If you’re planning to purchase a home in the future, a good credit score is key to obtaining financing and favorable lending terms. Learn from the credit experts at Equifax some of the common credit habits to stay away from for a good credit score in the recent Equifax Finance blog article, “

Five Credit Habits to Avoid.”

Charging too much on your credit cards – Thirty percent of your credit score is determined by the amount you owe, so owing too much can hurt your score. Your debt-to-credit ratio (the amount of credit you used compared to the amount available to you) is one indication of your creditworthiness; a high ratio means you a borrowing a large portion of the credit available. Having a lower debt-to-credit ratio makes borrowers appear more favorable to lenders. Credit experts recommends borrowers not use more than 35 percent of your available credit at any one time—even if you pay your bills on time.

Making late payments – Payment history makes up approximately 35 percent of your credit score. Just one late payment can negatively affect your credit score. How often you make late payments, the length of time past due and the dollar amount of any missed payment(s) can also negatively impact your credit score. Late payments that show up on your credit report can stay there for up to seven years. If remembering to pay bills on time is difficult for you, use an online calendar with notifications/alerts of when payments are due.

Applying for too much credit – each application for credit (whether it be a credit card or loan) results in a hard inquiry on your credit report. The more hard inquiries you have, the riskier you appear to lenders. Opening too many new accounts also affects your average account age. Your length of credit history makes up around five percent of your credit score, and longer credit histories are viewed more favorably than shorter ones.

For the last two tips, read the full article on the Equifax Finance Blog. While you’re there, browse the many helpful articles on credit, or on any of the other personal finance topics covered, including, identity theft protection, retirement, real estate, taxes, insurance and more.