Understanding Credit Scores

This video tutorial provides a comprehensive guide on achieving and maintaining a high credit score. It explains the different credit score categories, the five key factors affecting credit scores, and offers practical tips for improving each factor. The tutorial emphasizes the importance of payment history, credit utilization, and the length of credit history. It also discusses the impact of credit mix and new credit inquiries. The video concludes with strategic advice on managing credit effectively to become superprime and enjoy financial benefits.

What is considered an excellent credit score range?

• 300 to 579

• 580 to 669

• 800 to 850

• 670 to 799

What is the approval rate for superprime individuals applying for a credit card?

• 19%

• 100%

• 50%

• 84%

Which factor contributes the most to your credit score?

• Length of credit history

• Credit mix

• Payment history

• New credit

What percentage of your credit score is determined by your credit utilization?

• 10%

• 15%

• 30%

• 35%

What is the recommended credit utilization percentage to be considered excellent?

• 61% to 100%

• 31% to 60%

• 11% to 30%

• 0% to 10%

How long does a late payment stay on your credit report?

• 1 year

• 3 years

• 5 years

• 7 years

What is the impact of closing unused credit cards on your credit score?

• Decreases credit score

• Improves credit mix

• Increases credit score

• No impact

What is considered an excellent length of credit history?

• 3 to 7 years

• 8 to 24 years

• 0 to 2 years

• 25 years or more

What type of inquiry does not affect your credit score?

• Hard inquiry

• Soft inquiry

• Credit card application

• Loan application

How long does a hard inquiry stay on your credit report?

• 6 months

• 5 years

• 2 years

• 1 year