Thread by @Kyle_Senes13

How to get an 800+ credit score

Whether you have no credit, bad credit, or decent credit

Here's a DETAILED thread on how to raise yours and get to 800+ like myself and many others ⤵️

Let's start with the basics: a breakdown of how your credit is scored

• Payment History: 35%
• Utilization Rate: 30%
• Age of Credit: 15%
• Mix/Different Types of Credit: 10%
• # Hard Inquiries: 10%

What are these? Continue below

Payment History: History of on-time payments. Never miss a payment, it stays on your credit for 7 years

Utilization Rate: Total $ amount you owe divided by your total credit limit. $1000 owed on a credit limit of $10,000 is a 10% utilization rate. Keep it under 30% at all times

Age of Credit: Average age of all your open credit lines. The older the better, it shows you consistently make payments. Never close credit lines, cut your cards up if you can't resist using them

Mix of Credit: # credit lines you have open and the different types. More is better

# Hard Inquiries: When you apply for new credit lines, you get a hard inquiry on your credit report. The more you have the lower your score, borrowers look at people with many hard inquiries as riskier clients than those with only a few. Hard inquiries last 2 years on your report

Now that we got those out of the way, let's talk about people with bad/no credit

First, it's not the worst thing in the world. You can recover/start up relatively easy if you just stay disciplined

You need to apply for a secured credit card right away, like right now go do it

A secured credit card is a card you pay a deposit on up front, say $500, that turns into your credit limit.

CC companies allow this because it's 0 risk to them, if you don't pay or run the credit up, you lose your deposit and they lose nothing

Put gas, fast food, any small $ purchase on this card and pay it off in full every month. I pay my cards down the day they hit my statement, but I just get down like that

Making sure you pay consistently is the biggest thing here, never miss a payment and watch the score grow

Give me a quick RT on the top tweet if you're still with me here, hope you're learning

For those with decent credit & those just trying to raise it above 740 (gold standard for banks), let's go over some tips and myths to be aware of

Tips & tricks to consistently raise that score:

If you're in debt, paying these cards down is simply a numbers game

Credit card debt is considered consumer debt, this is what's known as "bad" debt

Costumer debt has high interest rates, this is anything financed with high rates

Pay down this debt as soon as you possibly can

Focus on the amount of interest paid when thinking of what debt to pay down first

If you have $3000 financed at 26% and $12,000 financed at 18% for 6 years on each loan, you pay around $5,000 more in interest in the $12K loan

Based on that math, you want to pay down that $12K loan faster even though the interest rate is a bit lower

Use calculator.net/loan-calculato… for quick math on this

Quick myth: Keeping a balance on your card does not impact your score

Don't believe the lies, they want to make money

Tip: Set up automatic payments no matter what

Whether you set it to pay it off in full every month (my recommendation) or just the minimum payments, set it up immediately

Missing a payment is the worst thing you can do to your credit

Don't mess this one up

Once you have your consumer debts paid off, welcome to the good life you can start to save and invest

Continue to pay off your credit card debt IN FULL every month

Don't pay unnecessary interest, only put things on the card that you need and can pay off each month

If you're paying your cards in full every month you most likely won't need to worry about this, but always keep your utilization rate under 30%

Both for piece of mind & your credit score, don't go over

These last 2 tips are the most important, refer to 2nd tweet

Follow these steps and stay CONSISTENT, you'll raise that score to 800+ real quick

Use CreditKarma.com to track your score for free - not an ad just what I use personally

It's not rocket science people, just about knowing the system

Hope you enjoyed, more value to come