Getting an 800 credit score is the dream for many consumers, but few are able to achieve this high mark of financial responsibility. An 800 credit score is considered exceptional and indicates that the individual has an impeccable credit history. But what does it take to get into that top tier bracket? Let’s take a closer look at who tends to get 800 credit scores.
What is an 800 Credit Score?
First, it’s important to understand what an 800 credit score represents. Credit scores range from 300 to 850 and are calculated based on information in your credit report. This includes your payment history, amounts owed, length of credit history, new credit, and credit mix. An 800 credit score is at the very top of the range.
According to FICO, the most commonly used credit scoring model, only 1.4% of consumers have credit scores of 800 or higher. So reaching this level puts you well above average when it comes to your creditworthiness. An 800 FICO score is considered “exceptional” and means you have an extremely low risk of defaulting on loans or other credit obligations.
Key Factors for an 800 Credit Score
So what contributes to such a high score? Generally, people with 800 credit scores exhibit the following key habits:
- Make all loan and credit card payments on time each month
- Keep credit utilization very low (less than 10% of credit limits)
- Have substantial credit history spanning many years
- Have no negative marks on their credit report such as collections, charge-offs, bankruptcies, etc.
- Have a mix of credit types including installment loans, mortgages, and revolving credit
Essentially, someone with an 800 score has a perfect or near-perfect credit record over a long period of time. They likely have multiple accounts open, manage their credit wisely by keeping balances low, and have never missed payments or had other credit mishaps.
Behaviors to Get an 800 Credit Score
Based on the key factors above, here are some tips for behaviors and habits that can help you reach that coveted 800 credit score goal:
- Pay all bills on time – Being late on payments can severely hurt your credit score, so set automatic payments or calendar reminders to avoid this.
- Keep credit card balances below 10% of the credit limit – High balances relative to limits will damage your credit utilization rate.
- Don’t close unused credit cards – Having available credit you aren’t using helps your utilization rate.
- Check credit reports and dispute any errors – Mistakes on your credit history can negatively impact your score.
- Don’t open too many new accounts – New credit inquiries and young accounts can lower your average age of credit history.
- Have credit cards open for years – The longer your accounts are open and in good standing, the better.
Developing these habits over time and maintaining perfect credit management will help you eventually reach that 800 score plateau.
How Long It Takes
Building up to an 800 credit score does not happen overnight. It takes diligent credit management over many years. Most credit experts recommend the following timeline as a general guide:
- 12 months: Correct any erroneous information on your credit reports and pay all bills on time to start improving your score.
- 2 years: Continue perfect payment history and keep balances low. An 800 score may not be achievable yet.
- 5 years: Getting close to 800 is realistic if you have no late payments, a low credit utilization rate, and have accounts opened for 5+ years.
- 10+ years: Hitting 800 is very feasible after a decade of exceptional credit management habits.
The steep requirement of flawless long-term credit history is why so few people can achieve this top tier credit score. But with diligence and patience, it’s possible over time.
Who Is Most Likely to Have 800 Scores
While anyone can work towards an 800 credit score, research shows certain demographics are most likely to actually hit this high benchmark. According to data analysis by FICO, the consumers with the highest concentration of 800+ scores tend to:
- Be middle-aged or older – Consumers aged 65+ have the highest likelihood of 800+ scores.
- Have high annual incomes – More than half of 800-scorers earn $100k+ per year.
- Have substantial assets – Over 80% of 800-scorers have over $500k in assets.
- Hold post-graduate degrees – Educated consumers have higher representation in the 800 club.
- Own homes – Around 85% of 800-scorers are homeowners.
The demographic patterns make sense, as age, wealth, education level, and homeownership tend to correlate with responsible financial management. However, any type of consumer who applies sound credit principles over time can achieve an 800 score eventually.
The Benefits of an 800 Credit Score
So why strive for the 800 credit score dream? There are significant advantages to having top-tier credit:
- Better loan terms – You’ll qualify for the very best interest rates from lenders.
- Larger credit limits – Issuers will approve higher limits for those with excellent credit.
- Perks & rewards – Card issuers offer premium benefits and rewards to their top-score customers.
- Lower insurance rates – An 800 score can mean big savings on auto and home insurance.
- Job eligibility – Some jobs require employee credit checks during the hiring process.
- Ego boost – You’ll have immense pride in your financial responsibility skills.
While an 800 credit score requires diligent effort, the many perks make it a worthwhile long-term goal for your financial profile.
Conclusion
Achieving the pinnacle 800 credit score requires years of flawless borrowing and repayment history. But with diligent credit utilization habits, anyone has the ability to reach this exceptional score and reap the many benefits. Monitoring credit reports, keeping balances low, having a credit mix, and never missing payments are key. While hitting 800 is realistic over time for any responsible borrower, those with higher incomes, education, and assets have the highest concentrations. An 800 credit score opens doors to the most favorable loan products, insurance rates, credit limits and card rewards – providing ample motivation to build your credit score into the top tier.