How to Quickly Increase Your Credit Score (Utilization Rate = 250 Points) #FICO #Credit

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In this Our Rich Journey video, we discuss how you can quickly increase your credit score by focusing on your credit utilization rate. We discuss what credit utilization rate is and how you can decrease your utilization rate (which is good!) by understanding a simple “timing” process.

A credit utilization rate (sometimes referred to as a credit utilization ratio) makes up 30% of your credit score. In fact, it makes up 250 points of your credit score. Credit utilization rate is the second biggest factor in determining a credit score. However, it’s probably the most misunderstood factor. In fact, many people believe that paying your credit card on the due date (in full) is great for your credit score. This thinking, however, can be problematic. Specifically, paying your credit card on your due date can actually hurt your credit score because it significantly impacts your credit utilization rate that’s reported to the credit bureaus.

In this video, we discuss the timing of your credit card payments. By doing something as simple as slightly altering the timing of your credit card payments, you can quickly and drastically increase your credit score. In this video, we explain how to alter your payment schedule and how and why the alteration can quickly increase your credit score.

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#CreditScore #CreditUtilization #FICO


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29 Responses

  1. Alprince !! says:

    I’ve heard credit utilization is just one metric under debt or amounts owed category.
    Can anyone explain more?

  2. MarleyT says:

    Thank you for the clarity!

  3. Hellcarver T.V says:

    This is great but I find it a little confusing. So if I have a $500 limit 30% would be $150. But if I say use it for gas and pay it off immediately and do this before my date it doesn't matter how much over I went with my ratio?

  4. Addis says:

    Credit cards are so complicated, thank you for this helpful information!

  5. bringer of the dawn says:

    Hi guys… so my statement closing date on my credit card is a whole month before my due date….. how do i proceed??

  6. tawanda jones says:

    Thank you guys

  7. Kimberly Thompson says:

    I get it now!!!thank you❤️

  8. Andre 3K says:

    What if I make a payment the day that the statement is available?

  9. Puggie Baby says:

    And in reality you only have 6 days to pay if credit in full before statement date right ? It was the other way around this whole time

  10. Puggie Baby says:

    So don’t pay before due date pay before statement date which’s means interest would be charged and there would be more to pay before the statement date … am I correct

  11. Bryan Corona says:

    My due date is the 21st & statement closing date is the 26th… when would you suggest I pay off the balance?
    Have a 2,000 limit but will only utilize about 10% a month

  12. Bodark Zulu says:

    Time to binge this channel. Excellent video! I learned quite a bit.

  13. Nilda Faith says:

    Thank you SO Much!!!!!!!! It works

  14. burkeL01 says:

    This helped me out so much! Thank you guys! How am I able to find out when my statement date is? I'm with Discover:)

  15. millennial_falcon says:

    Help! I just got a secured card with a $200 limit with $0 minimum payment due. What is the ideal amount I should spend each month and when should I pay it???

  16. king solly says:

    Really helpful information, but I am a bit confused regarding timing of payment on the closing statement. For instance, if my closing date is on the 25th of every month and I pay my credit on the card in full on the 24th is that enough time for the payment to be posted to my account and my credit utilization to become zero?

  17. diane long says:

    660 stuck

  18. Juan Noriega says:

    What if you have 4 credit cards. Are you suppose to use less than 30 percent on all of them?

  19. Classy Dreamer says:

    What if my due date is before my statement closing date???

  20. Simone Woodberry says:

    Thanks so much. Awesome info

  21. Calen says:

    Do I need to contact my credit card company to figure out my statement closing date?

  22. David White says:

    Thank you guys so much, this really helps

  23. John Ward says:

    Inactivity hurts your score.

  24. Al May says:

    if one of my cards is over the limit and I bring it just under the limit, how much will my credit score improve

  25. Earth ANGEL says:

    I join the journey today!

  26. Thirteen Hales says:

    Thank you so much for this info! I had never heard of a credit ratio before! I will apply this knowledge. Thank you.

  27. Diege Ferenbach says:

    Very helpful thanks

  28. The L.Z Show says:

    So u can pay it off in full it just has to be done before the closing date?

  29. The L.Z Show says:

    How do u know what date it will be reported

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