3 Habits That People With Excellent Credit Scores Have

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There are a number of things that you might be doing to damage your credit score without even knowing that it is causing your score harm.

So, how does one improve their score and end their bad credit habits? It’s simple. You follow people who have excellent and do the same.

eharprefinanceHaving said that, here are 3 habits that people with excellent credit scores have:

#1: Payment history matters greatly

Making payments later than 30 days can result in a drop of your credit score. This actually only takes one missed payment. It’s been found that people with the best credit scores tend to pay their credit card bills and loans in time. That said, even if you can only afford to pay the minimum amount, make sure you still pay it in time.

#2: Credit Debt and Utilization Are Important

According to the company that invented the FICO score, Fair Isaac, people with more than average credit scores tend to only use 7% of their available credit. This is in stark contrast with people who have lesser credit scores and usually max out their available credit. In fact, the faster you pay off your debt, the better your credit score gets.

#3: Avoid opening or closing credit accounts suddenly

People with high credit scores tend to have an average account history for 11 years or more as opposed to those with poor credit whose average account history is about 7 years. One way of shortening this is by opening a number of new accounts at a time. Alternatively, closing old and inactive account can also reduce your credit score as a result. Moreover, you won’t have any access to that available credit either.