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On a credit scoring scale of 300 to 850, a credit score of 800 is considered exceptional. Having an 800 credit score has the potential to open up many doors for you financially, including competitive interest rates on loans, higher chances of approval and at better loan terms, and even access to premium credit cards.

As such, when you have a credit score of 800, it’s worth taking steps to ensure you maintain it — or if you’re ambitious, even improve it. That way, you can continue unlocking the benefits that a high credit score can offer.

What It Means to Have an 800 Credit Score

Your credit score is a three-digit number that’s an indicator of your creditworthiness. The higher the number, the more likely you appear to lenders as a responsible borrower who will pay back what’s owed on time.

Credit scoring models count an 800 credit score as being excellent. For instance, a 800 FICO credit score is considered “exceptional,” and VantageScore considers it in their “superprime” range.

These scoring models use your credit history to calculate your score — having such a high score means that you most likely haven’t missed any payments and have maintained a low credit utilization. It could also mean you’ve had a relatively long credit history and held a variety of types of credit and loan accounts — in other words, you’re well past the point of a starting credit score.

To stay at this point on the credit rating scale, you’ll need to keep exhibiting the responsible financial behaviors you’ve already displayed. Further improving it could be a matter of continuing these behaviors over a longer period of time. Or, you might look into your score to see if there’s any one area you can tweak to further improve your credit behavior.

Recommended: When Are Credit Card Payments Due?

Is 800 a Perfect Credit Score?

No, 800 is not a perfect credit score. Both FICO and VantageScore scoring models have a maximum credit score of 850. That being said, an 800 credit score can be considered near-perfect.

Benefits of an 800 Credit Score

Having an excellent credit score comes with a few perks, such as increased odds of getting approved for lower interest rates and higher credit card limits, as well as offers for better loan terms.

Better Credit Offers

Lenders are more likely to approve consumers with excellent credit, and with more favorable terms, compared to someone with a minimum credit score for a credit card. If you have a high credit score, you’re a good candidate for better credit offers, such as personal loans with higher loan amounts and a wider selection of credit cards.

You also may be able to qualify for premium rewards credit cards. These cards tend to offer more benefits like airport lounge access, better earnings opportunities, and more.

Recommended: How to Avoid Interest On a Credit Card

Lower Interest Rates

Lenders generally are willing to lend to those with a credit score of 800 at lower interest rates than other applicants. That’s because people with a credit score in this range generally pose less risk to the lender. With a credit score of 800, you’ve already proven that you can handle loans responsibly.

Getting approved for lower interest rates helps you to save significant amounts of money over your lifetime. For instance, if your 800 credit score gets you a mortgage interest rate that’s 1% to 2% lower than someone with a fair credit score, that alone can save you tens of thousands of dollars over the life of your home loan.

Recommended: Tips for Using a Credit Card Responsibly

Higher Credit Limits

Not only will you be more likely to get approved for a credit card with an 800 credit score, but credit card issuers may offer you access to higher credit limits. Having increased spending power is great for when you need to make bigger purchases. It’s also helpful for keeping a low credit utilization, which in turn can help you maintain or even boost your credit score.

Since you’re also more likely to be eligible for rewards credit cards, each purchase can help you earn more in points or cash back — meaning, you can use your credit card to maximize your purchases. That deal becomes even better if you can pay off the entire balance each month so you’re not paying any interest.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

Monitoring and Managing Your Credit Score

Even if you have an excellent credit score now, it doesn’t mean it will stay that way forever. It’s important to regularly monitor your credit score so you know exactly where you stand.

There are free ways to check your credit score. Some credit cards will show you your score on your credit statements, and some banks offer this feature as well. If your score changes in any way, you can then figure out the types of financial behaviors that may have contributed to the change. Also don’t be surprised if you have different credit scores depending on where you look — this is because credit scoring models can vary in how they calculate scores.

Checking your credit report will also help you monitor and manage your credit score. That’s because the activity on your credit report affects how your credit score is calculated. You can check your credit report for free once a year through all three major credit bureaus: Experian, Equifax, and TransUnion.

