Improve Your Credit Score Fast | Increase FICO Score
Researching ways to improve your credit
score? Duane here with how to build credit TV and in this video I'm gonna
share with you one simple trick that I used to 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. This channel offers 100% free information about how to build
credit, how to get cash back actual cash money using credit cards, as well as
credit card reviews. So this sounds like something in which you're interested be
sure to subscribe and click the notification bell so you don't miss a
thing. Okay so in this video I'm gonna be talking to you about the one secret or
the one trick that I use to improve my credit score. Want to know what it is?
It's credit utilization. Credit utilization which makes up 30% of our
credit score. A lot of people don't really understand credit utilization how
this works but I'm gonna explain that in this video and hopefully you'll be able
to use that or experiment with that on your own and see if this works for you.
I
know that it's worked for me so here we go, credit utilization basically refers to
how much of your credit you're using. So if I have a credit card and that credit
limit on that card is $10,000. I want to make certain that I use between zero and
ten percent. I do not want to use over ten percent because if I use over ten
percent I'm going to be lessening the amount that I get as far as the
percentage that goes towards my credit score.
Once again it's 30 percent of my
credit score so if my current utilization is 70 percent if I'm
spending if I have $7,000 on my credit card with the credit limit of $10,000
that means I'm using 70 percent of my overall credit. So my credit utilization
would be 70 percent so once again you want to keep that between 0 and 10% and the reason why you want to keep it in that category is because when
you keep it between zero and ten percent you're getting more out of the 30
percent that makes up your credit score. Okay so credit utilization is
something that we can actually control. This is easy. The other huge chunk of our
credit score is payment history payment history makes up 35% of your
score. If you've missed a couple payments in the past
you really can't do anything to fix that other than continue to make payments on
time going forward but with credit utilization it's a lot easier to boost
your credit score and boosts it quickly if you knock your credit utilization
from fifty percent all the way down to zero and ten percent.
The the reason why
I know this is because I use apps like Credit Karma I use apps like nerd wallet
and it shows me and it tells me what my credit utilization is and so I was kind
of like well what is this I didn't really know exactly what it was and I
just kind of experiment with it. In those app it tells you that if you're
between zero and ten percent that you're in the excellent category for that
particular part of your credit score. Okay so a lot of people think it's like
as long as you're a 30% with credit utilization you're good 30 percent
not bad but it's not maxing that portion of your credit score. Which once again
credit utilization is thirty percent of your credit score so this is what worked
for me I encourage you to try it for yourself if you have a credit card or
several credit cards you just want to make sure that you are between zero and
ten percent. So if I have a credit card with a balance of five hundred dollars I
want to make sure that when my bill closes that I don't have more than fifty
dollars that I owe for that particular credit card because $50 or less would be
between zero and ten percent ten percent of five hundred dollars is fifty bucks.
So that would be an example if I have another credit card and that limit was
two thousand dollars I want to make sure that when that statement closes that I
don't owe the credit card company more than two hundred dollars because if I
did that would be more than ten percent of my credit utilizatio.n So this simple
trick works for me and the reason why it bumps your credit score so much is
because it's 30 percent of your credit score that is a huge chunk of what makes
up your credit score.
Alright I hope that was helpful please be sure to LIKE
comment and subscribe. Thank you for watching this video. Until next time take
care and be blessed. Peace!.
