5 Things You Can Learn From People With Perfect Credit Scores

Many people know that a bad credit rating may be the most severe hurdle when it comes to getting loans. Most people actually cringe at the word “loan” because they don’t want to deal with that kind of stress. However, a credit score is not something that can be ignored when it is time to look for a loan.

Here are 5 things you can learn from people with perfect or excellent credit scores.

Check Your Credit Reports Often

Be sure to check your credit reports regularly. Always monitor and check the alerts you receive for transactions against your credit to make sure there aren’t cases of identity theft or inaccuracies. By regularly checking your credit score, you can avoid troubles in the future.

Fix Any Errors

There could be mistakes on your credit file that are affecting your credit score. That’s why it’s important to fix any mistakes that could cause your score to drop. Credit reporting bureaus like Equifax, Experian, TransUnion are susceptible to errors when reporting.

Research shows that these bureaus turn up approximately 12,300 complaints about incorrect credit bureau info. The most common complaint being- “information is not mine” followed by account terms and public record and account status. Actively look out for inaccurate info by checking your credit reports at least once a year.

Keep Your Financial Relationships in Good Standing

Money management skills are very important. Paying revolving and installment credits on time is a win. It’s also best to not carry any balances on your credit cards.

Have Savings

Credit scores are all about how well you can manage your debt. By managing your debt effectively, by making timely payments, and paying off balances, you’ll automatically improve your credit. Once you’re comfortable with money management and savings, you can have services billed to your credit cards to collect reward points.

Keep Your Lines Open

According to FICO, your credit length makes up 15% of your score. Lenders often examine the age of your accounts and the frequency of account usage. The older the account, the more it positively affects your credit. This is why money experts advise against closing accounts.

Though you might not be using an account, the lenders will continue to report your positive relationship with them.