Here’s How Savvy Individuals Maintain an Impeccable Credit History

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Want a great credit score? Read on to see how to get and maintain one. 

Getting your credit score into top shape can be easier said than done. According to credit score research from The Ascent, the average U.S. credit score is 714. FICO, the most commonly used scoring model, considers this a good credit score. But many consumers have a much higher score than that, which means they’re in a great position to borrow money — and borrow affordably — when they want to.

Of course, it’s one thing to build up solid credit, but it’s another thing to maintain a higher score from year to year. Here’s how people with consistently high credit manage to pull that off.

1. They pay their bills on time

Payment history carries a lot of weight in calculating credit scores — it’s worth 35% of your FICO® Score. And paying bills on time is essential to maintaining a higher credit score.

Being timely with bills isn’t just a matter of remembering to pay them, though. It’s also a matter of taking on reasonable expenses given your budget, so you don’t risk falling behind or being late for financial reasons.

It’s also a good idea to maintain an emergency fund for unplanned bills. That way, you don’t have to be late paying one due to a lack of money.

2. They maintain low credit card balances

Credit utilization also plays a big role in maintaining strong credit. Your credit utilization ratio measures how much of your revolving credit you’re using at once. Keeping that ratio to 30% or less could help keep your score in good shape.

For the most part, this means making an effort to keep your credit card balances low. But if you run into a string of months where you need to carry a higher balance, one way to potentially avoid having it hurt your credit is to ask for a credit limit increase. As long as you then don’t go charging extra on your cards, you can keep your utilization to a moderate level.

3. They keep long-standing accounts open

The length of your credit history also factors into your credit score. Lenders like to see accounts open for many years. So if you have older credit card accounts, don’t close them unless they’re costing you money.

You might think that canceling a rarely used credit card is an innocent enough move. But if it’s your oldest credit card, closing it might cause your credit score to dip.

4. They’re judicious with new credit card applications

Applying for too many new credit cards in short order sends the message that you’re suddenly desperate to borrow. And it has the potential to bring down your credit score.

Now, just because you’re applying for multiple credit cards within the same few months doesn’t necessarily mean you’re in a bad place financially. It could be something as innocent as wanting to take advantage of great sign-up bonuses.

But from a credit score perspective, it can look bad. So aim to space out your credit card applications by roughly six months if possible.

5. They check their credit reports regularly

A credit report error could easily cause a higher credit score to take a plunge. That’s why it’s so important to access your credit report a few times a year and review it for mistakes.

You’re entitled to free copies of your credit report from each of the three major reporting bureaus — Experian, Equifax, and TransUnion. Request yours from AnnualCreditReport.com a few times a year, read them carefully, and follow up on mistakes or any information that looks questionable.

Maintaining great credit for years isn’t easy. But with these moves, it can be done. And from there, you’re putting yourself in a great position to be able to borrow money at competitive rates when you need to.

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