Having 750 Credit Score is a standard benchmark if you want to avail loan or credit card, below this will lead you nowhere. But opposite to this if you have 750 + credit score then it will help you figure out your desired loan amount or higher credit card limit. Many people dream of availing these benefits but only few succeed in keeping their credit score above 750+ and hence enjoy the lucrative benefits.
We assume that in the previous topic you have learned the best ways to boost your credit score and this will be additional to that way.
Let’s see here what habits of people make them achieve 750+ credit score and make them in the top priority list of creditors when it comes to sanctioning loans or credit cards.
They know their score
Credit score has a major role in getting any loan or credit card. Let’s assume that you have a need for a personal loan and when you apply for it, at that moment you come to know that you have a low credit score due to past mistakes in managing credit. Now the creditors cannot sanction a loan to you. Then what will you do? When in need your credit score was turned down to you and now, you have no other way out except for a personal loan. The people who have 750+ credit scores always keep an eye on their credit score which helps them whenever they need credit. Keeping an eye on credit score just not helps you to get a credit but also helps you to maintain it in case you find out any drop.
They set up auto-pay
Late payment or skipped payment of your loan or credit card will cause you lots of trouble. For you may be just skipping one payment or paying a little late, it feels small but has a bigger impact on your score in the future. It is like what you sow is what you shall reap. So the people who have above 750 score, are the ones who make sure that they do not miss even a single payment or be late by even 1 day. Hence, they always maintain an auto system or ECS system to assure timely payment. They even can set up reminders so that they never get a chance to miss or bounce any of the payments. So if you want your credit score to not suffer, make sure you follow the right practices to build a good repayment history.
Low credit card limit uses
Having a credit card means you can buy whatever you want, and you can spend your money the way you wish to. Credit card is not a magic card, but a liability which you should only use in crucial times; else it will be a pile of debt in the long run. Whatever your credit card limit is, you should always have a balance of not more than 35%. To ensure this you should keep an eye on your spending with your credit card. People who have a 750 + credit score, they know how to use credit cards and how to maintain low credit card limits. So if you have one, start maintaining it.
They pay balance in full
Paying in full has more advantages than paying the minimum amount. The people who have above 750 credit score know this, and they follow this by paying in full each month before the due date, which ensures that they have used low credit utilization and are showing responsible credit usage. When you pay less than minimum or just mere minimum, it will give you temporary comfort, but over a longer period of time you will have an accumulated debt and an interest rate and charges in compounded form. So until/unless you have some major financial crunches, avoid paying the minimum.
They know when to apply for credit
People who are maintaining above 750 credit scores know when to apply for a new credit or when to create a new credit line. Multiple inquiries or several loan requests in a short period of time send a signal to creditors that you may be hungry for credit and thus, you are a risky prospect. Several inquiries will cause a drop in your credit score. Hence, it recommended that you only apply for credit, when in absolute need.
If you want to gain some benefit while applying for a loan or credit card, then it is necessary to maintain an excellent credit score. It is okay if you were unaware before, but now you know, so start following the above habits and maintaining your credit score. A small step today will lead you to your desired result.