Improve Credit Score

Okay so you want to know how to improve your credit score Duane here with how to build credit TV and in this video I'm gonna talk to you about what I did to improve my credit score over 100 points in a little under a year

As a matter of fact I'm going to show you proof in this video 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 to build credit TV And on this channel we talk about everything you need to know about credit, credit cards, and making money using credit cards As a matter of fact I was able to earn over seventeen hundred dollars using one credit card

So if this sounds like something in which you're interested be sure to subscribe to our channel by clicking the word subscribe below this video to the right and click that notification bell so you don't miss a thing Alright so when it comes to how to improve your credit score it really kind of depends on your own personal situation, as well as your personal credit history So that's what's gonna influence how fast you're able to improve your credit score What I want to go ahead and do is I want to go ahead and show you guys proof right now I'm gonna go ahead and log on to my Capital One account I have two credit cards with Capital One and so I'll go ahead and log in to my Capital One account here for you guys

I'm recording with my iPhone 6s and I'll go ahead and show you guys using credit wise my credit wise is based on the Vantage score And at first I was like well this score is not going to be too close to the FICO score But I've kind of discovered that this score is pretty close to the FICO score I'm not gonna lie it's a pretty interesting So right now as you can see my credit score is 718 according to the credit wise app that's not very good actually it was a lot higher recently

But I did applied for five credit cards recently so my score went down for a little bit and it'll probably stay down for maybe like six months So what I want to do is I'm gonna go ahead and go into the history here and kind of show you guys and I'm gonna tap on history And okay so as you can see here it says October 5th 2018, the reason why I says October 5th is because that was the last time that the credit wise app updated So I'll click at the very bottom on the one of the dots in the middle I'll click on the middle dot and so at the bottom you can see it says 2017 And I will click on July the second J so this is July 2017 my credit score was 630

And if I go back I'm gonna click on the blue dot at the bottom or the dot to the right and now it says 2018 at the bottom of the screen and I'm gonna click on July of 2018 here we go July of 2018 my credit score was 765 according to credit wise So I just kind of want to show you guys that real quickly here and I'm gonna go ahead and show you guys another another thing regarding my credit score So give me one second and I'm gonna show you my credit score, my FICO score that I got from Discover Card Okay so because I'm a nerd I still have my paperwork from when I applied for my discover it secured card back in August 2017 and then I also have the paperwork from the current application of my discover it card that I applied for in August 2018 So the reason why I'm talking about that is because Discover provides you a free copy of your FICO score and according to Discover Card at the time that I applied at the very top back in August 2017

My credit score was 646 with Equifax and then the one at the bottom my credit score is 771 a year later with experian Now I know that those are two different credit bureaus but I definitely can tell you that my credit 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 several secured cards because secured credit cards actually help you improve your credit score Ok so before I share with you a couple of things that you can do right now to improve your credit score

I just want to say that there are some categories that make up our credit score that you cannot manipulate For example you can't manipulate the fact that you need to have a good overall age of credit And in order for you to have good overall age of credit you need to have a credit line or credit for eight plus years There's no way to manipulate that you just have to wait or actually have had a credit card or credit established for eight plus years And once again this is the average of your credit

So if I have a credit card that I opened and it's five years old and then I open another credit card you know five years later that's gonna influence the average age of my credit So you cannot manipulate that Another thing that you cannot manipulate is the fact that having a lot of available credit is good for your credit score For example if you have over fifty thousand dollars worth of available credit or credit line that is actually good for your score and that puts you in the excellent category for that portion that makes up our overall credit score So once again I just kind of want to give you some some examples of the things that you cannot manipulate

A lot of people like to talk about you can improve your credit score or X amount of points instantly overnight And you sort of can but you can't there's some things that you cannot manipulate So I just want to make sure I tell you guys that before I get into the things that you can do kind of right now that will help your credit score and improve your credit score pretty quickly Okay so the first thing that you can do right now to improve your credit score is to decrease your credit utilization Your credit utilization 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're currently using $600 So right now you're currently using 60% of your overall credit and that is not good So what you can do to improve your credit score is to get that from $600 all the way to $200 or less You want your overall usage to be between 0% and 10% of what your credit limit is so 0% of $1,000 is clearly $0 and 10% of $1000 is $100 So you want to have your credit usage between $0 and $100

And please don't be confused what I mean by this is when you pay your bill you want to make sure that you pay your bill off and so the thing is when the credit card reports the credit bureaus hopefully they'll report when your balance is zero And then that way your utilization will be zero So you definitely want to make sure you're paying off your credit card bills as much as possible or if you're not gonna pay it off you're gonna carry a balance you definitely want to make sure that that balance is between zero which is zero dollars and ten percent You don't want to be over 10 percent because when you're over 10 percent you're not maximizing that portion of the credit score So you definitely want to make sure that you decrease your overall credit usage and that is going to improve your credit score instantly

I mean 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 credit score go up This will improve your credit score that's one of the things that you can do right off the bat to improve your credit score The next thing that you can do to improve your credit score is you can try becoming an authorized user on someone else's credit card

Let's say you know somebody else and they have a pretty high credit limit let's say $10,000 and they've had that card for five years If they add you as an authorized user that will allow the credit card company to report to the credit bureau that you are basically using that account It will appear that this is your account it will appear that you've had the credit card for five years and that you have a credit limit of $10,000 And in turn this is going to help your credit score drastically It's going to improve your credit score instantly as soon as it's reported to the credit bureau your credit score will improve

And the reason why it will improve is it's going to affect your overall age of credit So once again I talked about earlier in the video, if you had a credit card that was five years old and then you open another line of credit five years later that's going to influence the average age of credit on your credit report So if you are added as somebody's authorized user then instantly you're going to like I said adapt their credit report their credit profile so it will help your age of credit especially if they've had that credit card established for a long time It could also help your credit utilization because now instead of having your one credit card with $1000 credit line now you have your $1000 plus the $10,000 from the card member that just added you as an authorized user So now you have eleven thousand dollars of available credit or credit line and once again that looks really good and so that's going to improve that and lower your credit utilization which will be incredible

And this is once again going to help improve your credit score drastically And real quickly the reason why it's important to have a high credit limit or overall credit limit as well as having a low credit utilization this is important because it lets lenders know that number one you're responsible Number two yes you have a lot of available credit but you know how to manage it and you're using it wisely So it doesn't look like you're desperate it looks like hey we can trust this person we can lend him money We can approve him for a car or a house

We can approve it for a credit line of five thousand dollars or more So that's why it's important to have a lot of available credit and also important to have a very low credit utilization rate So those two things alone will help improve your credit score pretty drastically If you don't believe me like I said 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

If you like this video please be sure to give it a thumbs up it helps our channel quite a bit and if you want to share this video with somebody that may find it helpful please feel free to do so If you haven't subscribe to the channel consider subscribing to the channel because on this channel we talk about everything you need to know about credit, credit cards and how to make money using credit cards If this sounds like something in which you're interested be sure to subscribe to our channel and click that notification bell so you don't miss a thing Once again my name is Duane with how to build credit TV and I approve this video I'll see you in the next video

Until next time take care and be blessed Peace!