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GOBankingRates spoke with financial experts to find out exactly how these people stay on top of their credit.
Erika Kullberg, an attorney and personal finance expert atErika.com, emphasized this point.
Aaron Cirksena ofMDRN Capitaladded that this habit extends beyond just credit card payments.
Why is this important?
It demonstrates responsible borrowing from the point of view of lenders, she said.
Even if you pay your balance in full each month, high utilization can negatively impact your score.
By regularly reviewing your credit reports, you might catch and dispute any errors quickly.
Youre entitled to one free credit report from each of thethree major credit bureausannually through AnnualCreditReport.com.
Use these resources to stay on top of your credit health.
Theyre Strategic About Acquiring Debt
High credit scorers understand that not all debt is created equal.
However, people with high credit scores are less prone to borrowing money for impulsive purchases or risky investments.
Mendenhall echoed this sentiment.
Each time you apply for credit, it results in a hard inquiry on your credit report.
Too many hard inquiries in a short time can lower your score and make you appear risky to lenders.
This mentality lends itself to investments and long-term financial goals.
People with high credit scores tend to have long-term financial goals that they continue to work toward.
This long-term perspective helps them makesound financial decisionsthat positively impact their credit over time.
They actively manage them.
People with high credit scores tend to regularly monitor their finances, said Guberti.
They periodically reviewbank and credit card statementsto discover monthly expenses they can trim from their budgets.
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