Okay so you want to know how to improveyour credit score.
Duane here with how to build credit TV and in this video I'mgonna talk to you about what I did to improve my credit score over 100 pointsin a little under a year.
As a matter of fact I'm going to show you proof in thisvideo that I did improve my credit score.
But before we get started I have a quick message.
Once again my name is Duane with how tobuild credit TV.
And on this channel we talk about everything you need to knowabout credit, credit cards, and making money using credit cards.
As a matter offact I was able to earn over seventeen hundred dollars using one credit card.
Soif this sounds like something in which you're interested be sure to subscribeto our channel by clicking the word subscribe below this video to the rightand click that notification bell so you don't miss a thing.
Alright so when itcomes to how to improve your credit score it really kind of depends on yourown personal situation, as well as your personal credit history.
So that's what'sgonna influence how fast you're able to improve your credit score.
What I want togo ahead and do is I want to go ahead and show you guys proof right now.
I'mgonna go ahead and log on to my Capital One account I have two credit cards withCapital One and so I'll go ahead and log in to my Capital One account here foryou guys.
I'm recording with my iPhone 6s and I'll go ahead and show you guysusing credit wise my credit wise is based on the Vantage score.
And at firstI was like well this score is not going to be too close to the FICO score.
ButI've kind of discovered that this score is pretty close to the FICO score.
I'mnot gonna lie it's a pretty interesting.
So right now as you can see my creditscore is 718 according to the credit wise app that's not very good actuallyit was a lot higher recently.
But I did applied for five credit cards recentlyso my score went down for a little bit and it'll probably stay down for maybelike six months.
So what I want to do is I'm gonna go ahead and go into thehistory here and kind of show you guys and I'm gonna tap on history.
And okay soas you can see here it says October 5th 2018, the reason why I says October 5this because that was the last time that the credit wise app updated.
So I'llclick at the very bottom on the one of the dots in the middle I'll click on themiddle dot and so at the bottom you can see it says 2017.
And I will click onJuly the second J so this is July 2017 my credit score was 630.
And if I go backI'm gonna click on the blue dot at the bottom or the dot to the right and nowit says 2018 at the bottom of the screen and I'm gonna click on July of 2018 herewe go July of 2018 my credit score was 765 according tocredit wise.
So I just kind of want to show you guys that real quickly here andI'm gonna go ahead and show you guys another another thing regarding mycredit score.
So give me one second and I'm gonna show you my credit score, myFICO score that I got from Discover Card.
Okay so because I'm a nerd I still havemy paperwork from when I applied for my discover it secured card back in August2017 and then I also have the paperwork from the current application of mydiscover it card that I applied for in August 2018.
So the reason why I'mtalking about that is because Discover provides you a free copy of your FICOscore and according to Discover Card at the time that I applied at the very topback in August 2017.
My credit score was 646 with Equifax and then the one at thebottom my credit score is 771 a year later with experian.
Now I know thatthose are two different credit bureaus but I definitely can tell you that mycredit score did improve a lot.
And all I did was you know just kind of try to get my overall credit utilization all the way down.
And I applied for severalsecured cards because secured credit cards actually help you improve yourcredit score.
Ok so before I share with you a couple of things that you can doright now to improve your credit score.
I just want to say that there are somecategories that make up our credit score that you cannot manipulate.
For exampleyou can't manipulate the fact that you need to have a good overall age ofcredit.
And in order for you to have good overall age of credit you need to havea credit line or credit for eight plus years.
There's no way to manipulate that you just have to wait or actually have had acredit card or credit established for eight plus years.
And once again this isthe average of your credit.
So if I have a credit card that I opened and it'sfive years old and then I open another credit card you know five years laterthat's gonna influence the average age of my credit.
So you cannot manipulatethat.
Another thing that you cannot manipulate is the fact that having a lotof available credit is good for your credit score.
For example if you haveover fifty thousand dollars worth of available credit or credit linethat is actually good for your score and that puts you in the excellent categoryfor that portion that makes up our overall credit score.
