In my opinion, this guy puts out too many technical facts out too fast. It's as if his main priority is to sound smart rather than for the average view to grasp what he is saying.
I went from a bankruptcy to 814 in 9 years. I worked my butt off. I started with a couple of secured cards and now have 21 cards one with a limit of $21,400. Never thought I would live to see the day. lol
An easy way to build credit is use a credit card for a dedicated, recurring payment such as your cable bill. Pay the bill using your credit card and set the auto-pay feature to pay that card in full each month. Think about how many auto-pay accounts (utilities, cell, insurance, etc.) you might have that could be building your credit and get a card for each one. You are already paying these monthly so why not use these recurring payments to your benefit and increase your credit score.
@FURinTeeth I agree 100%. Autopay while collecting unemployment or while being underemployed can possibly destroy your finances. Autopay is only for the financially stable.
As one who has been in the mortgage and finance business for more than 30 years I can tell you that you can take that 850 score and $2 and buy a cup of coffee! You get nothing for having a perfect score. You either have excellent credit or you don't! If you have a 770 score that gets you the same as 850! So, if you want to beat your brains out trying to be perfect, go for it! You know the results!
There is some usefulness to a 850 score vs a 770 score. If you ever get a late payment or have anything else happen that negatively affects your score the 850 provides you with a buffer zone so you can handle any negative impacts better.
I'm on 745 now. Only 8 months ago I was on 640, freshly rejected by Chase freedom after which my 700 score took a nose dive. I was new in the game then with only a 6-month-old secure credit card of $500 limit. Now, I know so much about credit it's almost an obsession. 3 CC's now with a combined $8250 limit. But I am still not gunning for an 850. I just want to be in the excellent range which is 760 and higher. I am inching closer to it with each passing month.
My (probably crazy) thought process is that it's a hobby that actually helps me travel for free and gives me value back (while increasing my score). In contrast, other hobbies (car tuning, audiophile, etc.) are all related to spending money. For both, you're still optimizing, but it's the outcome (value inflow + happiness vs. value outflow + happiness).
@@kingjay3454 Oh wow. My original comment from 2 years ago kinda aged well. Right now I'm on 795 with 6 CC's with a >$62k in combined limits. My first 3 cards were PNC visa rewards card, capital one platinum card and discover students card. Since then though, I converted the capital one to quicksilver and the discover to the 5% cashback card. Also added 3 more cards one of which is the initially rejected chase freedom. My new obsession is investing lol.
Thanks buddy this was great. I’m already above 760 credit score by applying your strategy and I never knew all of this when I started. I actually started with a 610 and now I’m. 760. Took 8mos but can’t believe I was missing so much. Thanks again.
Yeah you can spend $1000 just make sure to pay it off before the next closure date.. Having a balance of $100 before the next closure would denote 10% utility rate..
one very important factor... Most business cards are not reflected in your credit score, unless you default on the card and they have to exercise the personal guarantee. So while I have a substantial amount of credit on personal cards, if I am going to carry a balance, I use my business cards for this activity. This helps keep my credit usage score extremely good. Be careful because this may not be true for all cards, but from my experience it holds true for most. They usually don't really check for your actual business registration or activity, but you can always register as a Sole Prop with your state and use this to apply. Amex is a very good option. Even the platinum cards.
Nice video , very informative. I had score of 850 last time I applied for a loan . All the things you outlined are exactly what it takes to be perfect. Usually people do not think of or worry about their score until they apply for something and are denied.
I have had the discover it student card for 6 months and my score is 771. My report shows that the only bad thing I have is a 6 months credit history and I only have 1 card. Other than that my utilization is 2% and I have no late/missed payments. I have learned these habits from you and I thank you for all your credit card info.
Hi Sebby, I'm a new subscriber to you and I'm so mad because I've worked so hard since my first bankruptcy from my first husband that put us into debt in 1998 now my second husband created debt also and I had to file again. Each time I Rose my credit score in the 800's and for the last year my credit score was 859 I was shooting for 900 and now everything's been wiped out again. So this time I'm not going to have this happen again. I'm 61 years old and need to have good credit. I didn't need 20 Credit cards to get to 859. And it took me nine years to get the score because I had the score for at least a year. I only had two credit cards.. Anyway I'm enjoying your videos take care, Carrie
Thanks Sebby and everyone in the comments for helpful tips. Wish all this info was available when I was 20! I'm 30 now and along with my brother we have finally achieved a credit score of around ~825 after years of meticulous credit "gardening". After owning a business for over a decade, I just wanted to throw this out that banks are more likely to approve you for a loan or line of credit the higher your total credit line is at. e.g. They prefer someone with a 750 score with $300k in credit line over someone with an 850 with only $3k to their available credit. Going by experience, you may not get the best interest rate, but your chances are higher if you ever need capital.
I have an 850 score, I was able to do it because I've always been financially responsible. I followed simple rules never spend money you dont have, pay your bills off early and never ever miss a payment, and get a few different types of credit and always keep your first credit card you got open. I did cancel one card but I had 2 other cards & a LOC. I use to have a balance but I paid off huge chunks by doing a balance transfer to a card with 0 interest for 6 months, so I managed to pay off way more principal!
You don't want 0 utilization, but if the balance is too low ( like a dollar) the bank might still report it as 0 and write off the dollar. ( I've had it happen to me)
That's 100%. I called discover about this and the representative said you'd probably have to leave around $10 for them to actually not waive the fee. That seems quite high to me.
@@davide4607 0% utilization is bad, it shows you don't use the card at all. You don't want to prepay before the bill posts. You want it to post a bill, when it shows a bill you pay the full amount off.
