How is a credit score of 750
CREDIT SCORE: How to get from 750 to 800 and Above
hey crepe warriors welcome to the show
and today we are going to be talking
about how to improve your credit score
when you are already up at the lofty
realms of above 750 okay so according to
TransUnion only 20% of Americans have a
credit score over 780 so from that
statistic we can see that it's quite
hard to improve your credit score when
you are already up at those lofty realms
we have a video on this channel how to
get to 700 within six months I also have
a video about how I got from nothing to
720 in just one year so you can see from
that your credit score can really blast
up really fast at the beginning if you
do things right but once you get above
700 and then certainly above 750 it
really slows down since I got to around
760 I think in one year I've only risen
10 points so we're going to have a look
at the factors that will improve this so
let's start on credit calm and I'll show
you my score is 772 right now and you
can see that the top three factors of
the at the top of this list are in
Credit Karma
lists 6 factors that affect your credit
a little bit different to some of the
more traditional ways that work it out
but anyway so you can see these top
three credit usage is at 10% that's the
utilization of the overall credit amount
that's in great payment history is a
hundred percent that looks great at
least on the surface and derogatory
marks are zero so that is great as well
now we'll look down at these two factors
that are showing red negative factors
okay so credit history credit history
accounts for 15% of your score and it's
basically most commonly it's talked
about as the average age of open
accounts okay and they do also take into
effect your longest account and all
stuff like that but all right we'll just
talk about average age of open accounts
you can see mine two years three months
that's quite a short period of time if
we actually click into that and have a
look Credit Karma gives you it only
gives you green after seven years okay
so the first two are yellow red then you
go to yellow and then it's green after
seven years so it's only really
considered good if you have seven years
of history and that is because basically
credit scores most commonly are based
off of seven years of infamy
certainly for the negative information
by you know by law that comes off your
credit report after seven years most
negative information not all and but
just in general it's kind of a
seven-year period that is looked at so
if you have a credit history less than
seven years that's definitely gonna have
an effect and as you're Chris credit
history gets longer and obviously that
will have less and less of a negative
effect and once you're at seven years
it's going to be having a positive
effect that long credit history after
that but it's only 15% however at you
know at the the lofty realms of 750 and
above you're looking at these factors
that account for a lot less of you know
the overall credit score to improve to
get you up to that next level but that's
not the end of the story with credit
history because although credit history
only accounts for 15% payment history
actually accounts for 35% so if you've
had missed payments okay or you know
negative things I have missed payments
in your payment history those will stay
on your credit report for seven years
all right and they will be a factor
pulling your credit score down a little
bit for seven years obviously the longer
they get into the past the less effect
they will have then they have the
biggest effect with in the most recent
two years once they're out of that
they're getting further further into the
past they affect your score less and
less likewise if you have a score that's
less than seven years only a couple of
years of credit history you've only got
two years worth of on-time payments so
because you don't have the full seven
years history of on-time payments that
will also have a negative effect so
basically you want the full seven years
on average age of accounts or as long as
possible you know leading up to seven
years and as long as possible as well
ideally seven years on the payment
history too and so you can see for these
two factors it's really just a waiting
game maintain good habits always paying
on time and you know just wait and the
longer time you go the more your credit
score will improve now let's look at the
next negative factor on my report that
Credit Karma displays and that is the
number of accounts okay so you'd think
that
having less accounts would actually be
good because it's like oh you're not
desperate for credit or whatever that is
not the case the credit card company is
credit unions they want to see more
accounts they think it shows that you
are responsible with handling you know a
lot of different credit accounts and on
Credit Karma if you click in there
it shows having more than 10 accounts so
11 or more accounts is good so anything
under that is going to be slightly
pulling down your credit score so
basically that takes a bit of time as
well because you can't just all of a
sudden do like 10 hard inquiries with
loads of different banks and get 10
credit credit cards at a time because
those hard inquiries will tank your
score too so basically you know you may
apply for one new credit card every six
months or whatever it might take you
through four or five years to get 10
accounts okay so this one you know you
can be proactive about it with you
applying for new credit cards but at the
end of the day it's also a waiting game
and you know for certain banks like
Chase has the 5:24 rule so you can tap
or apply for more than five cards in a
24 month span if you want to get new
chase cards in the future so you do have
to kind of pace yourself with it now the
last factor I'm going to talk about it's
not a factor that Credit Karma displays
on this page but it is a factor that is
normally listed in most models of how
the credit score is worked out and that
is the mix of different types of credit
accounts on your credit report this
accounts for 10% so it's a reasonably
small factor and but it will help your
score if you have a diversification of
credit accounts so basically most
commonly people start off their credit
score with credit cards you know they
just get a lot of credit cards that's it
you need to have installment information
on installment loan information on their
installment loans basically are you know
most common it's mortgages or car loans
basically any loan where you have to pay
a fixed amount each month is called an
installment loan and it'll show the full
balance of a loan on your credit report
and each month as you have you know
on-time payments paying it down and
it'll gradually it'll decrease okay and
this isn't factored into your
utilization okay so utilization is just
for revolving accounts you get a
percentage of it so this is don't worry
if there's a massive balance okay
it's not a bad thing if you've got like
$100,000 on there that you owe and
you're paying it down it's not going to
affect utilization or anything so don't
worry about that but yeah basically
having a mix of different types of
credits he's gonna help boost your score
as long as all the other factors are
okay and it also kind of solidifies your
score you know having a home loan or or
whatever that you're paying off on time
every month gives your credit report a
certain sense of maturity and will help
to boost your score and so people with
credit reports that have all of these
things you know they have the longer
credit history they have the longer on
time payment history a larger number of
accounts and they've got the home loan
information and stuff their credit will
gradually rise to eight hundred it's not
necessarily gonna happen in one year but
it will happen as you get you know
further along towards seven years okay
and their account also will have a sort
of robustness that an account you know
create a credit profile that is just
made by getting say five credit cards
keeping utilization at 10% on those
cards sure you can get to like seven
hundred and twenty seven hundred and
forty pretty quick by doing that but at
the end of the day if you want to rise
to the lofty heights you need a length
of time you need a length of time of
on-time payments you need credit history
and you also need the installment loan
information other types of credits the
storm load of the information one you
could do it without it but it just gives
you that extra boost all right guys so
those are some pointers on how to
improve your credit score once you are
already up at lofty realms as you
probably got from this video a lot of it
is just a waiting game but it's a
waiting game whilst also maintaining
best practices so always paying on time
do keep your utilization low although
utilization if it's high you know in the
future that is something that can be
rectified so it's not something you just
start with you like you know you don't
have to maintain utilization at 10% now
and maintain that for five years you
know it can be brought down pretty
quickly and have a big impact on your
score so guys leave your comments below
if there's anything I missed out or you
wanna you have some input you want to
correct something please do we'll leave
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