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How I Got a 760+ Credit Score @ 20

what's going on everyone welcome back to

my youtube channel and today we're gonna

be talking about how I got a 760 I think

it's actually like a 760 to credit score

at 20 years old and by no means am i a

credit expert I'm simply making this

video because I have my own personal

experience with credit over the last 2

and 1/2 years of being a young business

owner and I utilize credit for many

things personally and through my

business so I wanted to make this video

to kind of break it down for you guys my

personal experience is my tips and

tricks and recommendations and then I'm

also gonna be going through my wallet

and showing you guys what credit cards I

have and why and what I recommend for

you guys if you are 17 18 years old and

learning about credit looking to get

your first credit card or anything like

that so without further ado let's jump

in the video now before I start I need

to address the background here it's not

my normal background I'm actually my

girlfriend's house Pet Sitting for her

so if you see like dogs and cats and

stuff running around in the background

they're not mine this is not my house

but I'm here for a couple days so I

figured I'd get a youtube video filmed

for you guys so I just want to get

started by saying that building credit

is one of the best things that you can

do as an entrepreneur especially as an

entrepreneur now this goes for everybody

but as an entrepreneur credit is

especially important because you're not

going to have the typical things that

most people have in their lives right

you probably aren't going to have a

super steady income year over year like

most people with a normal 9 to 5 salary

that maybe maybe they get a 2 to $3,000

promotion per year every 3 years right

but overall their bank statements and

their you know their w-2 and their

income statements they're all gonna be

very linear very consecutive and they're

gonna look a lot better to a bank than

yours as an entrepreneur that might be

kind of like this just like mine is

right so having credit having a good

lending history having a good credit

history with all the things that we're

going to talk about that you should

check off is a really good thing if you

don't have a super secure and stable job

like most

NORs don't so tip number one coming from

a 20 year old entrepreneur soon to be 21

years old I've had credit for almost

three years now I opened up my first

credit card which was a secured credit

card with a one thousand dollar limit I

opened it up literally on my 18th

birthday right I had somebody one time

asked me what I did for my 18th birthday

and I told them I literally spent it at

the bank with my dad and we opened up my

very first credit card and so I highly

recommend you guys to do that and also

if you have a parent with good credit

like my dad has right thankfully he had

good credit a parent or a legal guardian

make sure that you go with them to open

up your first credit card because if

they cosign with you on that credit card

that means that they take partial

responsibility for you know the credit

but at the end of the day it was a one

thousand dollar limit so my dad was

willing to do that right so if they

cosign with you and they have really

good credit and long credit history

that's gonna get you off on the right

foot so I actually had like a 720 credit

score literally the day after I turned

18 because my dad had co-signed with me

on that initial credit card so that

really got me off to a good start

so next tip I actually kind of touched

on it in my previous tip but get a

secured credit card as soon as you can

so start early and get a secured credit

card now a secured credit card pretty

much means that you give the bank money

and then they lend you a credit line

based on that money it's a great way to

get approved first of all because they

pretty much approve every single secured

credit card as long as you are as long

as you meet certain criteria then you're

gonna get approved for a secured credit

card it's probably the best way to kick

off your credit journey and so like I

said that's what I did and it was a

great way to kick things off especially

co-signed with my dad got me off to a

really solid start in my credit journey

alright tip number 3 on time payments

now guys I can't stress this enough I

think if I remember correctly this is

over 35% of what is calculated into your

credit score so this matters a lot

make sure your payments are on time now

the best way to make sure that your

payments are on time every single month

is to set up automatic payments right

very simple but

you know a lot of people don't do it so

set up automatic payments for every

single credit card that you get for the

rest of your life just make it a rule to

yourself right never never rely on

yourself to go in and remember

especially when you have 5 6 7 8 credit

cards never rely on yourself to remember

to go in and pay the bill every single

month because I guarantee you you're

gonna forget right put automatic

payments on forget about it the only way

that you're ever gonna run into any

problems is it is if you spend more

money than you have and that actually

brings me to point number 4 which is

don't spend more money than you have

right so there's guys out there like

Dave Ramsey that say stay away from

credit cards stay away from credit cards

right why does he say that it's because

the average American is stupid okay not