@@zonk1477 Not true. Banks report your card as inactive if you literally don't use it at all. Using it but paying it off to show 0% doesn't report an inactive card.
Good advice. However, regarding getting 21 credit cards and then waiting 9 years, there may be one catch that you didn't mention. Many (most/all?) credit card companies require you to actually use the credit card once in a while. Failure to use the card for a large period of time can/will result in the credit card company closing your credit card account, possibly without notice. If you liked that card and wanted to keep it going, you'd need to re-apply for a new credit card, setting the amount of time for that card back to zero. I mention this because I learned this the hard way. I had a credit card for 13 years - it was my longest-owned card. However, I didn't use the card for a couple of years, and the credit card company cancelled the card - without giving me any notice and without giving me the option to keep it going. So that "get a bunch of cards and hold on to them" plan may require you to use every one of those cards periodically - perhaps once every 3 months - even if it is just to buy a candy bar or something. So that's 21 credit card uses every 3 months - not impossible to manage, but not trivial either.
Because of your advice....I now pay off my CC at the end of everyday I spend on them. Keep teaching bro✊ also nice bottle in that brown bag in the backdrop🥃
sure kleen - If you let a statement get issued with a small balance and then pay it in full, it will get reported to the 3 credit bureaus that you paid down your account. That increases your score. By paying it off everyday....it looks like you don’t use it to them.
A perfect credit score isn't any better than an 800 credit score. Glad to hear Sebby say this right off the bat. When someone doesn't try to bullshit me right off the bat and it makes me want to listen to the rest of their message.
My credit score just shot up, and a month faster than I expected. I made a large payment on my biggest debt, a few hours before my statement was finalized. Even though my free credit report said they report every 1st of the month, my July 25th credit score reported the statement balance from July 18th. Nice to know, and it was instant satisfaction from paying my debt off. One of my other cards truly is about a full 7 weeks behind in actually reporting.
I always thought that getting a better credit score was impossible until a few weeks ago... I had discover increase one of my credit lines by almost 1500 bucks, and that alone increased my credit score almost 50 points, and I opened up a few more lines, and after a couple months I hit 720, all up from about 650. I am pretty young which is why the changes are so drastic, but still really cool to see that happen
A very informative video. For those just starting to explore this world, I echo Sebby, set up Minimum Pay Auto-pay on all of your cards. Also, respect your budget/pay days and request specific due dates for all cards. Good luck!
Please make a video about how often you open new cards, and cancel cards. It seems like you have the Chase Reserve, Altitude Reserve, Amex Platinum, and Ritz Carlton...do you plan on holding on to all of these? Thank you!
Bri-guy I believe he and Credit Shufu have such videos in their archive. Basically, never cancel your cards--try to product change them to no annual-fee cards. Canceling cards--especially much older cards, will significantly hurt your credit score. The more available credit you have, the better your credit score is. Also, when you cancel cards, you may place yourself at risk of not receiving bonus points from a bank's other cards.
piper998877 hey, thanks for the reply. I know I've seen similar videos in the past on their channels, but I don't believe they discussed their thought process of "I'll apply for a card every x months" or "I'll start my next card after I meet the minimum spend on this one" etc. so I'm more so just curious about the application strategy and which of the "premium" cards he holds on to
you will need to use them infrequently so the bank won't shut the card down. But you can just go to a vending machine and buy a candy bar or something.
I want to be able to regain my freedom ans social status help me to do it as quickly as possible from the high 500s.Also is paying off credit cards and keeping really help move my score my 750 dream score along?
exactly what im doing. had 500 credit. got a secured card. boosted me up to 700. after a year i got another 10. now im just sitting on them. next is a loan so i can make installments. they like to see that.
lol, already pretty much there, I just pay everything on time without bothering to check my score since I honestly didnt care that much. When I did finally check my score, it was in the upper 700s.
From an investing standpoint, after you get around the 800 to 800+ mark you do get much better loan offers and rates, but for the average person it wouldn't make a significant difference.
Hey thanks for the video and going in depth talking about credit card Factors! I had a question when you said paying off your card before the end of the statement to get a 0% Utilization Do you have to make a payment on the card To still get 0% Utilization To get you an excellent credit score? Explanation - So if I got nothing on my credit card would I still be building my? credit
21 accounts include debt outside of credit cards, correct? Mortgages, PLC, personal loans, car loans.. All of those count. If all of your accounts are of the same type ( e. g. Credit cards) its only one type of debt and ranks you low on the credit mix
I like this guy he is right on. It depends on the banks. I was late and backed up on a couple of credit cards and I received an inherence and was actually late on some of my credit card "BUT" because I paid them off early and had a substancial amount of money in three financial institutions my credit score went from 650 to 850..Like he said, big deal, the world didn't stop, the marching bands didn't come down the street, wall street didn't interview me, and all in all it didn't really matter, !!!!! He is right !!!!. When I went to buy a home, the mortagage company didn't even look at my credit score because I put down 20% on the home.(I wished now that I would have just paid in full - now property taxes, school taxes are going up--and I escrow) ..I was coming in with equity. I was a serious a serious buyer and the 20% spoke more to them than credit score. I also financed the house through one of my financial instituation so closing went fast. The best way to go is not to deal with credit cards but if you do, pay them off before they are due---if you can......Yea good luck on that because you never know when the air condition in on the house is going to break down and cost you $4500 for a new one, student loans, and all the unexpected.... That's why America today is $1 trillion in credit card debt........When government starts ( and they have ) to drop tax rates from 25% down to 20% or lower that's when I believe you will see credit card debt drop off. You will be keeping more of your hard earn dollars.....and living less on credit.
