I knew almost all of it. My score is 815. When I went to get a used car the % was around 9%. It was a $12k car. I wrote a check and paid in full. The dealer said rate is high cuz the amount is small. When am I suppose to benefit from my good score? I don't want to buy a $40k car to get a 3% rate.
Fun fact: the German word for debt is Schuld, which also means "guilt" or "shame". Being Asian American, the son of frugal immigrants, and a resident of Germany have triple punched the idea into my head that debt is almost always bad news. I avoid debt like the plague, and I don't even like credit cards. The benefits most of them offer don't even interest me that much. So in my case, I stick to just one single credit card which doesn't have any fees, and I rarely ever use it.
my fico score ranges from 845-850 in experian. we pay off our credit cards in full. we kept our oldest credit card from the 90s. we don't come close to max credit limit on the cards we use. we put everything on the credit card for cashback and ease of tracking. the main thing is 5 cars and 2 mortgages over the years with no late payments.
I didn't know any better but I had a Golden 1 credit card that I didn't use and it was open for a long time. Golden 1 closed it for me indicating it was closed due to nonactivitity. Lesson learned, use your credit card here and there for something simple like gas and pay it off before you get your bill.
In utilization you get penalized for each cards individual utilization as well as overall utilization. For reference, I have about $80k credit and maxed an $8k card. Everything else was less than $2k so about 12% overall. My credit score dropped 40 points that month.
I have 33 credit cards and an avg of 776-800 credit score (depends on how many cards I opened recently). Zero missed payments and a 1% credit utilization rate. I'm a serial churner and meticulously chart out my credit cards and spend on a spreadsheet. It's definitely not for everyone, but I love it since it has allowed me to travel the world for free.
Sounds like you can be spending that time better. Traveling the world sounds nice, but is a wealth killer in practically every case unless its required for your profession.
Can you elaborate on what you're doing that allows for free travel? Sure, some cards give an opening points bonus but that's not enough for a trip each time
This is a timely video. I’ve been in the 800+ level for awhile and I have about 100k total credit limit over all my cards, and I pay the balance every month. What was strange was I purchased a fairly expensive watch for my wife and put it on one of my cards for the points. My utilization on the specific card was pretty high but in total, my utilization was less than 10% and I paid it off. Even so, my credit score went down 25ish points. It was very strange. Everything else remain constant, my score has since increased to around 790. I wasn’t paying attention to the card payment cycle so maybe that’s why I was dinged. Anyway, just sharing an odd experience.
I noticed that if you go above your average utilization, your credit score drops even if your total utilization is low. This happened to me before because I accidentally paid my card after statement day, resulting in a 12% utilization vs my average of 3%, and my credit score dropped 59 points. Really crazy.
With credit cards, keeping your credit utilization low is ideal. You mentioned paying down your card a week before the statement date and I know some do to keep it under 10%. As long as you're spending something on the card and keeping it low, will it raise your credit score? Would you recommend just setting up auto payments for the full statement balance, if you are financially able to, as the best option?
He's mentioned in other videos, but always, if you can, pay the full b alance of credit cards when/before they're due. No point or sense in paying the interest rates, that's jsut burning your money away. The only reason to have credit cards if you're not financially dependent on them, is for credit building. I've had my cards for nearly 8 years now, since I could first get them opened, and my credit score is amazing. I have some of my recurring bills set to them so that there's always a little bit of money getting added to them every month, and other than that, I just let them ride, making sure to pay them off every month.
@@naefaren3515 I pay my card in full when the statement balance is posted. But I wonder if I should pay it off before the statement balance is posted to keep the credit utilization 10% of the credit limit.
I was late on ONE payment 6 years ago in my 22 years of credit history and that still negatively affects my credit score when I check every week. Currently at 788. Curious what it will be once that drops after the 7 year mark.
I was hoping you’d touch on the credit mix some more and how it can hurt you if you don’t have installment payments. My credit dropped from over 820 to 790 2 years ago when I paid off my car, once the lease was up. I can’t seem to get it back up and looking to buy a house soon. I know once I have a mortgage it’ll go back up but any recommendations prior to that would be appreciated.
I’m still years away from needing to buy a home. Would you recommend that I finance a car, anywhere from $10-20k loan, for the sake of building credit and pay it off before buying a home, or should I keep saving up cash instead and only use credit cards as a way to build up my credit prior to applying for a mortgage? Also, I don’t necessarily plan on doing this to build my credit score, rather, I’d like to build my credit file. I understand that lenders not only look at Fico, but also the different types of credit an applicant has had.
Thanks so much. I got a smaller beginner credit card because I am young but had been using about 50% of it every month. I didn’t realize you should keep it below 10%. Now I do. Makes sense I have meh credit score even with making all the payments on time and full.
