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There were a few people who DM’d me really good questions yesterday evening, but I didn’t get a chance to answer them.
I’ll answer them publicly, because I’m sure they will help others too.
I’ll answer them publicly, because I’m sure they will help others too.
1) Are my Credit Karma scores real?
Credit Karma uses VantageScore, which uses a different algorithm than EQU/TU/EXP. It’s ballpark, but not the scores from the bureaus themselves.
Real scores?
http://MyFico.com or http://PrivacyGuard.com
Credit Karma uses VantageScore, which uses a different algorithm than EQU/TU/EXP. It’s ballpark, but not the scores from the bureaus themselves.
Real scores?
http://MyFico.com or http://PrivacyGuard.com
2) Factors that go into calculating scores:
1. Payment History (PAY ON TIME)
2. Credit Usage (most underrated)
3. Length of credit history
4. Types of credit (credit mix)
5. Recent credit (not that important)
I listed in order of importance.
1. Payment History (PAY ON TIME)
2. Credit Usage (most underrated)
3. Length of credit history
4. Types of credit (credit mix)
5. Recent credit (not that important)
I listed in order of importance.
Got this question a couple times, and it’s extremely important, so this may take a few tweets.
3) I pay all my bills on time, and my score didn’t go up (or even decreased), what happened?
Let’s dig in and maybe we can answer why...
3) I pay all my bills on time, and my score didn’t go up (or even decreased), what happened?
Let’s dig in and maybe we can answer why...
Let’s start with statement date vs. due date. These are 2 completely different things. LEARN THEM.
Statement date: The end of your billing cycle. Whatever your balance is by the end of this date is what’s reported to the bureaus.
Find out all of your statement dates and note!
Statement date: The end of your billing cycle. Whatever your balance is by the end of this date is what’s reported to the bureaus.
Find out all of your statement dates and note!
Here’s an example, both from the same statement:
1) My statement date for one of my credit cards is 7/14/18.
2) My due date is 8/11/18.
1) My statement date for one of my credit cards is 7/14/18.
2) My due date is 8/11/18.
If you can retrain your mind to make your statement date your new “due date”, and have lower balances by that date, watch your scores start to increase. 
I’m gonna hop back to Credit Karma real quick, because someone asked:
Why are Transunion and Equifax the only bureaus on Credit Karma?
In the words of the great Shaquille O’Neal.
It’s all marketing... cont’d.
Why are Transunion and Equifax the only bureaus on Credit Karma?
In the words of the great Shaquille O’Neal.
It’s all marketing... cont’d.
You notice how the cards Credit Karma “suggests” are usually Amex, Chase, & Capital One?
They’re using your VantageScore thru Credit Karma to sell you products.
They’re essentially pre-qualifying you off of what they thing your TransUnion and Equifax scores.
They’re using your VantageScore thru Credit Karma to sell you products.
They’re essentially pre-qualifying you off of what they thing your TransUnion and Equifax scores.
Ok, back to statement dates/due dates. Remember that concept as we move into the next important factor.
Credit Usage.
Credit Usage.
Let’s keep it simple. I have a credit card with a $1,000 credit line.
By my STATEMENT date, ideally, my utilization should be 30% or less. In this case, less is more.
Quick maffs:
30% of $1,000 = $300 balance by my statement date.
Here’s mine:
By my STATEMENT date, ideally, my utilization should be 30% or less. In this case, less is more.
Quick maffs:
30% of $1,000 = $300 balance by my statement date.
Here’s mine:
Now keep in mind, that example was the total utilization of ONE card. Lenders consider your credit utilization of ALL your cards.
Hopefully, that made the precious question more clear on why you pay on time, but there’s no movement (or even a decrease) in your scores. 
I’m going to pause right here, I have a training to do, but I’ll pick back up a bit later on how you can fix that problem.
Next up:
1) Paying down debt
2) Increasing available credit.
Ya’ll be cool.
Next up:
1) Paying down debt
2) Increasing available credit.
Ya’ll be cool.
Ok, I’m back for a few, so I’m gonna get into the infamous CREDIT USAGE.
If you started with me, by now you’ve logged on to your accounts and jotted down your statement dates.
Like I said before, 2 things affect usage: Paying down debt and your available credit.
If you started with me, by now you’ve logged on to your accounts and jotted down your statement dates.
Like I said before, 2 things affect usage: Paying down debt and your available credit.
Paying off debt - There are multiple ways of doing so, I am going to SUGGEST a couple. I just want results.
1) Debt Snowball - Psychological
2) Highest to Smallest interest rate. - Saves the most interest.
They are both proven & work effectively.
1) Debt Snowball - Psychological
2) Highest to Smallest interest rate. - Saves the most interest.
They are both proven & work effectively.
1) Debt snowball - I like this one the best, because it gives you the feeling of accomplishment by paying off smaller accounts faster.
This can also give you a quicker boost in scores, because you’ll have cards with 0% utilization.
This can also give you a quicker boost in scores, because you’ll have cards with 0% utilization.
2) High to low - Attacking the highest interest cards and moving on to the next until done.
You won’t SEE the results immediately, as this is for people typically with higher debt and need longer time to pay it off.
It works.
You won’t SEE the results immediately, as this is for people typically with higher debt and need longer time to pay it off.
It works.
Interest Rate Fun Fact: At 12%, if you make just the minimum payment on your credit cards, the bank will pocket half of your payment.
Credit card debt is not a game.
Credit card debt is not a game.