Golden Nugget - One thing that people also don't realize is taking out a "personal loan" will hurt your credit score. Many of the banks send out SPAM trying to get you to take out a personal loan. They target individuals that have "decent" credit, but are in debt. They say it will help you consolidate the debt, and you can take advantage of a low interest rate(which is good), and maybe its the best decision for you at that time. The best thing to do is to take advantage of using another credit card as a vehicle, known as a balance transfer. Even though I was in debt and sometimes I would even loose a little money, by doing a balance transfer, I was still able to save on interest. However, I can ultimately report that I've never taken out a personal loan. That has help preserve my good credit score.
I'm going for an 850 credit score! My current FICO score is 780. I have all but 3 excellent in each category. I just need more 7months of credit, 2 credit inquiries and these 2 late payments to fall off next year...
Great content Sebby! Could you please do a quartly or yearly quick round up video that addresses if this is still accurate or have things changed? Thanks!
I had a 850 score. Didn’t know about it until I filed bankruptcy losing my job. The lawyer told me after papers was sign. I was very angry. To date I’m fighting back. Thanks for info.
One good thing about this is to figure out who is likely to report your missed payments. Mom and pop landlords for instance might not report missed rent.
Perfect_ Fit: I hate to be blunt but my comment was and clearly still is way over your IQ level. Whether I'm a millennial or not has no bearing on that. Let me break it down, if 850 is the highest and I "break" the algorithm, 850 is no longer the limit and 900 will be proof of that. Thinking goes a long way in this world and age is no excuse for not doing your share.
Yet you cared enough to comment in the first place. "I'm Hannibal Lecter, so just in case you're thinkin' of savin' face You ain't gonna have no face to save By the time I'm through with this place"
Actually had some new info I didn't know. I'm definitely trying for 850. Highest I've had so far is 830. I need a few more accountst, and a few more years average age.
I am. I had a 610 credit score in April 2020 solely from high utilization. today, July 27, my credit score is almost 710. I paid off $7000 and my utilization dropped. My goal is to pay off the last $8000 by September. According to Credit Karma, my credit score will max at 806 because my cards are newish.
Has anyone noticed that RECENTLY (Mid 2018) having a bunch of new cards/inquiries really affects your score? I have gotten 12 new cards in the last 7 months, 3% Utilization (mostly hitting sign up spend) 100% Pay history, 0 Derog Marks, 11 Inquires depending on the bureau... everything clean as a whistle but all of the sudden, one month, my scores plummeted by 60+ points. Don't carry any balances unless 0%... just really weird. You mention get 21 cards... but my scores went from 796 down to 680... time to cool off on the inquires. Just glad to get the Ritz card the month they stopped taking Apps. Cheers Sebby!!!... your content is awesome... i tell EVERYONE about you!
I love your video. Very knowledgeable and honest and straight forward. I have a credit score a few points under 700 on all 3 reports. I have 2 paid off accounts in good standing. No negative/collection accounts. I am terrified of credit cards and do not understand how they work and how to use them to increase my score to 750. I do not want to make any mistakes with my credit/credit score/credit reports. I would like to get a loan to purchase a business and/ a home. How can I increase my score enough (what score would I need) to be able to borrow money to purchase an existing profitable business ? I hope to hear from you soon, either way, whether you are able to advise me or not. Thank you and have a wonderful and blessed day. 🙂🙏
devin dorsey well; I can tell you that a close friend of mine recently purchased an apartment on fifth avenue (NYC), and being over 2 million dollars; the bank was really interested in seeing an 800+ score on her and husband's credit number(s). She did buy and obtained the best interest rates available. Think of the big picture here.
devin dorsey actually it will get you something more than if you hadn't had the score that high; have you even tried? You didn't say. I understand that even if your interest rates don't get any better with an 850 compared to if you had 760, you would at least be able to borrow a greater amount than if you had a 760, and especially be able to enjoy more wiggle room for score fluctuations due to hard inquiries or anything that comes up to negatively affect the other areas of your credit score!
I've seen this happen before maybe your accounts are old and paid off, maybe your paying off really quick. The person had 797 score and couldn't get new credit because they hadn't used their credit in several years you have to utilize credit in order to get credit
how is it overwhelming ??? literally jjst keep $1 balances and never use them, stuff them in a envelope and forget about them and you'll have a 700+ score lol
i subscribed. Thanks for this video. learned a lot. its amazing how everyone needs credit. yet they dont just tell you the formulas of how the score works or tips to keep it high.
I love this!! 850 doesnt matter much but I heard if you make a loan, your credit score matters or if you open a new card, there is a higher limit on the card :) I dont know if its true though but i heard your credit score affect the amount that is available to you.
what makes me mad, is that they are 3 credit report agencies....and the banks look at all 3...I have in one a 798 but in 1 is 700...and when I went to get a loan..I didn't qualify for the better apr because they go with the middle number...just to show how this is a scam...
Can you do a video on home loans please..Im in the process and I want to mke sure I know as much as I can before I get into the 30 year loan..Thanks for all your videos :)
Mine is about 580, I have 2 collections on my credit report. I plan on getting a discover secured credit card. What should I do to improve my credit by 50-100 points in a year????? HELP I want to buy a house for my family
I had an 817 credit score. I'm certain this is the reason I beat all of the other applicants to rent the house that I'm in. The banks may not care about a 760 vs. an 817, but individuals still do.
Everyone's situation is different, but I think this model will generally get you into the high 700's or low 800's, not necessarily 850. We need to consider the installment debt utilization and 1-9% revolving credit utilization as well. 0% CC utilization is not necessarily the best. These things matter in hitting the 850 for those of you anal enough to care.
