Trending Now :

Times Up for Programmed Money Biggest Financial Crimes: Countrywide Quantitative Tightening, Inflation, & More The Stock Market Is On Sale Investors Need to Netflix and Chill Credit Card Fixed-Interest Loans: Explained Are You Money Smart? Build Your Credit for Free Filing Your Taxes in 2022 Credit Cards that Offer 2% Cashback on All Purchases Navient Ordered to Cancel Student Loans U.S. Mortgage Interest Rates Soaring Two Big Banks Cut Overdraft Fees 2022 IPO DRAFT CLASS: Ranking the Top 10 Prospects Re-Drafting the 2021 IPO Draft All You Need to Know about Buy Now Pay Later companies Credit Card Sign-Up Bonus or SUB The Best Credit Card for the Middle-Class Make An All-cash Offer with No Cash Capitalism Always Ignores Politics All You Need to Know about the Financial crisis of 2007-2008 American Families Face Serious Rent Burden Savings Is An Expense You Can’t Build Generational Wealth If You Are Broke IT’S OFFICIAL: Robinhood is a Meme Stock All You Need to Know About Biden Mortgage Modifications & Payment Reductions Apple Card 2nd Year Anniversary: Should You Get It Now Wells Fargo to Pull Customers Personal Lines of Credit The Rise of Individual Investors The US Housing Market Is Booming. Is a Crash Ahead? Financial Literacy: How to Be Smart with Your Money Non-Fungible Token (NFT):EXPLAINED SKYROCKETED CEO PAY & LONG LINES AT FOOD BANKS Amazon Workers Want to Unionize Another Major City Piloted Universal Basic Income The New Bubble: SPACs SUBMIT YOUR PPP ROUND 2 APPLICATION BEFORE MARCH 31ST Robinhood-GameStop Hearing & Payment for Order Flow Guess Who’s Coming to Main Street Democratic Senators Say No to $15 Minimum Wage BEZOS OUT! President Biden Most Impressive Act Went Unnoticed: CFPB Biden $1.9 Trillion Stimulus Package 2021 IPO DRAFT CLASS: Ranking the Top 10 Prospects $25 Billion Emergency Rental Assistance NO, TESLA IS NOT WORTH MORE THAN TOYOTA, VOLKSWAGEN, HYUNDAI, GM, AND FORD PUT TOGETHER AMAZON TO HAND OUT ITS WORKERS $300 HOLIDAY BONUS Where Does the American Middle-class stand on Student Debt Relief? Joe Biden’s Economic Plan Explained 4 TYPES OF BAD CREDIT REPORTS AND HOW TO FIX THEM What Is the Proper Approach to Not Buy Too Much House? FISCAL STIMULUS PLANS STILL IN ACTION How to Pick Investments for Your 401(k) 10 Simple Ways to Manage Your Money Better All You Need to Know about Reverse Mortgage All You Need to Know about Wholesale Real Estate Credit card Teaser Rates AVERAGE CREDIT CARD INTEREST RATE SURGES TO 20.5 Percent Trump Signs 4 Executive Orders for Coronavirus Economic Relief The Worst American Economy in History WHY CREDIT CARDS MINIMUM PAYMENTS ARE SO LOW? 10 BIGGEST COMPANIES IN AMERICA AND WHO OWNS THEM White House Wants to End the Extra $600-A-Week Unemployment  10 Countries That Penalize Savers FEWER CREDIT CARD BALANCE-TRANSFER OFFERS ARE IN YOUR MAILBOX Private Payrolls and the Unemployment Rate SHOULD YOU BUY INTO THE HOUSING MARKET RESILIENCY? WILL WE GET A SECOND STIMULUS CHECK The Child Tax Credit and Earned Income Tax Credit THE RETURN OF BUSINESS CYCLES Should You Request a Participant Loan or an Early 401(k) Withdrawal? Homebuyers Should Not Worry about Strict Mortgage Borrowing Standards The Potential Unintended Consequences of Mortgage Forbearance All Business Owners Need to Know about the Paycheck Protection Program 10 MILLION UNEMPLOYMENT CLAIMS IN TWO WEEKS HOW WILL THE GLOBAL MIDDLE-CLASS RECOVER FROM A SECOND ECONOMIC RECESSION IN A DECADE? WILL U.S. CONSUMERS CONTINUE TO SPEND? HOW’S YOUR 401(k) PRESIDENT TRUMP SIGNS $2.2 TRILLION CORONAVIRUS STIMULUS BILL MIDDLE-CLASS NIGHTMARE: MORE THAN 3.3 AMERICAN FILED FOR UNEMPLOYMENT CLAIMS IN THE US LAST WEEK. LAWMAKERS AGREED ON $2 TRILLION CORONAVIRUS STIMULUS DEAL CORONAVIRUS STIMULUS PACKAGE FAILED AGAIN IN THE SENATE APRIL 15 (TAX DAY) DELAYED DEMOCRATS AND REPUBLICANS DIFFER ON HOW $2 TRILLION OF YOUR TAX MONEY SHOULD BE SPENT YOU CAN DELAY MORTGAGE PAYMENTS UP TO 1 YEAR, BUT SHOULD YOU? 110 Million American Consumers Could See Their Credit Scores Change The Middle-Class Needs to Support Elizabeth Warren’s Bankruptcy Plan The SECURE Act & Stretch IRA: 5 Key Retirement Changes 5 Best Blue-chip Dividend Stocks for 2020 9 Common Bankruptcy Myths 401(K) BLUNDERS TO AVOID Government Policies Built and Destroyed America’s Middle-Class & JCPenney Elijah E. Cummings, Esteemed Democrat Who Led the Impeachment Inquiry into Trump, Dies at 68 12 Candidates One-stage: Who Championed Middle-Class Policies the Most WeWork: From Roadshow to Bankruptcy Stand with the United Auto Workers Formal impeachment Inquiry into President Donald Trump America Is Still a Middle-Class Country SAUDI OIL ATTACKS: All YOU NEED TO KNOW THE FEDERAL RESERVE ABOLISHED BUSINESS CYCLES AUTO WORKERS GO ON STRIKE Saudi Attacks Send Oil Prices Spiraling REMEMBERING 9/11 What to Expect from the 116th Congress after Their August Recess Should You Accept the Pain of Trump’s Trade War? 45th G7 Summit-President Macron Leads Summit No More Upper-Class Tax Cuts Mr. President! APPLE CARD IS HERE-SHOULD YOU APPLY? THE GIG ECONOMY CREATES A PERMANENT UNDERCLASS 5 REASONS IT’S SO HARD FOR LOW-INCOME INDIVIDUALS TO MOVE UP TO THE MIDDLE CLASS ARE YOU PART OF THE MIDDLE CLASS? USE THIS CALCULATOR TO FIND OUT? WELLS FARGO IS A DANGER TO THE MIDDLE CLASS The Financialization of Everything Is Killing the Middle Class
Six simple ways to build an 800 credit score
Credit Cards

