Learn 3 Things From People With High Credit Scores

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Having good or excellent credit scores is no accident. There are actually strategies to gaining high scores. Continue reading as I share with you what those strategies are.

With anything in life, the best way to learn how to do something is to find someone already doing it and shadow them. There are 3  commonalities between those with high scores. Let’s take a look at them together.

1. Maintain Low Account Balances

It’s no secret that scoring models consider 30% of your score from credit card balances.

Your utilization ratios have a large impact on your credit scores. The lower you keep your credit card balances the better it will be for both your wallet and for your credit scores. Learn more about utilization ratios here.

2. Spotless Payment History

The next highest ranking factor to your credit score is payment history. The “Payment History” accounts for a huge percentage of your credit score points. Another whopping 35%.

Paying your bills on time is super important. Paying on time, every time will get you a high score.

3. Old Account History

The third largest factor that credit scoring models considers when calculating your credit scores is the age of your credit report. The average age of accounts and the age of your oldest account are factored into your credit score.

This factor is less important than your payment history and your utilization ratio, but it’s still very important. If you want to earn scores at or above 800 then you have to perform well in every credit scoring category, even the ones that are less important.

The best way to grow your credit score in this category is to be conservative when applying for new credit. For example, it can be really tempting when the store clerk asks “would you like to save 20% by opening a new account today?” As your credit score rises, you will need to say no to those tempting card offers coming in the mail.

There you have it, you’ve now learned 3 things from people with high credit scores.

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