It boils down to statistics and risk adversion. For example, you know that you will get the best rate on a loan based off of your current FICO score. One day you decide you want 2 credit cards, which drops your score and you will get a decent interest rate on them. The next time you go to buy a car your Fico score will decrease while % rate increases. If you take this loan you also increase your risk of default (2 CC and a car). Now, you want a house. This is a decision point for you, do you take the loan and pay higher interest than you would if this was only your first inquiry? If all this goes on within a one to two year period, creditors know that people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy and default than people with no inquiries on their reports. I hope I've helped and not confused you even more. Good luck John!
When referencing corporate America, he said “They don’t really care about you as they make it seem” realest thing he said...I’ve seen experienced it first hand in the DMV. Black ppl aren’t really respected in corporate America. Glad that he was able to get out of there and become his own boss *Prime consultant 001*
Just went from the Amex green to gold! Also applied for the Citi custom cash only for gas payments. I’ve learned so much about credit cards from you it’s amazing! I wish more people knew how easy it can be to maintain a good credit score. I’m currently 22 with a score between 700-720 usually. Thanks for your help!!!!
One way I've kept my utilization low is by making an early payment before the statement close date to bring my utilization down to 1-2% (as you mentioned) and then letting autopay pay the rest of my statement balance off at my due date. That has consistently kept my utilization low while never allowing me to miss a payment, and as you said, that covers 65% of my credit score right there!
Great work Magnifico Boosts - so glad you are out there fighting these lowlifes. We need to do all we can to spare the elderly and the general public from these despicable scammers! Kudos to YOU!! You deserve the Nobel prize for keeping us safe big up brother.
This resonates. I significantly improved 4&5 in my life and my credit score went from 420 or 440 (I forget which) to over 700 in a little over one year.
You are right! Don’t pay the balances off to 0 because I did that and 16 points was deducted from my FICO score. Usually I have about $14. balance on 45k credit makes it 1% utilization and it’s was up 16 points. Thank you!! I will not go down to 0 ever again. I still have excellent credit, but want to be in the 800,s.😊
So John mentioned that you should pay before close date and the rest on the due date? I’m confused on this bit because my due date comes before the closing date
I here ya, I have never reached the 800 score either, always stays around 780, then goes down a bit to 740 or so and the back to 780, go figure? I don't know, but hang in there and stay on top of it and maybe it will happen for us some day! I have heard that a score in the high 700's is the same as 800 or 850 to the lenders, but not sure on that.
I get paid twice a month. The pay before I get paid I pay the balance on all 3 credit cards I have. I have a perfect 850 credit score. I don't know how long I will have it. I drop to 842 every so often.
Things are strange right now. The US dollar is becoming less valuable because of inflation, but it's getting stronger compared to other currencies and things like gold and property. People are turning to the dollar because they think it's safer. I'm worried about my retirement savings of about $420k losing value because of high inflation. Where else can we keep our money?
Personally, I would say have a mentor. Not sure where you will get an experience one, but if your knowledge of the market is limited, it seems like a good bet.
Sonya Lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
I think it would be really beneficial to do a step by step guide to freezing all 3 scores because most videos I find don't explain it well and don't show the screen
I've found that when I hit the low 700's I got the lowest rates available for both mortgage and auto loans. In fact, I had a 675 when I purchased my home in late 2020 and still got a 2.75% interest rate. Chasing that 850 is definitely a goal, but certainly NOT necessary.
Rates fell in response to the COVID during that time. 30-year fixed rates fell below 3%. The record low was 2.65% in January 2021. The average mortgage rate for that year was 2.96%. I'd say you just happened to purchase your home at the right time. Today's average rate is 6.85%, so no, I wouldn't say your statements is necessarily true.
@@xXAboo805Xx How is my statement wrong? I got just about the lowest rates possible when I was in the very low 700's, so having an 850 would have barely benefited me whatsoever. My main point was that having an 850 credit score wasn't necessary for me to get some of the lowest rates available. It's great to brag about, but nothing more...
@@shojus Sorry for the confusion. I'm not saying your rate isn't great, it is. I was referring to the last part. Though, an 850 is is great, it isn't necessary, as you said but having a 675 today isn't going to benefit anyone.
@@xXAboo805Xx No worries, I guess I just misunderstood you. I did just buy my car about a week ago and I got the best rate offered with my score being around 710, so while I may not have gotten that rate with a 675 I was quite surprised I got the 4.90% for 60 months with the score I have. I'd say as time goes on it's gonna be harder as banks start being more picky who they lend to. Take care
Keep in mind that AMEX charge cards (like the Platinum) do not factor into credit utilization since they do not have a specific credit limit…but they do factor into open balances and number of open account calculations….and PS, a perfect 850 is impossible to obtain…just sayin’
David, yes a perfect 850 score is possible. These scores are like unicorns in the woods (rare) but about 1.5% of 200,000,000 people in the credit pool have a perfect 850 FICO score and/or VantageScore.
@@edgarestrada1146 Ihave been chasing the illusive 850 for 6 years. If I want to move closer to 850 I need more diversity in the types of debt I am willing to go into. I have CC and house debt. I don't want a car loan or a personal loan or store credit. So, I guess I am stuck.