6 SIMPLE WAYS TO BUILD AN 800 CREDIT SCORE

The estimated reading time for this post is 310 seconds

Six simple ways to build an 800 credit score is a list everyone can implement. Best of all, it costs nothing — no need to hire a credit repair agency.

The Federal Trade Commission (FTC), the Consumer Finance Protection Bureau (CFPB), and many state regulators advise American consumers not to seek the help of credit repair agencies.  

About six months ago, CFPB filed a lawsuit against CreditRepair.com and Lexington Law, two of the country’s biggest credit repair agencies, alleging that they tricked and cheated their consumers.  

Most credit repair agencies are shady, and the legitimate ones are not going to stay in business long enough for you to benefit from their services.  Credit repair is more about disputing erroneous tradelines.  It’s part financial responsibly and part of know-how.  The process can long, tedious, and exhausted.  If you shift your responsibility to a credit repair agency, you might end up with thousands of dollars in debt and the same credit profile.  Below are the 6 simple ways to build an 800 credit score:

On-time Payments

On-time payments have the highest impact on your credit score.  Paying a credit repair agency to remove charge offs, tax liens, and bankruptcy from your credit report will not do much if you are consistently making your payments late.

Credit rating agencies such as Transunion, Equifax, and Experian have two ways they calculate your on-time payments— the number of accounts for which you had never missed a payment or the number of overall payments you have made on time, across all your accounts.

