How To Get A PERFECT Credit Score For $0

What's up, guys? I'm Graham, so it finally happened and we're celebrating today because for the last nine years my

credit

score

has never gone above the legendary

score

of eight hundred. I once reached seven ninety-nine, but I could never surpass it. past, so it was until today, we did it, the lords of

credit

have granted you their greatness and my score has finally surpassed the eight hundred mark, which by the way is a threshold at which most people would consider it to be a

perfect

score , which also means I was finally able to make a video about it on YouTube on how to get a

perfect

score.

Here we explain why all this is important. First of all, your credit score is really just a report card for how well you manage your money, like you would in school. Do well on your exams and tests to get a good grade, but in life manage your money responsibly and get a good credit score, and having a good credit score is not just something you look at online and then go and do. videos on YouTube. but you can do it, although it has a pretty practical purpose where it could save you a lot of money and, better yet, it could end up making you a lot of money.

Having a good credit score means you can get the lowest interest rate at any time. If I want to leverage your money in real estate and business or just life, here's how I can get thousands of dollars back and free closing costs every time I refinance or purchase a property. Halle gets such low interest rates every time I go to buy something. which is effectively like I'm getting free money, that's also how I get approved for almost any credit card sign up bonus I ask for, which is just another way to get more free stuff, so I promise I won't wait, I guarantee this video .

It could easily save you or make you a few thousand dollars at the very least if you really stick with it and do it, it won't take you much time, it's very easy to do and the best part about all of this is that it won't take you much time. It will cost you some money out of your pocket to get a score of 800, so it's completely free to do it again, it will just take a little time and all I ask in return is a quick like on the video to help with YouTube's algorithm and If you're feeling a little generous today, maybe just leave a comment below to help make it better too.

If you don't care, just don't like it and comment and that's it. Otherwise, enjoy the video now first to understand how you can get a perfect score. You have to understand how the system scores you in the first place. Why say it? You have a class that grades you differently in terms of assignments, tests, assignments, attendance, and whether you actually pass or not. button your credit score ratings, you also want several different factors, so if you want a perfect score, you need to do well on all of them. First, your history of on-time payments and this makes up 35% of your credit score.

Now this one is incredibly simple, just don't miss a credit card payment and never pay it off late to get a perfect credit score. You will almost never need to miss a payment, otherwise that could ruin everything. Now, this is how it works. How is it calculated, the credit gods look at all your on-time payments and then divide them by your total payments and then from that they calculate what percentage you paid on time. Here's just an example, let's say you've had a credit card for 60 months and you end up missing a payment, which means the credit lords take 59 on-time payments, divide that by 60 total payments and you have a payment ratio of ninety. and eight point three percent and as you can see in the Credit Karma score calculator, that puts you in yellow, which is not good, it is unacceptable if you want to get a perfect score;

However, in a different example, let's say you've had two credit cards each for sixty months and you end up missing a payment. Well now you have a total of 120 credit payments between two credit cards which means they accept 119 payments on time, divide that by 120 total payments between the two cards and that means you have paid 99.1% on time , which puts it in the green category as far as Credit Karma is concerned which is a little better and is one more example, let's say you're new to building credit, you have a credit card, you've had it for fifteen months and you end up missing a payment, well, same calculation. still applies, you have fourteen on-time payments, divide that by 15 total payments and that means you've only paid 93.3% on time, which is bad, that's really bad, you're in the red according to Credit Karma, which It means you can't pass. you can't collect $200 and have to go straight to jail, it's that bad, but that also means you can prevent this from happening not only by not missing any payments in the first place, but also by having more credit available for longer . period of time so that that way if you miss a payment it ends up affecting you much less, like having 10 credit cards open over five years would give you 600 payments total so if you end up missing one by mistake it still means ha paid 99.8% on time, which is not the end of the world.

Now, when it comes to paying a credit card on time, the very good news is that to be counted as an on-time payment, you only have to make the minimum payment each month, which most of the time is between twenty-five and fifty dollars a month, so even in the worst case scenario, if you can't pay your credit card bill in full, just make the minimum payment on time every month and that will help keep your score intact in this category which, like I said, all of this is the most important part of your score, making up thirty-five percent of what it is, just ask Dave Ramsey, plus that second factor that makes up your score Credit score is known as what is called credit utilization, which represents 30% of your score now.

To get a perfect score, the credit bureaus just want to see that you aren't maxing out all your credit. your credit cards and that you are only using a small percentage of the overall credit you have available. Ideally you would spend less than ten percent of your total credit limits, showing the all-powerful credit gods that you don't need all the money they have given you because you are very good with money now if you are confused this is how this works and that's how it's calculated let's say if you have a credit card with a limit of ten thousand dollars and you go out and spend six thousand dollars and after that you just go and make the minimum payment well at that point you do the calculation and you're using the 60 % of available credit you have, which puts you in the red category here, which is bad and they see you as a riskier borrower because you have a higher balance and that makes the credit agencies very angry and on the other hand On the other hand, they will lower your score if you have the same credit card with limits of ten thousand dollars.

