In a world that has become overly dependent on credit, one’s credit score has become the key to survival. The prospects of living in “credit prison” because of a bad credit score is enough to send more than a few people running for the exits. Anyone with a strong credit score is often admired and held in high regard for what seems impossible to do, handle one’s business matters properly.
After much research, it turns out there are seven habits that a quite common among people with excellent credit ratings. Let’s take a look at those habits.
1. Pay Bills on Time – More so that how much credit one has outstanding, the ability to pay bills on time is the single most important attribute that helps keep scores high.
2. Manage Utilization Ratios – Regardless of how much available credit someone has available to them, it’s important to not utilize more than 10% of that amount if you wish to keep an excellent credit score.
3. Control Balances – By making large payments and controlling the size of your credit balances, it’s much easier to manage everything that is necessary to maintain an excellent credit score.
4. Patience – People aren’t given an excellent to start with. It takes quite a few years of fiscal responsibility until the FICO score will climb high enough to be classified as excellent.
5. Applying for Credit Only When Necessary – Every time you get a credit inquiry, it affects your credit score. You should never go shopping for credit from multiple lenders or credit card companies in order to control inquiries.
6. Choosing the Right Credit Cards – By choosing credit cards with the best interest rates and the most benefits, you can save yourself a lot of money, eliminating the need for more credit.
7. Monitor Your Credit Reports – Errors in reporting can adversely affect your credit score without you knowing it. It’s important for all consumers to check frequently and address issues immediately.