reach

CREDIT SCORE: How to get from 750 to 800 and Above



Sharing buttons:

hey crepe warriors welcome to the show

and today we are going to be talking

about how to improve your credit score

when you are already up at the lofty

realms of above 750 okay so according to

TransUnion only 20% of Americans have a

credit score over 780 so from that

statistic we can see that it's quite

hard to improve your credit score when

you are already up at those lofty realms

we have a video on this channel how to

get to 700 within six months I also have

a video about how I got from nothing to

720 in just one year so you can see from

that your credit score can really blast

up really fast at the beginning if you

do things right but once you get above

700 and then certainly above 750 it

really slows down since I got to around

760 I think in one year I've only risen

10 points so we're going to have a look

at the factors that will improve this so

let's start on credit calm and I'll show

you my score is 772 right now and you

can see that the top three factors of

the at the top of this list are in

Credit Karma

lists 6 factors that affect your credit

a little bit different to some of the

more traditional ways that work it out

but anyway so you can see these top

three credit usage is at 10% that's the

utilization of the overall credit amount

that's in great payment history is a

hundred percent that looks great at

least on the surface and derogatory

marks are zero so that is great as well

now we'll look down at these two factors

that are showing red negative factors

okay so credit history credit history

accounts for 15% of your score and it's

basically most commonly it's talked

about as the average age of open

accounts okay and they do also take into

effect your longest account and all

stuff like that but all right we'll just

talk about average age of open accounts

you can see mine two years three months

that's quite a short period of time if

we actually click into that and have a

look Credit Karma gives you it only

gives you green after seven years okay

so the first two are yellow red then you

go to yellow and then it's green after

seven years so it's only really

considered good if you have seven years

of history and that is because basically

credit scores most commonly are based

off of seven years of infamy

certainly for the negative information

by you know by law that comes off your

credit report after seven years most

negative information not all and but

just in general it's kind of a

seven-year period that is looked at so

if you have a credit history less than

seven years that's definitely gonna have

an effect and as you're Chris credit

history gets longer and obviously that

will have less and less of a negative

effect and once you're at seven years

it's going to be having a positive

effect that long credit history after

that but it's only 15% however at you

know at the the lofty realms of 750 and

above you're looking at these factors

that account for a lot less of you know

the overall credit score to improve to

get you up to that next level but that's

not the end of the story with credit

history because although credit history

only accounts for 15% payment history

actually accounts for 35% so if you've

had missed payments okay or you know

negative things I have missed payments

in your payment history those will stay

on your credit report for seven years

all right and they will be a factor

pulling your credit score down a little

bit for seven years obviously the longer

they get into the past the less effect

they will have then they have the

biggest effect with in the most recent

two years once they're out of that

they're getting further further into the

past they affect your score less and

less likewise if you have a score that's

less than seven years only a couple of

years of credit history you've only got

two years worth of on-time payments so

because you don't have the full seven

years history of on-time payments that

will also have a negative effect so

basically you want the full seven years

on average age of accounts or as long as

possible you know leading up to seven

years and as long as possible as well

ideally seven years on the payment

history too and so you can see for these

two factors it's really just a waiting

game maintain good habits always paying

on time and you know just wait and the

longer time you go the more your credit

score will improve now let's look at the

next negative factor on my report that

Credit Karma displays and that is the

number of accounts okay so you'd think

that

having less accounts would actually be

good because it's like oh you're not

desperate for credit or whatever that is

not the case the credit card company is

credit unions they want to see more

accounts they think it shows that you

are responsible with handling you know a

lot of different credit accounts and on

Credit Karma if you click in there

it shows having more than 10 accounts so

11 or more accounts is good so anything

under that is going to be slightly

pulling down your credit score so

basically that takes a bit of time as

well because you can't just all of a

sudden do like 10 hard inquiries with

loads of different banks and get 10

credit credit cards at a time because

those hard inquiries will tank your

score too so basically you know you may

apply for one new credit card every six

months or whatever it might take you

through four or five years to get 10

accounts okay so this one you know you

can be proactive about it with you

applying for new credit cards but at the

end of the day it's also a waiting game

and you know for certain banks like

Chase has the 5:24 rule so you can tap

or apply for more than five cards in a

24 month span if you want to get new

chase cards in the future so you do have

to kind of pace yourself with it now the

last factor I'm going to talk about it's

not a factor that Credit Karma displays

on this page but it is a factor that is

normally listed in most models of how

the credit score is worked out and that

is the mix of different types of credit

accounts on your credit report this

accounts for 10% so it's a reasonably

small factor and but it will help your

score if you have a diversification of

credit accounts so basically most

commonly people start off their credit

score with credit cards you know they

just get a lot of credit cards that's it

you need to have installment information

on installment loan information on their

installment loans basically are you know

most common it's mortgages or car loans

basically any loan where you have to pay

a fixed amount each month is called an

installment loan and it'll show the full

balance of a loan on your credit report

and each month as you have you know

on-time payments paying it down and

it'll gradually it'll decrease okay and

this isn't factored into your

utilization okay so utilization is just

for revolving accounts you get a

percentage of it so this is don't worry

if there's a massive balance okay

it's not a bad thing if you've got like

$100,000 on there that you owe and

you're paying it down it's not going to

affect utilization or anything so don't

worry about that but yeah basically

having a mix of different types of

credits he's gonna help boost your score

as long as all the other factors are

okay and it also kind of solidifies your

score you know having a home loan or or

whatever that you're paying off on time

every month gives your credit report a

certain sense of maturity and will help

to boost your score and so people with

credit reports that have all of these

things you know they have the longer

credit history they have the longer on

time payment history a larger number of

accounts and they've got the home loan

information and stuff their credit will

gradually rise to eight hundred it's not

necessarily gonna happen in one year but

it will happen as you get you know

further along towards seven years okay

and their account also will have a sort

of robustness that an account you know

create a credit profile that is just

made by getting say five credit cards

keeping utilization at 10% on those

cards sure you can get to like seven

hundred and twenty seven hundred and

forty pretty quick by doing that but at

the end of the day if you want to rise

to the lofty heights you need a length

of time you need a length of time of

on-time payments you need credit history

and you also need the installment loan

information other types of credits the

storm load of the information one you

could do it without it but it just gives

you that extra boost all right guys so

those are some pointers on how to

improve your credit score once you are

already up at lofty realms as you

probably got from this video a lot of it

is just a waiting game but it's a

waiting game whilst also maintaining

best practices so always paying on time

do keep your utilization low although

utilization if it's high you know in the

future that is something that can be

rectified so it's not something you just

start with you like you know you don't

have to maintain utilization at 10% now

and maintain that for five years you

know it can be brought down pretty

quickly and have a big impact on your

score so guys leave your comments below

if there's anything I missed out or you

wanna you have some input you want to

correct something please do we'll leave

a link for some of the best credit cards

on offer right now from our partners if

you want to learn more about

those you can click that link below as

always please subscribe for new credit

card tips and tricks' pretty much every

day now and we'll see you next time

[Music]