NEW YORK, February 28, 2023 (Newswire.com) - Credello: The advantages of having a high (700+) credit score can mean the world to your wallet. Studies have repeatedly shown that those with higher credit scores than average get lower interest rates, better terms, and more offers than those with lower scores.
Luckily, raising your credit score isn't difficult to do, as long as you practice a few personal finance habits. Here are the top habits we've noticed people with high credit scores tend to have:
1: They pay their bills on time
Paying your bills on time is one of the essential key habits for keeping your credit score high. Not only will it keep your credit history clean and boost your credit score, but it will also reduce the amount of interest you'll have to pay in the future.
How to start this habit: Set a reminder on your phone's calendar for five days before your payment is due. That way, you'll have time to gather the money you need and won't have to panic at the last minute.
2: They keep their debt levels low
Another critical habit for raising your credit score is keeping your debt levels low. Not only will this help you avoid becoming a "debt bomb" for creditors, but it will also improve your borrowing power in the future. Financial experts often point to how paying only the minimum payment and credit scores under 600 often go hand in hand. Instead of only paying the minimum, ensure your balances are kept low (the best credit scores tend to keep their utilization to 20% or lower)
How to start this habit: Begin paying an additional $10 with every credit or loan payment you make. That $10 may not feel like much initially, but it'll go a long way toward reducing the principal balances that accrue interest and help you lower your utilization quickly.
3: They keep a credit monitoring plan in place
Credit monitoring plans are a great way to keep tabs on your credit score and ensure you make timely payments. Many lenders offer free credit monitoring services, so it's worth checking with your bank or credit union first.
How to start this habit: Get a free copy of "Your Credit Score: Your Rights And Responsibilities" by Experian. This book will teach you everything about your credit score and how to use it responsibly.
4: They're disciplined with their finances
Many high credit scorers are also disciplined with their finances. This means setting realistic goals, sticking to them, and being willing to cut corners when necessary. They often resist impulse purchasing as they have a higher goal (home ownership, new car, retirement, etc.), whereas those with lower scores tend to be more impulsive with using their credit and may see it as "extra" money.
How to start this habit: Start a budget that accounts for your expenses and compare that with your income. Set a goal next month to have five days where you don't spend any money and see how it makes you feel.
5: They save money regularly
High credit scorers are also known to save money regularly, so they won't need to utilize credit in an emergency.
How to start this habit: Put away 10% of every deposit into a dedicated savings account. You'll be surprised how much money you'll accumulate!
The bottom line
Getting (and maintaining) a high credit score isn't easy, but it's possible with a few essential habits. The more proactive you are at monitoring your credit habits, your score will likely increase quickly.Contact Information:
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Original Source: 5 Habits of People With Really Good Credit Scores