Know now that your credit score can, and in most cases, usually is, that major financial passport to get that loan that you’ve been looking for. A good credit score can even help to get you a quick card approval, rent an apartment, plus even get much better rates on your insurance.
It is true that everybody is always looking for the best ways to spend less on anything and save more. Well, establishing and maintaining a good credit score is one way to go about it. Which leads us to some of the financial habits that you would normally only see in people with a good credit score. Here is a short list. Let’s get to it.
1. Pay bills on time
By now, you probably already know that the people who always get the good deals when it comes to discounts and low-interest rates in loans are the ones who are always on top of their credit score bills. Making your payments on time is crucial when it comes to establishing an excellent credit. When you look at the data collected by the Experian, you will see that it supports this notion. Almost 100% of all people who have no late payments are the ones with good credit reports.
When talking to the Lendgreen experts you will be encouraged to have the habit of paying your bills on time. Before you know it, you will notice that your credit score will start picking up steadily.
2. Keeping your credit card balances low
Always be on top of the amount of debt on your credit cards in relation to your total available credit. This is also called credit utilization, and you will find that most lenders prefer and mostly lend to borrowers whose credit utilization limits are below 30%. The lower the credit utilization, the better your chances of landing a loan at the best deal.
3. Apply for credit infrequently
You will also notice that the guys with excellent credit scores don’t apply for credit every now and then. The secret behind this is that every time you apply for and get credit, it usually results in a hard inquiry done on your credit report. This can sometimes ding your credit score which is not what you are looking for. Having many different credit inquiries within a short period usually signals that you may be struggling financially in some way. And you may be living way beyond your means. Try to limit your credit inquiries to about once every six months.
4. Be patient
Borrowers with good credit scores are also the ones who are usually very patient when it comes to borrowing. You will also notice that lenders are also usually more cautious lending to borrowers who have little or no credit history at all. If you do your research, you will notice that the most loyal borrowers who have a credit history of 20 or more years have a much easier time borrowing from the lenders. And if they have maintained good credit reports throughout all this time, then they prove to be less of a risk to the lenders. So, know that in as much as your credit score may be excellent with the few payments you have made, you may still have a long way to go.