You spend six thousand dollars but pay it in full when it is due, that means you now have zero dollars on a ten thousand dollar line of credit, which shows that you have zero percent credit utilization, which makes everyone very happy. credit agencies and gives you a green certificate. category now there are a few ways around this because it's not the dollar amount that matters to the almighty credit gods, it's the percentage of credit that you actually use, which means that if you have a three hundred dollar line of credit and you go out and you spend $300 that just means you've maxed out your car, you have 100% credit utilization and that's very bad, but if you go and spend that same $300, even though this time you have a $30,000 line of credit, that shows that only you have a 1% credit.

Utilization is really good now, one of the techniques I use to help with this is to simply have a lot of credits available with really high limits. For example, right now I have over 12 credit cards and many of them have credit lines of over $30,000. I'm never actually going to spend that much money, but it helps me in the case where I spend $10,000 or more on a home remodeling estimate and can still show very low credit utilization because I have so much credit. It's already out there for me now that there is a myth out there that suggests you need to keep a small balance on your credit card at the end of each month so the credit bureaus have something to report and this is false.

Carrying a balance on a credit card will not help you improve your score and, if anything, will cost you more money and interest, so it is always best to pay it off in full before it expires and never carry a balance on the credit card. credit to you. If you want to get a perfect credit score, it's very important that you try to maintain a balance of 5% or less of your available credit if that doesn't mean you can't go out and spend more than 5% of your credit. your available credits, but it does mean you have to pay them off before the statement cycle ends so that the credit bureaus have less money to report on now, plus it will help you get more credit cards as counterintuitive. that is, because that will help increase the total credit limit you have available, which will decrease your overall credit utilization, and finally, I strongly recommend that you request a credit limit increase every 6 to 12 months on your credit cards this way.

We'll be constantly reducing your overall credit utilization and helping to improve your score, so remember not to spend more money just because you have more credit available. I think it goes without saying that all of this really should be done. as a tactic to help increase your credit score and not go out and buy more things you don't need, like this cool pinball machine from eBay and finally, one more note I want to leave with this: how much money you keep is a The balance of a credit card will actually only be temporary. This is one of those things that will only affect your score until you pay off your credit card and then your score will end up going up, so if you have high utilization. interest rate right now or in the short term, it's not the end of the world and your credit score will hit as soon as you pay third place.

They say length doesn't matter, but when it comes to calculating your credit score, it does. Because 15% of your overall credit score is made up of the average length of your credit history, this simply means that the longer you've had credit and the sooner you start, the better. This is one of the reasons I highly recommend people build their credit. credit as soon as possible, even if that means getting a credit card on the day you turn 18, this will build the entire foundation of your credit history from the beginning. Now it's very important for me to distinguish here that this is calculated by the average length of your total credit history and not the total length and let me explain to you that it is a savings to open a credit card four years ago, that would mean that your average credit history shows four years, but if you opened that credit card four years ago and then opened another new credit card today your average credit history would now be reduced to two years remember why you only take the average the same also applies if you end up closing a line of credit above because some people think it's a good idea to just close old credit cards that they no longer use, this could be really bad because once you close an old credit card, even though it will continue to appear in your account for seven to ten years, it could reduce the average age of your accounts after that. and then you would have to wait even longer to build back up, so my recommendation is that you first start building your credit as soon as possible and maintain all those accounts and your good reputation for as long as possible.

This will help you build a backup. a solid strength of long-standing credit history, so when you apply for new credit, it will not affect your account as much as you already have a lot of long-standing credit history and because of all that, it will be reduced. your score is much lower and when it comes to doing all of this, really the only thing you can do right now is just wait. This part of building your credit just takes time, so don't be impatient if you just got credit. card and I made some payments on time and I still don't have a score of seven sixty, patience goes a long way with this one, so sometimes you're going to have to wait for this one and in terms of how long you're going to need. to wait according to the credit karma guide they want you to have nine or more years of average credit history to get the best rating and even for me my average account length shows just over four years due to all the new credit that I've drunk.

It came out recently and it still doesn't make a big difference because it only makes up 15% of your total credit score and I've done very well in all the other categories. The fourth aspect if yourcredit score is how many lines of credit you have. open and this represents 10% of your score. Now this is one of those things that you would think doesn't make any sense, like why would you go and reward someone for going and opening more credit cards and taking out more loans. The person who really doesn't need any credit and doesn't have much would have the highest score, but if you think that way you would be wrong and here's why in the beginning, the more credit you have, the higher your credit limit will be.

It means the lower your overall credit utilization, which means the higher the score you'll have, if that makes sense. Second, by having more credit available, you will be able to show more on-time payments, which, like I said, is going to happen. To help raise your score too and third, having a mix of credit, such as having a mortgage, a car loan, and a credit card, shows lenders that you can responsibly handle different types of debt without defaulting on them. This all sounds like pretty retrospective thinking and a lot of it reminds me of the mindset. that we are only going to lend money to people who don't need money because they are the ones most likely to pay us back and that, by the way, is very true, banks love to lend you money when you don't need it and as soon as possible. since you need the money you are considered a higher risk because you need it so really this is something you have to play, this is how the system works and according to Credit Karma they want to see you with 21 lines of credit or more to have the perfect score and for most people I get the feeling this will take a long time to achieve but I wouldn't stress too much about it, it only makes up 10% of your score although I would recommend it.

