The worst moment for any Texan is when they plan to buy their dream home, but their credit score doesn’t allow them to move forward. “Sorry, your credit score is below the limit; please get it around 800 to get approved before making any high investment.”
Have you been through this? If yes, this guide is for you. We know you might be seeking an accurate guide for your queries like; “how to fix my credit score fast” or “how to get 800 scores in 45 days, or in less time?” For your convenience, we have created a detailed guide answering all you need to know about raising your credit score.
Pro Tip – Collecting all information from your end before approaching any Texas best credit repair service is the wise move one can ever make.
Want to Raise Your Credit Score? Here is All You Need to Know
How Long Does it Takes To Get a High Credit Score?
To build a good credit score from scratch, first you need to use credit by either opening account and use a credit card, or paying back a loan. It hardly takes months of credit activity to create enough history for a FICO credit score, which is used in 90% of lending decisions.
The standard FICO credit scores usually range from 300 to 850, and scores above 700 are marked as good credit scores. Whereas credit scores over 800 are considered excellent.
Do not expect stunning results right away. It takes less than a year to accumulate enough credit history to generate a score; it takes years of wise credit usage to achieve a good or exceptional credit score.
Why Does It Take Time To Get High Credit?
While building your credit score, time and circumstances usually go against you. The lenders want to see good behavior over time, due to which FICO scores depend on the following factors;
- Payment history (35% of score): Have you made on-time payments consistently?
- Length of credit history (15% of score): On average, how long have your accounts been open?
- New credit (10% of score): Have you opened several new credit accounts in a short amount of time?
- Credit mix (10% of score): Do you have experience managing different types of credit and loans?
- Amounts owed (30% of score): How much debt do you have compared to your available credit?
Lenders will trust you as a credit user if you prove that you pay your bills on time and don’t have any outstanding balances on your cards. Building a decent credit score from zero takes time since such responsible habits are more persuasive when they work over time.
Anyways, if you are looking for a credit score that gives you a strong chance of credit approval at favorable terms, shoot for an 800 credit score. Why? Because lenders are less likely to refuse you credit based on your credit history. The 800 credit score shows that you have a stellar track record of managing credit.
Benefits of Achieving 800 Credit Score
Having an 800 credit score means you have put all your possible efforts into proving your creditworthiness. You may have a lengthy credit history, and you’ve made all your payments on time.
Following are some other striking advantages of getting high credit scores. See how best Texas credit repair makes a great contributing factor in improving your lifestyle.
- Better credit approval odds – Regardless of applying for any credit type, it may be calming to know your 800 credit score can exceed any lender’s minimum credit score requirements.
- Better credit offers – An 800 credit score increases your chances of being approved for the best credit cards, including those only available to those with exceptional credit. Additionally, you have a higher chance of being approved for credit cards, mortgages, and other types of borrowing.
- Lower interest rates – You can be given interest rate options that are among the best accessible because of your track record of responsible credit management. Low-interest rates on personal loans, vehicle loans, credit card debt, and mortgages can save you hundreds of dollars.
- Better insurance rates – Most states let insurance companies consider your credit score when determining your insurance price. Unless your state forbids using credit-based insurance scores, your near-perfect credit may help you get a lower price for your house or car insurance.
How to Get an 800 Credit Score?
Getting an 800 credit score is not a rocket science. All it takes is a few smart steps to improve your credit, including:
Pay Your Bills on Time
Paying your invoices on time is possibly the finest approach to prove lenders that you are a reliable borrower. You must pay your bills on time since your FICO® score, which accounts for 35% of your payment history, is the most important factor in the FICO credit scoring models.
Fortunately, you may make up for the error and prevent damage to your credit score if you forget to pay the payment by the deadline. Make sure to settle any unpaid debts before they become 30 days past due because lenders often don’t notify credit bureaus of missed payments until after that point.
Keep Your Credit Card Balances Low
Credit use is the second most significant factor determining credit ratings. Your balance-to-limit ratio, also known as your credit usage ratio, displays how much credit you currently use about your credit limitations. Your credit utilization ratio is 25%, for instance, if your credit card has a $4,000 limit and you owe $1,000.
Remember that your utilization % is determined for each credit card separately and for all your credit card accounts combined. While it’s generally advised to keep your credit utilization ratio under 30% to prevent major damage to your credit score, customers with at least 800 have an average utilization rate of 11.5%.
Be Mindful of Your Credit History
How long have you handled your credit accounts for 15% of your credit score? Usually, when your credit history changes, so will your credit ratings. Credit score algorithms may consider the average age of all your accounts, the age of your oldest account, and the age of your newest account.
Therefore, consider the repercussions before closing a credit account still in good standing. Closing the account may result in shorter credit history and a smaller credit limit, which may result in a decline in your credit score. Consider requesting your card issuer to downgrade you to a card with no annual charge if you wish to close a credit card you aren’t using to avoid its annual cost.
Improve Your Credit Mix
An additional credit account might be advantageous for you, especially if it’s a form of credit you don’t currently have. For instance, if all of your loans are installment-based, like a personal or vehicle loan, getting a new credit card can help diversify your credit mix, contributing to 10% of your credit score.
Additionally, you might lower your overall credit use ratio by raising your credit limit.
Check Your Credit Reports
It is possible that you are not to blame if your credit score is worse than you would like. Your credit score may suffer because of erroneous credit report information.
Keep checking your credit reports for inaccuracies and remove them with the lender who submitted the inaccurate information to the credit repair Texas agencies or the credit bureaus themselves might be advantageous.
Stay tuned for more useful information about Texas best credit repair, and learn how to get high credit scores.