Announcing The Winner of Our Financial Literacy Scholarship (Spring 2022)
We are awarding $750 to a student every semester. All you have to do is show us how financial literacy has made a difference in your life.
The “800 Credit Score Club” is a term coined to describe those that have credit scores of 800 or higher, as the name implies. Those who regularly monitor their credit scores know that it can be difficult to achieve scores this high. In fact, membership to the 800 Credit Score Club is so exclusive that roughly less than 1 in 6 people have scores high enough to be in the club. Furthermore, having credit scores between 800 to 900 is the highest credit score range and is considered to be excellent credit.
Generally, the higher your credit scores are, the better offers you will get in terms of loans and other credit accounts, thereby saving you thousands of dollars over the course of your lifetime. However, given how it may be for some to build credit scores this high, is it really worthwhile to be a part of the 800 Credit Score Club?
Being in the top tier of credit scores definitely has its perks from credit cards to mortgages to refinancing. Let’s take a look at the benefits of being in the 800 Credit Score Club.
When it comes to being a part of the 800 Credit Score Club, there are a few credit habits that most members have. If you’re looking to improve your credit, consider the following.
To get credit scores of 800 or higher, you will have to adopt the financial habits of the individuals who are already in the 800 Credit Score Club, as discussed above. Keep in mind that this is a serious commitment that requires dedication and patience.
Getting credit scores of 800 or higher is difficult, but not impossible. In addition to the habits discussed above, below are some pointers on how to make changes to help build your credit scores.
Credit scores build over time. The longer you consistently and responsibly use credit the more likely it’ll help build your credit scores. As such, the earlier you start working on your credit, the longer you’ll have to build your payment history and credit history, which are common factors used to calculate your credit scores.
A good way to start off your credit journey is by getting a credit card as soon as possible. Not only will you be building your credit history, but you’ll also be developing good habits right away which can be further improved over time.
Your ability to handle your personal finances can affect your credit indirectly. For example, poor budgeting can leave you with insufficient funds to cover your credit card and other bill payments, which in turn can affect your credit. It’s best to monitor your account balances frequently and keep track of your expenses.
Be sure to also check your credit regularly. Not only will it allow you to better understand your credit position but it will also help you keep track of your credit progress.
While budgeting doesn’t have a direct impact on your credit scores, creating a budget can help you better manage your money and spending. This in turn will help you avoid taking on debt you can’t afford, maxing out credit cards, and missing payments. There is no cookie-cutter solution to managing your finances because everyone’s financial situation is unique. Over time, you will get better and better at budgeting per your personal situation which is an essential component of getting into the 800 Credit Score Club.
Essentially, the more debt you take on, the more chances you’ll have to work on building your credit. While, credit usage is important to consider, you should always proceed with caution when taking on more debt.
Taking on debt can become somewhat addictive because you’re getting lots of material things, which can be a great feeling in the moment, but at some point, you’ll have to pay for it. While using your credit products responsibly may help build credit, you need to be realistic in terms of what works best for you and be sure that you can afford the debt you’re taking on.
If you take on too much debt, you’ll risk not being able to pay it off which can negatively affect your credit. For this reason, sometimes taking on more debt isn’t worth the potential benefits to your credit scores.
There is a definite trade-off between having good credit scores and being able to pay off debt. Remember, you need to do what’s best for you, being able to repay debt is always more important than higher credit scores.
Being part of the 800 Credit Score Club has its perks, but it is not necessary to be successful financially by any means, as many get by without being a member. It is especially not worth the exclusive status if you take on more debt that you can’t pay off. Instead, it is best to strive towards better credit that is realistic for you.
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