Even for those with substantial wealth, credit scores matter. Lenders, insurers, and business partners often use them to assess reliability. A high net worth can open doors, but a weak score can quietly close others.
To keep your score strong, focus on these four areas:
1. Keep utilization low. Credit scores don’t care if you pay your card off in full – they care how much of your credit limit you’re using when your statement posts. Aim to keep it under 10%. If you spend heavily, consider mid-cycle payments or spreading purchases across multiple cards.
2. Maintain a credit mix. A healthy score includes both revolving credit (like cards) and installment loans (like mortgages). Even if you could pay cash, a little strategic borrowing helps your credit profile.
3. Be careful with closures and freezes. Shutting down old accounts or freezing credit can unintentionally hurt your score or delay applications. Keep old accounts open with small auto-pay charges and set reminders before freezing.
4. Monitor regularly. Errors, fraud, or missed payments can slip through the cracks. Review your reports twice a year.
Your credit is a reflection of your financial discipline – treat it like the asset it is.