@@kenmorris4369 Too many variables….impossible to get an 850. CC companies know this…and PS, CC companies are built upon risk taking, so maybe it’s not even remotely necessary to push the 850. But what do I know, I’m just a finance professor ;)
We have been on a recession since the beginning of 2022, but big media and governments all over the world didn’t want to admit it. We need to be wise and use our brains. Knowledge is power and I’d like all the family to be powerful! Just purchased some *Prime consultant 001* Thanks for keeping us informed during this times of doubt?
I really appreciated this video, as a medium-term *Prime consultant 001* holder. I know you commented on not many people paying attention to this, but it was very relevant for holders such as myself. After watching your thoughts, I will buy more. I also remember your earlier assessment. This will crush the market.
You are one of the most sophisticated and brilliant TH-camr/content creator I watch, and 1million percent the very best in finance. I appreciate all of your content thank you for *Prime consultant 001* much love from Chicago
I have a perfect credit score and in present day this is almost useless. Even with perfect score mortgage rates are like 7% depending on where you live. Its only going to get worse
@@kenmorris4369 Yeah I lucked out and refinanced my home right under 2% interest rate during the pandemic while interest rate were super low. I don't believe interest rates will ever go that low again and true. Even folks with average to slightly below average will get the same interest rates as those with 800+ credit scores. Having an excellent credit profile is hardly a flex anymore. Until people stop paying for overpriced crap its going to continue to keep getting worse. Also, very likely to cause another economic collapse due to the amount of folks that will default on loans because of the retarted interest rates. People are willing to pay more in interest that what they are purchasing. 50K car with interest 120K lol 300K home 1million with interest lol.
Thank you for all of the points you've made. I am 76, have a 6 figure income, don't have a mortgage, car payment or revolving credit. I pay all my bills on time and have a long credit history. I generally use around 10% of my available credit and have a freeze with all the agencies. HOWEVER, my score generally is around 780. No one can explain why it is not close to 850. I bet Warren Buffett and Bill Gates have scores of 850 (if they have scores at all) without revolving credit, etc. I would love to know the answer.
It is because you have no debt. Those guys you spoke of do not have perfect scores at all. Debt, within reason (DTI) along with all the other elements would push you to over 800 easily. It is the exact reason why when anyone pays of a loan, car, house or more your score will DROP.
Bingo. It’s rigged. They don’t have to fully disclose but only must summarize how they get credit scores. My sit is same as urs btw, been at 760-790 for over 10yrs.
I just came into some wealth about a year or so ago, but also that is also how long my credit age is . I also was cash only all my life like my parents were. I paid my house and cars with cash etc . I just recently did a big loan against my savings. But I also make money with that . Loan is at 3.5 Savings at 4.5 -5 on another . So I’m making money. I only use my interest to automatically pay my loan which I also keep in savings . I only use my monthly annuity for everything else , to pay my credit cards , though I can’t get an increase or get the good ones. I’m 56 now and we want to travel and get the rewards but , stuck in a bucket with low credit cards . I still use cash but I just can’t get the free stuff or get my score higher than 700.
From what I've watched I conclude: 1) Freeze your credit score account 2) Get a credit card to mix up your credit 3) Try not to close the oldest account 4) Do not apply for too many credit cards 5) Don't utilise full limit of one credit card 6) Pay 21 days before due date but leave a few dollars to pay at the end. 7) Always pay everything by due date Thank you!
Your tip was actually my way (unknowingly) at first when i transferred to the US got a beginner credit card paid all the debt a week before statement closed and not use it until after statement closing. I did like 760 in my credit score after 6 mos and my friends here congratulated me for it! 🤣Love your vids too informative thanks!!! 🌸
Citibank closed my DoubleCash back card. I had the card for over two years and was never late and payed it off every month. They said I missed a payment. I asked how since you automatically took payments out of my checking account. Citi is the worst. I checked my credit report and their was no late payments indicated. None!! My bank made no indication there was a problem..
If you think that's bad, I have my Medicare Part D set up to be automatically deducted from my checking account. Due to a screwup at Medicare, they stopped taking it out of my checking account, then kicked me off for non-payment. I had to apply to be reinstated, which almost never works, but in my case, it did. If it had not worked, I would have had to wait for 6 months until open enrollment, then I would have been penalized for 6 months of no insurance. Meanwhile I'd have had to pay $600/month ($20 per tablet) for the Xarelto I take. What a mess.
I had a mortgage for 25 years and my house burned down. The insurance paid off the mortgage and with the money left I paid cash for a house. My credit score dropped like to below 500. That was nine years ago. One of my credit agencies said there is no proof in the credit reporting system that I own any real estate. With the economy so screwed up why should I borrow money against a house I own outright just to prove I own something. Does this mean I will never have better credit again ? I am responsible with all my other debt and working to lower the debt on two charge cards. This information is from Experian.
Thank you so much! I have been hovering around 770 for what feels like forever. I always wondered why when I payed my card off early that my credit score would go down a point or two!
Pro Tip for closing credit accounts: If you have multiple cards from the same issuer, you can call them up to redistribute the available credit on the card you want to cancel to your other card(s). I know AMEX allows this but you have to leave $500 behind on the card you want to cancel. This will help with the credit utilization problem. I would also only cancel cards within 1-2 years of having them. This will prevent you from being blacklisted from an issuer if you cancel too early and won't dramatically impact your AAoA. This is also why you really shouldn't get high annual fee cards until mid-game in your credit journey
I co-signed for my nephew brand new car and they came back to me and said that I got a perfect credit score and they did not even fight me with anything and just push along with the numbers and paperwork, plus we knew a guy that works for them so they took 3000 off of the asking price too. The reason why I got a perfect score because I co-signed a house for my older brother before and he paid it off. I paid off two car payments in the past too, maybe that’s why.
