Aiming for an 800 plus credit score is a good financial goal as it can elevate your profile to the level of ‘extra ordinary’ people. With this score, you can access best interest rates on loans, premium credit card offers, and very convenient terms on loans. Here, we give a snapshot of tips that you can take to help you achieve a high credit score.
Take these steps to achieve 800+ credit score
I. Pay all bills on time: Payment history, undoubtedly, plays a key role in your credit score. You can set up autopay and/or reminders. Remember that even one missed payment can hurt your score and bring it lower than 800.
II. Keep credit utilisation very low: Although a credit utilisation under 30 percent is healthy, keeping it under 10 percent is key to achieving a high score. If your total credit limit is ₹1 lakh, try to keep your balance lower than ₹10,000.
III. Old credit accounts: It is important to maintain old credit accounts. This is because longer history equals more trust. You can keep old cards open and active (even with small recurring charges).
IV. Maintain a mix of credit types: A healthy mix of credit types includes credit cards plus loans such as auto, student and home. This leads to a strong profile. But one should make sure to borrow money only when you need it. It is not advisable to opt for loans merely to boost your score.
V. Limit hard inquiries: Too many applications in a short time lead to hard inquiries which is a red flag for your credit score. The best practice is to space out new credit applications (such as 6 plus months apart).
VI. Monitor your credit report regularly: You can check for errors or fraud. Use free credit report services (such as offered by CRIF High Mark).
VII. Become an authorised User: If your family member has a long, positive credit history, you can ask to be added as an authorised user on their card. You stand to gain from their good history — almost immediately.
Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.