Owners of perfect credit scores are always a welcome client for any credit organization. Conscientious borrowers enjoy such privileges as: cheap loans under a simplified package of documents, a mortgage and a car loan without a down payment, a loan for starting a small business. Moreover, in some cases, a perfect credit reputation can become a guarantee of successful employment.
What Does a “800-850” Credit Score Get You?
Owners of a perfect credit score have the following advantages:
- The benefits of competition. Banks want to work with such clients. Credit organizations struggle for a reliable borrower, where cheap loans are the main tool. Accordingly, a borrower with a perfect credit history can count on such a product.
- Low interest rate. On average, such customers receive loans with an interest rate of 1-2% per annum less than other borrowers.
- Shortest time. The decision of the bank to issue a loan will be faster.
- Simplified package of documents. Banks trust clients with a perfect credit reputation, and therefore they often offer to take a loan under a simplified set of documents – in most cases this means without certificates confirming income and employment.
- Loan without down payment. Most large loans, such as mortgages and car loans, are issued with the condition that the borrower pays the down payment (part of the cost of the property purchased on credit, which the borrower must pay from his own funds). The banks have several reasons for this. Firstly, the first installment is a good indicator of the borrower’s solvency. Secondly, it is a guarantee of repayment of credit funds – the larger the installment, the less the borrower has to pay, the less the bank risks accordingly. And, thirdly, there is always a risk that the collateral will lose in value, and the contribution may compensate the losses incurred by the financial institution. At the same time, some banks make an exception and issue both a mortgage and a car loan without down payment for customers with perfect credit score.
- Business loans. Starting any business is always a risk, and therefore today not all banks are ready to lend to start-up businessmen. At the same time, those who are nevertheless ready issue loans for opening small businesses exclusively to clients with a perfect credit history. The same applies to this type of bank loan as a small business loan without guarantors. Only conscientious borrowers can count on it.
- Employment. Credit history demonstrates well how responsible a person is to third parties. And this is actively used by large and some medium-sized employer companies. They check the credit history of each job applicant.
Who Has a “800-850” Credit Score?
In case borrowers have never had overdue payments, their credit scores by all creditors is assessed as “perfect”.
We would like to highlight 5 main positions that most strongly affect credit history:
1. Your past. That is how you used your loans in the past and how much time you paid your debts. This factor maximally affects the credit history – 35%.
2. How much debt you have now, the level of influence is 30%.
3. How long have you had a credit history – 15%.
4. How many recent requests for various loans you have had – 10%.
5. Loans from which financial institutions you have – 10%.
How to improve/increase credit score “800-850”?
“800-850” is already a perfect credit score. But if you want to gain some more points, then you can do the following:
Get express credit
The best way for this is to demonstrate to banks your discipline and solvency, for example, to get a new loan, and strictly adhere to the schedule of all payments throughout the entire term, especially for the final repayment of the loan. This positive experience of the borrower will be reflected in your credit history.
Get a credit card
Getting credit cards can also be a way to improve your credit history. For this, you usually do not need income certificate and an impeccable credit history.
It is also believed that to improve the image of a disciplined borrower, it is better to close old credit cards that you no longer use, since each credit card is perceived as a separate loan with a certain limit.
Prove your reliability with documents
An additional advantage for the bank can be documents provided by the borrower on timely and full payment of utilities and other services, a high level of salary, recommendations from work, the presence of large deposits, etc.
How much loan can I get with “800-850” credit score?
Loan amounts depend on the provisions adopted in a particular lending structure.
Where can I get a personal loan with “800-850” credit score?
You can take a loan with a perfect credit history in every bank in the country.
Car loan with a “800-850” credit score
The algorithm for buying a car on credit is simple:
- Choose a car center and a car model.
- Find out the cost.
- Calculate the down payment and the amount of monthly payments from a loan consultant.
- Collect the required package of documents.
- Get insurance.
- Conclude an agreement, make an initial payment.
What to pay attention to?
So, you have chosen a suitable loan product and are ready to conclude an agreement. But before you put your signature, you should carefully study all the conditions and clarify some issues.
- Monthly payments. Do not hesitate to ask the manager exactly what the full cost of the loan (taking into account the “body” of the loan, interest and all commissions), what is the repayment schedule and the amount of the required monthly payment.
