hey there, Tiffany Thomas with Wealthy Tiffany dot com and in today's
video we're going to be talking about how to increase your credit score super
fast like within 30 days fast because I know when you guys are making a large
purchase like a home or a car you're going to need to use credit in order to
do that and if you have a higher credit score then you will be paying a lower
interest rate which means you are going to be paying less overall for that
expensive item that you're purchasing so if you are going to be making a large
purchase soon or you just want to figure out how to raise your credit score as
quickly as possible stick around because I'm going to share
with you how I was able to increase my credit score by 39 points within 30 days
and if you guys are ready to dive in then click that like button and we will
get started alright I'm gonna be sharing with you my personal example of how I
was able to increase my credit score within a short amount of time I went
from a 795 credit score to an 834 credit score so an increase of 39 points within
30 days so the first thing I want to talk about is what actually goes into
your credit score which different factors and how much weight is put on
each of those different factors so there's five different factors that go
into calculating your credit score so the first thing that goes into
calculating your credit score is new credit so this is opening up a new
credit card or an auto loan or a mortgage different things like that and
it factors and how many hard inquiries are on your credit score and the more
that you have then the more that it can lower your credit score as you can see
it only affects your credit score by 10% and then the next factor that goes into
calculating your credit score is the types of credit used and this is also 10
percent of your credit score so what is your mix of credit cards retail credit
student loans mortgages all different types of credit and how are you managing
those different types of credits because if you're managing different types of
credit well then your credit score can increase
and it shows you are more reliable because you can handle different types
of credit at the same time the next factor that is taken into account is
your length of credit history how long have you been using credit when did you
open your first credit card or get your first auto loan the longer your length
of credit history the better your credit score will be so you want to make sure
and get started on your credit as soon as possible and this is 15% of your
credit score and the next factor that I want to talk about is amounts owed so
how much do you owe on your debts and how much of your available credit have
you used and this is 30% of your credit score so this is a significant amount of
your credit score so you really want to make sure that you are not maxing out
the credit card limits that you have that you keep your credit utilization
rate low and then the last factor that goes into your credit score is payment
history and this is 35% of your credit score so a very significant have you
paid your past credit accounts on time you want to make sure that you are
always paying your credit accounts on time because it's 35% of your credit
score so those are the five different factors that go into calculating your
credit score and as you can see the payment history is the most significant
factor in calculating your credit score and the next one is your credit
utilization the amounts owed on your credit line so the way I was actually
able to increase my credit score by 39 points is by lowering that credit
utilization rate the amounts owed on my credit lines
I had already been paying all of my credit lines on time so I couldn't
increase my score by increasing my payment times because they were already
all on time but my credit utilization was fairly
high they recommend keeping your credit utilization rate 30% or lower and I
would say keep that as low as possible because this is how I was able to
increase my credit score so quickly I had a 28% revolving
utilization rate or credit utilization rate which was fairly high and the
reason I had that was because I had a credit card that was a 0% interest for I
think it was a year and so I was taking advantage of that putting my money
elsewhere and just using the credit card and not having to pay interest on it but
before my zero percent interest rate had ended I wanted to pay off that credit
card in full so I wouldn't be paying any interest on my credit card and when I
did that it dropped to a 1% utilization rate credit utilization rate and that is
what pushed my credit score up so high so I went from a 795 credit score to an
834 credit score just within those 30 days and that is how I was able to
increase my credit scores so much in such a short amount of time and maybe
you noticed on my images that I had two inquiries on my credit and it dropped to
one inquiry the following month but as we saw in the chart that is only
10% of my credit score so that didn't have a significant impact on my credit
score maybe a few points if that but what really helped was dropping that
credit utilization rate really really low so if you are planning on buying
something within the next 30 days or even further out make sure and pay off
as much of your credit as possible before you get your credit pulled so
that you have that really high credit score and you can get a really low
interest rate and pay as little as possible for that really expensive
purchase that you're going to be making in just a moment I'm going to show you
an example that shows how significant it is to have a really high credit score so
that you can get a low interest rate but before I do that I want to clear up a
myth that I have heard before and I want you guys to tell me yes or no in the
comments if you have heard of this myth before some people have said that you
have to pay credit card interest in order to increase your credit score so
comment below and tell me yes or no if you
heard of that because that is a complete myth it is not true I have never paid a
credit card interest and I have a really good credit score so that is not a
factor in computing your credit score you do not have to pay credit card
interest you can pay off your credit card balance in full each month and
still build up your credit leaving a balance on your credit cards will not
help your credit score's all it will do is cost you money in the form of
interest which you don't need to be paying so I just wanted to clear up that
myth for anyone that has heard that you should honestly never be paying credit
card interest that is usually the highest interest rate is the interest
rate on your credit card and you don't want to pay that you guys so if you
can't afford something then please don't purchase that on your credit card okay
that being said let me share with you the example that shows how much of an
impact it really makes to have a really good credit score I want to share this
example with you guys to show exactly how much you can save by having a better
credit score so this is a mortgage example that I want to show you so if
you were going to take out a mortgage if you had a score that was 620 to 639 you
would actually be paying an extra sixty six thousand seven hundred and fifty
four dollars because your interest rate would be higher it would be four point
nine nine seven percent and if you were to increase your credit score you can
see the difference in each credit score range and you can see how much of an
impact it has on this mortgage rate so by having a credit score of 640 to 659
you would pay an extra forty three thousand dollars and that would mean you
would get a four point four five one interest rate and you can see it
continues to go up so the better your credit score then the lower your
interest rate and the less amount in interest that you are paying on your
mortgage so hopefully that example just shows you
how important it is to make sure you have the highest credit score as
possible before you get your credit pulled because you can always get a
better interest rate if your credit is higher hopeful
you found this video helpful and if you did please hit the like button and share
it with someone else who needs to hear this information and don't forget to hit
the subscribe button to subscribe to my youtube channel so we can get this
content out to more people and don't forget to hit the little bell to get
notified on when I post new videos every week and just as a side note if you guys
are interested in getting two free stocks weeble is doing a promotion right
now or if you open up a free brokerage account you get one free stock and if
you deposit at least $100 into the account you'll get a second free stock
valued up to fourteen hundred dollars and then you can do whatever you would
like with your hundred dollars and your two free stocks so if you're interested
in that I will leave my referral link below and you can click on that to open
up your account and get your two free stocks and if you guys want more of me
not just on youtube you can follow me on instagram at wealthy Tiffany and I post
there pretty much daily so I look forward to seeing you guys over on
Instagram thanks so much for watching I'll see you in the next video
you