How People Get an 800 CREDIT SCORE using Credit Karma - YouTube

i did a credit karma video a few months ago  and i asked you to comment below if you're  

interested in learning about how i maintain an 800  score and the comments went absolutely not today  

we're going to talk about it right now and  we're going to talk about how exactly i got  

that 800 credit score and how you can do the same  thing thanks to credit karma i'm gonna walk you  

through exactly how credit karma works it's  absolutely free to use i've never paid a dime  

for the thing and i've had it for like how many  months now haven't even paid a dime i haven't  

been scammed haven't gotten annoying emails hey  before we get started i want to welcome back my  

sweet lifers that's the community where we are  smart about how we handle our money so we can live  

our ultimate suite life so become a sweet life  for yourself subscribe today and by the way guys  

i want to talk about an important thing and that  is the question of the day why do you think credit  

scores are important comment down below drop me  a line and let me know why you think a credit  

score is really that important or do you think a  credit score isn't really important are you kind  

of in the dave ramsey field of saying credit  scores are an i love debt score and the more  

your credit score goes up the more you're in debt  guess what i'm debt free my credit score is 800.  

but who cares i'll get to that a little bit  later drop a line with your thoughts down below  

let's get to it i'm gonna actually hop over to my  computer we're gonna get down to this little uh  

scene right here we're gonna go onto the computer  so i can walk you through exactly my credit karma  

report and tell you all the details of how you  can get an 800 plus credit score so here we are  

all right we're on on credit karma's website uh  there's a link down below in the description click  

on that link that'll take you over to credit card  get started today i'm going to walk you through  

exactly what's going on the very first thing  of course we got to do is log into the thing  

and i'll do that right now and then here we  are my friends and as i shared with you on  

that video here's my 800 score so how this works  and in fact what i want you to do if you haven't  

seen that original video yet i'll include a link  to that video above as well as down below in the  

description and it talks about a little bit of how  credit comment actually works how they calculate  

credit scores but they pull from two different  ways transunion which is one of the major  

credit reporting bureaus as well as equifax  there is another one called experian but for this  

purpose they only have these two what's really  cool about credit karma as you can see right here  

it's checked daily on transunion i think that's  kind of cool equifax is usually i think it's like  

once a week or so it'll pop in a new score here  or an updated score based on what is going on  

so i got to tell you guys really quick years  ago i would hop over to annualcreditreport.com  

and uh once a year i would just pull up my credit  report now that was my credit report not my credit  

score so it was just kind of like that was what  i was doing just to kind of monitor my credit  

and sometimes i would use my credit card benefits  to see what my credit score was but i'll tell you  

what now that i use credit karma it's been just  super easy you can either do it this way here on  

the browser as we have up right now or you can hop  over on the phone there's an app for credit karma  

that you can keep an eye on as well so here's the  trick what i'm going to do is i'm going to walk  

you through exactly how i do this and why it's  important let's say you're sitting here with a 500  

or a 600 credit score how do you get that up  into the exceptional range you want to get it  

as high as possible the maximum score is an 850 so  higher the better all right i'm going to click on  

we'll start with transunion and as you see here  on the browser you just click on whatever you want  

okay so i'm going to start with transients click  on it and that's going to take you over to this  

next screen now here's where it's going to show  you some history and i want to point something out  

because i know a lot of you are going to zoom  in here right now and be like wait a minute look  

what's going on down here you weren't at an 800  back here in early 2021. what's going on here 791  

i was doing a test and specifically what i  was doing back here is i decided to max out  

one of my credit cards i still pay it off every  single month in full so that way i'm not debt  

free and carrying over a balance but because  i maxed out that credit card my utilization  

went very low and when your utilization goes low  your credit score drops and i'll explain what  

that means in just a moment but as you can see  right now i'm sitting at an 814 you can see up  

here went up to an 817 all is fine that's great  if i want to hop over to equifax i can either  

