Boost Your Savings: 5 Smart Moves for Your 800 Credit Score!
Achieving an 800 Credit Score: How to Make the Most of It
An 800 credit score is a significant achievement, falling into the “exceptional” range according to the Fair Isaac Corporation. With an average score of 716, having an 800 is far above what many people have and can open up a world of savings and opportunities for you. This high credit score can make life easier when applying for loans, credit cards, and insurance, all while landing you better deals and potentially saving you a lot of money.
Save Money on Car Insurance
Having a great credit score like 800 could lead to lower car insurance rates. Insurance companies use credit scores to assess risk and, often, the higher your score, the lower your premiums could be. If your policy is nearing its renewal date, it might be worth a call to your insurer to see if you are eligible for a discount. Or you can shop around and get quotes from other insurers to compare prices.
Negotiate Lower Credit Card Interest Rates
Credit cards usually come with high-interest rates, and those rates can be even steeper if you have a lower credit score. Armed with an 800 score, you’re in a strong position to negotiate a lower interest rate on your existing cards. If your card issuer seems hesitant, don’t hesitate to discuss your options with a manager, or to bring up any competitive offers you’ve received from other companies.
Explore Better Credit Card Offers
Excellent credit means access to top-tier credit cards offering enticing sign-up bonuses and rewards. You might find cards that offer 0% introductory rates for purchases or balance transfers, cashback on everyday spending, or valuable travel perks. But be mindful about applying for new cards, as it could temporarily ding your credit score, and always consider any annual fees attached to these cards.
Take Advantage of 0% Vehicle Financing
When shopping for a new car, an 800 credit score might qualify you for special 0% financing deals from car manufacturers. This can save you a lot on interest payments over time. However, be cautious – these deals often require you to choose from a limited selection of models, the loan terms can be shorter (leading to higher monthly payments), and you might not be able to negotiate the vehicle’s price.
Consider Refinancing Your Mortgage
Although it might not be the best time currently due to higher mortgage rates, there will come a time when rates fall, and refinancing could be beneficial. If you could potentially lower your mortgage rate by 1% or more, it might make sense to refinance. Just ensure you calculate all associated costs with a tool like the mortgage refinance calculator from Freddie Mac, and only proceed if the potential savings outweigh these costs.
In Summary, reaching an 800 credit score puts you in a fantastic place to potentially save money on insurance, credit card debt, car purchases, and even your home. By reviewing your finances and considering the options available to you, you can make your exceptional credit score work in your favor. Whether it’s shopping for better rates or snagging a card with incredible benefits, responsible management of your credit can offer tangible financial rewards.