Thanks Marc. Honestly I have no idea hahaha I kind of gave up trying. If I had to guess I'd say it was just the particular color of the lights I chose this time around. I shoot 1/60 at 30FPS
I've debated closing my oldest account for so long because I hate having to put small charges on it every so often. It's really no big deal and I keep it in a drawer anyway. But for some reason my OCD just wants to get rid of it altogether.
I would say I don’t know how I find you on TH-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
You can put a utility bill in your name and/or be an authorized user one a person you trust with good credit CC. That's one or two ways to build as well
Be an authorized user for someone and also ask your bank if they will let you get a small loan ($500) and pay it each month. I did this when I was 18 in high school and got my credit up to 650 before even getting an actual credit card.
I closed one of my oldest credit card without realizing the value it hold; is there anyway I can get that same credit card back and have it hold the same value toward my credit average?
I been paying my bills on time for the longest,right now my only deb is my car,i pay like 60% of the whole total,0 balance in my credit card,still my credit score is stuck in 802 for a very long time...!
I wanna let you know that *Prime consultant 001* made it this year. What better way to start a global change? Don't get me wrong I know they are not like altruists or something but they keep doing the right thing to improve the situation, power the ecomonmy and so much more. We need players like them and we can always jump in the train at good spots such as this one
Hey @johnsfinancetips, my due date is on the 22nd and my closing statement is on the 27th of each month For example, are you saying that carrying a balance of 1-2% after the 22nd is a good thing, as long as the 1-2% is payed off before the 27th of each monrh?
Not necessarily, unless you hold balances on your cards (credit utilization). Even with that closed account, it stays on your report for 10 years as long as it's all positive payments, 7 years if it has negative payment history.
I have closed many accounts before if you have multiple credit cards with the same bank you can sometimes transfer your credit limit from the card you use the least to the one you use the most and close it without losing any credit limit. I have done this with credit cards that charge a yearly fee.
I want to know if paying off my student loans in full will help or hurt my credit score in the short term and long term. If it’s worth closing those account or keep them open.
Hi John. Great vid. Forgive me if this is an odd question - would paying MORE than your credit balance have any impact on your credit score? Example, you pay 98% of your balance before the statement close date. Then pay MORE than the balance before the due date, effectively giving yourself a surplus, almost making the credit card into a debit card somewhat. Thoughts?
@@jeremiahkrummI would say I don’t know how I find you on TH-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
Always on time & pay in full on all the cards I use. All are revolving accts( no car, house, student loans etc) last 24 months the score has not changed from 819. How to earn 850?
Hey guys, I have a question on the credit utilization part. Lets say my available credit limit on a student credit card is $1250. If I do 1250*0.3 = 375, $375 should be the amount I should not go over. Let's say that I use my credit card a lot. Like $600 in a month for example but it is spread out across the month such as 200$, $200, $200 for example. If I pay off my credit card each time for $200, does that mean I am still under that 30% credit card utilization limit? Or would they calculate it as a whole? Like using $600 / $1250?
You suggest a low utilization, below 10%. Does it mean to possibly use the card only to 10%, or that you could use the card even at 50% but before the statement closure date you take it down to 1%? thx a lot
You can use 100% of your credit limit, some cards even let you go above your limit. But you should get it to 10% before the statement close date when the bureaus get your info. Basically don’t spend more than you can pay off in a month
I just got a new credit for my business on may 4th my closing date is may 19 how many days before should i paid most of it so it can positively affect my credit score ?
Thanks Julio. I get asked that a lot and my response, assuming you pay on time and in full. Get as many as you like. Be mindful of application rules from each bank which are too many to list in this comment. But as an example last year I applied for 3 business cards in 2 days.
Is it true? That the more credit cards you have or payments on your record the better it is. So for example let's say you have 10 credit cards but one of which you made it just forgot right? And so you have a late payment over 30 days on your account but you have nine others paid on time. That does benefit a lot right? Or does the one just nullify everything?
They add the credit limits of all your cards, and they add the outstanding balances of all your cards when computing the credit utilization. Lets say you have 2 cards. Card A has a limit of $10,000 and a balance of $1500; card B has a limit of $1000 and a balance of $750. Your total credit limit is $11,000 and your total balance is $2250. Your credit utilization is 2250/11000 = 0.205 which is 20.5%.
Great video! I have a question, I have two fraud inquiries on my reports that I would like to get removed. I've seen your video regarding this, but Im still a bit confused. So I know my first step would be making a call with the credit bureau (Experian) but should I also make call what time? And would I be never stop sending a good compny *Prime consultant 001* to my friends and people I know regarding any credit situations
I have 6 credit cards and I pay them all off on time and in full. My Payment History rating on Experian is listed as Exceptional, but my Amount of Debt rating is only listed as Very Good. How do I get my Amount of Debt rating to be characterized as Exceptional? I keep my utilization rate at 1% so I’d think it would already be there.
Do you have a list of credit cards for first time owners I don’t have one yet and I tried to apply for a couple your recommended a month ago but sense I have no credit history they rejected me
Apply for secured cards first apply where you have a checking account after a year if you keep your utilization under 30% and if you keep it under 6% you'll get an unsecured faster that's what I did.