By checking your credit report, you’ll be able to see if there is any information on there that may affect your score. If you spot any errors, it’s best to dispute them right away, especially if they’ll have a negative effect.

Factors That Can Damage Your 800 Credit Score

You’ve worked hard to build your credit score. To maintain it, you’ll want to avoid the following behaviors that could damage your 800 credit score. While it’s a long drop to a bad credit score from exceptional, it’s not a given that your good credit will last.

High Utilization Rate

Your credit utilization is the percentage of your available revolving credit that you’re using. The higher the percentage, the more it seems to lenders that you’re relying on too much credit, which could negatively impact your score.

To help maintain your credit score, try to keep your credit utilization to 30% or under. You can do that by paying down your balances, even making extra payments if you can. That way, your balance will be as low as possible before the credit card issuer reports it to the credit bureaus.

Late and Missed Payments

Your payment history is one of the biggest factors that affects your credit score. A late or missed payment could have a major effect on your credit score — even if you’ve paid consistently on-time beforehand.

If you’ve been a responsible borrower, you may be able to contact your creditor and ask to have the late payment removed from your credit report. That way, it won’t impact your score.

Credit Applications and New Credit Accounts

Each time you submit an application for a new loan or credit card, lenders will conduct a hard credit inquiry, which may temporarily affect your credit score. While one hard inquiry may not have major consequences, applying for multiple loan products at once could signal to lenders you’re stretched thin financially. Your score could take a dive, since it looks like you need to rely on credit.

To maintain your credit score, apply for new accounts sparingly. Or, if you’re shopping around for large loans like mortgages, applying for a few within a short span of time will typically show up as one hard inquiry on your credit report. This may prevent your applications from impacting your score as much.

Public Records Appearance

Public records such as bankruptcy can appear on your credit report. These negative remarks can damage your credit score. In some cases, you may have to explain to lenders in more detail about these public records.

Recommended: What is the Average Credit Card Limit?

The Takeaway

Having a 800 credit score means you have excellent credit. As such, lenders are more likely to offer you better rates and terms. Other benefits include saving money on interest and higher credit limits. Even with a high score, it’s still important to continually monitor your credit behavior to ensure you can maintain it.

Looking for a credit card that earns rewards? Consider the SoFi Credit Card, which offers cash-back rewards on qualifying purchases. You’ll also get access to other perks, such as the ability to lower your APR through on-time payments and cell phone protection.

FAQ

How long does it take to reach a credit score of 800?

How long it takes you to get an 800 credit score will depend on several factors, including your current credit score and how long your credit history is. You may be able to reach it faster if you exhibit responsible behavior, such as consistent on-time payments and the maintenance of a low credit utilization ratio.

What percentage of the population has a credit score of 800 and above?

According to the credit bureau Experian, 21% of consumers have a FICO score of 800 and higher, or in the “exceptional” range.

Why is it difficult to reach a credit score of 800?

It’s difficult to reach an 800 credit score because you’ll typically need a long credit history and to show responsible credit behavior consistently over a period of time.

What credit limit is possible with an 800 credit score?

The credit limit you’ll qualify for will ultimately depend on the credit card issuer. However, with an 800 credit score, you’ll generally get higher limits compared to someone with a lower score.

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Despite the Fair Housing Act of 1968 and other federal laws, a large race gap in homeownership continues to exist across the United States. The Black homeownership rate in the fourth quarter of 2022 stood at 44.9%, compared with 74.5% for non-Hispanic whites, according to the U.S. Census Bureau.

The Black-white race gap in homeownership rates widened as the Federal Reserve attempted to bring inflation under control — going from 29.3 percentage points in the first quarter of 2022 to 29.6 percentage points in Q4. Average mortgage interest rates generally increased in 2022 after the Fed implemented a series of rate hikes.

These racial disparities are not new. Historical records confirm a large race gap in homeownership rates has existed since the abolition of slavery. Below we further examine the race gap in homeownership and identify possible solutions.

