If you want to buy a car or are going to buy a home, your credit scores play a major part in the quality of loan you can receive.

We have heard that the credit score ranges from 300 to 850. And we all know a perfect credit score is 850, so what if a credit score higher than 850?

Let us check out this article to know more about maintaining your 850 credit scores, the benefits of having a credit score higher than 850, and the ways to become a member of the 850 credit score club.

What do you get from your credit score higher than 850?

It takes years to reach the perfect credit score. But how much does the perfect credit score or credit score higher than 850 benefits you?

Let us have a quick look through credit reports and credit scores. Your credit reports are generated by the three credit bureaus (Experian, Equifax, and TransUnion) based on the credit scores.

The FICO Score ranges from 300-850, where 850 is the perfect credit score.

Best Credit Cards

When your credit score is high you are qualified for many credit cards with good credit offers. You are also eligible for a premium travel credit card.

They also include other lines of credit, like personal loans, car loans, and mortgages. Not only do most banks and lenders lend money to someone with near-perfect credit, but the terms of the loan are often better than the terms offered to those with less credit.

Lower Interest Rates

You are also provided with lower interest rates when your credit score higher than 850. When you have low-interest rates, you are saving your money and getting a fixed interest rate on a long-term mortgage.

If you have a mortgage loan, then refinance your loan once you have a credit score higher than 850. Refinancing your loan is a good idea because you might have got hold of an interest rate when your credit score was low.

Higher credit limits

You have a high credit limit when your credit score higher than 850. With higher credit limits, you can increase your purchasing power, and maintaining a low credit utilization ratio helps in keeping your credit score higher than 850.

When you purchase more, you will be earning rewards and furthermore, you will be qualified for some of the best credit card rewards. If you pay your bills on time, the charging amounts will not affect your credit score and will not impact your rewards either.

Maintain Your 850 Credit Score

It takes years and some hard work to reach a credit score of 850 or a credit score higher than 850. But after reaching an 850 credit score, maintaining that score can be a difficult task.

Want to know about the benefits of 850 Credit Score

If you follow these steps you can maintain your 850 credit score:

Low Utilization Ratio

It is better you keep your utilization ratio low, which means closing all off your balances regularly.

Maintain your credit card balance to be 30%, so that you can see positive changes in your credit score.

Check your Credit Score

Check your credit score regularly. While checking your credit score, look at what has increased and what has gone down.

You can work on the things that have gone down so that they will not affect your credit scores.

Check Your Credit Reports

Get your credit reports from the credit bureaus. Most people have errors on their reports that they may not even be aware of, and these will lower your credit scores.

To clear your error or any doubts regarding your credit reports, you can contact TheCreditpros: “We educate our clients by helping them understand their credit report and score.

We provide practical, honest credit advice when you need it. You can also book a free consultation service from us.

Finally, if you want your credit score higher than 850 or any disputes to be reported to the credit bureaus, we are ready to service you.”

Be Patient

You are investing your time in building your credit. It requires patience and diligence in regularly checking your credit reports and as stated above, being certain that all discrepancies have been cleared.

How to become a member of the 850 Credit Score Club?

“The 800 Club”: with a credit score of 850, you’ll be in this elite club, because 800 and higher is considered excellent credit and trustworthiness.

By following these practices you too can become a member of this club.

  • Having Zero Balance
  • Have mixed accounts
  • Do not Cosign
  • Be selective about new accounts
  • Pay down your debts
  • Maintain budget
  • Clear your Credit reports

Having Zero Balance

People in the 800 club maintain their credit cards by making their payments on time. They understand that using a credit card is a great advantage to their credit scores as long as they maintain the principles outlined above.

By clearing your balances each month, you carry zero interest and show lenders that you are a responsible person in money matters. Lenders have a good impression of you, and provide you with increasingly lower interest rates.

Have Mixed Accounts

If you have a good credit score, then you are having multiple credit cards and handle them well. To become a member of the 800 club, have a mix of revolving credit and installment debt.

Have an Idea of New Accounts

When you build your credit, you will be opening new accounts. Spend some time searching and learning about the lenders from whom you are going to open the account. Do not fall for fake lenders: those not interested in your credit history, not registered in your state, no physical address, or they call you or even knock on your door.

You can always save and spend money when you are smart at credit.

Do not Co-sign

Helping others is good, but cosigning often creates credit problems. When you co-sign you take full responsibility for paying it back if that person fails to make the payments.

Added to this, if that person makes a late or missed payment, it will surely impact your credit score. It is good if you avoid co-signing on any request on credit.

Pay Down Your Debts

If you want to be part of the 800 Club, then you should have a low debt-to-income ratio, which means paying off the debts that have higher priority depending on your credit cards. Since you are getting rewards, do not overspend.

Maintain Budget

If you feel you are spending too much, then prepare a budget and stick to it. Plan your finances, make quick and smart decisions while keeping your budget in your mind.

This will help in clearing your existing payments, lowering your debt, and having a zero balance.

Suggested Reading:

https://thecreditpros.com/credit-score-hacks-for-2022/

https://thecreditpros.com/how-to-get-a-business-credit-card-with-bad-credit/

https://thecreditpros.com/fraud-alert-vs-credit-freeze/

Key Takeaway

It is hard to achieve a credit score higher than 850. If you have a mix of credits on your name then it is easily achievable over time if you pay them regularly – this indicates that you have prodigious monetary funds from which to draw from, and you will attract better and better credit offers. 

The benefits might be the same for both good and excellent credit scores. 

Frequently Asked Questions

1. How long does it take to get an 800 plus score?

It depends on when you start. It will take several years to build your score to 800. You should be showing how good you are in managing different types of credit cards, and paying back your debts on time. Since the credit history plays a major role, it takes several years to get your 800 plus score.

2. Is credit score based on income?

Your credit score is not directly based on income. If you are not able to pay your bills on time due to some issues in your income then your credit score will be impacted. Credit scores are based on credit report information from the credit bureaus



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