Hey everyone, my due date for my Discover card is 14th of each month and my statement date where I receive the statement is 19th. When would be the statement reporting date then?
I have a 500 dallor limit, I’ve had it for 2 months and my credit score is around 600+. I’ve been maxing my card and paying it off every 2 weeks when I get paid. Is this really bad.
Wonder if you can request increase on credit limit ? Are there implications when you do this? This would be to make credit utilization look better I pay my credit card on day statement closes but will do 2 days before.
Hey @johnLiang. Great videos! Question - When you say you open 5 or so accounts a year. Can you explain that a bit? Are you opening Credit Card accounts to maintain healthy credit or do you chase offers? If your just opening them just to close them latter are you using the " no annual fee" cards. 5 a year seems like a lot. But I'm learning here. Thank you!
I would say I don’t know how I find you on TH-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
Quick question John if you can please help me? Is it possible to get to the perfect credit score after having a late payment and carrying a balance on low tier credit cards? Even if it takes me another 5-10 years i want to reach that goal of 850 score and getting an FHA loan to buy a house
So pay off a majority of the amount spent monthly before the statement close date, but leave a few dollars or so to pay off before the actual due date? This is so that the credit bureaus can see that we have a low utilization rate instead of a 0% rate, which can negatively effect our score?
@@waveyasbiggestfaneverMan *85OCreditRest0rati0n* truly my motivator 💯 l signed up with their software to have old things from years ago deleted ! I see it’s legit and I’m excited to finally start living, I’m confident I can get my new place next summer! And a car!
850 Credit Restoration is the best credit repair expert I’ve ever seeing on YT.The dedication, passion and humor he has in these credit industry is what makes it so amazing. ‘m happy it’s easy to use on backend but excited to see you give that penny to creditors!
Until today, I still don't understand why inquiry about our credit bring down our credit score. To me that is just plain STUPID!
It boils down to statistics and risk adversion. For example, you know that you will get the best rate on a loan based off of your current FICO score. One day you decide you want 2 credit cards, which drops your score and you will get a decent interest rate on them. The next time you go to buy a car your Fico score will decrease while % rate increases. If you take this loan you also increase your risk of default (2 CC and a car). Now, you want a house. This is a decision point for you, do you take the loan and pay higher interest than you would if this was only your first inquiry? If all this goes on within a one to two year period, creditors know that people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy and default than people with no inquiries on their reports. I hope I've helped and not confused you even more. Good luck John!
same as banks want to lend money to those who actually doesn’t need it.
It’s part of the game
Or else building your credit would be to easy
Applying for credit and getting inquiries shows desperation. They don’t know how you’ll act with that new account
When referencing corporate America, he said “They don’t really care about you as they make it seem” realest thing he said...I’ve seen experienced it first hand in the DMV. Black ppl aren’t really respected in corporate America. Glad that he was able to get out of there and become his own boss *Prime consultant 001*
Just went from the Amex green to gold! Also applied for the Citi custom cash only for gas payments. I’ve learned so much about credit cards from you it’s amazing! I wish more people knew how easy it can be to maintain a good credit score. I’m currently 22 with a score between 700-720 usually. Thanks for your help!!!!
Amazing!!! Everything is so amazing!!!
Goat 🐐
150000
One way I've kept my utilization low is by making an early payment before the statement close date to bring my utilization down to 1-2% (as you mentioned) and then letting autopay pay the rest of my statement balance off at my due date. That has consistently kept my utilization low while never allowing me to miss a payment, and as you said, that covers 65% of my credit score right there!
Ok spenser I see you! Everywhere
Oh hey it's Spencer!
@@Nameless-hy7fu Hahah I do what I can! Gotta support the community.
@@forzaauctionhousetips8640 Hey there!
That's smart I'm going to do that, great tip
Great work Magnifico Boosts - so glad you are out there fighting these lowlifes. We need to do all we can to spare the elderly and the general public from these despicable scammers! Kudos to YOU!! You deserve the Nobel prize for keeping us safe big up brother.
I wish I was taught more about credit when I was in school. Took me a long time to build up my credit because I didn’t know about it sooner.
This resonates. I significantly improved 4&5 in my life and my credit score went from 420 or 440 (I forget which) to over 700 in a little over one year.
You are right! Don’t pay the balances off to 0 because I did that and 16 points was deducted from my FICO score. Usually I have about $14. balance on 45k credit makes it 1% utilization and it’s was up 16 points. Thank you!! I will not go down to 0 ever again. I still have excellent credit, but want to be in the 800,s.😊
Ll😅😅
So John mentioned that you should pay before close date and the rest on the due date? I’m confused on this bit because my due date comes before the closing date
@@Chickenwingdyour due date is probably from a previous statement.
I here ya, I have never reached the 800 score either, always stays around 780, then goes down a bit to 740 or so and the back to 780, go figure? I don't know, but hang in there and stay on top of it and maybe it will happen for us some day! I have heard that a score in the high 700's is the same as 800 or 850 to the lenders, but not sure on that.
I get paid twice a month. The pay before I get paid I pay the balance on all 3 credit cards I have. I have a perfect 850 credit score. I don't know how long I will have it. I drop to 842 every so often.
