In this video I'm going to show you five easy ways to help increase your credit score.
Stay tuned.
Welcome back to WhiteBoard Finance where I help you
master your money and build your wealth.
My name is Marko.
And today we're going to be talking about five different ways to help increase your
credit score.
We all know that having a high credit score can help you save thousands of dollars over
the course of your lifetime.
But I'm not going to get into the benefits today.
We're going to get straight into the five ways to help increase that score.
Number one credit utilization rate credit utilization
rate is a really fancy term for the ratio of how much your credit limit is versus how
much you're using.
So if you have a credit limit of ten thousand dollars and you're using five thousand dollars
of that ten thousand dollar limit you're using a 50 percent credit utilization rate.
One way to increase your credit score is to keep that credit utilization rate under 30
percent.
So to use that ten thousand dollar limit as example you should be.
Three thousand dollars are under.
The reason it's so important to do that is because credit utilization rate accounts for
30 percent of your FICO score.
That's a big chunk guys.
So let's keep that in mind.
Number two eliminate multiple balances having multiple balances and multiple cards actually
hurts your credit score.
So instead of charging 100 dollars worth of charges on three different cards try and put
that hundred dollars on one card.
So say for example if you have three credit cards and one has 50 dollars on it the other
one has 20.
And the third has 30.
Even though that equals one hundred dollars the credit bureaus C3 open lines of credit
which hurts your FICO score.
Try and focus on one card and pay that card off on time and every month.
Number three leave old good debt on your credit report.
A lot of people want to get rid of any debt on their credit report because they think
it helps them but actually showing a history of good credit and good loan payments actually
help you and put you in good standing with the credit bureaus.
So example if you paid off a mortgage paid off a car loan or paid off significant student
loans it actually makes sense to leave that on your credit report.
But the key is only if you handle that debt well meaning that you paid it on time every
month trying to get rid of good old debt is like getting rid of a good report card.
However this is also a double edged sword.
If you had debt that you haven't handled well get that off of your report ASAP because that
will ultimately hurt your credit score.
Number four minimize credit checks.
Believe it or not every time someone runs a credit check on you that actually lowers
your score for an entire year.
I couldn't believe it either when I heard this but I did learn about it and verify it.
And this is indeed true.
So say for example every time you go to a car dealership or you go to a shop for a mortgage
or you're looking to rent an apartment.
Every time someone checks your credit score that causes a ding so be cognisant of that
guys.
Eliminating these multiple credit checks will actually help increase your credit score over
the long term.
Number five.
Pay your bills on time.
This should be common sense guys but I know sometimes there's a little bit more month
at the end of your money.
And I know times can get tight sometimes.
However this is the single biggest factor in increasing your credit score.
If you don't pay your bills on time the credit bureaus get reported to and they know that
you're not paying your bills.
This dings your credit incredibly to the point of even becoming not even credit worthy.
And then you have to watch my previous video on how to stablished credit again.
All joking aside guys make sure that if you're paying bills at the end of the month make
sure that the bureaus are reporting them on time.
If you have a bill that's due on the 30th of the month.
Try and get that paid about a week earlier.
It gives everybody time to get reported to properly and ultimately your credit score
will never be put at risk.
So please keep this in mind guys pay your bills on time.
Combining all of these tips are a guaranteed way to increase your credit score.
I promise.
However there is no magic pill we're going to have to be disciplined deliberate and consistent
in all of your actions and especially with what I mention here today in order to reap
the benefits of a higher credit score.
If you guys got any value out of this video whatsoever please comment like subscribe below.
It really helps the channel I'm putting in a lot of effort in making these videos and
I really hope that you're getting something out of it.
That's all I got for you today guys.
Have a prosperous day.
Hey is this big Bob Chevrolet Yeah.
Yeah I saw your ad on TV for the no money down high credit establish credit special
Yeah.
What is what kind of credit score you have to be
for that.
Oh and age 50.
OK.
I'm like like a 570 is can I still qualify.
Hello.