3 EASY Credit Score Boost - For Beginners
Here's the link to sign up for the Discover It Credit Card: https://bit.ly/2p2yYhU
But if you'd like $50 off your credit statement when you sign up to leave a comment saying so and I'll send you the link!
So, you're probably wondering what are some little ways I can fix my credit score. Well, today I'm going to show you 3 small ways to improve your credit score.
The easiest way to improve your credit score is the length of credit history. The credit bureaus like to know that you have a long track record.
Your track record will have any sort of borrowed money from a bank on it. Some of the more common types of borrowed money are, car loans, student loans, mortgages, credit cards, etc...
It's best to start using debt in some way as early as possible. This could mean getting a credit card or taking out a loan for a car.
But, you don't want to go out and buy a car just to start on your credit. Only do that if you were going to anyway. However, I would sign up for a credit card as soon as possible because the earlier you start your credit the better.
You don't even have to use your credit card in order to build a strong credit score. When I started it only took me 6 months to get my score to over 720 and that's a great credit score!
The first card you get will most likely have to be what's called a secured credit card. This means you give the credit card company money, normally the minimum is $200, and the credit card company will give you a credit card with a $200 limit. After about 6 months you can get your $200 back and the company will give you a real line of credit
They do this because you don't have a credit history yet or if you have a bad credit history, they'll do it so you can prove you're not a risky spender.
The first credit card I got was the Discover It card. I gave them $200 and made sure I paid it off by the end of the month every month for 6 months. At the end of the 6 months, I got my $200 back and they gave me a $1,000 line of credit! From then on I had a credit score and was able to check it inside the app whenever I wanted.
If you would like to get started building or rebuilding your credit I highly suggest using the Discover It card to do it. Not only is it a great credit-building card but it's also the only one in its tier of credit cards to offer 2% cashback. So any purchase you make you receive 2% back! You can use this to help pay off the card or get it cash. If this sounds good to you there's a link to it at the top of the description and while you're there, don't forget to smash that like button!
However... If you want $50 off your statement leave a comment on this video and I'll give you my affiliate link that'll give you $50 off your statement.
Now, another thing you could do to help your credit score is called mixed credit. This means any type of loan you get from a bank like a car loan or mortgage will help improve and strengthen your credit score.
But like I said earlier, you don't want to go out and buy a car or a house just to improve the strength of your credit score. It's best if you only do that if you were going to be buying a house or car anyway.
An easy way to help boost your mixed credit is to get several credit cards. I know of some people that have as many as 12 credit cards, but they didn't get them all at once. They got them over the course of several years applying once every 3-4 months.
You don't want to apply for too many credit cards too quickly because to apply for you you have to do what's called a "hard credit pull". Basically, the credit card company will request to see your full credit report and the credit bureaus don't like you doing this too often. After doing only one credit pull you can expect your score to drop quite a bit for around 3-4 months. But after the time has passed your score will return to normal and in most cases improve.
Now if you're planning on applying for a loan like a mortgage, I recommend waiting around 8 months after you did your last credit card that way your credit score will be at its peak and get you the best interest rain on your loan.
Opening new credit cards is another way of improving your credit score because doing so increases your overall credit utilization ratio. You can learn more about this in my other video.
Having multiple credit cards can help your credit score in other ways too. If you get a credit card and keep it lets say for 1 year. Then you get another credit card, this will then reduce the average length of your credit history and temporarily decrease your credit score. But after a few months, it will go back to normal and even help improve your credit score.