How to keep your credit score over 700? 7 key tips that work

To maintain a credit score higher than 700, so that you become eligible for comfortable terms and conditions on loans and credit cards -- it is recommended to take a number of steps. Primarily, one should take all the bills on time.

It is even recommended to set an auto pay to ensure that you do not miss any payment. Additionally, one should keep credit utilisation quite low – ideally below 30 percent to be able to maintain a high credit score.

High credit score: Follow these steps

I. Pay bills on time: One of the most key factors is the payment history. Try to pay at least the minimum due before the due date on credit cards, loans, and utilities. It is recommended to set up automatic payments or reminders to avoid missed payments.

II. Keep credit utilisation low: You should aim to use less than 30 per cent of your total credit limit. In fact, it is suggested to keep it under 10 per cent for good results.

III. Avoid opening too many new accounts: Every credit application triggers a hard inquiry that can temporarily lower your score. Not many people are aware that the new accounts also tend to lower your average age of credit which is a factor in your score.

IV. Maintain a long credit history: You should keep old accounts open, particularly if they have no fees. Length of credit history also weighs on your credit score.

V. Diversify your credit mix: Credit mix indicates your ability to manage myriad categories of credit (credit cards, student loans and car loans). Typically you do not require each type of credit, but it is better to have a healthy mix.

VI. Keep balances low on revolving credit: Even if you pay in full, large reported balances can still hurt your score before your payment posts. Try to pay before the statement closing date to report a low balance.

VII. Hard inquiries: When you apply for too many loans, it leads to hard inquiries. And too many inquiries in a short span of time can lead to a credit risk. At the same time, soft inquiries do not affect your score

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