OUR MINI-INTRO :)
In this Our Rich Journey video, we discuss how you can quickly increase your credit score by focusing on your credit utilization rate. We discuss what credit utilization rate is and how you can decrease your utilization rate (which is good!) by understanding a simple “timing” process.
WHAT’S THE PROBLEM?
A credit utilization rate (sometimes referred to as a credit utilization ratio) makes up 30% of your credit score. In fact, it makes up 250 points of your credit score. Credit utilization rate is the second biggest factor in determining a credit score. However, it’s probably the most misunderstood factor. In fact, many people believe that paying your credit card on the due date (in full) is great for your credit score. This thinking, however, can be problematic. Specifically, paying your credit card on your due date can actually hurt your credit score because it significantly impacts your credit utilization rate that’s reported to the credit bureaus.
IN THIS VIDEO . . .
In this video, we discuss the timing of your credit card payments. By doing something as simple as slightly altering the timing of your credit card payments, you can quickly and drastically increase your credit score. In this video, we explain how to alter your payment schedule and how and why the alteration can quickly increase your credit score.
WHAT YOU CAN DO:
Implement what you learn in this video! If you’re paying your credit cards after the statement closing date and before (or on) the payment due date, alter your payment schedule. By following the tips in this video, you can jump from a “very poor” card utilization rate to an “excellent” utilization rate!
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We are not financial advisors. Our videos are for educational purposes only and merely cite our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!
Check out some of our other Our Rich Journey videos:
How We Saved $10,000 on a Vacation to Europe by Travel Hacking: https://youtu.be/cmO3Hb-cLB8
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See How You Can Retire Early - Simple Math of Early Retirement: https://youtu.be/oxGlrjVM09Q
Kid Explains Investing in One Minute: https://youtu.be/BaJz5UFmkk8
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Kid Explains 401(k) in One Minute: https://youtu.be/q0U13kNkZao
Cost of Retiring Abroad – Portugal & Thailand: https://youtu.be/vjzNvw0451I
#CreditScore #CreditUtilization #FICO