A high credit score is essential when it comes to getting a mortgage. Not only will it be necessary for mortgages, but also for renting a small house or apartment. Perhaps, not many of them are thinking about getting a house yet. Being a homeowner may seem far away in time. However, the sooner they start to raise their credit score, the faster and easier they will get a loan in the future.

A recent survey from Capitalone reveals a lot of interesting facts and beliefs about Gen Z. The first misconception has to do with credit card balance. Up to 53 percent of Gen Z believe that carrying a balance every month raises their credit score, which is false. In fact, it works the other way around, so it does not benefit it at all.

What helps increase your credit score then?

To work out your credit score either to get a mortgage or just rent an apartment, you may want to get a better availability. Here, they check the limit your credit card has and the amount of money you have spent. It is of vital importance to have the highest availability possible in order to increase your credit score. Besides, you can also increase your availability if you manage to keep your balance really low.

Needless to say that if you really want to achieve a higher one, you will have to pay the money you owe punctually. Do not forget to have enough money in your bank account to be able to afford those monthly bills. Set an alarm the day before these payments are. In this way, you will see if you have the required money for them.

Does reducing your debt increase it?

Having enormous debt will decrease your credit score. Thus, if you manage to lower your debt and you do not take out any other personal loans or have credit card debt, you will get a positive effect on it. Leave your credit cards at home and take cash with you. By doing so, you will only use your credit card when you really need it.

Bear in mind that if you max out your credit card, you are decreasing your credit score. All these things should be done over a long period of time, to show you are good at managing money and then get a high credit score. Keep track of your expenses and set goals to increase your savings. Do it now, to get a mortgage in the future