There are so many borrowers with this score meaning that when you are an 800 credit score holder, then you are the fortunate few. Only 0.5% of those who have credit scores have ever attained such high figures. Sustaining an 800 credit score signifies excellent credit handling after a long time, as a result indicating good credit health.
Holders of an 800 credit score are regarded as exceptional by lenders and hence, you will be privileged to secure the best loan offers including very low interest rates. However, to get to this high level of credit classification is not going to be an easy feat as well as prudent credit management. That being said, let us turn our attention to the actual proportion of individuals who have credit scores of 800 and above.
What Percentage Of Population Holds An 800 Credit Score?
Experian, Equifax, and Transunion credit bureaus reveal that less than 0.4% of consumers with credit scores also have 800 and above. That means there are 1,500,000+ individuals with FICO scores above 800 out of 300,000,000+ Americans, again based on data obtained from Experian.
It is just very hard to continue a good track record of credit payments and good utilization of credit in those many years to achieve an 800+ score. Everyone will always fail to pay his or her dues on time extend credit or have another problem that causes the scores to drop at some point in life. So, in case you can maintain good financial practices all the time, an 800 score is well within your reach.
Distribution of Credit Scores
To appreciate how uncommon 800+ credit scores are, it’s useful to understand the full distribution of FICO credit scores across America:
800-850 (Exceptional): Overall, the current authors were one of all scorers 0.4% of the time.
750-799 (Very Good): 6.3%
700-749 (Good): 15.5%
650-699 (Fair): 23.4%
600-649 (Poor): 17.8%
500-599 (Very Poor): 11,4
300-499 (Bad): 25%
In other words, based on credit scores, over 75% of individuals are deemed to have a poor credit rating band which is above 700. However, the best possible scores within the tier of the first “Exceptional” credit grade range from 800-850, which essentially encompasses only 0.43% of consumers with credit.
It is a feat for someone to be able to score 700 or above on this test. However, achieving over 800 is possible only if certain extra measures are also taken apart from good financial management practices. No more than one missed payment over the last six months, the credit utilization rate below 30%, and no collections or other negative remarks on credit reports for several years consecutively.
What does it take to have an 800 Credit Score?
It would be rather challenging to get a FICO credit score of more than 800 as the rating reflects exceptional and sustainable credit management with no missed or late payments and other negative credit history records. Below are the fundamental necessities that can see you obtain over 800:
Late payment will not be entertained at any point in time. Not even on credit card payments or a loan for 30 or 60 days over many years.
• Credit utilization below 10% – This is the current ratio of credit card debts, cash credit, etc., to the total credit that one is eligible for. Low usage has a positive effect on performance and helps increase the necessary scores.
• Years of credit history – This is probably the most important factor a creditworthy candidate should possess; it means having accounts with a positive credit history and remaining financially responsible for 20 years. As for me, it is extremely improbable to get a score between 800+ due to a short credit history.
• No collections or other public records – Every unpaid debt that gets taken to collections will significantly drop your score. 800+ refers to the money that sets all the debts incurred.
• Ratio of credit utilization – Scores include the ratio of credit utilization, hence having a balance on a few credit cards increases your score.
Credit is good regularly without any late payments or other credit problems in the past, and one needs to work hard with great financial stability to have a score of 800+. A slip can cause your score to plummet down to the fifties or less in a matter of minutes.
The consequences of the 800 credit score are as follows:
This means that any FICO credit score above 800 is a strong message to the lending companies that is a very low-risk client who always meets his/her obligations and demonstrates superior credit behaviors. The immaculate borrowing profile as a result allows you to enjoy the top loan interest rates and other related terms of service that the lender offers.
An 800+ credit score can get you:
• Mortgage at 2% and Below – Cut your mortgage expenses by thousands by obtaining low interest rates.
• Great Auto Loan Rates – Expect to receive rates that are up to 2% lower than those offered to borrowers with good credit. Getting car loans and leases at considerably lower rates.
• Greater Approval – Your high credit score allows banks to approve higher credit limits due to the confidence they have in your handling of credit.
• Low Credit Card Rates – It is possible to get an average annual percentage rate on a credit card to be as low as 12.9% for an excellent credit rating while the same for a good rating can be above 20%.
• Premium Travel Rewards Credit Cards – Cards that provide rich travel points, cash back, and other benefits can be obtained only by those with perfect credit scores.
The distinction between regular good credit and the 800 credit score is thousands in savings on loans and eligibility for the no-annual-fee rewards credit cards. That is not a bad thing at all to have such a low and rare score as such can compensate for in many ways.
The Greatest Credit Score of 800 and How to Achieve It
A few credit maintenance practices include keeping good credit records right from the start of the credit history to stand a shot at breaking the 800 barrier one day. Consistently good financial habits over many years such as:
• Never missing payments
• This is in terms of ensuring that credit card balances are not accumulated to high levels.
• Another way to manage installment loans is by timely payment of the balances due
• Credit management – Credit inquiries.
Most of these credit habits done continually can assist in raising your scores over a while by merely avoiding the negatives. But to get over 800, you have to be extremely careful and ensure that your lending risks are brought down to almost zero for several years - something that most borrowers can only dream of.
If you have dreams of the elite, 800+ credit one day, start working on it by:
• Using the credit reports from the previous month so that you can see the current state as it is. The actual reports are provided by AnnualCreditReport.com, which is the only authorized organization where you can get your reports from each bureau for free once a year.
• Subscribing to the credit monitoring service to track your scores and reports every month to check the reporting inaccuracies.
• Timely payment on all credit obligations; use reminders for timely credit payments if required.
• Failing to carry over any balance to the next billing cycle and ensuring that credit utilization is as close to zero as possible.
Given that people of this generation have always been good at borrowing and managing their money, it is within the realm of possibility in the foreseeable future to get an 800 credit score. But it does take the utmost precaution and gold irons of your credit over two decades at least. It means that the potential rewards are just as great if you are ready for the long-term game!
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