This video is about how to improve your credit score.

The video explains that a credit score is similar to a GPA, but instead of measuring intelligence, it measures your trustworthiness in repaying debts. A higher score means you are more likely to be approved for loans and get better interest rates.

The video lists five factors that contribute to your credit score:

  • Hard inquiries (10%): Each time you apply for a new loan or credit card, a hard inquiry is made on your credit report. This can lower your score slightly, but the impact goes away after two years.
  • Credit mix (10%): Having a mix of credit cards and loans shows lenders that you can handle different types of credit.
  • Length of credit history (15%): The longer you have credit accounts open, the better. Don’t close old accounts unless you absolutely need to.
  • Credit utilization (30%): This is the amount of credit you are using compared to your limit. It’s best to keep this below 30%.
  • Payment history (35%): This is the most important factor. Making on-time payments will significantly improve your credit score.


The video offers some tips for improving your credit score:

  • Limit how many new credit cards you apply for.
  • Keep your old credit cards open, even if you don’t use them.
  • Pay your credit card bill in full before the statement close date.
  • Set up automatic payments to avoid missing due dates.


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