Wondering how you can be a credit pro? You may already be one! Read on to discover the four signs that can confirm whether you’re a credit expert or not.
Oftentimes, we tend to be too hard on ourselves when it comes to gauging our financial situation. Sure, there may be a bad month here and there, but we take for granted the many things that we may already be doing right. Optimism is an under-rated virtue, so it’s important to recognise both the good and bad before you set out to tear apart your financial plan.
It’s the same when it comes to your credit history. We all dream of flaunting an enviable 850+ Credit Score and tend to focus on the mistakes we make in order to improve our score with every check. Now, while that’s an important exercise, we should also acknowledge the things we’re currently doing right. Here are four signs you’re already a Credit Score pro and you don’t know it!
Sign 1: You Regularly Scan Your Credit Report For Errors
While most people check their Credit Scores, not all of them take the time to go through their credit report and see if any errors exist. If you’re taking the extra effort to do this, you certainly know how to take care of your credit portfolio, so give yourself a pat on the back.
Additional Reading: All About Your Credit Score
Sign 2: Your Credit Score Is Above 750
While it’s not wrong to dream of an 800+ Credit Score, if you’ve been in the >750 category for a while, you ought to give yourself some credit (pun-intended, heh!) because it shows you’ve been consistent with your borrowing and repayment behavior. It takes a seasoned individual to pull that off, so yes, kudos to you!
Sign 3: You Check Your Credit Score Before Applying For A Loan Or Credit Card
When it comes to applying for a Credit Card, Personal Loan or Home Loan, lenders rely heavily on your Credit Score to determine if you’re creditworthy or not, so if you’re the kind who checks your Credit Score and then determines whether now’s a good time to apply for credit or not, congrats, you certainly are a pro.
Additional Reading: Things You Should Know Before Checking Your Credit Score
Sign 4: You Can Distinguish Between Credit Savvy And Credit Hungry
You can surely consider yourself to be a Credit Score pro if you know the difference between being credit savvy and credit hungry.
The former has more to do with regularly monitoring your Credit Score, reading your detailed analysis report, scanning your report for errors, diversifying your portfolio by maintaining a good mix of secured and unsecured loans, Credit Cards, etc.
The latter has more to do with coming off as a desperate lender in the eyes of lenders. For instance, a rookie mistake that many make when it comes to credit is applying too frequently. Only the pros know that every time you apply for credit, lenders run a hard enquiry on your profile, and that hurts your Credit Score. A true pro knows the importance of spacing out credit applications.
Additional Reading: A Brief History Of Credit Scores
If you can relate to all the signs mentioned above, then you can consider yourself a credit expert. On the other hand, if you feel you’re not following all of the best practices mentioned above, there’s always time to start doing that right away.