4 Good Credit Score Habits to Adopt
“The chains of habit are too weak to be felt until they are too strong to be broken.”
– Samuel Johnson, Lexicographer
Taking a few minutes now and again to learn more about your credit score rating can help boost your credit score and save you money.
Incredibly most consumers are still unaware of the basic facts about credit scores and the significance it serves on their financial picture.
A recent survey shows only 27% of consumers realize their credit score measures credit risk and the likelihood of them paying back a loan on time.
Considering its importance its well worth the time to adopt a few simple good credit score habits to increase your score.
The three main credit bureaus TransUnion, Exquifax and Experian devise your credit report score as a number between 300 and 850.
Generally those with a credit score in the 700 range get lower interest rates and those with scores of 760 and over get the best rates. If your credit score is 600 or below you will normally be charged higher rates and if your score is very low it is often difficult to be approved for credit at all.
There can be many ins and outs to increasing a credit score but if you only adopted the following 4 good credit score habits you would do wonders to increasing yours.
Once you know your credit score…
4 Good Credit Score Habits to Adopt
1. Always pay your bills on time. Paying bills late have one of the greatest negative impacts on a persons credit score. With a credit score in the 700 range you can raise it as much as 20 points simply by paying your bills on time for 1-2 months.
2. Keep your credit card balances low. A high debt ratio (outstanding balance versus credit limit) can negatively affect your credit score. Continually having your cards maxed out can lower your score as much as 70 points.
3. Don’t obtain new credit you don’t need. New accounts will lower your average account age which can lower your score by up to 10 points.
4. Have credit cards if you use them wisely. Having credit cards and loans (provided you pay your bills on time) will actually raise your credit score. Someone who has never had credit has also never proven they can handle credit properly so they will actually have a lower score than someone with credit used responsibly.
Now that you know the 4 good credit score habits to adopt go out there and create some new “good” habits.