Great video! I'm fairly new to all this so I'm just trying to get a headstart and build my credit score up while I'm in college and things aren't too rough. I only have one card and have a score of 751, but get updates monthly saying my age negatively affects my credit score so I'll test out the things you mentioned and hopefully I can finish college with a score around 800.
You Missed a VERY IMPORTANT point that you could have touched on. Make sure you use each of those 21 cards a couple of times a year to keep them from closing from inactivity.
I know this video is a bit old to ask questions on, but i was curious about having 21 credit cards. First, does that mean you have to actually keep using 21 cards all the time? Dont credit cards automatically close if your not using them? Second, whats the best way in your opinion to help keep track of 21 accounts? (Even 10+ accounts seems like alot to me)
It takes 5 minutes every 6 months to keep them active: ua-cam.com/video/YfpBY0pMlHo/v-deo.html Set up alerts (I get an alert for anything above $1 to $10) and pay off the cards down to $1 (or in full) every week: ua-cam.com/video/dlIwa-VkzRU/v-deo.html
Thank you for sharing! One question. I have a credit card that I've never used. Would that be consider low utilization? Also, is it bad not to use? I will use it, but currently I'm using another card for the moment. Thanks!
Ideally, you would use $1 a month and pay it off in full but it doesn't really matter at a certain point. I have a bunch of cards that aren't really used but still help my score (average age of accounts + total accounts).
My wife got 655 with 65k salary for Amex SPG - Limit 3k.... I got 650 with 100k for Chase Sapphire Preferred - Limit 6k. Both in the last 3 weeks from todays date.
I applied for a home loan, they asked my credit score, I told them it was excellent then they told me the rate I was eligible for. Once they checked my score the rate went down. They said it’s rare but often times when it’s that high, they’ll give a better deal. My credit score was 840. I don’t believe it makes a big difference as long as it’s above 750.. but sometimes it does.
love your channel!! if you pay off the balance before the statement hits, do you still get the credit for minimum spends? and also reward points? or do you need it to hit the statement to get those benifits? thanks Sebby!
It about time.. Someone who jumps in and tell use the solution right away. This guy does not waste time with a bunch of talking.
Yes i do agree very nice vid so informative and quick easy tks Sebby
In my opinion, this guy puts out too many technical facts out too fast. It's as if his main priority is to sound smart rather than for the average view to grasp what he is saying.
I went from a bankruptcy to 814 in 9 years. I worked my butt off. I started with a couple of secured cards and now have 21 cards one with a limit of $21,400. Never thought I would live to see the day. lol
21 credit cards or 21 accounts ?
I got ONE secured credit card 😂😂😂😭 no one judge me!!! I’m repairing my credit 💯💯💯💯
Update ?
An easy way to build credit is use a credit card for a dedicated, recurring payment such as your cable bill. Pay the bill using your credit card and set the auto-pay feature to pay that card in full each month. Think about how many auto-pay accounts (utilities, cell, insurance, etc.) you might have that could be building your credit and get a card for each one. You are already paying these monthly so why not use these recurring payments to your benefit and increase your credit score.
Michael Waters Didn't think about this.Very true .Thank for this information.Going to do this ASAP!
I started doing that for all my bill except my rent and my monthly credit score increase is awesome!!!
Great idea, thank you!
@FURinTeeth I agree 100%. Autopay while collecting unemployment or while being underemployed can possibly destroy your finances. Autopay is only for the financially stable.
@@luxurycardstore Why are people in the comments of an 850 credit score video who are not financially stable? Lmao
As one who has been in the mortgage and finance business for more than 30 years I can tell you that you can take that 850 score and $2 and buy a cup of coffee! You get nothing for having a perfect score. You either have excellent credit or you don't! If you have a 770 score that gets you the same as 850! So, if you want to beat your brains out trying to be perfect, go for it! You know the results!
There is some usefulness to a 850 score vs a 770 score. If you ever get a late payment or have anything else happen that negatively affects your score the 850 provides you with a buffer zone so you can handle any negative impacts better.
As smart as a wall..
I'm on 745 now. Only 8 months ago I was on 640, freshly rejected by Chase freedom after which my 700 score took a nose dive. I was new in the game then with only a 6-month-old secure credit card of $500 limit. Now, I know so much about credit it's almost an obsession. 3 CC's now with a combined $8250 limit. But I am still not gunning for an 850. I just want to be in the excellent range which is 760 and higher. I am inching closer to it with each passing month.
My (probably crazy) thought process is that it's a hobby that actually helps me travel for free and gives me value back (while increasing my score).
In contrast, other hobbies (car tuning, audiophile, etc.) are all related to spending money.
For both, you're still optimizing, but it's the outcome (value inflow + happiness vs. value outflow + happiness).
Congratulations!!!
What 3 credit cards do you have if you don’t mind me asking?
@@kingjay3454 Oh wow. My original comment from 2 years ago kinda aged well. Right now I'm on 795 with 6 CC's with a >$62k in combined limits. My first 3 cards were PNC visa rewards card, capital one platinum card and discover students card. Since then though, I converted the capital one to quicksilver and the discover to the 5% cashback card. Also added 3 more cards one of which is the initially rejected chase freedom. My new obsession is investing lol.
Kingsley Ezeanaka Awesome! Glad I got the update, you’re doing amazing! Keep up the great work!
You'd be surprised how quickly 9 years can fly by.
Thanks buddy this was great. I’m already above 760 credit score by applying your strategy and I never knew all of this when I started. I actually started with a 610 and now I’m. 760. Took 8mos but can’t believe I was missing so much. Thanks again.
