9 Tips Maintain a High Credit Score of 750 in 2018

A healthy credit score is your ticket to get an attractive deal on your loan or credit card application. It opens the door to an array of benefits, discounts and rewards while availing credit. Moreover, you are also entitled to receive a preferential pricing in terms of interest rates and fees by some of the lenders. As per the general practice, a majority of lenders like banks and non banking finance companies consider a credit score of 750 and above as excellent. But the key to maintaining a high credit score lies in having control on your credit card spend as well as repayment behaviour.

Let’s take a look at some of the important tips that will help you maintain a high credit score in 2018:

1. Keep an eye on your credit report

Make sure to check your credit report from time-to-time. A periodic check of your credit report gives you an idea of your current credit health. Also, your credit report can have errors related to your accounts or personal information. Keeping a tab on your report helps you spot such errors which can be rectified by raising a dispute. Moreover, if you check your report, you will know if there are any discrepancies in your credit accounts or if you have fallen prey to identity theft. Such factors could immediately bring down your credit score.

2. Always pay all the bills on time

Every EMI or utility bill should always be paid on time. When it comes to the total credit score, your repayment history accounts for 35%. Therefore, it is of utmost importance to pay all your bills on or before the due date. Become more organized about your payments and avoid making late payments as it will have a negative impact on your credit score. Moreover, you will also end up paying more money on interest. You can even opt for an auto debit facility that makes sure all your bills are paid on time. If possible, it is sometimes a good habit to pay your credit card bills before time. This suggests that you have your organised your finances properly and are able to handle credit.

3. Continue to build a strong credit history

The age of your credit history is one of the important factors that affect your credit score. It accounts for 15% of your total credit score. A credit score is a numerical representation of your creditworthiness. By taking a look at your credit history, lenders can take a sound decision of offering you a loan or a credit card. If your credit score is above 750, it clearly suggests that you are likely to have a decent credit history. Therefore, you should continue to keep using your credit card wisely and make small purchases using your credit card that will help you in building credit history even further.

4. Don’t remove old accounts

One of the keys to maintaining high credit score is to not remove your old credit card accounts. Deleting your accounts hampers your credit score in a big way. It is more likely that your old credit cards have a decent credit history which will be gone if you close them. Your average credit history takes a hit when you remove old accounts. Moreover, when you close a credit card, you also lose the credit limit. Which means you lose another opportunity to build a credit history.

5. Maintain low credit exposure

You should always use your credit card within an ideal spend range and not use the entire credit limit. Ideally, you should maintain a low credit utilisation ratio, meaning use only a certain percentage of your credit limit. According to experts, it is advised to maintain a credit utilisation ratio of 30%-40% of your total credit limit. Make sure to not use your credit card in excess of your credit limit. This behaviour suggests that you are credit hungry and could lead to a low credit score.

6. Increase your credit limit

If you have a high credit score of say 750, you can request your credit card provider to increase the limit on your credit card. This will help increase your credit score even further. Even though the limit is high on your credit card, you should continue limiting the usage thereby paving the way for a bump in your credit score. However, make sure you are not using the excess credit and going overboard with your expenses. Try to strike a balance with the increased credit limit.

7. Clear all your pending debts on priority

You should avoid having a large amount of debt as it negatively affects the credit score. If for some reason you were not able to pay off the debt, chalk out a plan to clear it off at the earliest in order to avoid paying more money in the form of interest. Always working on having the least amount of debt as it will help you in maintaining a high credit score.

8. Avoid triggering hard checks

You can check your credit score as many times as you wish and it will not harm your credit score. When you check your own credit score, it is called a soft inquiry and it is harmless. If you have made a credit card or loan application, and it has not been accepted for any reason, you should wait for some time and not make additional application, as it will trigger hard checks. A hard check brings down your credit score and therefore, you should avoid too many credit inquiries.

9. Always pay the full bill amount

Paying minimum amount due on your credit card bill should always be avoided. Make sure to pay all your bills in full and never opt for minimum amount due. Not being able to pay your bills in full suggests that you are not using your credit carefully.

It must be noted that you cannot get a high credit score overnight. You should take all the aforementioned measures to increase it gradually. Once you have reached a high score of 750 and above, you should not become complacent and instead, continue with a disciplined credit behaviour.