with their depth. In music, his melodies resonate, blending genres with finesse, and as an actor, he brings characters to life, infusing each role with authenticity. Jarvis's versatility shines, making him a captivating force in literature, music, and film.

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