Congratulations! Your 850 FICO® Credit Score on 08/29/17 is the highest score
possible and does not have any associated key factors.
Just graduated college with a 797!
Damn! I'm so proud of you Danson.
You rock!
111 likes
really good work! now go make money teaching other broke students
🎉
I wish someone taught me this stuff when I was 17 so I could have gone out and applied for cards as soon as I turned 18.
Well, the trick to that is that you need credit to build credit. So the average 18yr old is stuck getting all the BS CCs
Best credit card advice I've gotten. I didn't really understand that if I'm approved for 1k, I should only spend $100.
U can spend $1000. Just pay it off before the statement closes and your utilization rate will be 0%
Yeah you can spend $1000 just make sure to pay it off before the next closure date..
Having a balance of $100 before the next closure would denote 10% utility rate..
one very important factor... Most business cards are not reflected in your credit score, unless you default on the card and they have to exercise the personal guarantee. So while I have a substantial amount of credit on personal cards, if I am going to carry a balance, I use my business cards for this activity. This helps keep my credit usage score extremely good. Be careful because this may not be true for all cards, but from my experience it holds true for most. They usually don't really check for your actual business registration or activity, but you can always register as a Sole Prop with your state and use this to apply. Amex is a very good option. Even the platinum cards.
Nice video , very informative. I had score of 850 last time I applied for a loan . All the things you outlined are exactly what it takes to be perfect. Usually people do not think of or worry about their score until they apply for something and are denied.
I have had the discover it student card for 6 months and my score is 771. My report shows that the only bad thing I have is a 6 months credit history and I only have 1 card. Other than that my utilization is 2% and I have no late/missed payments. I have learned these habits from you and I thank you for all your credit card info.
Hi Sebby, I'm a new subscriber to you and I'm so mad because I've worked so hard since my first bankruptcy from my first husband that put us into debt in 1998 now my second husband created debt also and I had to file again. Each time I Rose my credit score in the 800's and for the last year my credit score was 859 I was shooting for 900 and now everything's been wiped out again. So this time I'm not going to have this happen again. I'm 61 years old and need to have good credit. I didn't need 20 Credit cards to get to 859. And it took me nine years to get the score because I had the score for at least a year. I only had two credit cards.. Anyway I'm enjoying your videos take care, Carrie
I'm shooting for the 800's. I just want enough tactical flexibility that if I do falter or something bad happens, I might be able to recover well.
Thanks Sebby and everyone in the comments for helpful tips. Wish all this info was available when I was 20! I'm 30 now and along with my brother we have finally achieved a credit score of around ~825 after years of meticulous credit "gardening". After owning a business for over a decade, I just wanted to throw this out that banks are more likely to approve you for a loan or line of credit the higher your total credit line is at. e.g. They prefer someone with a 750 score with $300k in credit line over someone with an 850 with only $3k to their available credit. Going by experience, you may not get the best interest rate, but your chances are higher if you ever need capital.
Yes sir. I am 32yrs old and I have 815 CS. Im going for that perfect score forsure.
I have an 850 score, I was able to do it because I've always been financially responsible. I followed simple rules never spend money you dont have, pay your bills off early and never ever miss a payment, and get a few different types of credit and always keep your first credit card you got open. I did cancel one card but I had 2 other cards & a LOC. I use to have a balance but I paid off huge chunks by doing a balance transfer to a card with 0 interest for 6 months, so I managed to pay off way more principal!
You don't want 0 utilization, but if the balance is too low ( like a dollar) the bank might still report it as 0 and write off the dollar. ( I've had it happen to me)
That's 100%. I called discover about this and the representative said you'd probably have to leave around $10 for them to actually not waive the fee. That seems quite high to me.
0% utilization is totally fine, that's a myth.
@@davide4607 0% utilization is bad, it shows you don't use the card at all. You don't want to prepay before the bill posts. You want it to post a bill, when it shows a bill you pay the full amount off.
@@zonk1477 Not true. Banks report your card as inactive if you literally don't use it at all. Using it but paying it off to show 0% doesn't report an inactive card.
0% utilization is myth.
Keep this in mind Higher your credit score lower the interest.
I'm an 850 & in my mid 40s. Learn young. It pays in the end.
This is a great video. I have never had this explained to me this thoroughly and simply before. Thanks for the info.
OUT OF ALL THE SITES, YOU ARE THE SMARTEST, AND THE EASIEST TO LEARN ABOUT CREDIT..
VERY INTERESTING... THANK YOU...
Good advice. However, regarding getting 21 credit cards and then waiting 9 years, there may be one catch that you didn't mention. Many (most/all?) credit card companies require you to actually use the credit card once in a while. Failure to use the card for a large period of time can/will result in the credit card company closing your credit card account, possibly without notice. If you liked that card and wanted to keep it going, you'd need to re-apply for a new credit card, setting the amount of time for that card back to zero. I mention this because I learned this the hard way. I had a credit card for 13 years - it was my longest-owned card. However, I didn't use the card for a couple of years, and the credit card company cancelled the card - without giving me any notice and without giving me the option to keep it going. So that "get a bunch of cards and hold on to them" plan may require you to use every one of those cards periodically - perhaps once every 3 months - even if it is just to buy a candy bar or something. So that's 21 credit card uses every 3 months - not impossible to manage, but not trivial either.
Because of your advice....I now pay off my CC at the end of everyday I spend on them. Keep teaching bro✊ also nice bottle in that brown bag in the backdrop🥃
Then, why charge?
FNUkwn LNUkwn exactly
I thought he said not to pay it off, but to leave at least a dollar in there.
sure kleen - If you let a statement get issued with a small balance and then pay it in full, it will get reported to the 3 credit bureaus that you paid down your account. That increases your score. By paying it off everyday....it looks like you don’t use it to them.
