How to Improve Your Credit Score Fast
How can I increase my credit limit?
I found that it's healthy to use below 30% of my credit limit, which is very low, is that accurate Blair? And what would your answer be? Absolutely. So credit utilization is a component of your credit score, you want to make sure that in your total lines of credit that you're using below 30%. So say that, but credit utilization is a huge component of the credit score, so you would want to definitely keep it under 30%. Um, it's, it's really about understanding the credit score. And I think Ryan is like a very rare cases exception. But you want to make not all credit cards are made the same, they are not all equal. So when you've unlocked you know, those healthy credit cards out there, that is great, and if you know how to use them, which Ryan has figured that out perfectly, but be careful whenever clicking on every single thing, because another component of their credit score is how often you are applying for new credit.
So we don't want to signal to Experian or Equifax or any of the Bureau's that we are aggressively applying for new lines of credit. Because that can be seen as very risky, it could be seen as trying to obtain as much credit as you can in order to get yourself out of a hole or acquiring more debt to pay off debt. So we don't want too many hard hits on our credit report, because that could bring our score down. So don't try to you know, apply for 11 cards the week you get here, or apply for every card, you can, you know, get your hands on just establish that credit, it's slow and steady wins the race, it's going to take some time, and we have to go for the right cards and know how to use them in a very healthy way. So new credit is about 10% of your score. Payment History is the biggest component that's 35%. Just make those payments on time. That's the easiest way to boost your score. And to maintain your score once you get it to where you need.
The amounts you have that are owed again, that's 30% length of credit history is 15%. That's going to be low for quite a few people that 15% It's actually really not in a healthy frame until you get to about 3540 or older when you're a US citizen, and then the types of credit new. So that's like your healthy mix of credit, credit cards, auto loans, the different types of revolving credit. That's 10%. So there's a lot of components that make up your credit score. But we want to make sure that we're using them healthily. And again, remembering not all lines of credit and credit cards are the same, but a good rule of thumb is to stay below 30%. That's absolutely correct.