A recent article from US News & World Report points to four common habits of consumers with FICO credit scores of 785 or higher, the top bracket of credit scores. What set these consumers apart from the rest? Read on to find out.

First, these consumers did not miss their payment due dates. 35 percent of an overall credit score is based on payment history, and after missing a payment, a consumer’s credit score will automatically drop. Making payments on time is one of the quickest and most substantial ways to improve a credit score.

Second, they try to keep credit card balances below 20 percent or 10 percent if possible. The key is to keep the card active while maintaining a low credit utilization across the board. Consumers who are maxing out all of their credit cards appear riskier to banks and lending institutions.

Third, they do not close old credit card accounts. Credit scores are partially calculated based on how long a consumer has been utilizing credit, and if the credit card account is closed, the card will stop reporting to the credit bureaus. For example, let’s say that Jill has a credit card that has been active for 18 years, a car loan that she has been paying for 1 year, and a store credit card that she just opened a few months ago. If she closes her credit card account, her credit report will state that her credit history only goes back 1 year to when she got her car loan, and her overall score will suffer tremendously.

Fourth, they do not apply for a lot of new credit in a short amount of time. These consumers aren’t afraid to diversify the type of credit on their report, but they also are not applying for every credit card offer that arrives in the mail. Applying for a lot of credit cards or loans in only a few months is a red flag to lenders, and it can hurt a consumer’s credit score.

How are you doing on these four habits? 2 out of 4? 3 out of 4? Leave a comment below, and let us know.

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