Things are strange right now. The US dollar is becoming less valuable because of inflation, but it's getting stronger compared to other currencies and things like gold and property. People are turning to the dollar because they think it's safer. I'm worried about my retirement savings of about $420k losing value because of high inflation. Where else can we keep our money?
Personally, I would say have a mentor. Not sure where you will get an experience one, but if your knowledge of the market is limited, it seems like a good bet.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
Sonya Lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly
I think it would be really beneficial to do a step by step guide to freezing all 3 scores because most videos I find don't explain it well and don't show the screen
You got it Jaycen! That's a support important thing to know too!
I've found that when I hit the low 700's I got the lowest rates available for both mortgage and auto loans. In fact, I had a 675 when I purchased my home in late 2020 and still got a 2.75% interest rate. Chasing that 850 is definitely a goal, but certainly NOT necessary.
Rates fell in response to the COVID during that time. 30-year fixed rates fell below 3%. The record low was 2.65% in January 2021. The average mortgage rate for that year was 2.96%. I'd say you just happened to purchase your home at the right time. Today's average rate is 6.85%, so no, I wouldn't say your statements is necessarily true.
@@xXAboo805Xx How is my statement wrong? I got just about the lowest rates possible when I was in the very low 700's, so having an 850 would have barely benefited me whatsoever. My main point was that having an 850 credit score wasn't necessary for me to get some of the lowest rates available. It's great to brag about, but nothing more...
@@shojus Sorry for the confusion. I'm not saying your rate isn't great, it is. I was referring to the last part. Though, an 850 is is great, it isn't necessary, as you said but having a 675 today isn't going to benefit anyone.
@@xXAboo805Xx No worries, I guess I just misunderstood you. I did just buy my car about a week ago and I got the best rate offered with my score being around 710, so while I may not have gotten that rate with a 675 I was quite surprised I got the 4.90% for 60 months with the score I have. I'd say as time goes on it's gonna be harder as banks start being more picky who they lend to. Take care
@@shojus they already are more picky now.
I'm glad I started watching your videos when I was 19 and now that I'm 20 I got myself a BCP amex card and 740credit score
Thank you so much for the support and more importantly congrats on the new card!!
Thank you for the information my credit score went up 35 points
Keep in mind that AMEX charge cards (like the Platinum) do not factor into credit utilization since they do not have a specific credit limit…but they do factor into open balances and number of open account calculations….and PS, a perfect 850 is impossible to obtain…just sayin’
David, yes a perfect 850 score is possible. These scores are like unicorns in the woods (rare) but about 1.5% of 200,000,000 people in the credit pool have a perfect 850 FICO score and/or VantageScore.
I have an 820 the highest I've ever had has been an 830 I imagine once I pay off my mortgage or increase my credit limit it would be close to an 850.
@@edgarestrada1146 Ihave been chasing the illusive 850 for 6 years. If I want to move closer to 850 I need more diversity in the types of debt I am willing to go into. I have CC and house debt. I don't want a car loan or a personal loan or store credit. So, I guess I am stuck.
@@kenmorris4369 you can be an authorized user on a person's CC who has a credit mix
@@kenmorris4369 Too many variables….impossible to get an 850. CC companies know this…and PS, CC companies are built upon risk taking, so maybe it’s not even remotely necessary to push the 850. But what do I know, I’m just a finance professor ;)
We have been on a recession since the beginning of 2022, but big media and governments all over the world didn’t want to admit it. We need to be wise and use our brains. Knowledge is power and I’d like all the family to be powerful! Just purchased some *Prime consultant 001* Thanks for keeping us informed during this times of doubt?
I really appreciated this video, as a medium-term *Prime consultant 001* holder. I know you commented on not many people paying attention to this, but it was very relevant for holders such as myself. After watching your thoughts, I will buy more. I also remember your earlier assessment. This will crush the market.
Building a good credit score is straightforward, great video!
Thanks Manny!
You are one of the most sophisticated and brilliant TH-camr/content creator I watch, and 1million percent the very best in finance. I appreciate all of your content thank you for *Prime consultant 001* much love from Chicago
I have a perfect credit score and in present day this is almost useless. Even with perfect score mortgage rates are like 7% depending on where you live. Its only going to get worse
I'll second that Edgar! Mine is 830 and get the same rates as someone with 750.
@@kenmorris4369 Yeah I lucked out and refinanced my home right under 2% interest rate during the pandemic while interest rate were super low. I don't believe interest rates will ever go that low again and true. Even folks with average to slightly below average will get the same interest rates as those with 800+ credit scores. Having an excellent credit profile is hardly a flex anymore. Until people stop paying for overpriced crap its going to continue to keep getting worse. Also, very likely to cause another economic collapse due to the amount of folks that will default on loans because of the retarted interest rates. People are willing to pay more in interest that what they are purchasing. 50K car with interest 120K lol 300K home 1million with interest lol.
7%! Yikes! I thought getting in at 5% was bad last year
awesome info adding this link to my discord channel
Thank you for all of the points you've made. I am 76, have a 6 figure income, don't have a mortgage, car payment or revolving credit. I pay all my bills on time and have a long credit history. I generally use around 10% of my available credit and have a freeze with all the agencies. HOWEVER, my score generally is around 780. No one can explain why it is not close to 850. I bet Warren Buffett and Bill Gates have scores of 850 (if they have scores at all) without revolving credit, etc. I would love to know the answer.
