Your credit score is more than just a number. A good credit score can help you get better loan terms, lease an apartment, and even land a job.

Developing good credit habits is essential whether you're working to improve or maintain your score. By following smart financial practices and staying vigilant about your credit health, you can build and sustain a strong credit profile that supports your long-term goals.

Pay your bills on time

The most important habit you can have to maintain good credit is paying your bills by the due date . Your payment history is 35% of your FICO score. Missing a payment even by a few days can hurt your credit and remain on your report for up to seven years .

To stay on track:

• Set up automatic payments for timely bill payments
• Use reminders or budgeting apps to track due dates and avoid late fees

Consistent, on-time payment demonstrates responsibility and reliability to lenders, ultimately boosting your creditworthiness.

Keep your credit utilization low

The credit utilization ratio is the amount of credit you use relative to your total available credit. Experts recommend keeping your utilization below 30% because it’s a large part of your credit score.

You can achieve this by:

• Paying off balances in full each month
• Making more than one payment in a billing cycle to keep balances low
• Lowering your utilization ratio by requesting a credit limit increase

A low credit utilization ratio demonstrates you’re using credit responsibly without overextending yourself.

Diversify your credit mix

Different credit types (credit cards, installment loans, and mortgages) can benefit your credit score. Lenders like to see that you can handle various types of credit responsibly.

However, don’t just open new accounts for the sake of diversification. Focus on managing your existing credit effectively and only take on new credit when necessary.

Keep old accounts open

An extensive credit history contributes to your overall credit score. Leaving older accounts open can help maintain a longer average credit age, which lenders view positively. If you have older credit cards with no annual fee, consider using them occasionally to keep them active while benefiting from their contribution to your credit history.

Avoid unnecessary credit applications

A hard inquiry appears on your credit report whenever you apply for a credit card or loan, which can temporarily lower your score. To minimize hard inquiries:

• Apply for new credit only when necessary
• Space out applications to reduce the impact on your credit score

Limiting new credit inquiries helps maintain a stable credit profile. Applying for too much credit over a short time period can flag you as a high-risk borrower.

Monitor your credit regularly

Reviewing your credit can provide insights into how your financial habits impact your score. You can request free credit reports once a year from the top credit bureaus through AnnualCreditReport.com. Free credit monitoring services are also available from many banks and credit card issuers.

Staying on top of your credit report can help you catch issues early. Errors in your credit report can negatively impact your score, affecting your ability to qualify for credit in the future. That’s why you should promptly dispute any inaccuracies.

Take control of your credit

Forming good credit habits takes time and dedication, but a strong credit profile can help you qualify for better interest rates.

If you're working to improve your credit and need auto financing options, Credit Acceptance may be able to help. With over 15,000 dealerships across the nation in our network, you can start the pre-qualification process online today.