Thank you for a very informative video. Just wanted to ask with regards to the credit score, if i have a credit card from my county i was born (Philippines) and also have cc from where i live (UAE) will the credit score be computed separately or as one? Thanks a lot. Looking forward to your answer. 😄
Hi! If I get my CC statement every 30th, and I pay in full every 1st of the month (due date is on the 23rd), does that help or impact my credit score in any way? Just curious to know. Either way, I still would wanna pay my card in full every 1st. I want my card to be a clean slate every beginning of the month, that’s why 😅
10:38 Capital One explained this to me when I called to close it. To keep the account open, I send them $5, and they send it back to me 6 months later. They can't close it if they owe me. 😂
With the credit utilization, does a line of credit also apply to your total available credit? Say if I had a 15k line of credit and a 5k credit card, is my total available credit 20k?
I am curious if having a credit card and never using it helps your credit? I got a 500$ limit card and have never used it. I just thought it'd be good for emergencies.
Whats the point of having an 800 credit score anymore? So we can be penalized? Targeted? Ostracized? I have over a 800, seems like it mite end up being a bad thing these days. Sad times we are living in...
Something that’s been in the news as of recent is that higher credit score consumers are actually going to be paying higher rates on mortgages than those with bad credit. I even made a short video about it the day it was in the news, but after doing some research, I want to clarify some things: There IS a Biden administration rule that adjusts the upfront fees for loans backed by Fannie Mae and Freddie Mac - this is true. And while fees are more expensive for borrowers with good credit, it turns out that if you still have a good credit score, you’re still paying less than if you have a weak one. So don’t go tanking your credit score thinking you’ll get better rates in the future.
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!
Good primer video. Have you considered making a video on how to clean up your credit report in order to improve your score? I had managed to vastly improve my credit report and my wife's, which raised our FICOs tremendously and we've been in the 800s for a few years now. Took some discipline, negotiating, and some hard work to pull that off, but it was worth it.
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!
I'm 59 and I've never looked at my credit score nor care what it is. I am puzzled when my friends talk about credit scores like it's some kind of trophy or kids
Ive been watching your videos about long term investments and just holding because I just opened my Roth IRA at 23 during this bear market. You say you like VOO alot but my question is why track SP500 over tracking the Nasdaq? The nasdaq isnt risky and should get you more % returns, or am i wrong? Is it because nasqaq is too much in tech and not as diverse? Also what would be the Vanguard nasdaq ETF or equivalent to QQQ
@@humphrey yea they are but my dealership says they have a offer for 2.9% 36 months. plus im only financing like 30% to save as much as possible. i could buy it out right but i want to build credit more
Utilization is only part of it. Regularity is the bigger part. If you don't typically use your credit at all, and then start using it, then that is an irregularity that may blip things for a minute. Consistency is key, which also means consistently accessing your credit lines... And paying them off.
Do like others have been doing snitch on ppl an blame someone who is innocent seems to work for my friends and family these days cause I'm a target they are after
I don’t think 800 is perfect, although, it’s the highest tier. I have 800 in 2 separate bureaus but my credit age is in the red, with less than 3 years of average credit. To me, perfect would be if everything was green.
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!
Hope this video helps you all! Share it with someone who needs to know more about credit. Check out my free newsletter here: 🐪humpdays.substack.com
Is the algorithm the same for all 3 credit bureaus? If so, why are my scores different?
Yooo congrats on the 1 million subs!! Great info on credit scores here, so many people get confused with this so this is valuable
I knew almost all of it. My score is 815. When I went to get a used car the % was around 9%. It was a $12k car. I wrote a check and paid in full. The dealer said rate is high cuz the amount is small. When am I suppose to benefit from my good score? I don't want to buy a $40k car to get a 3% rate.
Fun fact: the German word for debt is Schuld, which also means "guilt" or "shame". Being Asian American, the son of frugal immigrants, and a resident of Germany have triple punched the idea into my head that debt is almost always bad news. I avoid debt like the plague, and I don't even like credit cards. The benefits most of them offer don't even interest me that much. So in my case, I stick to just one single credit card which doesn't have any fees, and I rarely ever use it.
my fico score ranges from 845-850 in experian. we pay off our credit cards in full. we kept our oldest credit card from the 90s. we don't come close to max credit limit on the cards we use. we put everything on the credit card for cashback and ease of tracking. the main thing is 5 cars and 2 mortgages over the years with no late payments.
Thanks for making these videos! Your explanation is thorough and easy to understand!
I didn't know any better but I had a Golden 1 credit card that I didn't use and it was open for a long time. Golden 1 closed it for me indicating it was closed due to nonactivitity. Lesson learned, use your credit card here and there for something simple like gas and pay it off before you get your bill.
Hmm I’ve always tried to figure out how credit history is calculated, thank you for that very important info!
