7 Habits People With High Credit Scores Have in Common

You are more than your credit score — that much is true. But if you want to do major things financially in this country, your credit score is going to be a big factor. What’s more, people with high credit scores normally have their finances in order — so there’s a lot to learn from them.

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GOBankingRates spoke with financial experts to find out exactly how these people stay on top of their credit. Below are seven habits people with high credit scores have in common, and you can also check out some secret perks of having a high credit score here .

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They Pay Bills on Time, Every Time

Again and again, the experts we talked to said the same thing: People with high credit pay their bills on time. Erika Kullberg, an attorney and personal finance expert at Erika.com , emphasized this point. “This is the most crucial aspect that goes into the calculation of your credit score, so paying on time and in full is the absolute gold standard of good credit.”

Aaron Cirksena of MDRN Capital added that this habit extends beyond just credit card payments. “This doesn’t just mean they pay their credit statement on time, but they also pay other bills on time (rent, phone bill, car payment, etc),” he said.

Because your payment history accounts for about 35% of your FICO score, it really is the single most important factor to consider.

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They Keep Credit Utilization Low

Credit utilization refers to how much of your available credit you’re using at any given time. Kullberg explained that people with high credit scores keep their credit utilization low, typically using less than 30% of their available credit. “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. Try to keep your credit card balances low throughout the month, not just when you pay your bill.

They Regularly Monitor Their Credit Reports

People with high credit scores make it a habit to keep a close eye on their credit reports. Dutch Mendenhall , author and founder of RADD Companies, pointed out that these individuals “consistently monitor their credit reports, ensuring accuracy and promptly addressing any discrepancies.”

By regularly reviewing your credit reports, you can catch and dispute any errors quickly. You’re entitled to one free credit report from each of the three major credit bureaus annually through AnnualCreditReport.com. Also, most banks monitor credit too, and you can often check in regularly to see what’s happening with your score. Use these resources to stay on top of your credit health.

They’re Strategic About Acquiring Debt

High credit scorers understand that not all debt is created equal. Mendenhall said these individuals are “strategic about taking on debt, only borrowing what they can afford to repay and leveraging debt as a tool for financial growth rather than a burden.”

Marc Guberti, CPFC and expert contributor to Annuity.org , added, “They may have a mortgage, auto loan and other debt. However, people with high credit scores are less prone to borrowing money for impulsive purchases or risky investments.”

They Avoid Applying for New Credit Too Frequently

While it might be tempting to open new credit accounts for perks or sign-up bonuses, people with high credit scores are cautious about this. “Another habit is to avoid applying for new credit too frequently, as hard inquiries from credit applications can temporarily lower your credit score,” said Kullberg. 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.

They Have Long-Term Financial Goals

People with high credit scores tend to think beyond just maintaining their credit.

“It takes long-term planning and effort to achieve a high credit score and keep it in good condition,” said Guberti. “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 make sound financial decisions that positively impact their credit over time.

They Regularly Review and Optimize Their Finances

High credit scorers don’t “set it and forget it” when it comes to their finances. They actively manage them.

“People with high credit scores tend to regularly monitor their finances,” said Guberti. “They periodically review bank and credit card statements to discover monthly expenses they can trim from their budgets.”

He added that by getting rid of unnecessary expenses — like unused subscriptions — people with high credit scores often just have more control over their finances in general.

This article originally appeared on GOBankingRates.com : 7 Habits People With High Credit Scores Have in Common