A high credit score can be extremely beneficial when applying for loans, renting an apartment, or obtaining a mortgage. Even more opportunities may be available to you if your credit score is exceptional or excellent and falls between 800 and 850. However, improving your score isn’t always as simple as it sounds.
The credit reports of 100,000 LendingTree users with credit scores of at least 800 were anonymized, and our researchers examined them to provide insight into what it takes to receive an exceptional score. Here’s what habits they had in common.
The elusive 800 credit score: a symbol of financial responsibility and a gateway to the best interest rates and loan terms. But for those starting with a 700 score, the path to 800 can feel like a marathon, not a sprint. So, the burning question remains: how long does it actually take to bridge this 100-point gap?
The Answer: It’s Complicated (But Not Impossible)
Unfortunately, there’s no one-size-fits-all answer. The time it takes to climb from a 700 to an 800 credit score depends on a multitude of factors, including:
- Your Credit History: A longer, positive credit history generally leads to a higher score. If you’re a credit newbie, building a strong history takes time.
- Credit Utilization: Keeping your credit utilization low (ideally below 30%) is crucial. Maxing out your cards can significantly hurt your score.
- Negative Marks: Derogatory marks like late payments or collections can drag your score down. Removing these blemishes takes time and effort.
- Credit Mix: Having a mix of credit accounts (credit cards, loans, etc.) can boost your score. Building a diverse mix takes time and careful planning.
The Good News: You Can Do It!
Although it might take some time, it is completely possible to achieve an 800 credit score with commitment and wise money management. Here are some tips to accelerate your progress:
- Pay Your Bills on Time, Every Time: This is the single most important factor in building a good credit history. Even one late payment can have a negative impact.
- Keep Your Credit Utilization Low: Aim to use less than 30% of your available credit. Ideally, pay your balance in full each month to avoid interest charges.
- Dispute Errors on Your Credit Report: Mistakes happen, and inaccurate information can hurt your score. Regularly check your credit report and dispute any errors you find.
- Become an Authorized User on a Responsible Account: If you have a friend or family member with excellent credit, ask them to add you as an authorized user on their account. This can help you build a positive credit history without having to open new accounts.
- Consider a Secured Credit Card: If you have limited or bad credit, a secured credit card can be a great way to rebuild your score. You’ll make a security deposit, which becomes your credit limit, and use the card responsibly to demonstrate your ability to manage credit.
- Be Patient and Persistent: Building a good credit score takes time and effort. Don’t get discouraged if you don’t see immediate results. Keep at it, and you’ll eventually reach your goal.
Recall that having a high credit score can help you save money and get access to better financial opportunities. You can obtain an 800 credit score and benefit from a secure financial future by managing your credit and making wise decisions.
Additional Resources:
- Free Credit Score and Report: Many websites and apps offer free credit scores and reports. Check your credit regularly to monitor your progress and identify any potential issues.
- Credit Counseling: If you need help managing your credit, consider working with a credit counselor. They can provide guidance and support to help you improve your credit score.
Notice: This information is not intended to be financial advice; rather, it is for educational purposes only. Please consult with a qualified financial professional for personalized guidance.
How much debt do Americans with 800+ scores have?
Consumers with exceptional credit scores have an average of $150,270 in debt, including mortgages — up 8. 8% from May 2021. Millennials ages 26 to 41 now have the highest debt, at $197,082 on average. Meanwhile, the youngest age group has the least debt. On average, Gen Zers ages 18 to 25 have $51,693 in debt.
| Everyone | Gen Zers | Millennials | Gen Xers | Baby boomers | Silent generation |
|---|---|---|---|---|---|
| $150,270 | $51,693 | $197,082 | $193,051 | $114,848 | $66,593 |
Source: Analysis of anonymized credit reports of 100,000 LendingTree users
LendingTree chief credit analyst Matt Schulz says inflation plays a role in rising debt. “Due to the Federal Reserve’s seven interest rate hikes over the past year, borrowing has become significantly more expensive,” he claims. It is simple to understand why some people would be struggling with more debt today than they were last year when you combine that with inflation. ”.
Generation Xers, who are between the ages of 42 and 57, have the highest average credit card debt balances. A previous LendingTree study on credit card balances found that Gen X cardholders have $6,527 on average. Meanwhile, Gen Zers again have the lowest, with average credit card balances of $1,857.
These customers are paying a lot because they owe such large sums of money, and not just on their credit cards. Across various products, high-score consumers’ monthly payments come out to $1,556 on average. Millennials have the most debt (about $4,000 more than Gen Xers), but Gen Xers make the highest monthly payments, averaging $1,985. Meanwhile, Gen Zers pay the least, making average monthly payments of just $506.
| Everyone | Gen Zers | Millennials | Gen Xers | Baby boomers | Silent generation |
|---|---|---|---|---|---|
| $1,556 | $506 | $1,732 | $1,985 | $1,309 | $715 |
Source: Analysis of anonymized credit reports of 100,000 LendingTree users
The second most significant factor in a credit score is the amount owed, which accounts for 20-30% of all consumers’ credit scores (E2%80%94%). But your debt amount isn’t the most influential factor on this portion of your score. Maintaining a solid credit utilization ratio can be key. However, exercise caution to avoid maxing out your cards as this will result in an excessively high ratio (more on that below).
100% of sampled users with credit scores of 800+ pay their bills on time every month
Customers with outstanding credit scores have one thing in common: they pay their bills on time (Amy, let me see you there). Additionally, they consistently pay their bills on time each month, accounting for E2%80%94%20100% of our sample of LendingTree users with credit scores of at least 800.
Payment history makes up 35% of a credit score. Given that payment history accounts for the majority of a credit score, it should come as no surprise that all high-score customers pay their bills on time. As a matter of fact, when we conducted this study in 2019 (and again in 202021), 10% of consumers with exceptional credit scores paid their bills on time.
Do THIS For An 800 Credit Score (5 Steps)
FAQ
How long does it take to go from 700 to 800?
How long does it take to get credit from 700 to 800?
What qualifies an 800 credit score?
Is a FICO ® score of 800 a good credit score?
21% of all consumers have FICO ® Scores in the Exceptional range. Less than 1% of consumers with Exceptional FICO ® Scores are likely to become seriously delinquent in the future. A FICO ® Score of 800 is well above the average credit score of 714. It’s nearly as good as credit scores can get, but you still may be able to improve it a bit.
How long does it take to get an 800 credit score?
A credit score of 800 is a great goal but it’ll likely take many years to reach this elite status as credit scores factor account ages into the score. As your average account age grows, so can your credit score.
How do I get a credit score above 700?
You can work to get your credit score above 700 by practicing good credit habits, including checking your credit score and credit report regularly, and taking steps to address potential credit issues. Why Do I Want a Score Above 700? A good credit score ranges from 670 to 739, according to FICO ®, the scoring model used most by lenders.