- Cost of loan related services. Some banks charge a fee for reviewing a loan application, for maintaining a credit account and issuing cash or for making cashless transfers.
- Currency. To avoid conversion losses, you should open an account in the currency in which you receive your salary.
- Repayment of the loan. Be sure to find out if there are penalties for partial or full early repayment of the loan, as well as where and in what ways you can repay the debt. The wider the list of options, the better for you.
- Insurance. Some banks automatically include borrower life and health insurance in the loan agreement. According to the legislation, no one can oblige a person to insure their life. Therefore, you can tell the manager that you do not need insurance, if this, of course, is so.
- Penalty for late payments. Find out in advance how much the delay in the loan will cost you, what are the conditions and terms of payment delay, after which the bank has the right to demand early repayment of the loan.
Can I get mortgage with “800-850” credit score?
If you have a perfect credit score, then you can get a mortgage at the bank.
The process of obtaining a mortgage is as follows:
1. Choose a bank
First you need to choose the bank in which you apply for a loan.
Decide how much you want and can take on credit, how much you can give back as a down payment. The minimum deposit is 10% of the cost. The term depends mainly on your capabilities: willing to pay a significant amount – take a loan for five years. Limited in funds – apply for 30 years with the possibility of early repayment. The longer the loan term, the more you will overpay in the end.
2. Specify conditions and additional payments
Call or go to the bank and once again verify the loan conditions. Ask the loan officer in detail about the size of the bank commission, the need to take out insurance, possible fines, and conditions for early repayment of the loan.
3. Collect documents
Ask your loan officer what documents you should collect.
4. Submit an application
After you collect all the documents for a mortgage, call the bank and arrange when you can apply for a loan. You will come to the bank, and the specialist will check the certificates and copies that you prepared. Write an application for a mortgage loan and pass it to the employee along with the documents. Be sure to find out when and how you will learn about the decision of the bank.
5. Wait for a decision
You can look after an apartment even before you get a bank decision. But you need to negotiate with the owners of the apartments, already knowing how much loan you can count on. However, please note that an agreement with a bank on a loan is valid for no more than three months.
The bank also makes certain demands on real estate. Therefore, do not leave an advance or a deposit for housing until you receive approval of the transaction from the bank.
If the loan officers are happy with everything, invite an appraiser, and then send the apartment appraisal report to the bank and inform the price that the seller is asking for.
Only after all this, the bank makes the final decision on granting a mortgage loan, and also agrees with you the day when you conclude two agreements: sale and purchase contract and credit with the bank.
For what reasons do banks not give loans to good borrowers?
1. Abuse of early repayment. Repayment of borrowed funds too early deprives the bank of the planned profit from interest on the loan, therefore, such a client of a financial institution is not profitable.
2. High degree of debt. Even if the income so far has made it possible to service all existing liabilities, going beyond the recommended monthly amount is fraught with financial difficulties in the future. No one is safe from unforeseen expenses, therefore, banks put such expenses into the client’s budget when assessing their creditworthiness.
3. Frequent appeal to microfinance organizations. Microfinance organizations, like banks, transmit information about loans issued to the Credit Bureau. Microloans are so unprofitable that a large number of them gives the impression of a constant shortage of money from the borrower and his inability to plan a budget. Such credit behavior, when one microloan is repaid at the expense of the next, inevitably leads to default.
4. Deposit amount. In cases when loans are secured, the collateral is subject to evaluation and should be sufficient to repay the debt through its sale in case the borrower does not cope with the load.
Thus, a perfect credit history is a subjective concept, therefore, the general recommendation is compliance with measures when obtaining borrowed funds. Also, our website provides detailed information about “750-799” credit scores and “300-399” credit scores. Webmoneyloans is always ready to help you.Get Started Now!
- 1 What Does a “800-850” Credit Score Get You?
- 2 Who Has a “800-850” Credit Score?
- 3 How to improve/increase credit score “800-850”?
- 4 How much loan can I get with “800-850” credit score?
- 5 Where can I get a personal loan with “800-850” credit score?
- 6 Car loan with a “800-850” credit score
- 7 Can I get mortgage with “800-850” credit score?