How to Get an 800+ Credit Score For Free

Most people know a little something about a credit score. They know it can affect the types of financial products.

A good score allows you to get an unsecured credit card, competitive mortgage rates and vehicle loans, plus all other types of financial products.

This is because the higher interest rates you pay, the less money you’re going to have at the end of the month.

 

Right now, would you classify yourself as having a good credit score or a bad credit score?

 

Even if you have a good credit score, it can still be increased.

 

On the flip side, the lower your credit score, the faster it can increase.

 

If you’re trying to re-establish credit or just establishing credit for the first time, you’re in luck.

 

Regardless of your score, it’s key to start where you are.

 

Here are some numbers to know. Credit scores range between 300 to 850.

 

Only about 1% the American population has an 850 perfect credit score.

 

The good news is, you don’t need a perfect credit score.

 

A credit score of 760 is usually the cutoff to getting really attractive interest rates.

A credit score is officially called a FICO. It comes from the Fair Isaac Corporation.

 

The official fico score was introduced in 1989 and it was a way to make credit decisions impartial and fair.

 

This impartial tool used to evaluate credit risk and it pretty much changed the credit landscape for good.

 

In the days before credit, people were often denied credit based on who they knew.

 

If you knew the Lender, chances are you would get a loan.

 

This opened up the door to a lot of unfair treatment.

 

This is because the system was not fair, it wasn’t fact based and it wasn’t consistent.

Your credit score can be used in other ways and not just for financial products.

 

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Your employer or prospective employer can also request a copy of your credit report.

 

Keep this in mind. You must ALWAYS grant permission for anyone, even your employer to access your credit report.

 

If they do it without your permission, it’s not cool; it’s against the law.

 

Who are the keepers of the score?

 

There are three major credit bureaus; Experian, Transunion and Equifax.

 

These are the ones most financial companies report your credit history to.

 

The first step in improving your credit score is to see what’s on your credit report because that ties into your credit score.

 

You can get a free credit report from these three nationwide credit bureaus.

 

They have set up one website where you can order your credit report from. It’s www.annualcreditreport.com

 

If you prefer, you can call 1-877-322-8228.

 

You can also complete this annual credit report request form

Mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281

 

Once you review your credit report and find incorrect items, you can use this Sample Dispute Letter.

 

If you or someone you know is deaf or hard of hearing, they can access the TDD Service by calling 711 and referring the relay operator to 1-800-821-7232.

 

For those who are visually impaired, the free annual credit report in available in Braille, large print and audio format.

 

Call 877-322-8228. Here are a couple of things about your credit report

Inaccurate information, such as negative items should automatically fall off your credit report seven years from the date of your first missed payment.

 

Request a copy of your free credit report and thoroughly review it to ensure there is no inaccurate information reported.

 

Things such as an incorrect social security number, address or names.

 

Let’s look at how your credit score is calculated.

 

Your payment history accounts for 35% of your credit. You don’t want to miss payments because this is something that can negatively impact your credit score.

 

 

One suggestion is to set up automatic payments with your credit cards or financial institutions. 

 

This way, if life gets in the way and you forget to pay your bill on time, you’re not going to be penalized and get hit with a late fee, and have it impact negatively impact your credit score for up to 7 years.

 

Next is the amount of debt which accounts for 30% of your score.

 

It’s referred to as credit utilization. This is how much of your credit lime you’re using and is based on your credit limit.

 

For example, if you have a credit card with a $1,000 credit limit your balances should never exceed 30%.

 

Experts often recommend aiming for a credit utilization of 10% although having a ratio of up to 30% usually doesn’t impact your credit score.

 

Once your ratio is above 30%, it begins to negatively impact your credit standing.

Next is the age of your credit which accounts for 15%. In this situation, being old is a good thing.

 

The longer your credit history of paying on time; the higher your credit score.

Be aware that closing credit cards can impact your score in a negative way.

 

Always check your credit utilization before you close credit cards if you no longer want to pay the annual fee.

 

If you don’t want to pay that annual fee, ask them to transfer the credit line to another card.

 

Early last year, when the pandemic was in full bloom, my Chase Reserve card had an annual payment of $550.

 

It’s a fantastic credit card for travel, but travel was pretty much non-existent at that time.

 

Instead of closing the card, I asked Chase to transfer the credit line to a no fee interest card.

 

Always ask if there’s a comparable product you can use rather, than closing the account which can impact your score negatively.

 

Next up is your credit mix and it accounts for 10%. This is the type of credit you have.

 

These are products such as a mortgage, a credit card or a vehicle loan. It’s good to have a nice mix.

 

These are called trade lines and lenders like to see a minimum of 3 trade lines.

 

As you build your credit score, consider having a variety of trade lines. Think of this variety as the spice of your financial life.

 

Next up is hard inquiries and this accounts for 10% of your score. Hard inquiries are things like applying for new credit.

 

These are signing up for a new credit or getting a loan.

 

Let’s say you go to the car dealership and they’re trying to get you a favorable interest rate.

 

This action may cause you to end up with four or five or even six hard inquiries on your credit score.

You may want to look into securing your own financing.

 

This way, you can control the amount of hard inquiries dinging your credit score.

 

Keep in mind that soft inquiries, such as checking your own credit report, do not count as hard inquiries.

 

These are considered soft inquiries, so don’t be afraid to check your own credit score or your own credit report.

 

At the beginning of this post, I mentioned I would give you a step-by-step process on how you can increase your credit score.

 

You now know to contact the 3 major credit viewers to get your credit report from www.annualcreditreport.com

 

Again, this is a website that’s authorized by Federal Law.

 

You also have the option of monitoring your credit score each week using a free advertiser sponsor site like www.creditkarma.com

 

And lastly, we broke down how your credit score is calculated.

 

I’ve provided a FREE upgrade if you made it this far.

 

It’s my Companion Cheat Sheet to this post to help you increase your credit score.

 

The good thing is, no email registration is needed, just click here.

 

It’s YQA Time, Your Questions Answered…

 

What questions do you have about increasing your credit score or any credit score questions in general?

 

Please consider leaving a comment. I just may create an episode based on your question.

 

As always, take care of yourself first so you can take care of those you love.