FNUkwn LNUkwn For the rewards. Pay attention!
Your direct & to the point! I love it....Great info....But, anything over a 700 is just fine in my book!
Business opportunity. someone manufacture and sell 850 plaque's.
"All for the low price of $850!"
A perfect credit score isn't any better than an 800 credit score. Glad to hear Sebby say this right off the bat. When someone doesn't try to bullshit me right off the bat and it makes me want to listen to the rest of their message.
Thank you Sebby for this, you have already helped me improve my credit score in the past year. In hoping I can make it to the 800's
My credit score just shot up, and a month faster than I expected. I made a large payment on my biggest debt, a few hours before my statement was finalized. Even though my free credit report said they report every 1st of the month, my July 25th credit score reported the statement balance from July 18th. Nice to know, and it was instant satisfaction from paying my debt off. One of my other cards truly is about a full 7 weeks behind in actually reporting.
I always thought that getting a better credit score was impossible until a few weeks ago... I had discover increase one of my credit lines by almost 1500 bucks, and that alone increased my credit score almost 50 points, and I opened up a few more lines, and after a couple months I hit 720, all up from about 650. I am pretty young which is why the changes are so drastic, but still really cool to see that happen
A very informative video.
For those just starting to explore this world, I echo Sebby, set up Minimum Pay Auto-pay on all of your cards. Also, respect your budget/pay days and request specific due dates for all cards. Good luck!
Dear Sebby: Thank you for the informative concise videos. You have helped me so much. On the way up from 700 to 850. Greeting from Alameda:)
F 850. I'm just churning credit cards for the extra 150 for 500 spent.
Wtf are you doing on this channel
This video is AWESOME! I never knew half of this stuff. Sharing it with my kids too! Great job, extremely informative!
Total accounts doesnt mean just credit cards. I have 8 different school loans ranging from $2-5K and each one counts as an account.
I was told by a Citibank rep, that inquires after 6 months are not calculated as much as 1-5 months.
Please make a video about how often you open new cards, and cancel cards. It seems like you have the Chase Reserve, Altitude Reserve, Amex Platinum, and Ritz Carlton...do you plan on holding on to all of these? Thank you!
Bri-guy I believe he and Credit Shufu have such videos in their archive. Basically, never cancel your cards--try to product change them to no annual-fee cards. Canceling cards--especially much older cards, will significantly hurt your credit score. The more available credit you have, the better your credit score is. Also, when you cancel cards, you may place yourself at risk of not receiving bonus points from a bank's other cards.
piper998877 hey, thanks for the reply. I know I've seen similar videos in the past on their channels, but I don't believe they discussed their thought process of "I'll apply for a card every x months" or "I'll start my next card after I meet the minimum spend on this one" etc. so I'm more so just curious about the application strategy and which of the "premium" cards he holds on to
piper998877 will they still use ALL of the cards or just have them around?
you will need to use them infrequently so the bank won't shut the card down. But you can just go to a vending machine and buy a candy bar or something.
I want to be able to regain my freedom ans social status help me to do it as quickly as possible from the high 500s.Also is paying off credit cards and keeping really help move my score my 750 dream score along?
exactly what im doing. had 500 credit. got a secured card. boosted me up to 700. after a year i got another 10. now im just sitting on them. next is a loan so i can make installments. they like to see that.
I really dig this video I saved it and I will watch it whenever I need. I'm trying to approve my score. Thanks
lol, already pretty much there, I just pay everything on time without bothering to check my score since I honestly didnt care that much. When I did finally check my score, it was in the upper 700s.
From an investing standpoint, after you get around the 800 to 800+ mark you do get much better loan offers and rates, but for the average person it wouldn't make a significant difference.
Hey thanks for the video and going in depth talking about credit card Factors! I had a question when you said paying off your card before the end of the statement to get a 0% Utilization Do you have to make a payment on the card To still get 0% Utilization To get you an excellent credit score? Explanation - So if I got nothing on my credit card would I still be building my? credit
I'm happy with 790 right now, but going up to 800+ will look cool. still waiting
21 accounts include debt outside of credit cards, correct? Mortgages, PLC, personal loans, car loans.. All of those count. If all of your accounts are of the same type ( e. g. Credit cards) its only one type of debt and ranks you low on the credit mix
I like this guy he is right on. It depends on the banks. I was late and backed up on a couple of credit cards and I received an inherence and was actually late on some of my credit card "BUT" because I paid them off early and had a substancial amount of money in three financial institutions my credit score went from 650 to 850..Like he said, big deal, the world didn't stop, the marching bands didn't come down the street, wall street didn't interview me, and all in all it didn't really matter, !!!!! He is right !!!!. When I went to buy a home, the mortagage company didn't even look at my credit score because I put down 20% on the home.(I wished now that I would have just paid in full - now property taxes, school taxes are going up--and I escrow) ..I was coming in with equity. I was a serious a serious buyer and the 20% spoke more to them than credit score. I also financed the house through one of my financial instituation so closing went fast. The best way to go is not to deal with credit cards but if you do, pay them off before they are due---if you can......Yea good luck on that because you never know when the air condition in on the house is going to break down and cost you $4500 for a new one, student loans, and all the unexpected.... That's why America today is $1 trillion in credit card debt........When government starts ( and they have ) to drop tax rates from 25% down to 20% or lower that's when I believe you will see credit card debt drop off. You will be keeping more of your hard earn dollars.....and living less on credit.
