Habits of Top Credit Scorers

Dear Ali, 

There's no doubt about it: when you're applying for a mortgage loan, a high credit score helps you lock in a better interest rate, which can save you thousands of dollars over the life of the loan.

It takes consistently responsible financial behavior to maintain a top tier score of 760 - 850. Let's take a look at some of the common traits of  high credit score achievers.

Conservative Spending Habits

Never max out your credit cards! People with high credit scores use only 30% or less of their available credit, and those with scores over 800 are using 10% or less.

Make Payments on Time

Late payments on your credit report can cost you up to 110 points on your credit score. Ninety-six percent of the people with top credit scores have no late payments on their credit reports.

Have a Well-Established Credit History

FICO® states that the top tier credit scorers have an average credit account of 11 years old, with the oldest credit account averaging 25 years old. This might be frustrating to hear if you're just starting to establish or re-establish credit. If you're in this position, find out if your bank offers a secured credit card.

Have a Limited Number of Credit Inquiries 

Remember, too many credit inquiries in a short period of time can have a damaging affect on your credit score. So, don't apply for every credit card that is offered to you. 

I hope you found this information to be useful. Please feel free to give me a call if you have any questions. I'm here to help!

Sincerely,

Anna Smith