So once again Ijust kind of want to give you some some examples of the things that you cannotmanipulate.
A lot of people like to talk about you can improve your credit scoreor X amount of points instantly overnight.
And you sort of can but youcan't there's some things that you cannot manipulate.
So I just want to makesure I tell you guys that before I get into the things that you can do kind ofright now that will help your credit score and improve your credit scorepretty quickly.
Okay so the first thing that you can do right now to improveyour credit score is to decrease your credit utilization.
Your creditutilization refers to how much of your credit line are you currently using.
Let's say you had a credit card with a credit limit of $1,000 and you'recurrently using $600.
So right now you're currently using 60% of your overallcredit and that is not good.
So what you can do to improve your credit score isto get that from $600 all the way to $200 or less.
You want your overall usageto be between 0% and 10% of what your credit limit is so 0% of $1,000 isclearly $0 and 10% of $1000 is $100.
So you want to have your credit usagebetween $0 and $100.
And please don't be confused what I mean by this is when youpay your bill you want to make sure that you pay your bill off and so the thingis when the credit card reports the credit bureaus hopefully they'll reportwhen your balance is zero.
And then that way your utilization will be zero.
So youdefinitely want to make sure you're paying off your credit card bills asmuch as possible or if you're not gonna pay it off you're gonna carry a balanceyou definitely want to make sure that that balance is between zero which iszero dollars and ten percent.
You don't want to be over 10 percent because whenyou're over 10 percent you're not maximizing that portion of the creditscore.
So you definitely want to make sure that you decrease your overallcredit usage and that is going to improve your credit score instantly.
Imean it's pretty quick.
If you don't believe me try it for yourself.
Make sure you get your credit utlization between 0% and 10% and watch your creditscore go up.
This will improve your credit score that's one of the thingsthat you can do right off the bat to improve your credit score.
The next thingthat you can do to improve your credit score is you can try becoming anauthorized user on someone else's credit card.
Let's say you know somebody elseand they have a pretty high credit limit let's say $10,000 and they've had thatcard for five years.
If they add you as an authorized user that will allowthe credit card company to report to the credit bureau that you are basicallyusing that account.
It will appear that this is your account it will appear thatyou've had the credit card for five years and that you have a credit limitof $10,000.
And in turn this is going to help your credit score drastically.
It'sgoing to improve your credit score instantly as soon as it's reported tothe credit bureau your credit score will improve.
And the reason why it willimprove is it's going to affect your overall age of credit.
So once again Italked about earlier in the video, if you had a credit card that was five yearsold and then you open another line of credit five years later that's going toinfluence the average age of credit on your credit report.
So if you are addedas somebody's authorized user then instantly you're going to like I saidadapt their credit report their credit profile so it will help your age ofcredit especially if they've had that credit card established for a long time.
It could also help your credit utilization because now instead ofhaving your one credit card with $1000 credit line now you have your $1000 plusthe $10,000 from the card member that just added you as an authorized user.
Sonow you have eleven thousand dollars of available credit or credit line and onceagain that looks really good and so that's going to improve that and loweryour credit utilization which will be incredible.
And this is once again goingto help improve your credit score drastically.
And real quickly the reasonwhy it's important to have a high credit limit or overall credit limit as well ashaving a low credit utilization this is important because it lets lenders knowthat number one you're responsible.
Number two yes you have a lot ofavailable credit but you know how to manage it and you're using it wisely.
Soit doesn't look like you're desperate it looks like hey we can trust this personwe can lend him money.
We can approve him for a car or a house.
We can approve itfor a credit line of five thousand dollars or more.
So that's why it'simportant to have a lot of available credit and also important to have a verylow credit utilization rate.
So those two things alone will help improve yourcredit score pretty drastically.
If you don't believe me like Isaid give it a try and if I'm wrong let me know in the comments below alright.
Thank you so much for watching this video.
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Once again myname is Duane with how to build credit TV and I approve this video.
I'll see youin the next video.
Until next time take care and be blessed.