Absolutely great info without indirect chit/chat very good thx
Golden Nugget - One thing that people also don't realize is taking out a "personal loan" will hurt your credit score. Many of the banks send out SPAM trying to get you to take out a personal loan. They target individuals that have "decent" credit, but are in debt. They say it will help you consolidate the debt, and you can take advantage of a low interest rate(which is good), and maybe its the best decision for you at that time. The best thing to do is to take advantage of using another credit card as a vehicle, known as a balance transfer.
Even though I was in debt and sometimes I would even loose a little money, by doing a balance transfer, I was still able to save on interest. However, I can ultimately report that I've never taken out a personal loan. That has help preserve my good credit score.
shessshhh I'm at 815 ....need to continue my journey. Guess it was the inquires of I approved. Great advice !
That was the most informative and useful video I have ever watched in regard to credit.. You're Awesome.. ☺
hahaha "If you still want that 850, See you in 9 years" omg that was the best
I'm going for an 850 credit score! My current FICO score is 780. I have all but 3 excellent in each category. I just need more 7months of credit, 2 credit inquiries and these 2 late payments to fall off next year...
Great video Sebby! I’m so glad I subscribed! Keep up the good work bro💪🏼
Great content Sebby! Could you please do a quartly or yearly quick round up video that addresses if this is still accurate or have things changed? Thanks!
Your a rock star ⭐️ Sebby
I had a 850 score. Didn’t know about it until I filed bankruptcy losing my job. The lawyer told me after papers was sign. I was very angry. To date I’m fighting back. Thanks for info.
That was laid out very well. Thanks.
One good thing about this is to figure out who is likely to report your missed payments. Mom and pop landlords for instance might not report missed rent.
850 isn't good enough, I'm going for a 900. My credit excellence will break the algorithm :D
Killer2600 Industry specific FICO does go to 900.
Perfect_ Fit: You should stop and think about that.
Perfect_ Fit: Calling someone an idiot or stupid when you yourself refuse to think. Oh the irony.
Perfect_ Fit: I hate to be blunt but my comment was and clearly still is way over your IQ level. Whether I'm a millennial or not has no bearing on that. Let me break it down, if 850 is the highest and I "break" the algorithm, 850 is no longer the limit and 900 will be proof of that. Thinking goes a long way in this world and age is no excuse for not doing your share.
Yet you cared enough to comment in the first place.
"I'm Hannibal Lecter, so just in case you're thinkin' of savin' face
You ain't gonna have no face to save
By the time I'm through with this place"
"I'll see you in 9 years" LOL!!! That was hilarious!! :D
I have an 813 fico score that goes up and down 798 -817. It’s been a real struggle for me to achieve my 850 goal. Pls advise.
Love the haircut Sebby. 1-Fade high and tight looks dope
Actually had some new info I didn't know. I'm definitely trying for 850. Highest I've had so far is 830. I need a few more accountst, and a few more years average age.
I am. I had a 610 credit score in April 2020 solely from high utilization. today, July 27, my credit score is almost 710. I paid off $7000 and my utilization dropped. My goal is to pay off the last $8000 by September. According to Credit Karma, my credit score will max at 806 because my cards are newish.
I'm in the process of rebuilding now.. this is an awesome channel!
I have 750 credit score was satisfied untill i watch this vídeo going for 850!!!
I’m at 791 right now and can wait !! Is game with myself .. just for fun !
835 here and can't budge it. Guess this is as good as it gets for us.
Thanks for this Sebby ! I’ll be happy with 800 😎
Has anyone noticed that RECENTLY (Mid 2018) having a bunch of new cards/inquiries really affects your score? I have gotten 12 new cards in the last 7 months, 3% Utilization (mostly hitting sign up spend) 100% Pay history, 0 Derog Marks, 11 Inquires depending on the bureau... everything clean as a whistle but all of the sudden, one month, my scores plummeted by 60+ points. Don't carry any balances unless 0%... just really weird.
You mention get 21 cards... but my scores went from 796 down to 680... time to cool off on the inquires.
Just glad to get the Ritz card the month they stopped taking Apps.
Cheers Sebby!!!... your content is awesome... i tell EVERYONE about you!
That's a huge drop. Make sure there's nothing weird being reported.
Did you finish a car payment / student loan and it became "closed"?
Ryan L. Alexander inquiries will have less impact 6month then after 12 it’ll no longer affect it at all. Credit score will bounce back then
Ask Sebby no, didn’t pay anything off... just a bunch of cards and most likely NOT in the best order.
I love your video. Very knowledgeable and honest and straight forward.
I have a credit score a few points under 700 on all 3 reports.
I have 2 paid off accounts in good standing. No negative/collection accounts.
I am terrified of credit cards and do not understand how they work and how to use them to increase my score to 750.
I do not want to make any mistakes with my credit/credit score/credit reports.
I would like to get a loan to purchase a business and/ a home.
How can I increase my score enough (what score would I need) to be able to borrow money to purchase an existing profitable business ?
I hope to hear from you soon, either way, whether you are able to advise me or not.
Thank you and have a wonderful and blessed day.
🙂🙏
I was going for 850... ..but after watching this, I figure it's too much work for so little outcome.
Thank you
21 cards!? 🙄 the credit companies need a slap in the face, I bet the people in the credit companies don’t have 21 cards 🙄
Love the channel!
Question 1: Are all these credit scoring tips the same for Canada as in the US?
I have achieved an 850 for the last 2 months. It has not gotten me a thing
devin dorsey well; I can tell you that a close friend of mine recently purchased an apartment on fifth avenue (NYC), and being over 2 million dollars; the bank was really interested in seeing an 800+ score on her and husband's credit number(s). She did buy and obtained the best interest rates available. Think of the big picture here.
devin dorsey actually it will get you something more than if you hadn't had the score that high; have you even tried? You didn't say.