It is because you have no debt. Those guys you spoke of do not have perfect scores at all. Debt, within reason (DTI) along with all the other elements would push you to over 800 easily. It is the exact reason why when anyone pays of a loan, car, house or more your score will DROP.
Bingo. It’s rigged. They don’t have to fully disclose but only must summarize how they get credit scores. My sit is same as urs btw, been at 760-790 for over 10yrs.
@@ITIRICIfalse. And/or lying. The more ur income exceeds ur debt should score u higher.
I just came into some wealth about a year or so ago, but also that is also how long my credit age is . I also was cash only all my life like my parents were.
I paid my house and cars with cash etc .
I just recently did a big loan against my savings.
But I also make money with that .
Loan is at 3.5
Savings at 4.5 -5 on another . So I’m making money. I only use my interest to automatically pay my loan which I also keep in savings .
I only use my monthly annuity for everything else , to pay my credit cards , though I can’t get an increase or get the good ones. I’m 56 now and we want to travel and get the rewards but , stuck in a bucket with low credit cards .
I still use cash but I just can’t get the free stuff or get my score higher than 700.
From what I've watched I conclude:
1) Freeze your credit score account
2) Get a credit card to mix up your credit
3) Try not to close the oldest account
4) Do not apply for too many credit cards
5) Don't utilise full limit of one credit card
6) Pay 21 days before due date but leave a few dollars to pay at the end.
7) Always pay everything by due date
Thank you!
Your tip was actually my way (unknowingly) at first when i transferred to the US got a beginner credit card paid all the debt a week before statement closed and not use it until after statement closing. I did like 760 in my credit score after 6 mos and my friends here congratulated me for it! 🤣Love your vids too informative thanks!!! 🌸
Great information and amazing camera quality!
Thank you so much!
Citibank closed my DoubleCash back card. I had the card for over two years and was never late and payed it off every month. They said I missed a payment. I asked how since you automatically took payments out of my checking account. Citi is the worst. I checked my credit report and their was no late payments indicated. None!! My bank made no indication there was a problem..
If you think that's bad, I have my Medicare Part D set up to be automatically deducted from my checking account. Due to a screwup at Medicare, they stopped taking it out of my checking account, then kicked me off for non-payment. I had to apply to be reinstated, which almost never works, but in my case, it did. If it had not worked, I would have had to wait for 6 months until open enrollment, then I would have been penalized for 6 months of no insurance. Meanwhile I'd have had to pay $600/month ($20 per tablet) for the Xarelto I take. What a mess.
New subscriber here, love your tone and how concise your information is on all your videos. Please continue your great work sir it means alot
I appreciate it Ethan and welcome to the channel!
Learned something new. Thanks for all the info!
Love! Thanks ❤❤❤❤❤❤❤❤
I had a mortgage for 25 years and my house burned down. The insurance paid off the mortgage and with the money left I paid cash for a house. My credit score dropped like to below 500. That was nine years ago. One of my credit agencies said there is no proof in the credit reporting system that I own any real estate. With the economy so screwed up why should I borrow money against a house I own outright just to prove I own something. Does this mean I will never have better credit again ? I am responsible with all my other debt and working to lower the debt on two charge cards. This information is from Experian.
Thank you so much! I have been hovering around 770 for what feels like forever. I always wondered why when I payed my card off early that my credit score would go down a point or two!
Pro Tip for closing credit accounts:
If you have multiple cards from the same issuer, you can call them up to redistribute the available credit on the card you want to cancel to your other card(s). I know AMEX allows this but you have to leave $500 behind on the card you want to cancel. This will help with the credit utilization problem. I would also only cancel cards within 1-2 years of having them. This will prevent you from being blacklisted from an issuer if you cancel too early and won't dramatically impact your AAoA. This is also why you really shouldn't get high annual fee cards until mid-game in your credit journey
What’s AAoA?
@@newagain9964 Average Age of Accounts. The higher this value is, the better
Oh my goodness. 😮 Thankyou! That is so sweet.
Thanks John!
Happy to help!
Great video! Thanks for the information.
Glad to hear it and thanks for the comment!
I co-signed for my nephew brand new car and they came back to me and said that I got a perfect credit score and they did not even fight me with anything and just push along with the numbers and paperwork, plus we knew a guy that works for them so they took 3000 off of the asking price too. The reason why I got a perfect score because I co-signed a house for my older brother before and he paid it off. I paid off two car payments in the past too, maybe that’s why.
Paid.
Keeps credit standards high and uniform for all people. These are objective way to evaluate creditworthiness.
Your video background looks fire, how did you get rid of the flicker from the previous videos?
Thanks Marc. Honestly I have no idea hahaha I kind of gave up trying. If I had to guess I'd say it was just the particular color of the lights I chose this time around. I shoot 1/60 at 30FPS
Was this a re upload? I think I’ve seen this one. Your content is the best though John!
Thank you! And you have a sharp eye, just wanted to upload with small updates for new viewers that have since joined the channel!
I've debated closing my oldest account for so long because I hate having to put small charges on it every so often. It's really no big deal and I keep it in a drawer anyway. But for some reason my OCD just wants to get rid of it altogether.
I hear ya, I have a Discover that I auto load $5 a month to Amazon hahaha
i have a rule, i do not buy anything unless i have that sum in cash, example; i want a car for 30k, i need to have 30k saved.... it works well
(11:02)
Where can I find this information? I've had a hard time trying to find precise documentation on how the credit bureaus judge your score.
