How I Got My 836 Credit Score – And You Can, Too

Hey I'm Adam Jusko from ProudMoneycom and in this video I'm going to tell you how I got an 836 credit score and how you can too

But before I do that I'd ask you to please subscribe to our YouTube channel if you have not already and if you have already I thank you for doing so So, I've talked about credit score factors in the past but I thought for this video I would actually talk about my own credit score and how I got it up over the 800 mark and even up over the 830 mark now So for purposes of this video I decided to check where my credit score was exactly I knew it was up fairly high I don't really think a lot about it because I know that it has been where it is for quite a while

But I looked today through my Citibank credit card and the FICO score that I get for free through it and it told me that I had an 836 credit score, which obviously is very good I also looked through my Capital One VantageScore for free that I get that– one said I had only had an 822 But I take the FICO score as being more important, because FICO is the score that more lenders use and since it was higher than the VantageScore I like that one better anyway that made me happier So, anyway, how did I do it? How did I get to this 836 credit score? I'm gonna tell you a few ways that I did it and hopefully those will also help you think about how you want to increase your credit score The number one way that I got to this 836 credit score: I paid my bills on time And in particular that means I paid my credit card bills on time, I paid auto loans, mortgage, that sort of thing I always make sure to pay those bills on time by the due date

Now did I ever screw up? Yes, there are many times over the course of my adult life where I missed a bill for one reason or another — didn't get the bill, didn't realize that I didn't have it, just kind of forgot when the due date was, whatever It happens to every single person You are always going to have times where you mess up So the important thing is to remember that when you mess up, try to rectify things as soon as possible When I got a second bill with big block letters telling me that I was overdue and that I had to make a payment, I always jumped on it as quickly as possible

Did I ever go 30 days over the due date? Maybe But did I ever go 60 days? No Once I knew that there was a problem I always made sure that I dealt with as quickly as possible — called into a company if there was an issue that I was having to let them know what had happened and just to try and rectify what I could So always pay those bills on time You're gonna mess up once in a while, but rectify the situation as quickly as you can when you do mess up

Now, Number Two, I have very low balances on my credit cards According to the information I saw today I'm only sitting at anywhere between 3 & 5 percent of the available credit that I have to me right now I use my cards for convenience and I use them for rewards but I don't use them really to finance purchases over the long haul So really I'm paying my bills off, or paying my cards off every month, and I'm using overall a very small percentage of the overall credit that I have, and that is something that you want to do too Now I may have higher credit lines than you

If you have lower credit lines that may be harder to do You may want to put fewer things on your credit card and pay more things in cash while you have lower credit lines to make sure that you're keeping that balance low in comparison to the complete amount, because that is an important factor in your credit score Now I say that I probably or maybe have higher credit lines or higher credit limits than you do and the reason I say that is because Number Three I am sort of old So I have a long credit history

I have had credit for probably at least 20 years Today they told me my oldest credit account that was open was 17 years old, I'm not even sure what account that is that they're talking about But I know that that could be true I know I've had credit for a very long time So the older you

well not necessarily the older you are but the longer credit history you have that is good, the better that is for you If you're just old and you've had a horrible credit history, being old isn't going to help you So what you want to do is slowly be doing all the right things over a long period of time And when you do that, at some point your long credit history is going to keep pushing and pushing and pushing and pushing and pushing that credit score up so that you will end up at 800 up over 800 and maybe even be pushing the limits for that perfect 850 credit score which I am not that far off of

So you don't want to get older obviously — take your time Getting older to have a better credit score is not as exciting is it might seem to you — I can tell you from personal experience But it is going to happen to us all, so when you do get older if you have a good credit history that will help you get to where you want to go Number Four is my credit mix I not only have credit cards but I have had multiple auto loans over the course of my adult life and I have had I think three mortgages, so I've done a lot of different things with financial products and not just credit cards but also installment loans and obviously mortgages are a big deal because that is a huge responsibility and if you handle it well that obviously is going to help your credit score immensely

So, given all that, why isn't my credit score perfect? Why do I only have an 836 when I could have a potential 850? Well, Citibank gave me a couple ideas today of what those things are but you have to remember, I'm only 14 points off from the perfect 850 credit score And these are the two possible reasons they told me I might not be there

One of them was I have a high loan balance on one account in comparison to where it started What that means is I have an installment loan, a car loan that is only about maybe eight months old, so I've been making payments on it but there's still a long way to go on that loan, so the amount left on the loan is still high in comparison to where that loan started from I can't remember what was the other one? Oh, too many balances on too many different accounts I have multiple credit cards that I use so I assume that is probably why Like I said, I don't really use them a lot, but again we're talking about the difference between an 836 credit score and an 850 credit score So maybe if I have balances on three different cards, maybe that's enough to just knock that credit score down just a little bit, right? But the bottom line is I have excellent credit, and I've had excellent credit for a long time I've been sitting in the 820s and probably 830s for I'm not even quite sure how long

And it doesn't really matter to me to get to 850, there's no upside to getting to 850 There's sort of an obsession by certain people and especially online allows everyone to sort of feed their obsessions a little bit

but an obsession with getting an 850 credit score and being perfect But for most of us we want to live our lives So I don't take out a car loan and think "oh I've got to start paying it off as quickly as possible otherwise my credit score is gonna go down four points

" Because it doesn't matter I'm already up in the 800s, I already have excellent credit, I don't need to do more I know I'm gonna get the best rates Now as far as you're concerned, I've gone over all these factors but the truth of the matter is if your score is less, the way it's going to get higher is for you to continue to do all these things right over time And essentially even though 850 is a perfect credit score, really if you have a credit score that is 760 or above that's going to be considered excellent by most lenders, and so you're gonna get the best rates already when you're there

Maybe some lenders a little higher, but at 760 you're already sort of getting into the upper echelon — everything else after that it's just sort of gravy as far as I'm concerned So if you can get over up over 800, great But even up in your high 700s you're in a great place I hope that was helpful to you Thanks for watching

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