I understand that even if your interest rates don't get any better with an 850 compared to if you had 760, you would at least be able to borrow a greater amount than if you had a 760, and especially be able to enjoy more wiggle room for score fluctuations due to hard inquiries or anything that comes up to negatively affect the other areas of your credit score!
devin dorsey let me check send me your SS I don't believe you ....hahahahaha
I've seen this happen before maybe your accounts are old and paid off, maybe your paying off really quick. The person had 797 score and couldn't get new credit because they hadn't used their credit in several years you have to utilize credit in order to get credit
Haha, truth
21 Cards?! Jesus, this sounds overwhelming lol.
OrisueCrew No 21 accounts. I have 17 student loans and 2 credit cards so I have 19 total accounts.
Yeah it can be other accounts like mortgages, student loans, car loans etc
4 is plenty for me
how is it overwhelming ??? literally jjst keep $1 balances and never use them, stuff them in a envelope and forget about them and you'll have a 700+ score lol
MegaBall PowerBall if I’m not mistaken after you pay your loans off they won’t count as an open account anymore.
i subscribed. Thanks for this video. learned a lot. its amazing how everyone needs credit. yet they dont just tell you the formulas of how the score works or tips to keep it high.
Great video. Can’t wait to go my high school reunion with “850 credit score” on my name tag.
I love this!! 850 doesnt matter much but I heard if you make a loan, your credit score matters or if you open a new card, there is a higher limit on the card :) I dont know if its true though but i heard your credit score affect the amount that is available to you.
what makes me mad, is that they are 3 credit report agencies....and the banks look at all 3...I have in one a 798 but in 1 is 700...and when I went to get a loan..I didn't qualify for the better apr because they go with the middle number...just to show how this is a scam...
Can you do a video on home loans please..Im in the process and I want to mke sure I know as much as I can before I get into the 30 year loan..Thanks for all your videos :)
Mine is about 580, I have 2 collections on my credit report. I plan on getting a discover secured credit card. What should I do to improve my credit by 50-100 points in a year????? HELP I want to buy a house for my family
I had an 817 credit score. I'm certain this is the reason I beat all of the other applicants to rent the house that I'm in. The banks may not care about a 760 vs. an 817, but individuals still do.
My mom is 843. She gets a lot of compliments... Props to her.
Everyone's situation is different, but I think this model will generally get you into the high 700's or low 800's, not necessarily 850. We need to consider the installment debt utilization and 1-9% revolving credit utilization as well. 0% CC utilization is not necessarily the best. These things matter in hitting the 850 for those of you anal enough to care.
Thanks for the info bro. I appreciate it!
Great video! I'm fairly new to all this so I'm just trying to get a headstart and build my credit score up while I'm in college and things aren't too rough. I only have one card and have a score of 751, but get updates monthly saying my age negatively affects my credit score so I'll test out the things you mentioned and hopefully I can finish college with a score around 800.
It's definitely a "take x steps back and x+y steps forward" approach early on, but I think it's the logical/optimal move.
You Missed a VERY IMPORTANT point that you could have touched on. Make sure you use each of those 21 cards a couple of times a year to keep them from closing from inactivity.
I know this video is a bit old to ask questions on, but i was curious about having 21 credit cards. First, does that mean you have to actually keep using 21 cards all the time? Dont credit cards automatically close if your not using them? Second, whats the best way in your opinion to help keep track of 21 accounts? (Even 10+ accounts seems like alot to me)
It takes 5 minutes every 6 months to keep them active: ua-cam.com/video/YfpBY0pMlHo/v-deo.html
Set up alerts (I get an alert for anything above $1 to $10) and pay off the cards down to $1 (or in full) every week: ua-cam.com/video/dlIwa-VkzRU/v-deo.html
Great video. I’m a professional and you did a great job.
😂😂😂😂😂 "don't hate the player, hate the game." Classic.
Great video, you are a good instructor.
Learned something today, thanks!
Thank you for sharing! One question. I have a credit card that I've never used. Would that be consider low utilization? Also, is it bad not to use? I will use it, but currently I'm using another card for the moment. Thanks!
Ideally, you would use $1 a month and pay it off in full but it doesn't really matter at a certain point. I have a bunch of cards that aren't really used but still help my score (average age of accounts + total accounts).
Seb, could you make a video about what factors (credit score, salary) you need to consider when applying specifically for American Express?
40k+ salary ideally + >700 score ideally.
I've seen people with 35k and 650 get the Amex Platinum but yeah, huge YMMV.
My wife got 655 with 65k salary for Amex SPG - Limit 3k.... I got 650 with 100k for Chase Sapphire Preferred - Limit 6k. Both in the last 3 weeks from todays date.
@@AskSebby Seb when should i pay off my monthly platinum amex balance for the lowest utilization????
I applied for a home loan, they asked my credit score, I told them it was excellent then they told me the rate I was eligible for. Once they checked my score the rate went down. They said it’s rare but often times when it’s that high, they’ll give a better deal. My credit score was 840.
I don’t believe it makes a big difference as long as it’s above 750.. but sometimes it does.
Out of curiosity, what bank?
I was one going for an 850 credit score until you told me that 750 and 850 doesn't make a difference. Thank for the information.!
This video was helpful and informative.
Thank you
love your channel!! if you pay off the balance before the statement hits, do you still get the credit for minimum spends? and also reward points? or do you need it to hit the statement to get those benifits?
thanks Sebby!
ernie carbajal Great question, I hope we get an answer soon!