Excellent information. Thank you
Appreciate the comment and support!
Thank you John, could you make a video about Chase Sapphire preferred?
Noted Brandon!
Myself during this Bear Market only trying to focus on BTC, *Prime consultant 001* , ETH, SOL, MATIC. not losing sight of BNB and GALA. 🇨🇦
Seeking Clarification.
In order to show your utilization which you should maintain under
I would say I don’t know how I find you on TH-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
You can also need to look their name up to see their website
Wow that is very helpful tips thanks for sharing keep it up good work.
Great video
Well done sir.
Do you recommend the autopay for paying credit cards?
Hey I can help you out
I used to be in the high 700s and maxed in the low 800s. Now I'm in the toilet around mid 500s to low 600s. Road to recovery
What happened?
How do I find out when the statement close date is?
Awesome content! Random - what lav are you using?
If you don't have a credit card yet. Can you use credit building apps such as kikoff to gradually give you a starting credit history? and should you?
You can put a utility bill in your name and/or be an authorized user one a person you trust with good credit CC. That's one or two ways to build as well
Discover it takes new lenders! Use my referral link!
Be an authorized user for someone and also ask your bank if they will let you get a small loan ($500) and pay it each month. I did this when I was 18 in high school and got my credit up to 650 before even getting an actual credit card.
How does credit fraud affect the score for utilization long term and how long would it typically take for it to even out?
I closed one of my oldest credit card without realizing the value it hold; is there anyway I can get that same credit card back and have it hold the same value toward my credit average?
Likely no, but it should age for 10 years on your credit report as long as it's closed in good standing
I been paying my bills on time for the longest,right now my only deb is my car,i pay like 60% of the whole total,0 balance in my credit card,still my credit score is stuck in 802 for a very long time...!
I wanna let you know that *Prime consultant 001* made it this year. What better way to start a global change? Don't get me wrong I know they are not like altruists or something but they keep doing the right thing to improve the situation, power the ecomonmy and so much more. We need players like them and we can always jump in the train at good spots such as this one
So i paid off my student loans and it was my first credit was that bad decision
One big flaw in the system is using credit history based on age of open account. That makes me like the 0 credit score route.
Hey John could you go over all the fees and payments needed to buy a house. Love your vids and skits on tiktok thank you for helping out.
Thanks Joshua! And I certainly will!
Why the heck is my sapphire CC's closing date is just 3 days before my due date?
I also dropped my utilization from 72 - 35 and it did nothing
Hey @johnsfinancetips, my due date is on the 22nd and my closing statement is on the 27th of each month
For example, are you saying that carrying a balance of 1-2% after the 22nd is a good thing, as long as the 1-2% is payed off before the 27th of each monrh?
What about bank loans? Is that the same formula? I cant pay off a bank loan right away
Is your FICO score decrease if your credit card automatically closed due to not using it for a long time?
Not necessarily, unless you hold balances on your cards (credit utilization). Even with that closed account, it stays on your report for 10 years as long as it's all positive payments, 7 years if it has negative payment history.
I have closed many accounts before if you have multiple credit cards with the same bank you can sometimes transfer your credit limit from the card you use the least to the one you use the most and close it without losing any credit limit. I have done this with credit cards that charge a yearly fee.
It may or may not. Haha sorry I know that's not what you were expecting but totally depends on your situation and usage
I want to know if paying off my student loans in full will help or hurt my credit score in the short term and long term. If it’s worth closing those account or keep them open.
Thanks for this post. But where can someone buy a home for $300k? Lol
Sitting at 810+ score at 23, still learned some new things 😂
I can’t seem to get 800 I’m at 790
What repercussions would I have if I closed a new credit card account that I haven't used at all?
If you freeze your credit does on time payments affect credit(positively)? Or how does that work?(sorry new)
Freezing just stops companies from being able to look at your credit.
How much will it hurt OR help if you pay off and leave it in a negative for the statement balance?
Hi John. Great vid. Forgive me if this is an odd question - would paying MORE than your credit balance have any impact on your credit score?
Example, you pay 98% of your balance before the statement close date. Then pay MORE than the balance before the due date, effectively giving yourself a surplus, almost making the credit card into a debit card somewhat. Thoughts?
Interested
@@jeremiahkrummI would say I don’t know how I find you on TH-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
@@jeremiahkrummYou can also need to look their name up to see their website
A lot of my history dropped because I wasn't using cards and one was like 25 years. My average is like 3 years now.
Paid off my truck and my score dropped 6 points. Paying off a vehicle shouldn’t even count as such.
Always on time & pay in full on all the cards I use. All are revolving accts( no car, house, student loans etc) last 24 months the score has not changed from 819. How to earn 850?
Hey guys, I have a question on the credit utilization part.
Lets say my available credit limit on a student credit card is $1250.
If I do 1250*0.3 = 375, $375 should be the amount I should not go over.
Let's say that I use my credit card a lot. Like $600 in a month for example but it is spread out across the month such as 200$, $200, $200 for example.
If I pay off my credit card each time for $200, does that mean I am still under that 30% credit card utilization limit? Or would they calculate it as a whole? Like using $600 / $1250?
