We all want to have a high credit score. We aspire that for our future, but not all of us are able to achieve that. We can look up to people whom we wish to aspire after and learn from their habits and patterns. Though managing finance can be a very subjective thing, it is an achievement one looks up to and requires practice and vision to achieve it. We can always learn from our past and also learn from people who have been successful in achieving the goals we wish to conquer

Let’s look at the habits people who maintain a good credit score follow in their lives

They pay their bills on time

A person with a high credit score is prompt when it comes to making payments and paying all the bills. When you consistently pay your loan EMIs and credit card bills it becomes a proof of your reliability and trustworthiness to the lender and increases your credit score.

A good credit history is build when there is consistency of repayment and lenders will thus be more willing to lend you in the future if you apply for a loan or credit card

• They have a low debt to income ratio

One should always know their financial limits. People who have a high credit score make sure that they do not exceed their debt compared to their income. A debt should be taken to a limit that your income can sustain it and can be repaid without it burdening on your expenses or having to take another loan.

• They create a diverse portfolio

A person with an above average credit score will usually manage a diverse credit portfolio. This reflects their capability in handling their finances well. It is advisable to have a combination of secured and unsecured credit profiles which will help to raise a high credit score. You can build a strong credit history with a good track record of credit utilization. It will become an important aspect in calculation your credit score.

• They don’t exhaust their credit limits

People with a high credit score do not exceed more than 50% of their credit utilisation ratio. You might be tempted to use your credit limits and earn reward points and sometimes even overcharge it but one should

never over exceed the credit limit. Keeping credit limit under 50% ratio is a trait of being responsible with your credit and should be followed by everyone who wants to have a good credit score.

• They monitor their credit report regularly

It is always a good habit to keep a tab on your credit report. It gives you a clear picture of your credit score and financial behaviour. Regular check-ups can help you correct any errors and dispute them in case the need arises. People with high credit score review their credit reports at least once a year to look for any errors and misinterpretations and raise and correct any disputes.

It is never too late to start and build a good credit score. If you have a low credit score right now that doesn’t mean that this will stay on your record for ever. You can build and raise your credit score with managing your financing and following these good credit habits consistently.