Getting a credit score of 800 from 500 can be a long and arduous process, but it is possible. Depending on your starting point, it can take several years or longer to reach this goal. To get an 800 credit score, you need to have a positive payment history for a few years and a good combination of credit accounts that demonstrate your experience managing different types of credit cards and loans. The amount of time it takes to go from a 700 to 800 credit score can vary from a few months to several years.
Your financial habits and credit history will influence how long it takes, but there are some factors that have specific time frames. For instance, it takes up to two years for a thorough consultation to disappear from your credit report. As difficult queries are eliminated, your score may increase. Additionally, your score will improve the longer you have had credit.
Every year you have your credit, your credit history gets longer, which helps to boost your score. Because the length of your credit history represents 15% of your credit rating, having no or minimal credit history can prevent you from reaching a credit score of 800. To solve this problem, focus on building your credit. You can do this by applying for a credit-building loan or getting your first credit card.
Your payment history is the most important factor in your FICO score; it represents 35% of the total score. Therefore, you should try to never miss a payment. If your bills are 30 days late, creditors can report it to the credit bureaus and this can cause serious damage to your rating. A credit-building loan is a personal loan that is designed to help you add a positive payment history to your credit report. Credit scores take into account the length of your accounts, and an older account can help calculate the average length of your account.
If you've been a long-term customer of your bank, you may be able to open a line of credit without a high credit score. If you want to keep your score in the highest possible range, you'll need to continue practicing good credit habits. If you have a trusted family member with a good credit score, you have an opportunity to dramatically increase yours. This means monitoring your credit score and reports frequently, keeping your credit utilization low, and paying bills on time. If you don't meet the requirements or don't want to use a traditional credit card, you can apply for a secured credit card instead. Most people with 800+ scores pay their balances in full each month according to FICO.
With this line of credit, you will increase your credit-to-debt ratio, which will have a positive impact on your rating. Fortunately, credit scores aren't static numbers and if you can figure out how to get an 800+ score, you'll be able to enjoy some of the best rates and conditions on financial products such as mortgages, car loans, credit cards and personal loans. I was able to reach an 800 after my oldest account was over 7 years old and the average age of my accounts was about 3 years old. According to VantageScore and FICO's most popular scoring models, this is an excellent or exceptional rating. Reaching an 800+ credit score requires dedication and hard work but it is achievable with the right strategies in place. Monitor your progress regularly and make sure that all payments are made on time in order for you to reach this goal.