In utilization you get penalized for each cards individual utilization as well as overall utilization. For reference, I have about $80k credit and maxed an $8k card. Everything else was less than $2k so about 12% overall. My credit score dropped 40 points that month.
I have 33 credit cards and an avg of 776-800 credit score (depends on how many cards I opened recently). Zero missed payments and a 1% credit utilization rate. I'm a serial churner and meticulously chart out my credit cards and spend on a spreadsheet. It's definitely not for everyone, but I love it since it has allowed me to travel the world for free.
What do you mean by it allowing you to travel for free?
@@Soma2501 I want to know!
@Anita Norwood im guessing travel rewards but idk about free or just lowering cost
Sounds like you can be spending that time better. Traveling the world sounds nice, but is a wealth killer in practically every case unless its required for your profession.
Can you elaborate on what you're doing that allows for free travel? Sure, some cards give an opening points bonus but that's not enough for a trip each time
My credit went from 780 to 820 when I opened a couple of large lines of credit
This is a timely video. I’ve been in the 800+ level for awhile and I have about 100k total credit limit over all my cards, and I pay the balance every month. What was strange was I purchased a fairly expensive watch for my wife and put it on one of my cards for the points. My utilization on the specific card was pretty high but in total, my utilization was less than 10% and I paid it off. Even so, my credit score went down 25ish points. It was very strange. Everything else remain constant, my score has since increased to around 790. I wasn’t paying attention to the card payment cycle so maybe that’s why I was dinged. Anyway, just sharing an odd experience.
I think youll be ok , should go back up soon
I noticed that if you go above your average utilization, your credit score drops even if your total utilization is low. This happened to me before because I accidentally paid my card after statement day, resulting in a 12% utilization vs my average of 3%, and my credit score dropped 59 points. Really crazy.
With credit cards, keeping your credit utilization low is ideal. You mentioned paying down your card a week before the statement date and I know some do to keep it under 10%. As long as you're spending something on the card and keeping it low, will it raise your credit score? Would you recommend just setting up auto payments for the full statement balance, if you are financially able to, as the best option?
He's mentioned in other videos, but always, if you can, pay the full b alance of credit cards when/before they're due. No point or sense in paying the interest rates, that's jsut burning your money away. The only reason to have credit cards if you're not financially dependent on them, is for credit building. I've had my cards for nearly 8 years now, since I could first get them opened, and my credit score is amazing. I have some of my recurring bills set to them so that there's always a little bit of money getting added to them every month, and other than that, I just let them ride, making sure to pay them off every month.
@@naefaren3515 I pay my card in full when the statement balance is posted. But I wonder if I should pay it off before the statement balance is posted to keep the credit utilization 10% of the credit limit.
Congrats on 1 mil subs! Well done 🤟
thank you!
Love these kinds of videos! Very informative 👍🏾
How would I be able to exactly find my credit score?
Sore subject. I paid off my car and my score dropped out of the 800s. 😐
I was late on ONE payment 6 years ago in my 22 years of credit history and that still negatively affects my credit score when I check every week. Currently at 788. Curious what it will be once that drops after the 7 year mark.
I paid off my vehicle 3 years early and my score was dropped by 7 points. I’m more risky for being highly responsible… Make zero sense!
Great video!
The highest they can get, in 1-6 months depending on, how much it cost, and how much they have, and pay back! 2:55!
I was hoping you’d touch on the credit mix some more and how it can hurt you if you don’t have installment payments. My credit dropped from over 820 to 790 2 years ago when I paid off my car, once the lease was up. I can’t seem to get it back up and looking to buy a house soon. I know once I have a mortgage it’ll go back up but any recommendations prior to that would be appreciated.
I’m still years away from needing to buy a home. Would you recommend that I finance a car, anywhere from $10-20k loan, for the sake of building credit and pay it off before buying a home, or should I keep saving up cash instead and only use credit cards as a way to build up my credit prior to applying for a mortgage? Also, I don’t necessarily plan on doing this to build my credit score, rather, I’d like to build my credit file. I understand that lenders not only look at Fico, but also the different types of credit an applicant has had.
Thanks so much. I got a smaller beginner credit card because I am young but had been using about 50% of it every month. I didn’t realize you should keep it below 10%. Now I do. Makes sense I have meh credit score even with making all the payments on time and full.
Can you close a newly opened credit card to increase the total length of credit age.
I need a credit lawyers for NYS to go after TransUnion Experian equi fax
Thank you for a very informative video. Just wanted to ask with regards to the credit score, if i have a credit card from my county i was born (Philippines) and also have cc from where i live (UAE) will the credit score be computed separately or as one? Thanks a lot. Looking forward to your answer. 😄
Hi! If I get my CC statement every 30th, and I pay in full every 1st of the month (due date is on the 23rd), does that help or impact my credit score in any way? Just curious to know.
