A 750 credit score is not always easy to maintain. A 750 credit score means that you have been keeping up with items that affect your credit score such as timely repayment and keeping utilization under control among many factors. It is important to keep up some key habits in order to make sure your score does not decrease.
Below are items that impact your credit score that you should be mindful of.
35% of your credit score is determined by your payment schedule. If you miss a payment or pay it late, your credit score is impacted. The missed or late payment then becomes a part of your credit history and can have a significant negative impact on your credit score.
The percentage of your credit card that you use is called your credit utilization rate. This may be called your revolving credit utilization or usage rate. This is determined by the total amount you have access to on your credit score and how much you’ve used. For example, if you had a credit card with a $5,000 limit and you spent $1,000 on it, your utilization percentage would be calculated by $1,000/$5,000 or 20%. All of the total utilization on each credit card you have is used to find your overall utilization.
Typically, a lower credit utilization will help maintain your credit score. It is recommended to keep your utilization rate at or below 30%. Going above this and upwards to 100% makes your score more likely to be hurt.
Your utilization rate is used to calculate 30% of your total credit score.
Length of credit history:
The length of your credit history plays a significant role in determining your credit score. Having a longer credit history will help you have a better credit score. This means that if you maintain your payments and utilization, your score will increase with time. The length of your credit history can account for up to 15% of your credit score. Your credit history showcases that you have been able to manage credit well in the past and have experience in being able to responsibly use the credit given to you.
New accounts and applications:
When you apply for or open a new line of credit, you are automatically flagged as being at risk of being less likely to pay your bills. Your score will usually have a slight decrease, but within a few months, it should return to its original number as long as everything else affecting your score stays the same. New accounts and applications account for about 10% of your total credit score. When you apply for a new line of credit, a hard check is done on your creditworthiness, this temporarily affects your credit score. Multiple hard checks, however, are not advisable as they can cause some damage to your existing credit score.
Having multiple types of credit, including revolving credit and installment loans, helps contribute to your credit score. Revolving credit includes credit cards, which allow you to borrow against a spending limit and make payments. Installment loans, such as student loans, mortgages, or car loans, have set monthly payments and a set payment period. Debt composition accounts for about 10% of your credit score.
Public records can negatively affect your credit score. An entry, like bankruptcy, insolvency, or untimely repayment of a loan does not automatically show up on every credit report, but it can impact other factors of your score. Entries like this can stay on your credit report for up to 10 years. Taking care of judgements and liens that may be on your report is essential to keeping a good credit score.