History of Racial Housing Disparities

The United States has a long history of systemic racism that presents itself in a number of ways, including housing disparities. In January 2022, the National Community Reinvestment Coalition released its home mortgage report examining racial disparities in homeownership from 1900 to 2020.

The NCRC found the gap in homeownership rates between Black and white families reached its lowest level of 23 percentage points in 1980 and its highest level of 30 percentage points in 2015.

In the fourth quarter of 2021, the Black-white race gap in homeownership rates exceeded 31 percentage points. This gap narrowed to 29.6 percentage points in the fourth quarter of 2022, according to data released by the U.S. Census Bureau.

The homeownership rate as of Q4 2022 stood at 74.5% for non-Hispanic white households; 61.9% for Asian, Native Hawaiian, and Pacific Islander families; 48.5% for Hispanic families of any race; and 44.9% among Black households, according to the Census data.

A number of factors have contributed to the race gap in homeownership, including the legacy of race-based discrimination in the housing market.

Lasting Effects of Redlining

Redlining, the discriminatory practice of denying home loans and other credit services to ethnically diverse neighborhoods based on the race, color, or national origin of the residents of those neighborhoods, is one of the factors explaining America’s long-standing race gap in homeownership.

The federal government institutionalized redlining in the 1930s when a now-defunct federal agency, the Home Owners’ Loan Corp., created “residential security maps” in dozens of cities across the country to systematically deny mortgages in neighborhoods of color.

HOLC ceased to exist in 1951, and Congress later outlawed redlining with the Fair Housing Act of 1968, but lending discrimination in the housing market has persisted.

An article published in the journal SSM-Population Health in June 2021 found that “redlining has continued to influence racialized perceptions of neighborhood value and practices that have perpetuated racial inequities in lending.”

“Decades of racism in the housing market,” the article adds, “have prevented people of color, particularly Black Americans, equal access to capital, low-cost loans, and homeownership.”

The Department of Justice continues to enforce the Fair Housing Act to address ongoing allegations of modern-day redlining.

Current Black Homeownership Gap

As mentioned, the current race gap in homeownership rates between Black and white families is 29.6 percentage points as of Q4 2022. The vast majority of white families own residential property, while the majority of Black families do not, data shows.

Homeownership is often regarded as the American dream, but not everyone who wants to buy a house is able to get financing. The overall denial rate for home-purchase loans among all applicants in 2021 stood at 8.3%, according to the Consumer Financial Protection Bureau.

Bureau data shows that 15.3% of Black applicants had their mortgage loan requests denied in 2021, compared with 6.3% of non-Hispanic white applicants.

This first-time homebuyer guide recommends downloading your credit reports before submitting any applications for home loans. Creditworthy applicants who have home loan applications denied may be victims of discrimination. You can get free credit reports at AnnualCreditReport.com and can check your credit scores in several ways.

Homeownership by Race

The below table highlights homeownership data by race as of Q4 2022

Fixing the Black Homeownership Gap

The Urban Institute, a nonprofit research organization, has a five-point framework aimed at reducing the Black homeownership gap. Here are the five points:

1. Advance Local Policy Solutions

Local policy reforms, including the removal of any discriminatory terms in homeowner and condominium associations and possible property tax relief for low-income and moderate-income taxpayers, can help reduce the Black homeownership gap.

Expanding small-dollar mortgages could also make a difference.

2. Tackle Housing Supply Constraints and Affordability

Promoting affordable housing nationwide, including new investments in historically segregated and devalued neighborhoods, may help reduce the Black homeownership gap.

Public policy leaders could also review the viability of lease-to-own programs as a pathway to homeownership.

3. Promote an Equitable and Accessible Housing Finance System

Greater access to down payment assistance programs for economically disadvantaged consumers may reduce the Black homeownership gap.

This online mortgage calculator shows how home loan seekers can lower their monthly mortgage payments and total interest charges by making a larger down payment on a home.

Recommended: Do You Still Need to Put a 20% Down Payment On a House?

