Is 748 A Good Credit Score – Why Credit Score Changes will Drop Your score | No More Churning?!
Is 748 A Good Credit Score – How to Choose
So I have a credit secret I want to tell you guys, that’s been making me a ton of money but now with the new fico 10 rules, might actually not work anymore.
Now I know how to manipulate my credit score at will. In this video, I show that my credit score went down from 745 all the way to 631, which terrible, but now one year later I’m back at 748 and by march ill be in the high 700’s.
Later in this video, ill tell you guys exactly how I did, but because of the new fico 10 rules, this might not actually work anymore. So for this video, I’m going to tell you the main 3 highlights and how to manipulate it for yourself
Why Credit Score Changes will Drop Your score | No More Churning?!
Basic Idea: is to break down fico 10, and show you ways to manipulate it
Peace of Mind
This should be widely adopted by 2021 early or around summertime most lenders, and believe it or not, some lenders are still using Fico 8 that came out in 2009 ( so they don’t adapt very fast)
– Take these 10-15 months to improve your credit habits
1. They will take your entire habits over the past 24 months to determine your credit score instead of just looking at your credit score month to month.
Beg: Once a year I go ahead and max out most of my credit cards, I take most of the money out to invest, 100% of the time these credit cards have promotions to avoid interest. But then towards the end of the promotion, I just pay it off, and now boom, I’m back to normal.
Climax: When I first do this my credit score drops by 30% but I don’t care, because I’m not paying interest plus, I know in a few months it’ll be back to normal.
However, with the new model, it’s going to take into account my debt over the past 2 years, so that big squeeze I did, is still going to be showing up and it’s still going to hit my credit score.
So that’s one of the biggest problems, however, this means you’ll have to plan a lot better. ( because I’m buying a house early 2021 or late 2020, so I’m not doing these tactics, but if I was, I would have to be more careful.
– So for Churners taking 3k one month and paying it back that same money, you’ll be good
– However, for people trying to use their credit cards, for investing, you have to know that it’s going take longer to wipe that slate clean and go back to normal.
But if the investment is going to make you a massive amount of money, then it still might be a good idea.
2. Revolving Credit Vs Installment loans: will affect your score
Beg: Revolving Credit is basically debt you can borrow, pay off and then borrow more, its revolving. Like credit cards
Installment: you usually take a large loan, mortgage, personal loan and so on. And you have to pay it back in installments, and cant borrows more until your done. ( unless you tap into the equity but that’s a different topic)
Climax: The big idea is that revolving credit is going to be one of the big players in having your score go up or down, as far as installment loans, it will stick affect you but not to the level of revolving debt.
Ending: However late payment on installment loans will still have a negative effect.
Key: IF you’re going to use your credit card, you’ll want to pay it off every month in full to help with your score staying up to date.
– So before your balance is due and before they report, pay it in full and that way, what they report will be a small balance.
3. It’s still the Same
Example: the same factors that make up your credit score, are still pretty crucial
Beg: There are 5 factors and some matter more than others but in realizing they all matter.
Payment History: 35% ( once my student loans said I missed 30 payments, my score dropped like a rock ), we fixed the misunderstand but paying your bills on time is crucial, so set it all on auto-pay, and if you don’t have all the cash, then just pay the minimum.
Amount Owed: 30%, so this utilization, which now I have at 16% and will lower by march, but it’s going to matter more than ever, that that balance is coming down.
Length of history: 15%
Credit Mix: 10%
New Credit: 10%
All through this 35% is small, it still matters.
Conclusion: one key take away, is that if you were being responsible, nothing really changes, but if you took some risk, you still have 10-15 month to fix it.
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