for lack of a better term right they get

credit and they think that it's money

that they can just spend it's somebody

else's money they can just spend they'll

make it and they'll pay it back

eventually you know they're cool with

being in debt they're cool with having a

bad credit score right you're not if

you're watching my channel you're not

you need credit because you can utilize

it for so many things in life but don't

be stupid with it don't spend money that

you don't have I want you guys to think

about your credit card as a debit card

just imagine that that money's coming

out of your bank account anyway that way

you can build credit properly without

ever having to worry that you don't have

enough money to pay the bill at the end

of the month all right tip number five

is utilization you always want to keep

your credit utilization under 10% so for

example that means that if you have a

$1,000 credit limit you never really

want your balance to go above $100 so

what I would do when I had my credit

card in my very first credit card like I

said with a $1,000 limit I made sure

that every time I got up into that

hundred dollar range I would go pay it

off I'd paid off

early right so even then I had automatic

payments set but a lot of the times I

had just already paid it off manually

ahead of that automatic payment so

that's another big big big tip

utilization is a big factor in how your

credit score is decided so make sure

that you keep your utilization under 10%

now the other way to keep your

utilization under 10% you can't just

spend $100 on your credit card forever

right as you level up in life and as

your

grows and you get older right you

just need to go out and get more credit

lines more credit cards whatever it is

right go out and get more credit because

the more credit that you have so let's

say you have you know five cards with a

$1,000 limit that's a $5,000 credit

limit so now 10% utilization is $500

instead of $100 all right tip number six

is to just stay consistent and stay

patient right now I need to take my own

advice on this one because I actually

recently applied for a loan on something

and I got denied twice right how did I

get tonight I have you know I have the

money and the credit limit and the

credit score and and all that stuff

right the income the tax tax forms I

have all that right but I got denied

because of my credit length right my

credit age so I only have like two years

and eight months or nine months or

something like that

of credit history a lot of lenders and

credit card companies see me as a risk

because I have little experience with

credit so my tip like I said is to just

be patient you know you can do all these

different things and make sure that

you're doing all the other stuff that

I've talked about in tips 1 through 5

but make sure that you do all these

things consistently for years and years

and years so that you can really reap

the benefits of you know like an 850

credit score if you guys didn't know

that absolute top credit score is an 850

right you want to get there one day

right that's your ultimate goal so be

patient don't let any derogatory marks

get onto your credit try to avoid them

at all costs right don't make late

payments don't do any of those stupid

stuff that we talked about earlier in

this video

and then eventually your credit score is

just gonna go up super super predictably

over time that's what's happening with

me right I started off at a 720 and over

you know a period of like two years I

eventually creep my way up to a 760 and

hopefully in the next couple of years

get an 800 or even higher all right and

the next tip and the last tip is

increase so credit inquiries hard

inquiries specifically there are soft

and hard credit inquiries soft inquiries

don't really affect you very much that's

when people just look at kind of like a

10,000 foot view of your credit to see

what's going on there right a hard

inquiry is what a lender is going to do

when you apply for credit card for a

loan for anything like that right

they're gonna look into your all the

different things that have to do with

you and your credit so you want to keep

those to an absolute minimum only ever

allow somebody to do a hard inquiry on

your credit if you are number one

absolutely sure that you want whatever

it is whether it's a car and you try to

get a car loan or credit card and you

what you really want or need that credit

card for something or if you are 99.9%

sure that you're going to get approved

for whatever is and the only thing

between you and having that thing is a

hard inquiry right so right now I think

I have three or four hard inquiries on

my credit and you can actually get those

erased there's people out there who will

help you remove them I've had them

removed in the past so I have four

recently from two credit card enquiries

that I had an auto loan and then

actually another auto loan like I said I

got denied for one that approved for the

second one so I have four online right

now I'm gonna actually try to get those

removed but guys keep your inquiries to

a minimum you know one of the biggest

ways that you can ruin your credit is by

just going and signing up for all I got

a Costco credit card in a you know a

Walmart credit card whatever it is like

all these different stores and companies

and brands have these like credit cards

now and it's a hard inquiry every time

you sign up for one of those things so

keep that to a minimum try to do as

little of that as possible and you'll be