Regardless of the credit rating agency’s methodology, you need to keep the percentage of your on-time payments at 100 percent.  Because on-time payments have such a significant impact on your credit score, you can’t even afford to keep its percentage less than 100 percent.

You should set autopay, so you never miss a payment, or set bill reminders.  Many credit companies will send at least three reminder texts or emails before the due date.

Here’s an on-time payments snapshot of someone with a nearly 800 credit score:

“Over the past 4 years, you’ve made 200 payments on 10 different accounts. Two of those payments were late, each of them on a different account. This means that you have made 198 payments on time and have never missed a payment on 8 of your accounts.  198 on-time payments / 200 total payments = 99% on-time payment percentage.  62% of people are in this range, and the status of your on-time payments is excellent.”

Oldest Credit Line (age of your oldest account)

The age of your oldest credit account shows lenders how much experience you have handling credit.

If you are 21 or younger and reading this, there is not much you can do.  In the good old’ days, you could “piggyback,” which is having an older user added you as an authorized user on their credit card (s).  You would inherit that user’s old account history.

Credit repair companies violated piggybacking, so the credit rating agencies don’t give it much weight anymore.

For older users, don’t EVER close old accounts.  That store credit card that you got when you were in college is good for your credit score.  Use it once in a while and pay the balance in full.

Here’s an oldest credit line snapshot  of someone with a nearly 800 credit score:

“Your oldest account is 18-years old.  It has a moderate impact on your credit score. Your account history status is good.”

Credit Usage

Credit Usage has a high impact on your credit score.  If you use too much of your available credit, lenders could see that as a sign that you may be overextended.  Most professionals agree that you should not use more than 30 percent of your total available. 

Here’s a credit usage snapshot  of someone with a nearly 800 credit score:

“You used 21% of your total available credit. Your credit usage status is good.”

Inquiries

Lenders could see too many inquiries within a short period as applying for multiple new credit lines, which is an indicator that you could be financially overextended.  Even if your credit utilization ratio is only 21 percent, you could hurt your credit score by having too many inquiries.

You should apply for credit only when you need it.  When you are shopping for a new car or house, all inquiries that appear on your credit file within a 14-day window count as a single inquiry.  So, feel free to shop for a better rate when you are buying a home.

Here’s a snapshot of someone with a nearly 800 credit score:

“You have 3 inquiries in the past two years.  Your inquiries status is good.”

New Accounts

Too many inquiries may result in too many accounts.  Lenders could see too many accounts within a short period as applying for multiple new credit lines, which is an indicator that you could be financially overextended.

Only apply for credit when you need it.  Once you open an account, make sure you keep the usage under 30 percent.

Here’s a snapshot of someone with a nearly 800 credit score:

“ You have 3 accounts in the past two years.  Your new accounts status is good.”

Total Available Credit

If you don’t have enough available credit, a lender might see this as a sign that you are stretched too thin financially and might not be able to pay them back.  Even if you get approved, your financing terms might be high.

You need to keep your credit usage under 30 percent.  Don’t rack up charges on one credit card and keep and keep other cards way under that 30 percent threshold.  Try to keep all your credit cards under that utility ratio.  

Here’s a snapshot of someone with a nearly 800 credit score:

“You have $67,405 total available credit. Your total available credit status is “Excellent.”

Here’s the formula to an 800 Credit Score

Excellent on-time payments + good account history + good credit used +good inquiries +good new accounts + excellent total available credit=excellent credit score or 795. You can act on any of the six simple ways to build an 800-credit score alone.  You don’t need to pay thousands of dollars to shady credit repair agencies to do what you can do yourself. Good Luck!

BACK TO TOP
Continue Reading
5 Comments
Advertisement
American Middle Class / Aug 15, 2022

How Do You Build Wealth

The estimated reading time for this post is 664 seconds Introduction. There are two types...

American Middle Class / Aug 11, 2022

All You Need to know about Credit Counseling

The estimated reading time for this post is 454 seconds What is credit counseling? Can...

Finance / Aug 03, 2022

AMTD Digital Might Not Be a “Meme” Stock

The estimated reading time for this post is 122 seconds AMTD Digital’s stock is up...