Today, it is vitally essential to maintain a good credit score if we are holding one because good credit can give us many rewards, as well as loans and financial help at a very low rate as compared to traditional bank rates. To properly utilize a credit card, we must have a good credit score if we have a credit card. A credit score of more than 750 is trustworthy and a credit score of around 800-900 is considered to be excellent. The score is comparatively good for a lower score. So today, with the help of this article, we will discuss ways in which we can maintain a credit score of 800 or more. Let us know ‘7 Ways 800 Credit Score’.
7 Ways To Get An 800 Credit Score
We have already discussed why a good credit score is important and that we get many advantages if we have a good credit score. in which fewer interest rates on loans, no collateral loans, and various rewards are common. The 7 ways to an 800 credit score are:
- Long credit history
- Timely bill payments.
- Different credit cards
- The credit card uses limits
- Restricting some hard credit inquires
From the above illustrated point we can get a knowledge of how to get a good credit score. Let us look in detail at these different points.
Having a long credit history
The first thing which strikes when hearing good credit score is credit history. If you have had a credit score for like 1 or 2 years, it is very hard to get a credit score of 800. However, if you use credit for a long period, then there is a very high chance that you will have a credit score of 800 if you follow all the terms and conditions.
On-time payment of all bills
The next step, which will improve your chances of getting a credit score of 800, is that you pay all your due bills on time. Usually, the bills are generated after a period of 30 days, or it can depend on the date on which you have made the payment, but in most cases, the due date or payment date is around 35–40 days after the payment, so try to clear the bills as fast as possible.
Redefine credit card usage.
Usually, we assume that with the credit limit that we have got, we can spend that much money. Don’t make this mistake. Credit card companies give you a credit limit to monitor your money behavior, so it is very important to keep your spending below 30% of your credit limit.
The credit accounts should be diversified.
If you have a credit card, then you should utilize it for paying for different items or should have different uses. This will improve your chances of getting a higher credit score. For example, a credit card can be used to take a loan or can be used to pay different installments.
Limit your spending
Credit card companies keep a close eye on the type of payments that are being made by the user, and also, you must maintain a budget and keep the spending within the budget. The spending should not exceed 30% of the credit limit because if it increases by more than 30%, then there is a high chance that your credit score will be decreased.
Limit your liability
It is not advisable for a person who holds a credit card to have unlimited liabilities since that can negatively affect their credit score. After all, it indicates that you cannot be financially trusted, and if you have been given a good credit limit or score, you can exhaust the whole limit. As a result, never try to increase your liability or keep more than the due date because this can harm your credit score.
Try to restrict the hard inquiries
Here, “inquiry” means the inquiry about your credit score by yourself or someone else behalf of you. It is fine if the credit score inquiry is done in soft copy or online format. Your credit score can be damaged if any credit card company pulls your credit report after any transaction or inquiry you make.
Conclusion
In today’s time when the world is money-centric and inflation is touching the sky, good maintenance of our money is very important. Well, the credit score is one of the most important things in the current scenario because it opens the door to different offers and rewards. We can also get an interest-free loan. Paying our bills on time and making frequent transactions with other points can help with a good credit score.
FAQ
Q1:Can a 6-month credit history makes a good credit score?
Several other factors contribute to a good credit score, and credit scores are good only when all the factors are checked and controlled. 6-month history can also make a good credit score but for that, it would be a good credit company.
