How 100,000 borrowers achieved credit scores of 800 and above
Having a FICO credit score of 800 or higher is not only good, it is considered exceptional and can open financial doors for consumers. But what does it take to build this level of solvency?
Analysts at LendingTree, an online lending marketplace, examined the credit reports of more than 100,000 LendingTree users to provide insight into the type of effort required to achieve credit scores of 800 or higher. It’s no surprise that those with exceptional credit have strong habits, including paying their bills on time every month.
Quite interesting, having a credit score of 800 is great to aim for, but is not essential for most loans. “Generally speaking, once your FICO score hits 750 or 760, you’ll get pretty much the best deal on most of the loans you apply for,” says Matt Schulz, chief credit analyst at LendingTree. “At this point, a credit score of 800 is really nothing more than gravy. “
Here are the main takeaways from the report:
- People with a credit score of 800 or higher pay their bills on time every month. This corresponds to the fact that payment history is the most important factor in a credit score. In comparison, residents of America’s 100 largest subways typically have an average of six late payments on their credit history.
- Average credit limits for those with over 800 credit scores have dropped significantly since 2019. The average credit limit for these consumers is $ 58,514, up from $ 71,353 when LendingTree researchers analyzed this topic for the last time. Baby boomers have the highest average limits.
- Consumers only use a fraction of their credit limits each month. The average credit utilization rate for people with a credit score of 800 or higher is 5.7%. In contrast, residents of America’s 100 largest subways tend to maintain their usage rates between 16% and 33%.
- The oldest active count for those with scores over 80o has an average of almost three decades. Those with scores of 800 or higher have had an account open for over 27 years on average, although many younger consumers have high scores.
- Consumers with credit scores over 800 have an average six-figure debt. They have an average debt of $ 138,154 and average monthly payments of $ 1,064. Average debt is highest among Gen X, the generation of Americans born between the mid-1960s and early 1980s.