go back to the home screen or just click right  here and right here we go 811 went up to an 814  

and down here to 787 during my little test so i'm  gonna hop back to transient the very first thing  

you want to do is look down below here this  is the key of what you want to look at when  

it comes down to how do i improve my credit score  the very first thing is your payment history the  

easiest way to get your credit score up are these  two right here payment history and credit card use  

now if you've had some prior months where you  weren't doing too well with your payment history  

you're gonna have to keep focusing on that  it's a little bit more of a marathon but  

every single month make sure you pay your credit  card on time at minimum and pay your loans on time  

every single month don't ever ever delay no  matter what you can do scrape as much money  

get a side hustle work for dominoes deliver pizza  on the weekends figure your way out to never have  

to be late on any payments ever that's a key point  the next step and this is important let's say your  

payment history is on point but your credit  score is at like a 600 or 700 you want to get  

it up a little bit higher and you're like well  my payment history which is a high impact a very  

good weight to your credit score that's looking  great well the next step you want to look at is  

over here at the credit card use it's basically  looking at how much of your available credit line  

are you using creditors look at it this way if  all of a sudden you have like let's say a twenty  

thousand dollar limit on your credit and you're  using nineteen thousand dollars that means you  

only have one thousand dollars left to spend on  credit the higher that amount is the more risky  

creditors find you to be the reason for that is  they're worried that you're going to go rogue  

and you might not be able to pay your bills  because you have too much racked up in debt  

so i'm going to actually dive into this is  another cool thing about credit card if you  

click on any one of these boxes it'll give you a  deeper dive i'm going to click on credit card use  

for an example it's going to pop me over here and  let me know what's going on first thing i want to  

point out is right over here check this out right  here two percent so i have an eighty four thousand  

dollar credit line right now at fifteen hundred  dollars is being used this is basically my uh  

credit card that i continuously pay off in full  every single month sometimes i don't always hit  

the statement date so it gets reported but look  at this zero to nine percent is boom bam great  

10 to 29 is still good so i'll give you one thumb  up instead of two and then we get serious around  

49 to 30 percent anything down below here is what  you want to avoid my friends is 49 down to 75  

plus if you're using that much of your available  credit right here you got to stop you got to get  

this down to at least 29 or preferably in the  low nine eight seven six five four three two one  

okay so that's what's going on here now another  thing it will do is let you know what's actually  

going on with all your different credit now this  will pull in any type of credit card you have  

and that's what you want to zero in on now  right now you can see right here i have  

this one amex which only has a 7 800 limit so  what i decided to do a couple months ago is i  

i said okay well my overall credit which i shared  with you right over here at 84 000 that's looking  

good so if i jump this over here let's say i jump  right here it says amex right and i say i'm going  

to max that out to 7 800 let's give it a try right  so i decide to put like five thousand dollars on  

it well what's going to happen is that particular  card which you can see is green right now will go  

to potentially orange or red which orange red is  50 to 75 plus and for that you can actually have  

a risk of bringing your credit score down just a  little bit as a result of maxing out one credit  

so that's kind of weird you gotta also look at  not only your overall credit card use but your  

individual credit card use too this is why i never  recommend getting a store credit card because if  

you get like a store credit card at like a target  or sears is sears even around anymore i don't know  

but anyway you get a store credit card jcpenney  jcpenney still around we'll say jcpenney you go  

in you get that kind of credit card typically  their store credit cards come with a very low  

balance 500 a thousand five thousand dollars  and if you're buying a major purchase right  

away on that store credit card you end up having  a higher utilization it impacts your credit score  

so this is your ace in the hole in my opinion  to focus on first is credit card utilization and  

that will help you quickly turn around a better  credit score and you can monitor it right here  

on creditcardman.com month over month week of the  week to see if that helps improve you a little bit  

so another high impact is any derogatory marks so  if you have one of these this is another marathon  

one just like the payment history but a collection  a tax lien bankruptcy anything like that if you  

