Скачать или смотреть HOW DOES CREDIT SCORE WORK IN CANADA: How To Increase Your Credit Score Fast n 2020

This is how YOU can increase your credit score dramatically FAST surpassing that 800 credit score mark with absolutely no cost to you. Stay until the end for a chart I made breaking down each of the 5 categories of your credit score.

In this video we will cover:
1. What is a credit score and why it's so important
2. What factors make up your credit score
3. Actionable steps you can take today to increase your credit score.

Your credit score is very crucial. If you had the luxury of watching this before buying your first car or home this will save you TONS of money in interest and headaches all for a low price of 0 dollars. This is because before a major loan a lender will always run your credit score to check how trust worthy you are and how likely are you to default on the loan. And in tern they will assess their risks and see if they would even want to lend money to you. So do what ever you can to raise your credit score to as high as you can get it before getting that big loan and your future self will thank you. To check your current credit score I would recommend Credit Karma. That is what I use myself and it is absolutely free.

This are the factors that makes up your credit score:

1. Payment History 35%
This is BY FAR the biggest factor that affects your credit score. Do you pay the money you borrow on time? If you have a credit card you spent money on and failed to pay back the balance at the end of the moth that will negatively affect your credit score in this category. If you consistently pay off the money you owe, you will do well here.

2. Credit Utilization 30%
This is the second determining factor of your credit score. How much of your available credit do you use at the end of the month? If you have a $10,000 dollar limit and max it out at the end of the month your credit score will tank as you are using 100% of your available balance. However, if you only use $800 it is a healthy 8% and you will do well here.

3. Average Credit History Length 15%
The longer your "average credit length" is the better you will do in this category. This shows you have had an long term record of using credit. (responsibly hopefully) The equation to calculate it is: (total year of credit cards added together) divided by total number of credit cards you currently have.

4. Types of Credit 10%
It also looks good if you have different types of credits for example a mortgage, an auto loan, a student loan, credit cards etc. The more types of different of credits you have or had to your name the better you will do in this category. This is because a lender would like to not only see that you have paid off your credit cards on time but also your auto loan etc.

5. Hard Inquires 10%
Every time you ask for a loan for example for a brand new car the lender will run your credit. Every time someone runs your credit that will count as whats called a hard inquiry which will show up on your credit report. Generally speaking the more often you go out there to ask for more money the more of a riskier borrower you are considered.

In this video I go in depth of how to improve EACH of the category.

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