Raise Your Credit Score 100 Points In 10 Days
whether you get the bill in the mail or you can see this online you can check the last day of your statement and this is going to be the statement date and this is by far one of the most important dates that you need to understand if you want to rapidly increase your credit score and honestly as far as lowering or increasing your credit score this is probably one of the only dates that actually matters and credit utilization actually makes up 30 of your total credit score and what this means is if you had perfect payment history a really long average age of accounts tons of credit history behind those a good credit mix with different types of loans both revolving credit and installment loans but you didn’t have utilization figured out the highest possible score you could have is a 650. this would likely make you ineligible for a lot of auto loans a lot of home loans and other kind of personal loans or even credit cards like chase bank they won’t even give most credit cards out unless you have at least a 700 credit score okay so we know utilization is important what does it actually mean how do you utilize your credit correctly your utilization is a percentage of the total amount of credit that you have available to you compared to how much of that credits you’re actively using on a certain day see the banks only look at how much available credit you’re using on your statement date every other day they’re not they’re not really looking but on your statement date is when they check to see what your total utilization is out of your total available credits and this is the same day that they report that utilization to the credit bureaus which can impact your credit score for example if i max out one of my credit cards like two days before the statement date and then pay it off completely the day before the statement date the credit card company and the credit bureaus aren’t going to see that i maxed out my credit card what they’re going to see is that i paid everything off the day before the statement date which means i have a good utilization and my credit score isn’t going to be ruined despite having just literally two days ago completely maxing out my credit card see most people think that the credit card companies are always watching that they see every single charge that comes through and that’s how they determine utilization or maybe they look at like your entire total charges for the month or maybe they’re watching like every single second to see when you make a purchase or maybe they’re just looking on the due date or maybe they’re just looking if you pay late but that’s completely incorrect the only day that they’re checking your statement is on the statement dates and that’s the only day that they can see what your utilization for any credit card actually is all of the major financial institutions who issue revolving lines of credits like credit cards this means basically every single credit card that you can get only report your utilization on a single day one time per month which is on the statement date to the credit bureaus and that’s why this date is so important because essentially you can show the banks whatever you want to show them if you want to show low utilization which will improve your credit.
you know on that day you need to have low utilization if you want to show high utilization max out your credit cards like I did for my experiment you can show them high utilization without actually like really having it throughout the rest of the month or you can show them no utilization which like that won’t improve your credit score very much but I guess it’s like a big flex that you can have but it all depends on your statement date and what balance you have on your credit cards on that date so how much utilization should you actually show on the statement dates.
if your goal is to max out your credit score well surveys show that you should have nine percent or less utilization on each credit card to max out this credit boosting effect that utilization could have meaning if you had a credit card with a seventeen thousand dollar limit you would wanna pay it down to a thousand dollars or less by the statement date to have perfect credit card utilization i should also clarify you definitely don’t want this to be zero because zero utilization shows the bank that you’re not using the credit card at all and that definitely won’t improve your credits you have to have some utilization so as long as you have one penny on there and less than nine percent you’ll be maximizing this benefit now i understand this is an ideal situation but not everyone can pay down their credit cards to nine percent maybe you have to carry a balance maybe you’re coming out of debt and trying to repair your credit at the same time and you can’t afford to have perfect nine percent or less utilization well i should mention that paying down your credit card any amount by this statement date will have a dramatic impact on your credit score for instance from my own research i found that that 62 point increase that i saw it was just from one of my credit cards that i had previously at 100 utilization which i now brought down to 50 utilization and that explains the huge credit score increase that i saw even though i wasn’t maximizing it and bringing it down to a full nine percent or less that i should have any payments would have helped my credit score.
and it definitely did and again i’m doing this for experimental purposes only if you want to be around for that video where i show you how i tanked my credit score and then completely recovered it again make sure you’re subscribed make sure you hit the bell notification so you don’t miss that video when it comes out and i just want to clarify had i actually paid this credit card down under nine percent utilization i definitely would have seen a hundred point increase likely more from just this one single credit card being paid down correctly and i personally have seen this happen with someone who raised their credit score well over 100 points just by paying their credit card down on that statement date and then less than a week later that balance was reported to the credit bureaus and their credit score jumped up reflecting that positive change to their credits but if you do have multiple credit cards that are at a high utilization rate this at most is only going to take you 30 days because within that 30 days you’ll cycle through all of the statement dates with all of the credit cards and showing a proper utilization will have a huge impact on your credit score within that 30 days.
and that’s just to reiterate you don’t have to wait months to improve your credit score all of this can happen in less than a single month just by knowing the statement dates paying the credit cards down before that statement date and then waiting a couple days for that statement balance to be reported to the credit bureaus and then having a huge credit boosting effect but thanks so much for watching the video guys if you liked it i would appreciate if you could hit the like button because it helps me out with the youtube algorithm but then also if you’re not yet subscribed make sure you subscribe make sure you hit the bell notification so you don’t miss the article where i intentionally tanked my credit score and brought it back up and I’m going to share the strategies that worked and more importantly the strategies that definitely didn’t work in trying to raise my credit score and what i found from my research in paying down my credit cards in certain amounts on certain dates over a certain period of time. tons of technical stuff tons of effort went into that article so I’m really excited to share it with you guys but again make sure you subscribe so you don’t miss it but thanks so much I appreciate you being here and I’ll see you guys in that next one.