You are good. If the statement shows 200 only
Awesome, thank you :)@@imlibratheone8644
You suggest a low utilization, below 10%. Does it mean to possibly use the card only to 10%, or that you could use the card even at 50% but before the statement closure date you take it down to 1%? thx a lot
You can use 100% of your credit limit, some cards even let you go above your limit. But you should get it to 10% before the statement close date when the bureaus get your info. Basically don’t spend more than you can pay off in a month
I just got a new credit for my business on may 4th my closing date is may 19 how many days before should i paid most of it so it can positively affect my credit score ?
Does anyone know how chime credit builder card affects your credit utilization? I have the chime credit card and the capital one savor card.
Great video,
How many credit cards and how far apart can you apply for in a year?
Thanks Julio. I get asked that a lot and my response, assuming you pay on time and in full. Get as many as you like. Be mindful of application rules from each bank which are too many to list in this comment. But as an example last year I applied for 3 business cards in 2 days.
@@johnsfinancetips do business cards affect your score the same way?
Thanks
Does that same 1 hard pull rule work with personal loan rate shopping as well?
Is it true? That the more credit cards you have or payments on your record the better it is. So for example let's say you have 10 credit cards but one of which you made it just forgot right? And so you have a late payment over 30 days on your account but you have nine others paid on time. That does benefit a lot right? Or does the one just nullify everything?
No
Im just confused on the 2 cards example. Does this mean that if I have more then on credit card there credit limit are combined ?
They add the credit limits of all your cards, and they add the outstanding balances of all your cards when computing the credit utilization. Lets say you have 2 cards. Card A has a limit of $10,000 and a balance of $1500; card B has a limit of $1000 and a balance of $750. Your total credit limit is $11,000 and your total balance is $2250. Your credit utilization is 2250/11000 = 0.205 which is 20.5%.
Great video! I have a question, I have two fraud inquiries on my reports that I would like to get removed. I've seen your video regarding this, but Im still a bit confused. So I know my first step would be making a call with the credit bureau (Experian) but should I also make call what time? And would I be never stop sending a good compny *Prime consultant 001* to my friends and people I know regarding any credit situations
So instead of paying before the Due Date Pay Between the due Date and The Statement Closing Date?
So if I open a new account and close it, will this still count towards my average history?
Regarding credit utilization, if I use more than 50% but pay it off immediately, does that affect my credit score negatively?
I have 6 credit cards and I pay them all off on time and in full. My Payment History rating on Experian is listed as Exceptional, but my Amount of Debt rating is only listed as Very Good.
How do I get my Amount of Debt rating to be characterized as Exceptional? I keep my utilization rate at 1% so I’d think it would already be there.
Do you have a list of credit cards for first time owners I don’t have one yet and I tried to apply for a couple your recommended a month ago but sense I have no credit history they rejected me
Apply for secured cards first apply where you have a checking account after a year if you keep your utilization under 30% and if you keep it under 6% you'll get an unsecured faster that's what I did.
Discover cc is one of the easiest to get for the first card.
First credit card I ever got was a Target Red Card.
Secured cards would be my top rec for now
Hey everyone, my due date for my Discover card is 14th of each month and my statement date where I receive the statement is 19th. When would be the statement reporting date then?
I have a 500 dallor limit, I’ve had it for 2 months and my credit score is around 600+. I’ve been maxing my card and paying it off every 2 weeks when I get paid. Is this really bad.
Thanks
Anyone know who long a hard pull stays on when a bank does it to increase your credit limit
Wonder if you can request increase on credit limit ? Are there implications when you do this? This would be to make credit utilization look better
I pay my credit card on day statement closes but will do 2 days before.
Hey @johnLiang. Great videos! Question - When you say you open 5 or so accounts a year. Can you explain that a bit? Are you opening Credit Card accounts to maintain healthy credit or do you chase offers? If your just opening them just to close them latter are you using the " no annual fee" cards. 5 a year seems like a lot. But I'm learning here. Thank you!
I would say I don’t know how I find you on TH-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Web backdoors🕳️org* . I thank God for this wisdom. Bless you.
You can also need to look their name up to see their website
Quick question John if you can please help me? Is it possible to get to the perfect credit score after having a late payment and carrying a balance on low tier credit cards? Even if it takes me another 5-10 years i want to reach that goal of 850 score and getting an FHA loan to buy a house
So pay off a majority of the amount spent monthly before the statement close date, but leave a few dollars or so to pay off before the actual due date? This is so that the credit bureaus can see that we have a low utilization rate instead of a 0% rate, which can negatively effect our score?
Credit issues can be scary, but they really make it less spooky. Thanks ✌️
I really love how helpful they are, they rock team and definitely drop the gems 👊
@@waveyasbiggestfaneverMan *85OCreditRest0rati0n* truly my motivator 💯 l signed up with their software to have old things from years ago deleted ! I see it’s legit and I’m excited to finally start living, I’m confident I can get my new place next summer! And a car!
Does credit utilization affect a secured credit card as much as it does an unsecured credit card
850 Credit Restoration is the best credit repair expert I’ve ever seeing on YT.The dedication, passion and humor he has in these credit industry is what makes it so amazing. ‘m happy it’s easy to use on backend but excited to see you give that penny to creditors!
It’s paying a credict card early consider a payment or you still have to do a payment on your due date
Yes paying early counts the same as paying on due date! Just make sure the entire thing is paid in full
what if i have my statement closed date three days before my due date?
asking for a friend