3 little-known benefits of a credit score of 800 or higher

Your credit score is a number you might not think about until it’s time to apply for a new loan or credit card. But you should know that once your score reaches 800, your borrowing options will likely increase.

Experian, one of the three major consumer credit reporting agencies, calls a credit score of 800 or higher exceptional. If you can get your score to that level, here are three benefits you may benefit from.

1. Cheaper insurance

Insurers take various factors into account when determining their premium rates. But one surprising factor that may come into play is your credit score.

And if you don’t think that makes sense, that’s understandable. It’s one thing for a lender to check your credit score to see if you are likely to repay a debt. It is another thing for a homeowner or car insurance company to check your credit if you are not asking to borrow money, but rather: give out money for a product/service.

But like it or not, insurers are known to take credit scores into account when calculating the rates they are willing to offer. Studies have found a link between higher credit scores and safer driving habits. Consumers with a credit score of 800 or higher may pay less for insurance.

2. Cheaper moving costs

Some landlords charge a large amount of money when you sign a lease. This may mean that you have to pay the first month’s rent, the last month’s rent and a deposit. But if you’re an applicant with a credit score of 800 or higher, a landlord may be willing to accept less money from you up front.

For example, they can waive the obligation to record the last month’s rent and only ask for your first month’s rent and a deposit. That puts less pressure on your finances. And if you’re looking at expensive moving costs, it’s even more convenient not to have to shell out so much money up front.

3. Access to a better mobile and monthly subscription

Upgrading a cell phone can be expensive. The good news is that many providers allow you to finance the purchase of a mobile phone. But to get a good rate you generally need good credit, so that’s where a score of 800 or higher can help.

Additionally, it is common to undergo a credit check when you sign up for a monthly mobile plan. With a credit score of 800 or more, qualifying shouldn’t be a problem, while if your score is much lower, you may be limited to prepaid service.

How to get your credit score to 800 or higher

Increasing your credit score to 800 or higher can improve your financial situation. And one of the best ways to do that is to pay all your bills on time every month.

Another helpful step is reducing your current credit card debt. The lower your total balance relative to your spending limit across your various cards, the more your credit score can improve.

Plus, paying off credit card debt can save you a lot of money in interest. So it’s worth going that route, even if your credit score is already in good shape.

Performing a balance transfer can make paying off your credit card debt easier click here for a list of the best balance transfer cards.

Finally, try to check your credit report for errors once a month. You’re entitled to a free copy from each of the three reporting agencies – Experian, Equifax and TransUnion – every week, but once a month is usually enough to check for errors.

What you specifically need to do is rotate so that you pick up a report from a different agency every month. It’s important to do this because it doesn’t guarantee that all three of your reports will contain the same information.

Alternatively, you can check all three credit reports for errors every three months. If you see one that is likely to lower your credit score, such as a late payment you made on time, reporting it immediately can help minimize the damage and/or improve your score.

A credit score of 800 or higher can benefit your finances in more ways than one. It’s worth trying to get to that point, even if it takes time.