4. Accelerate Outreach for Mortgage-Ready Millennials

Reaching out to mortgage-ready millennials and improving tax credit incentives for renters to become homeowners may help reduce the Black homeownership gap.

Public-private partnerships can scale up additional programs aimed at bolstering homeownership among low-income people.

5. Focus on Sustainable Homeownership and Preservation

Funded programs that prevent foreclosures in the United States may particularly help Black homeowners maintain their wealth.

Providing homeowners of color with financial literacy may also help preserve homeownership among Black families.

The Takeaway

Racial housing disparities persist, despite federal laws designed to equal the playing field. The effects of redlining echo today, when 74.5% of white families own residential property and just 44.9% of Black families do. Solving this social inequity may require significant action and reform. See how employers can help first-time homebuyers.

If you’re looking for a mortgage lender, SoFi can help you achieve the American dream. Qualified first-time homebuyers can put as little as 3% down.

Photo credit: iStock/Morsa Images

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Don’t believe everything you hear about student loans. With tuition costs outpacing income, the fact is that 70% of college graduates need student loans to help pay for college. But bad information can make borrowers feel like they might have made the wrong decision.

Relax. Here are 5 myths about student loans that are pure fiction.

5 Myths About Student Loans

Have you been taken in by any of these student loan fictions and fallacies? A lot of students and parents are, which is why they’re still floating around.

Myth #1: Interest Rates Are Super High

It’s true that federal student loan interest rates can be higher than auto loan rates. But that doesn’t make student loans a bad deal. Here’s why.

Auto loans and mortgages are “secured” loans. The borrower’s car or home serves as collateral and can be repossessed by the bank if they default on the loan. Secured loans have lower interest rates because they’re less risky for the lender.

Student loans, meanwhile, are “unsecured.” If a borrower defaults on student loans, the bank doesn’t have anything to repossess. And so the interest rate is set a bit higher. But the interest rates on federal student loans are still much lower than what you’d qualify for at a bank.

Myth #2: Saving Money Is Impossible With Student Loans

For most people, student loan payments aren’t sky high. The key is choosing the right repayment plan. Take income-based repayment plans, which set monthly payments at just 10% of “disposable income” — or what’s left after your other bills are paid.

Let’s run some numbers. The average new graduate from a 4-year public college has $32K in student loan debt. And the average salary for 20- to 24-year-olds is $37K.

With income-based repayment, a single grad might pay about $138 per month. If they start a family, they pay much less: just $20 a month until their income grows. Which still leaves room for saving.

See how different terms and rates affect your monthly payment with our student loan refinance calculator.

Myth #3: Student Loans Kill Your Credit

Like any loan, student loans could help or hurt your credit depending on how you manage them. As long as you make your payments on time, student loans may build your credit history and boost your score over the long run.

If you’re struggling financially, consider switching your payment plan, or applying for student loan deferment or forbearance. Neither of these options will hurt your credit.

Myth #4: Student Loans Are All the Same

Nope. In fact, federal student loans are typically a better deal for borrowers than private loans. With subsidized loans, the government pays your interest while you’re in school and for 6 months after. And all federal loans offer special protections to borrowers in case of financial hardship.

In short, subsidized federal loans are pretty much the gold standard.

Myth #5: You Can Get Student Loans Forgiven, for a Fee

It sure seems plausible that a law firm or financial advisor might be able to cut through the red tape and reduce your payments or get them forgiven entirely. For a fee, of course.

Alas, this is a scam. If anyone reaches out to you by phone, text, email, or social media promising to help you with your student loans, it’s utter bull. You may catch on when the caller asks for your financial info, but your parent or grandparent may not, so you might want to warn them.

To make sure you hear about the latest student loan forgiveness news straight from the source, sign up for alerts from the DOE .

ReFi With SoFi

SoFi refinances student loans — both federal and private. (Just be aware that refinancing federal loans makes them ineligible for federal forgiveness and protections.) You can choose to lower your monthly payment by extending your term or pay off your debt faster and save money on interest. SoFi offers flexible terms and low fixed or variable interest rates. And there are no fees: no origination fees or late fees.

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Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.