Now that you’re on the road to a better credit score, you probably realize that being in that top 800 range is basically being part of a super elite money club. And it pretty much is an unofficial club full of perks and benefits not available to anyone else. It’s not easy to get into, and it can be difficult to stay there, but it’s definitely a worthy goal and once you’re there, you’ll never want to leave.
So how do you get into the esteemed 800 club, and what are the benefits? We’ll spell it out for you so you can set your goals and join the club yourself in no time!
What it Takes
Getting into the prestigious 800 club takes patience, self-discipline, and strategy.
- First, you need to know what’s on your credit report. Make sure you review yours annually so you can identify and negative issues that may hold you back or any mistakes you should fix.
- Next, keep your debt ratio low, under 30 percent for the best results. If you are paying off a balance on a credit card, spread out the balance among several lines of credit so one card isn’t maxed out, because that can also affect your credit score.
- Perhaps the most important factor to getting that score up there is to make your payments on time! And not just your car or mortgage payment – even your phone bill or utility bill can affect your credit, so set everything up to be paid on time no matter what.
- If you have one slip-up, and I mean one, you can try to have it removed. You can write a goodwill letter explaining your good payment history and assuring future payments will be made on time. If you’re a long-time customer with the company of interest, you’ll have a good chance of having it removed. But if it happens again, don’t expect much pity again.
- Utilize the right kind of credit. Revolving credit or unsecured credit, such as credit cards and lines of credit, are considered bad credit because it does not add value to your financial situation. Installment debt, such as mortgages and student debt, on the other hand, are considered as valuable debt because of the value it adds to your financial situation over time.
Perks of the 800 Club
If all of that seems like a lot of work, here is the “why” behind being diligent at all of those steps:
- Low interest rates. I’m talking the lowest of the low, and this can save you thousands of dollars over time as you aren’t plagued with insane interest rates.
- Higher limits. When you apply for a credit card, you’ll be eligible for a higher limit than those with lower credit.
- Fast approval times. Once a lender sees your credit score, it won’t take long for them to give that stamp of approval, and get you that lower interest rate and higher limit. No more waiting around worrying about getting denied.
- Best rewards programs. You will be eligible for the best rewards programs through credit cards – think the best travel perks and first-chance offers for entertainment and sporting events. You really will be VIP because of that credit score.
- Insurance premiums. Did you know insurance companies run your credit when determining your coverage? Those with bad credit tend to file more claims than those with good credit. So better credit = lower insurance premiums because you’re seen as less of a risk. That’s even more money kept in your pocket because of your membership in the 800 club.
Although it does take time, be persistent and vigilant in your spending and budgeting habits, and you’ll see that score climb in no time.