3 beneficial credit habits:
- Keep your balance on revolving debt, such as credit cards, below 10% of the limit. If possible, pay the entire amount each month.
- Always pay installment debts on time i.e., credit cards, auto loans, personal loans, etc.
- Keep your oldest account open, such as a Visa Credit Card. Try not to open unnecessary new accounts.
3 hurtful credit habits:
- Having a habitual balance of over 50% on revolving debt, such as a credit card. Even more so, if you have more than one credit card and each balance is above or near the limit.
- If you miss payments on installment loans, your credit score will go down each time.
- If you close your oldest revolving account, the credit bureaus will now use the next oldest account as your longest account history for revolving debt. By closing your oldest account, you've changed a portion of the credit bureau's equation. They want to see a long lasting history of well-maintained revolving debt with little to no balance.