How Credit Cards Affect Your CREDIT SCORE

the most common question I get asked when I talk about credit card points is won't applying for many credit cards hurt your credit score well if you do it smartly the answer is no applying for credit cards when done properly actually helps improve your credit score let's talk about the five factors that affect your credit score hey guys my name is Ramy and welcome to points pointers my goal for this channel is to help you earn and redeem as many points as possible to upgrade your travels from little to no money okay your credit score is very important when applying for credit cards the number one factor in determining your score is your payment history this is the single largest factor in your credit score and it simply means paying all your bills on time this takes into consideration all kinds of payments made towards a credit line extended from a financial institution so this includes credit cards mortgage car loans student loans etc number two is the amount owed almost as important as the previous which is your payment history the higher your amounts owed compared to your total line of credit the lower your credit score will be this is where applying for a new credit card helps improve your credit score for example if you have one credit card with $10,000 credit line and you spend $5,000 on it this means your amount owed is 50% which is pretty high now if you apply for another card and get another line of credit of $10,000 and you still spend only the original $5,000 then your amount owed is reduced to 25% the lower the amounts owed ratio to the amount of credit line you have the higher your credit score will be number three is the age of credit history not as important as the previous two factors but an essential one as well the longer you've had credit the higher your credit score this is why it is important to start building up your credit as early as possible in life number four is new credit or number of inquiries on your report opening several credit cards in a short period of time might lower your credit score especially for people who have a short credit history number five is the types of credit in use when you have a good mix of credit cards mortgage car loans and student loans all in good standing your credit score will be in good shape thank you for watching and if this is your first time here I would love to have you subscribe because every week I'm publishing videos that help you earn a ton of credit card points and frequent flier miles that will enable you to travel the world for little to no money next week I'll talk about how you can dramatically increase your credit score so make sure to subscribe