How Much Can You Borrow with an 800 Credit Score?

Reaching an 800 credit score is an outstanding achievement and a remarkable financial milestone. This exceptional score opens doors to some of the best loan terms, interest rates and credit limits available.

However, credit score alone isn’t the only factor determining your borrowing capacity, lenders also look at your debt-to-income ratio and type of loan you’re applying for. Granted, your contributing factors usually follow in tandem your credit score in their quality.

How is an 800 Credit Score Perceived?

The FICO scoring model ranges from 300 to 850 and a score of 800 is categorized under the ‘Exceptional’ range. These scores are used by almost all lenders to evaluate creditworthiness of borrowers. If you have a score of 800 or more you’re conveying a positive credit history, low credit utilization and a track record of on-time payments built over a long period. As a result, you’ll be viewed as a low-risk borrower by lenders giving you access to cheaper loans.

A List of Factors Affecting Borrowing Limits

As already mentioned above, an 800 credit score isn’t the only thing lenders consider, they also review:

1. Your Income Level: Lenders will want assurance that you have an adequate steady income to repay the loan. Generally, higher incomes translate to higher borrowing limits.
2. Your Debt-to-Income Ratio (DTI): DTI is a metric that measures the percentage of your income that’s set aside and put toward debt repayment. If you have a lower DTI it means you’re in ‘better financial health’, as perceived by lenders, and can expect better borrowing conditions.
3. The Type of Loan You’re Applying for: Depending on the type of loan you wish to receive the amount will vary. We’ve listed the ranges below.
   Internal Lender Policies: Each lender comes with their own preferred risk tolerances and internal lending guidelines. This directly influences how much you could expect to borrow from them, however with a credit score of 800, that’s still a substantial amount.
4. If Applicable, Collateral (for Secured Loans): Secured loans, such as mortgages or car loans are backed by your assets. If you have valuable assets with which you could back up your loan, the higher the potential loan amount.

Loan Limits for an 800 Credit Score by Category

As mentioned above, the type of loan directly affects how much you could expect to cap a loan with an 800 credit score.
Mortgage Loans

A credit score of 800 provides access to the best mortgage rates with interest rates that are significantly lower than the market average. Particular lenders may even offer mortgage loans that reach several million dollars if your income and DTI ratio support them.

• Conventional Loans: In most areas, borrowers with a credit score of 800 may qualify for loans of up to $726,200 and even over $1,000,000 in high-cost regions.
• Jumbo Loans: With excellent credit, borrowers can qualify for even larger loans, called Jumbo loans, which exceed conventional limits. As with other loans, but especially for Jumbo loans, approval heavily depends on income, assets and DTI.

As an example, if you have an annual income of $100,000, minimal debt and enjoy an 800 credit score, you might qualify for a mortgage of $400,000 - $500,000, depending on the lender.

Auto Loans

High credit scores are usually highly regarded by auto lenders who often reward these borrowers with lower interest rates and more favorable loan terms. If you possess an 800 credit score you may qualify for an auto loan of $50,000 or even more, depending on your income and the car’s value. As a result of your exceptional credit, you could even expect a promotional offer of 0% APR for a given period from some lenders. Have a look at our list of the best auto loans to see if any of them suit you.

Personal Loans

Since personal loans are usually unsecured, lenders rely heavily on creditworthiness. If you possess a credit score of 800, you may qualify for loans up to $100,000 when all other factors such as your income and financial profile are taken into account. If you’re considering getting a personal loan, have a look at our overview of the best personal loans to see a curated list of borrowers.

Credit Cards

Some of the highest limits are provided by credit card issuers to individuals with excellent credit. With an 800 score you may be eligible to receive credit limits of $30,000 or even more on a single card. Limits are, as with all other loans, adjusted and based on income and existing credit obligations.

How Come Borrowing Limits Vary Even With a High Credit Score?

Even with a credit score of 800 or more, you’re not guaranteed the highest possible loan amount. Lenders require more information in order to balance risk and they get it by evaluating multiple financial factors. For example, two applicants with the exact same credit may receive different loan offers if one has a higher income or lower existing debt.

Loan-specific risks are also considered. Mortgages for instance are secured by personal property which allows for larger loan amounts, while unsecured personal loans carry more risk for lenders which results in stricter borrowing limits.

How to Increase Your Borrowing Limits Further

In order to maximize your Borrowing Potential, consider a few strategies prior to your loan application which can further enhance your eligibility, even with a high credit score:

1. Increase Your Income: In certain scenarios you may be on the very brink of the limit required to qualify for a larger loan. Assess your options to see if that’s the case and if a few hundred dollars more in annual income can bring more favourable loan conditions.
2. Lower Your Existing Debt: You can additionally improve your borrowing conditions by influencing your DTI ratio positively. Try to pay off your current debts before opting for new loans.
3. Shop Around for Lenders: Don’t settle on the first lender you come by, consider specialized lenders that offer better deals to high credit score borrowers.
4. Consider Co-Signers if Necessary: You have the option to further boost borrowing potential by adding a co-signer. This option requires a lot of planning and is usually reserved for the biggest loans such as mortgages.

Going Beyond 800

You could also consider increasing your credit score even further, however this will most likely continue naturally if you control your finances as you have up to the 800 mark. Factors that continue to improve credit score beyond 800 include:

• Timely Bill Payments
• Low Credit Utilization, preferably under 10%
• Avoiding Unnecessary Hard Inquiries. Each inquiry can slightly reduce your score.

Bottom Line

In conclusion an 800 credit score provides access to some of the best possible borrowing terms. While loan calculations and limits depend on various factors such as credit score, DTI, income, type of loan, these limits are still much higher than those provided to individuals with lower credit scores.