A credit score over 800 is seen as excellent by lenders. Here are some tips on how you can improve your credit score to reach this goal.
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Check your credit report for mistakes
The first step to take if you want to raise your credit score is to check your credit report for any mistakes. You can get a free copy of your credit report from each of the three major credit reporting agencies (Equifax, Experian, and TransUnion) once every 12 months.
Look over your credit report carefully and look for any inaccuracies, such as:
-Incorrect account information (e.g., wrong balance or payment history)
-Incorrect personal information (e.g., wrong name or address)
-Incomplete information (e.g., missing payments)
If you find any mistakes on your credit report, you can file a dispute with the relevant credit reporting agency.
dispute any errors you find
If you find any errors on your credit report, you should dispute them as soon as possible. You can do this by contacting the credit bureau directly or by using a credit report dispute form.
If you have negative items on your credit report, such as late payments or collections, you can try to negotiate with the creditor to have them removed. This is called a “goodwill adjustment.”
You can also try to get negative items removed by demonstrating that they are inaccurate or outdated. For example, if you have a late payment from five years ago that you’ve since paid off, you can ask the creditor to remove it from your credit report.
Pay your bills on time
One of the most important things you can do to improve your credit score is to pay your bills on time. This includes everything from your credit card and utility bills to your mortgage or rent payments. Even if you only make the minimum payment, be sure to pay on time so you don’t get hit with late fees or penalties.
This may seem like an obvious tip, but it’s worth repeating because it’s one of the most important things you can do to improve your credit score. A late payment can stay on your credit report for up to seven years, so it’s important to make sure you pay on time.
If you have trouble remembering to pay your bills on time, set up automatic payments from your checking account so you don’t have to worry about it. Many banks and credit card companies offer this service, and it can be a helpful way to make sure your bills are paid on time each month.
Pay down your debt
One of the biggest factors in your credit score is your debt-to-credit ratio — in other words, how much debt you have in comparison to your available credit. To get your score over 800, you should aim to keep your debt-to-credit ratio below 30%.
If you have a lot of debt, the first step is to start paying it down. To do this, you can either focus on paying off the debts with the highest interest rates first or concentrate on paying off smaller debts so you can feel like you’re making progress. Whichever method you choose, make sure you make at least the minimum payments on all of your debts each month.
Another factor that comes into play when you’re trying to raise your credit score is the types of debt you have. Having a mix of different types of debt — including installment loans (like auto loans), revolving loans (like credit cards), and mortgage loans — can actually help your score. So if you’re working on paying off debts, try to focus on all types of debt, not just one type.
Use a credit monitoring service
If you want to get your credit score over 800, you’ll need to be vigilant about monitoring your credit report and score. There are a number of ways to do this, but one of the easiest is to use a credit monitoring service.
There are a number of credit monitoring services available, but some of the most popular include CreditKarma, CreditSesame, and Quizzle. These services will not only help you keep track of your credit score, but they will also provide you with tips on how to improve your credit score.
Additionally, many credit monitoring services offer free trials, so you can try out the service before you commit to it.
Keep old accounts open
One of the factors that goes into your credit score is the length of your credit history. So, one simple way to raise your score is to keep old accounts open even if you don’t use them anymore. This will lengthen your average credit history and improve your score.
Another factor that goes into your credit score is your credit utilization, which is the amount of credit you’re using compared to the amount you have available. So, if you have old accounts with large credit limits that you don’t use, keeping them open can also help raise your score by lowering your utilization rate.
Get a credit limit increase
If you have a credit card with a low credit limit, you may be able to get a credit limit increase by asking your issuer. Asking for and getting a credit limit increase can help your credit score by decreasing your credit utilization ratio – which is the amount of your credit limit you’re using.
When you ask for a credit limit increase, the issuer will likely do a hard pull of your credit report, which can temporarily lower your credit score by a few points. But if you’re approved for the higher limit, it can help reduce your overall credit utilization ratio, which could raise your score in the long term.
Use a secured credit card
If you have bad credit, one of the best things you can do to improve your credit score is to use a secured credit card. A secured credit card is a type of credit card that requires you to put down a deposit in order to open the account. The deposit serves as collateral in case you default on your payments, which helps reduce the risk for the issuer. In turn, this can help you get approved for a secured card and improve your credit score.
There are a few things to keep in mind when using a secured credit card, however. First, make sure that the card reports to all three major credit bureaus. This way, you can build up your credit history with the bureau that might have the lowest score for you. Additionally, try to use your card responsibly by keeping your balance low and making payments on time. By doing so, you can eventually qualify for an unsecured card and get your deposit back.
One way to improve your credit score is to become an authorized user on someone else’s credit card account. This means that you are able to use their credit card but are not legally responsible for the debt. When the account holder makes timely payments, it will reflect positively on your credit report.