Your goal is to diversify your credit profile over time because in the long run that will help you get a credit score above 800 and finally, fifthly, we have the last component of your credit score which makes up 10% remaining and that would be the total amount. of inquiries on your credit report now, that's how it works. Every time you apply for new credit, it is reported to the credit bureaus and appears on your reports. This is what is called a hard inquiry, this helps lenders keep track of how many times you. You go and ask for credit and, in general, the more times you go and ask for credit, the riskier you become as a borrower.

This is because lenders are worried that you will suddenly go out and apply for new credit cards. and loans and they're worried that maybe something has happened that's causing you to do this, like thinking why you just got three credit cards and on the car loan today you're running out of money are you suddenly going to max it out? going out and then not paying it back, this all seems worrying to lenders, so the more hard inquiries you have on your credit report, the lower your score will be now, on top of that, if you are getting credit cards and getting your loans That will lower your average credit history, which could end up lowering your score even further.

That's why so many people end up telling me that they just opened a new credit card and suddenly their score. drops like 50 points, so no, it wasn't just the inquiry that did it, it was also the reduction in the total average length of your credit history that affected your score and the inquiry was actually just a small component of That, however, the good news is that all of this is actually a temporary thing because hard queries only appear on your report for the first two years and only affect your score for the first twelve months, after that they discard your report and it's like it never happened in First of all, the other good news is that if you are looking for a car loan or mortgage and you will need to run your credit several times with different lenders to get different rates, the FICO scoring method will usually just group all of them together. those inquiries together as one and therefore will only affect you like if you ran your credit score once, that way you can go to five different lenders to get a mortgage and have them all check your credit five times and it will only count . as you run it once of course as long as you do it within a relatively short period of time with only a few weeks apart, this is to promote purchasing rates for you as a customer without penalizing you to your credit score , but again, this only makes up ten percent of your overall credit score, so it's pretty minimal, but ideally if you want to get the green credit karma score, they want you to not have any hard inquiries in the last few twelve months.

Realistically, I don't think you have any queries in the last twelve. months is pretty ridiculous, especially if you're out there getting credit cards and getting bonus points and all that kind of stuff, so I think as long as you keep it to a minimum and be pretty selective with the new credit you get. You should be fine, and besides, if you're in the process of building your credit, it's probably best to get a lot of credit now while you can, that way when you really need a good credit score. All of these difficult investigations will have disappeared from your report anyway, this is exactly what I ended up doing.

I took out a lot of credit as soon as possible when I knew I was still building my score, so that's what it'll be like for two years. I later found out when I would need the credit score, it wouldn't have mattered anyway. Then, once you've done all of the above, I first have some final recommendations. I would highly recommend checking your credit score every few weeks using a free service. like Credit Karma or another really great one is Credit Sesame, both are really fantastic resources that update your credit score every week or so and while it won't be exact and won't use the exact FICO scoring method, it will still be pretty close and will give you a great representation how you are doing with your credit score at the time you can try a technique to increase your credit score known as credit leveraging.

Now this is where you become an authorized user of someone's credit card. If you have a very long credit history now, when you do, your credit history could also be reported in your credit account and that could increase your credit score a lot in the short term. You know it is very important to note that not all credit card companies will do this. do this and the FICO scoring method has been cracking down on people who try to do this to artificially increase their scores, but I wanted to mention this because it's something that can work depending on your situation and how it's done.

No, I personally think it's probably better to create your own credit reports on your own and that way you'll have them with you no matter what you don't have to worry about any of this, but I think if you're a parent and you want to help. Your son is thinking about doing this and you could help him tremendously in terms of increasing his credit score by just doing this little trick and lastly, following everything in this video, being consistent and very precise with how you manage your credit. The credit will end up helping you get a perfect score and will end up saving you a lot of money and making you a lot of money.

There is no way you will admit that having a score above 760 or so won't make as much of a difference as having 810 credit. The score won't get you a lower rate every time you go and get a house like someone else with a score of 785 and, Honestly, anything above 800 is really just for bragging rights at that point, so you should really try to keep your score above 760. to 780 and that will help you get the most money, get the highest rates. lower interest and make you hit the like button for the YouTube algorithm if you haven't already.

That being said, guys, thank you so much for watching. I really appreciate it, as always, if you enjoy videos like this, be sure to subscribe and get the certification belts. YouTube notifies them at any time against the video. Also feel free to add me on Instagram. I post almost daily, so if you want to follow me there. Feel free to follow me there and lastly if you want to release shares, use the Weibo link in the description and when you deposit $100, they will give you 2 free shares and one of those shares will be worth up to $1,000.

So my recommendation, if you want free stocks, just go and deposit 100 dollars, get the two free stocks and get a pretty immediate return on your money and then if you want to use them to trade stocks, it's great to know that otherwise, just go and cash out oh one more thing go and add me on my second channel to the Graham Stefan show. I post there every day. I won't be posting here, so if you want to see a new video from me every day, go ahead and add me. About that and thanks again for watching and until next time.