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Achieving a FICO credit score above 800 is a goal for many borrowers. But what exactly does it require? A recent LendingTree survey provides valuable insights into the spending behaviors of those with the highest possible scores—habits you can adopt to enhance your own score.
What It Takes to Achieve a Credit Score Above 800
Lenders have their own criteria for determining interest rates, but in general, individuals with super-prime FICO credit scores (720-850) tend to secure better deals on credit cards and loans compared to those in the Prime range (690-719). With the average FICO score in 2021 standing at 711, many borrowers may be seeking ways to boost their scores to the super-prime range. Here's a closer look at the spending patterns of those with scores above 800:
They consistently make payments on time every month: Timely payments make up 35% of your credit score, which is why they’re so crucial for those with super-prime scores. Even if you’ve maintained an excellent payment record, a single late payment, especially one that’s more than 30 days overdue, could reduce your credit score by as much as 100 points.
They have a healthy credit mix: Your credit mix contributes 10% to your credit score, so having a diverse set of credit accounts—such as revolving debts like credit cards, mortgages, and installment loans—can help boost your score. Borrowers with FICO scores above 800 tend to have an average of 7.9 open credit accounts.
They use only a small portion of their credit limits each month: This is one area where super-prime borrowers really excel—they utilize only 5.7% of their available credit. For comparison, the typical credit utilization rate in 2020 was 28%. These borrowers manage their credit by either keeping their balances low or paying off debt right after making purchases. This strategy has a significant impact, as credit utilization accounts for 30% of your credit score.
They maintain very old credit accounts: The length of your credit history, which represents 15% of your credit score, is crucial. Naturally, those with scores above 800 have long-standing credit accounts, some of which have been open for decades. The average oldest account for these high-score individuals is over 27 years old.
Conclusion
Your spending habits play a role in your credit score, but there are diminishing returns once you reach a score of around 760. At that point, you’re very likely to receive the same credit terms as someone with an 800+ score. However, if you’re aiming to increase your score, making on-time payments, keeping your credit utilization low, and diversifying your credit lines will be highly beneficial. For more tips on improving your credit score, check out this Mytour post.
