A 808 credit score is considered a great credit score. Not only that, but it’s only 2 points shy of excellent credit, which starts at 810. A 808 score means you’ve been doing almost everything right with very little error.
Keep reading to find out the benefits of a 808 score, what it takes to get a great score, and how to protect and monitor your score.
Benefits of a 808 Credit Score
With a 808 credit score, you’ll gain advantages that you might not have had before. Here’s an idea of what you can expect:
- Credit limit increases: With a strong credit score serving as proof of your creditworthiness, you may be able to request and receive credit limit increases on your current accounts or request an increase on an account you just opened.
- Preapproval: Preapproval means the lender has checked your credit, and approved you for a specific mortgage or auto loan amount. Being preapproved gives you the ability to negotiate and close loans much faster than average.
- More Competitive Interest Rates: A 808 credit score can allow you access to much better interest rates than people with scores in the average or low ranges, which can save you money.
How To Keep a Great Credit Score
Getting a great credit score is the result of consistently exercising good credit behaviors. Here are some examples:
1. Pay on time
Payment history counts the most — 40% — when it comes to calculating your credit score. Plus, how well you keep up with your payments is reflected in your credit report, which lenders use to gauge your creditworthiness.
If you do happen to have a late payment on your credit report, make sure it doesn’t happen again anytime soon. Months of positive credit behavior can help lenders see that making late payments is not a habit on your part.
2. Reduce credit card debt
Carrying a large amount of credit card debt is a huge financial liability that can backfire and cause you to miss a payment, and lenders know it. Reducing credit card debt can decrease your credit utilization.
3. Monitor your credit
Keeping tabs on your credit by regularly viewing your credit reports and scores is a key to getting and keeping a great score. By monitoring, you can detect errors or fraudulent activity as early as possible so you can take action to protect your credit.
How Are The Highest Credit Scores Calculated?
Achieving a 808 credit score is a great accomplishment, but the credit-scoring scale runs up to 850 Here are a few characteristics of a highest tier credit score:
1. Limited credit utilization
Although people with scores from 701-750 utilize, on average, about 27% of their overall credit, people with scores over 750 tend to utilize much less credit — around 5%.
To determine your credit utilization, divide how much you owe by your total credit limit. Calculate credit utilization on each of your credit card accounts, as well as an overall calculation across all accounts. Both matter.
2. Few Hard inquiries
Hard inquiries occur when you apply for a loan or credit card and the lender initiates a hard pull on your credit. Unfortunately, each hard inquiry can lower your credit score by a few points, which could last around six months.
A few points might not seem like a big deal, but if you have several separate instances of hard inquiries, it can impact your score.
3. Credit Age
Situations where all other scoring factors compare, people with longer credit histories tend to have higher scores than those with more limited credit histories.
Protecting and Monitoring Your 808 Credit Score
Both payment history and credit utilization count for the majority of your credit score. So avoid paying late, and keep your credit utilization as low as possible. Other factors that affect your credit score are the credit mix you have, length of your credit history and the number of recent hard inquiries on your credit report.
Monitoring your credit scores and reports is also a good strategy to help you protect your credit. Are you signed up for a product that provides you with your credit scores and reports? If not, what’s stopping you?