Financial Friday - Jordan Credit Union: Improve your credit score

>> In today's sponsored Financial Friday with Jordan Credit Union. We are getting your credit score up with just a few simple practices. I'm now joined with Landon Bradfield to tell us the effective ways to improve our credit scores. Welcome back. Hey, thank you. Happy 4th. Yes. Before. >> Yeah. So Lynn and tell us how we can up our credit score. And there's some simple common sense things. Yeah. So. >> I think most people understand what Chris Core is is kind of too. It's giving financial institutions indications of how responsible you are with debt. So not necessarily what you're doing with your money, but what you're doing with your debt. So things are in that calculation like how many lines of credit you have, what your credit limits, how little credit limit you're using those types of things. Also, if you're paying your bills on time, those are the types of things that people all understand. So everybody understands are supposed to be paying your bills. But there are some things that are misunderstood when it comes to credit limits and credit scores on your credit score really helps identify you if you want to loan and like in life, you need a good credit score. Right? So those are some things. You have these top 5 lower your credit utilization rate. >> Corrects urine Acker stays on your credit reports and called back and analyze your credit score and see what you can do right? All right. You can add all those things, but I want to go over a couple things that. >> Often misunderstood even got some questions even this past week about. These things affect credit scores out the kind of go over like pain. So I'm going to have this little graphic here. And now we're talking lines of credit and credit limits. So this is like a credit card in this. This peach or pink indicates. How much your credit limit will say this is like your first credit card, which is like $1000 credit card right here. You're supposed to only be utilizing or carrying over about 10% of that. So 10% of the 1000 is $100. No more than 30% or that really starts to affect your credit score. So that's only $300. >> So that's not what that's not a lot of money. When you think about maybe a credit card that has a $500 limit that that drops to $50 and you're probably spending a little bit more than 50 bucks on your credit card, right? So you're really supposed to be making sure that your credit limits are keeping up with how you're spending money responsibly. So if you can responsibly pay off most of your debt every single month. But if you have to carry some balance. >> You may want to think about upping your credit limit. So one way to indicate to to effect this is to get another line of credit for more money or asking that financial institution that you have that credit card with to up the credit limit. And that could actually help your credit score. If you're using your card, you never realize that because, you know, and they say, oh, that's your limit. So that must be it. >> Sometimes it is worth it to go back and say is there another way we can up that credit limit and then see if they will give you another credit card. But so you're not closing that account. So so so the other thing is that people do, especially if they've been in some credit card dead, it's really good tough. It's a really good feeling to pay off your credit. Cards, especially if they've been a part of your life for a while. The credit to the credit card limits are and that debt. >> But sometimes people cut up their credit cards at the end. Yeah, they closed the account because like, oh, OK, good eye. >> Covered it. I have paid off. Thank goodness, but you say. But you also say don't cut it up necessarily. Keep it open. >> Yeah. And the reason why and walk this back up. Is that it actually can lower your credit limit overall. So if you had 2 lines of credit to like, like 1001 1000, you cut off one of them. That's only 1000 now and their credit score is an indication of how long you've had credit. If you close that line of credit that could actually affect your credit score in a negative way. Way negative. Yeah, but I like how you explained it because I knew it wasn't a great thing to do. >> But the way you describe it also make sense when you're looking at that 30%, and all of sudden it disappears. There goes the history of how you pay down your debt. Yeah. And because the credit score is kind of a calculation of your history and how you're using it, if you close, one of those can actually take down your credit score. These are such a great information when you start looking at your bills and looking at your credit cards, these are things you can do and maybe it is coming up that company and saying, hey, I would like a higher line of credit. Yeah. Yeah. If you've been using it responsibly responsibly more likely than not, though, up your credit limit, OK, and you can see your credit score go up. All right, Landon, thank you so much. Working people get more information. Jordan, see you Dot org is a great way find that information and we're more than happy to do up your credit limit or get another credit card just to fight. All right, Jordan, see you Dot org is the place to go. Always