How to get a credit score between 800-850

A credit score between 800-850 is rare but you can reach this goal with longevity by following the 7 principle steps of how to build a credit score. Having a fico score between 800 and 850 is extraordinary and can open up financial doors drastically saving you hundreds of thousands from interest rates on mortgages, credit cards or purchasing a vehicle. With that said having a credit score over 750 puts you in a position in which you will get the best terms on most any financial lending that you apply for.

Most lenders use credit scoring formulas from Fair Isaac Corporation which is the definition of FICO and your fico score is based on your payment history, types of credit, how often you apply for credit, and your credit utilization which is the amount of credit you are using divided by the amount of credit available. Lenders will use all three major credit bureaus, Experian, Transunion, and Equifax where all this data is retrieved to establish your credit score.

Follow these 7 steps below and you will be on your way to achieving a credit score between 800 to 850 fico

STEP 1. ON-TIME PAYMENTS -Just paying on time is 35% of your score. NEVER make a late payment. The higher your credit score, the more it can drop with late payment. It takes a long time to build a high credit score but one late payment can bring you crashing down. If you want to boost your credit and reach a credit score between 800 and 850 set up automatic payments a few days before the statement period closes and pay it off to a zero balance because only using 10% of your debt to credit ratio is a substantial ingredient to raise your credit score. do this for three months in a row and you will boost your credit score between 100-and 150 points.

STEP 2. UTILIZATION – This is mostly taken into consideration from your revolving debt (credit cards & line of credit). The standard everyone knows is to have your utilization at 30% or less which is good but if you really want to increase your score, having it less than 10% is great.

Example: For a $10,000 credit card limit to have a utilization of 30% or less you need it under a $3,000 balance. Under a 10% or less utilization is a $1,000 balance or less.

STEP 3. INQUIRIES- Inquiries are only 5% of your score. Although this is a smaller factor it’s still important. 72% of people with 800 credit haven’t applied for “credit” in a year. We can remove inquiries on all closed accounts guaranteed in 21 days.

STEP 4. MIX OF CREDIT- This is most likely the most important and less understood to obtain an 800+ credit score. FICO wants to see that you have a credit mix of BOTH revolving and installment loans. Revolving are credit cards or lines of credit. Installments vary from personal loans, auto loans, mortgages, student loans, etc. If you just have one form of credit on your credit report such as just credit cards only, you’re most likely not going to be in the 800 clubs. A mix shows FICO you’re responsible with EVERY form of credit therefore a higher score like an 800+.

STEP 5. NUMBER OF ACCOUNTS – The average 800 credit score has 5 credit cards ALONG WITH a credit mix of a couple of installment loans (mortgage, auto, student loan, personal loan, etc)

STEP 6. REMOVE NEGATIVE ITEMS – I think it is pretty understood to not have any derogatory/late payments/public records to be in the 800s. Not even one. If you have a derogatory or late you’re probably going to get knocked down to the 700 clubs and that’s if you’re lucky.

STEP 7. AGE OF ACCOUNTS – Think twice before you cancel your longest credit card because the longer you have it, the better the FICO sees it. The oldest “average” credit card an 800+ person has is a $19,000 limit credit card and is 10 years old. Some people cut up and cancel their credit cards to get out of debt which is fine but remember FICO wants to see that you’re responsible for this so they give more points to people who have a long credit history with credit cards.