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Lenders use credit scores to determine a borrower's creditworthiness, or the likelihood they will be able to pay back their loan on time and in full.
This three digit number between 300 to 850 is calculated based on the information in your credit report.Two scoring models — FICO and VantageScore — are the most widely used, although FICO tends to be the more popular choice among lenders.
Whenever you apply for a line of credit, a lender will take a look at your credit score to decide whether to extend a loan to you and determine what terms are appropriate.Having a good credit score can end up saving you hundreds or even thousands of dollars since it also determines the interest rate you'll get on a mortgage or the APR you'll have on a new credit card.
Below, Select takes a closer look at what having a credit score of 800 really means for consumers, and how it affects the types of credit you would have access to.
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What it means to have a credit score of 800
A credit score of 800 means you have an exceptional credit score, according to Experian.According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
FICO considers five factors in the calculation of your credit score:
- Payment history (35%): Make sure your payments are made on time and in full
- Amounts owed (30%): Your credit utilization ratio — the ratio of the amount of credit you use to the amount you've been extended — should be low
- Length of credit history (15%): You'll benefit from having a longer credit history
- Credit mix (10%): Aim to have several different types of credit, whether it's installment loans, credit cards or a mortgage
- New inquiries (10%): Don't apply for too many lines of credit in a short period of time
If you have a credit score of 800, it probably means you have a long credit history, have been making payments on time and keep a low credit utilization ratio. All this information shows lenders that you're likely to make good on your loan.
According to a 2021 survey conducted by LendingTree, nearly all people with credit scores of 800 or above made their payments on time and in full — they also tend to have a low average credit utilization ratio of 5.7% and have old active accounts, with the average being at least 27 years.
That said, you don't necessarily need to have a perfect credit score in order to get favorable terms on loans or low APRs on credit cards, as only a very small percentage of people have a perfect credit score. A recent FICO report showed that in April 2019, just 1.6% of the U.S. scorable population had a FICO score of 850 —it's typically unnecessary to aim for a credit score above 800.
Generally, the rule of thumb is you'll need to have a credit score above 760 in order to receive the best terms on loans and/or mortgages. In other words, having a credit score of 800 puts you within the top credit score range and will help you qualify for the best terms, whether it's for a mortgage or a personal loan.
Best credit cards if your credit score is 800
Having a credit score of 800 gives you access to some of the best credit cards on the market, which typically have a lower APR, offer more rewards opportunities, include more perks and have better welcome bonuses.
The Chase Sapphire Preferred® Card is a popular choice for consumers who want a credit card with a generous welcome bonus but don't need a luxury card. Chase Sapphire Preferredcardholders can earn 60,000 bonus points spending $4,000 within the first three months of account opening.
Points earned can be redeemed through Chase Travel℠ for a redemption value of 1.25 cents per point, so the welcome bonus alone could be worth $750 in travel rewards, or potentially more if you transfer your points to any of Chase's travel partners like United or Hyatt.
Chase Sapphire Preferred® Card
On Chase's secure site
Rewards
Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, and $50 annual Chase Travel Hotel Credit, plus more.
Welcome bonus
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.
Annual fee
$95
Intro APR
None
Regular APR
21.49% - 28.49% variable on purchases and balance transfers
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
Foreign transaction fee
None
Credit needed
Excellent/Good
Terms apply.
Read our Chase Sapphire Preferred® Card review.
Those who prefer a luxury credit card with a higher annual fee and more benefits should consider the American Express® Gold Card, which offers perks such as up to $120 Uber Cash credit annually ($10 in Uber Cash each month which can be used towards rides or Uber Eats), a $120 annual dining credit ($10 in statement credits each month when ordering through select dining options, such as Grubhub and Shake Shack) and a $100 experience credit with a minimum two-night stay when you book The Hotel Collection through American Express Travel. Experience credit varies by property.
The current welcome bonus gives new cardholders 60,000 Membership Rewards® points after spending $6,000 on eligible purchases with your new card within the first 6 months of card membership.
American Express® Gold Card
On the American Express secure site
Rewards
4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases
Welcome bonus
Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.
Annual fee
$250
Intro APR
Not applicable
Regular APR
See Pay Over Time APR
Balance transfer fee
N/A
Foreign transaction fee
None
Credit needed
Excellent/Good
See rates and fees, terms apply.
Read our American Express® Gold Card review.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
