Are you trying to secure and maintain an excellent credit history for a long time? Do you want to live with peace of mind, which comes from the knowledge that you easily manage credit debt and are fully prepared to provide for yourself and your family?
If this is so, then by studying and copying the behavior of people with an ideal credit history, you can give rise to a new financial life for yourself. Here are four common habits of people with a long good history.
1. They never missed payments.
According to the creators of the HY credit scoring system, 96% of all owners of an ideal credit history have never committed a single delay in their payments.
Although this may seem rather obvious, it is important to understand exactly what the net credit history means. These CIs are free from negative or negative information of any kind. Many borrowers mistakenly believe that rare minute-to-minute late payments will not matter much. However, almost all people with a good credit history develop the habit of completely closing all their monthly payments as quickly as possible.
Do not despair if your CI already has compromising information – the good news is that it has an expiration date. However, especially aggravating circumstances entered into the document can be in it from 7 to 10 years. In addition, while negative information becomes older, it does not reduce its impact on the overall assessment.
2. Always keep a low credit balance on your credit card.
According to the data of the same company HY, people with an ideal credit history maintain a constant positive balance of funds on a credit card in the amount of 93%. This means that for every 10,000 credit rubles, they should remain only 700 for one month.
Such statistics tell the lender that you are able to cope with large credit limits. It is best to spend the maximum amount possible from the card within a month and return it in the same reporting period. A good sign will be the management of several maps in this mode.
3. Never take extra money on credit
It would seem that the more a person borrows and, at the same time, gives it in time, the more attractive the borrower becomes. But not everything is so simple. Credit history is a document that reflects the attitude of the consumer towards debt obligations and money in general. According to several credit studies, borrowers with an ideal credit history have not taken too much money on credit over the past nine months. They also did not open new accounts in the last 15 months. Therefore, think carefully before you decide to take a loan for any purpose.
In addition, “positive borrowers” do not often allow CIs to request them from the bureau, instead they applied for a modest amount and only when it was really necessary. But at the same time you should not be afraid to request your credit reports yourself to familiarize yourself with the situation. The fact that you are interested in your personal scoring only means that you are not indifferent to your assessment and financial situation.
4. Use the loan for a long time
The average age of credit reports among “professionals” is 128 months – more than 10 and a half years.
It’s no secret that higher credit scores are awarded to consumers who have long credit histories. These are usually older, more experienced borrowers who use loans responsibly. This also suggests that they do not have the habit of opening new credit lines too often, as each new line reduces the average age of accounts.
This is probably the most difficult habit to follow because few of us know what will happen in 5 or 10 years. But a loan taken for a long time shows that you are already thinking about your financial well-being at an early stage.