just fine so now we're gonna take out my

wallet and talk about what's in here so

so number one is my American Express

Platinum Card now this card is amazing I

use it for so much and this is the

credit card that I use the most however

it is not a personal credit card it's a

business credit card therefore what I do

with this does not affect my personal

credit it only affects my business's

credit history right so it's it's cool

to have I put most of my business

expenses on this

it makes it very simple for me at the

end of the year to send over my Amex

statement to my CPA and just say hey

this is what I spent with the business

this year outside of you know certain

bank payments and wire transfers and

stuff like that

most of my outgoing cash comes off of my

Amex card now that one is seven hundred

and fifty dollars per year to have

that's the annual fee but it comes with

all sorts of perks guys I'm not gonna

sit here and list them out and bore you

but there's all sorts of different

travel and food perks and all sorts of

different things I have right now

hundreds of thousands of Amex points

that I've just racked up over time using

that card for all sorts of things and

when kovat is over

I'll hopefully be able to go and travel

to some crazy place completely for free

on points so that's what is amazing

about American Express card number two

is my American Express gold card now

this is actually the rose gold card it

was a it was a limited edition there's

no difference between this and the

normal Gold Card it's just a different

color but this one I believe is $250 a

year for the annual fee this is a

personal card so this one does show up

on my credit but you guys do have to

know something about American Express

that they are charge cards so they're

not traditional credit cards so you know

technically these cards the the platinum

and the gold don't have a limit the

limit is kind of determined by a

different factor so it changes and it's

kind of valuable so they are charge

cards so they don't really show up on

your credit utilization because they

don't really add a credit line to your

credit I'm not 100% sure how to explain

it to you guys like I said I'm not a

complete expert on this I'm just sharing

what I know but these are charge cards

so you don't just want an American

Express cards you want to have a variety

of other cards as well

now the next card here is the Apple

credit card now this one's cool it's

metal right there's no numbers on it I

can show you guys the front and the back

and you can't steal anything from me so

cool you know if you guys know me I'm a

big Apple fan a big Apple fanboy and so

I just got this kind of four jokes when

it first came out but I've actually used

it a lot because I buy a decent amount

of Apple products so I pretty much

exclusively use this card for Apple

products it is a MasterCard and they

partnered up with gold

Saxe to do this credit card you get like

I think four or five percent cashback on

Apple purchases so anytime I buy

anything from Apple I put it on this

card and it gets you great perks and

they send Apple cash directly to your

wallet it's really cool

and pretty much everyone gets approved

for this as far as I've heard as long as

you have like above a certain credit

score so it's not a bad card I have a

decent credit limit on it so it helped

with my utilization when I when I

actually got this card there's no annual

fee and it's just a cool card to have in

your wallet now my next credit card is a

Barclaycard now I applied for this one

back before the applecart existed

because this one has Apple rewards so

they would give you all sorts of

different rewards for spending money at

Apple this was kind of the og Apple card

I applied for this back in like 20 mid

20 18 and got a proof for it I have like

a 10 or 12 thousand dollar credit limit

on this card so it's a really solid card

I get little like Apple $25 Apple gift

cards in the mail when I spend money on

this after a certain amount of time when

my points build up so it's pretty cool I

don't really use it for much it is a

Visa card so having a Visa MasterCard

and American Express is great because I

don't have to worry about going to

somewhere that doesn't take one of those

cards that's that's a danger actually of

only carrying one type of card is that

you might get denied somewhere now in

addition to that card I actually did

just recently apply for the Chase

Sapphire Reserve card just a couple days

ago I don't think I've heard back yet

I'm gonna go check my email off this

video because making this video actually

reminded me so I need to go check on

that but the Chase Sapphire Reserve card

I've heard is great for travel perks and

all sorts of stuff like that it's a

competitor to the Amex Platinum Card so

I'm looking forward to hopefully getting

approved for that card and I plan on

plying on applying for many more cards

in the months and years to come like I

said not a super crazy credit guru

expert person but I just wanted to make

this video for you guys so that it's

relatable because like I said I'm kind

of going through this journey with

myself and credit and and business

credit and all this different stuff and

I wanted to share my knowledge what I've

learned in my own research when I've

been looking into all these different

things

with you guys so without further ado

that's it for this video and I

appreciate you guys for listening be

sure to drop a like and subscribe if you

learn something in this video and I'll

see you in the next one peace