found yourself in that trap before you're gonna  have to just ride out the wave you got to let some  

years pass you by in order to get back up onto the  good mark i know that sucks to hear but guys that  

doesn't mean give up it's like the old adage of  saying well just because i have one flat tire on  

my car i'm going to take a knife and slash all the  rest of the three of them you don't do that you  

fix the one tire so focus on that don't slash and  just give up and who cares about this i give up  

now just take the time let it go away and things  will improve bankruptcies i believe stay on your  

record for about seven to ten years so that'll  be something to keep in mind then we get down  

into the lower things that things don't matter as  much and that's the credit age the total accounts  

which is a low impact and your hard inquiries  so here's the deal uh hard inquiries first of  

all credit climate as they're checking every  single day on transunion and once a week or so on  

equifax that's not considered a hard inquiry so  you don't have to worry about credit karma ruining  

your credit score they do what is called a soft  inquiry not a hard inquiry so just keep that in  

mind a hard inquiry is something like a mortgage  application or an auto loan anything like that is  

called a hard inquiry now you can see i've had  three and that's usually in the last i believe  

a year or two it's actually two years so in fact i  can click on here it'll tell me so let's see here  

it's a temporary ding i usually bounce back in  about three months plan ahead nine to 12 months  

before getting a mortgage or a big loan so yeah  the the key here is you know try to give it at  

least a year or so and keep those inquiries down  the reason i have high inquiries at the moment  

is i'm actually looking at once again refinancing  the mortgage we are actually gonna pay off our  

mortgage early in five years i can't wait i'm  gonna update you guys here on the channel about  

it so make sure you subscribe so you don't  miss those video updates but obviously i  

got to take a little bit of a ding here on my  heart inquiries and i'll have to get over that  

but anyway so that's kind of what that's all  about credit age that's pretty simple the longer  

you have had credit the better so if you are  a student and you're just getting started off  

you've turned 18 get yourself a credit card and  be smart with it do not use money you don't have  

just use it for your everyday bills that you  already have cash in the bank for and then pay  

off the credit card in full every single month  and that'll just help you kind of get some credit  

rolling without getting yourself caught up into a  big trouble problem of uh of debt right all right  

so now let's hop over to equifax really quick and  same type of thing here so what strange you'll see  

here is everything else kind of checks out like  transunion but here it actually has credit age  

six years and two months which is giving me  a yellow bar a little bit less and then hard  

inquiries of six which is red so let's check out  what's going on there sometimes what you'll see  

is that depending on the creditor they're gonna  either ping transunion or equifax maybe they not  

maybe they don't get reporting from all three  of the credit reporting bureaus so in this case  

equifax was used more by mother creditors than  transunion it just happens that's just something  

that happens okay so i wish this would actually  go back it doesn't let me go back any further  

than what i see here for the beginning of the year  because obviously i want to show you my 800 from  

before so you don't think i'm trying to recover  here but anyway this was a test and it obviously  

worked to what i was trying to do to see if that  one credit card could bring my score down and it  

certainly did bring me down to about a 787 but  what you got to do guys hop over to credit karma  

and dig into each one of these categories these  are the things to focus on again focus on payment  

history and most importantly credit card use first  these are the things with the high impact that  

will help bring you up a little bit quicker so  now more than ever guys an 800 credit score a 700  

credit score 700 plus is always important you know  why because it is not only a key factor in helping  

you with some of the biggest purchases in your  life such as a house you want to buy a house you  

sometimes need a good credit score in order to get  a good mortgage not only that some jobs are also  

now looking at your credit report and your credit  score and offering you a job i know that sounds  

absurd but some people are doing this now because  they want to see how well does this person handle  

their money and their overall credit as a key  factor of how they handle their life are they  

a potential good prospective employee don't be  on the wrong side of that fence guys be smart  

start today here's some other videos you're  going to find like that are incredibly badass  

you got to check them out right now click either  one of these and we'll see you on the next video