Are you curious if your spending habits are good for your credit? Have you wanted to raise your credit, but don’t know where to start? 

Having a bad credit score may be more common than you think. Almost a third of Americans have a credit score lower than 601. Having a bad credit score not only can put you in debt, but it can also limit any loans or purchases you want to make. 

If you are striving for an excellent credit score, there are a few habits you can incorporate into your life to achieve this. To find out what 5 habits are hurting your credit score, keep reading and improve your financial future. 

1. Skipping Credit Card Payments

Late credit payments are counted after 30 to the credit bureaus. Missing a monthly credit card payment can make your credit score drop quite a bit. 

By staying on top of your monthly payments, you can turn your bad or average credit score into an excellent credit score.

2. Applying for More Credit

Applying for more credit, whether you are looking to open a mortgage or get a car loan, will put a hard credit pull on your account. Doing this will bring your credit score lower. 

If you are wondering, “How can I check my credit score?”, don’t worry. There are many free websites where you can check your score that won’t affect your credit score. 

3. Not Having Enough Credit Diversity 

Not having enough diversity in your credit account will not accurately represent your credit score. If you are wondering how to improve your credit score, consider having more diversity in your account. Just be careful to stay on top of your payments!

4. Opening Too Many Credit Cards

Having too many credit cards open at once can make it difficult to stay on top of your finances. You find yourself struggling to keep track of bills, and you may find yourself missing a payment.

Each time you open a new credit card, it will pull a hard credit inquiry on your account. Having too many credit cards open can hurt your overall score. 

5. Holding High Credit Card Balances

If you have high balances on your credit cards, it can end up hurting your credit score. While it is important to make your minimum monthly payments, paying off your credit cards completely will give you the highest credit score. 

Credit repair companies can help you to manage your balances and help you to fix your credit. The best credit repair companies will make sure you never go over your credit card balances and will help you to achieve an excellent credit score. 

Take Steps for an Excellent Credit Score

Fixing your credit doesn’t have to be hard. By fixing these 5 bad credit habits, you will find yourself achieving an excellent credit score and making a better financial future for yourself. 

To get more advice on how to better your finances and your life, check out more of our business and lifestyle articles!