Either way, I still would wanna pay my card in full every 1st. I want my card to be a clean slate every beginning of the month, that’s why 😅
803 woo! Seems my arbitrary ‘want’ budget of $150 a month is paying off on my card with a 1k credit limit
10:38 Capital One explained this to me when I called to close it. To keep the account open, I send them $5, and they send it back to me 6 months later. They can't close it if they owe me. 😂
With the credit utilization, does a line of credit also apply to your total available credit? Say if I had a 15k line of credit and a 5k credit card, is my total available credit 20k?
I am curious if having a credit card and never using it helps your credit? I got a 500$ limit card and have never used it. I just thought it'd be good for emergencies.
Whats the point of having an 800 credit score anymore? So we can be penalized? Targeted? Ostracized? I have over a 800, seems like it mite end up being a bad thing these days. Sad times we are living in...
Something that’s been in the news as of recent is that higher credit score consumers are actually going to be paying higher rates on mortgages than those with bad credit. I even made a short video about it the day it was in the news, but after doing some research, I want to clarify some things:
There IS a Biden administration rule that adjusts the upfront fees for loans backed by Fannie Mae and Freddie Mac - this is true. And while fees are more expensive for borrowers with good credit, it turns out that if you still have a good credit score, you’re still paying less than if you have a weak one. So don’t go tanking your credit score thinking you’ll get better rates in the future.
“If someone throws frozen bread at you, it will hurt” 😂😂
We just did a video on this as well! Great video
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!
850 Credit Restoration on their website
What's a credit score?
You and I have the same credit score, Humphrey! 🍻
nice!
Hahah 😂 “Loyal girlfriend “= Good Credit History
Good primer video. Have you considered making a video on how to clean up your credit report in order to improve your score?
I had managed to vastly improve my credit report and my wife's, which raised our FICOs tremendously and we've been in the 800s for a few years now. Took some discipline, negotiating, and some hard work to pull that off, but it was worth it.
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!
850 Credit Restoration on their website
I'm 59 and I've never looked at my credit score nor care what it is. I am puzzled when my friends talk about credit scores like it's some kind of trophy or kids
do you buy everything with cash or a debit card?
@@humphrey 30/70. I use CC for online transactions and at fancy restaurants. Cash for the rest of my transactions via prepaid Apps or hard currency
@@robocop581 sounds about the same for my parents (both 59 years old)
Woot woooot, let's get it!
Annual Credit Report doesn't give you your Credit Score. It only gives you a Credit Report.
Ive been watching your videos about long term investments and just holding because I just opened my Roth IRA at 23 during this bear market. You say you like VOO alot but my question is why track SP500 over tracking the Nasdaq? The nasdaq isnt risky and should get you more % returns, or am i wrong? Is it because nasqaq is too much in tech and not as diverse? Also what would be the Vanguard nasdaq ETF or equivalent to QQQ
In a Roth you could go more aggressive with nasdaq. The idea is that SP500 is slightly more balanced so most investors enjoy that index
Ok.
Wait so If I bought 1000 dollars on a credit card, paid it off in full would my credit score go down?
780 score hope i get approved for the 2.9% car loan tomorrow lol
lol :D I think average rates are way higher but let me know what happens!
@@humphrey yea they are but my dealership says they have a offer for 2.9% 36 months. plus im only financing like 30% to save as much as possible. i could buy it out right but i want to build credit more
I increased my credit score by getting credit line increases so that my utilization wasn't hurting me
I have found that even having 1% utilization might hurt your credit score.
Utilization is only part of it. Regularity is the bigger part. If you don't typically use your credit at all, and then start using it, then that is an irregularity that may blip things for a minute. Consistency is key, which also means consistently accessing your credit lines... And paying them off.
Utilization is irrelevant unless you are actively seeking new credit within the next 1-2 months.
My credit score is 755. My goal is getting 800.
I have a score of 884 :)
Referral please 😢
Do like others have been doing snitch on ppl an blame someone who is innocent seems to work for my friends and family these days cause I'm a target they are after
I don’t think 800 is perfect, although, it’s the highest tier. I have 800 in 2 separate bureaus but my credit age is in the red, with less than 3 years of average credit. To me, perfect would be if everything was green.
😢I love you 💕💕💕 your brilliant........😅
835 :)
Currently sitting at 530 😫
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!
850 Credit Restoration on their website
I am able to transfer money from my actual acc to my credit acc every night before bed so my balance is always 0
Super early - I'm at 755 and have only had a credit score for less than a year!
wow thats amazing!
Remember when they tried to pass a bill that would penalize home buyers with good credit? Our society is REAL dumb
Lol who wants a credit score 😂😂😂 this is so stupid