How Does Your Credit Score Work?

[@PrinceofTravel]

Interested in learning all about how to travel the world on points? Join us at The Travel Summit Toronto 2022: The #1 event for elevating your travel! thetravelsummit.com

[@hughring]

Nice to find a Canadian channel on credit! thank you!

[@LadyLuckx3]

This is the 2nd video of yours I've watched. Such an awesome channel. Thanks for sharing your knowledge with us!

[@PrinceofTravel]

Thank you! We have way more videos now since then also. Hope you enjoy them

[@9skitso9]

You are an EXCELLENT teacher! Fluent in the way you express knowledgeable information! Thank you again

[@xingjuhang7606]

Very helpful and informative video, thank you so much!!!!!!

[@Ray25hua]

Bro, you’re super underrated. I hope you hit 100K subs soon!

[@parisianflower1]

Thanks! Can you pls do a video on what impact closing a credit card has in your score?

[@swaganomiks]

Keep going at it. Been bingeing on your videos ever since I found you.

[@EastofSublime]

Stoked to find your channel! Thanks so much for breaking that down.

[@julienbombray2203]

VERY Interesting video man!

[@kAyshAwAcAnsing]

Okay so I’m Building up my credit history for the first time. So say for instance I get a approved for secured card and I put $100 on it. to help build my credit history. Using the credit card I would want to pay for a storage unit for $35 a month. I would have spent $34 out of $100 and would have $65 dollars left over on the card . Do I have to pay off that entire $100 dollars that I put on the card or just put back the $35 that I spent? Before the due date?

[@jessicacanada9428]

Great video. Very informative.

[@alyshalewis4379]

Excellent video. Thank you!

[@crystalmethshrimp]

Loving your channel. Just checked my CS 867!! Time to get some new cards.

[@PaulWong199203]

Thanks for sharing this information! I have a very old credit card which I rarely use. My question is if a 0% utilization on one of my credits is going to affect my credit score? Or should I just cancel it instead?

[@michaelreid8857]

I try to pay the amount due in full most months. But in order to never have a late payment, I pay the minimum payment, the moment my statement comes to me. That way, I am never late. The worst is, I might pay some interest.

[@TKGZONE]

How did you get american credit to apply for american cards as a canadian? Can you do a video on the process if you can?

[@PrinceofTravel]

Chippy Part 7 of this series :)

[@JoeUrbanYYC]

How do mortgages affect utilization? If you took out a 200k mortgage that is now reported as being 30k, does the original 200k count as available credit with the 30k being 15% utilization or does the 30k show as being 30k out of 30k ie 100% utilization?

[@MRJQUACH1]

How come your credit score has trended downward (when you displayed the Credit Karma segment)?

[@Michaelengzzz15]

How do canceled cards factor in? Do they just drop off. Or do you divide by the total amount of cards?

[@PrinceofTravel]

Cancelled cards remain on your credit history until they drop off after 7 years. So they'll still contribute to the average age of accounts during that 7-year period.

[@Yashh5555]

Hello Mr Ricky Excellent information and Appreciate your Hard Work. Does having Multiple Cards and not using all of them also affect the Credit score? How to increase our Score from Very Good to Excellent Range? Thanks Yash

[@Yashh5555]

Thank you so much 💓

[@HcL84]

Hi Ricky, thanks for the video.. are you able to elaborate more with regards to average age of accounts as there are conflicting reports on whether closed account are factored into the calculation. For people who do credit card churning, they are likely going to have many credit cards that only have 1 year active (which will stay in credit file for 10 years, and apparently will not age?).. if those closed account are also factored in, would they not dramatically impact your score in this sector? for example.. if i have a credit card which i am holding for that long credit history (10 yrs), and i have churned 10 credit cards that i closed after 1 year, does that mean my effective average age of account is only around 2?

[@PrinceofTravel]

In my understanding, closed accounts continue to contribute to your AAoA even after they're closed, until they drop off your credit report after 7 years. So even if you opened a card 6 years ago and closed it after 1 year, that account is still contributing six years of credit history since that's how long ago you had it.

[@mr.starks]

Is there a way to apply to numer card at the same time??

[@PrinceofTravel]

Yes - you just apply

[@kyrie4451]

Ricky, do you usually cancel your old credit cards in order to be able to re-apply to the same bank and get the sign up rewards (some banks only provide sign up rewards to those that did not have a credit card with them for at least a year or 2)? If so, wouldn't that over time affect your average years of credit history significantly?

[@PrinceofTravel]

That's a common strategy. Closed accounts remain on your credit report and continue to contribute to your AAoA (average age of accounts) until they drop off 7 years later, so the impact of closing cards on the credit score/health is less than one might think.

[@NatashaNAj]

You need to accelerate the turnover of these videos! Always leave me wanting more info!

[@PrinceofTravel]

Thanks for the encouragement. I'll do my best 😊

[@khitangalper9778]

There are only so many credit cards to have. What happens when you run out?

[@PrinceofTravel]

Get 'em again

[@jackychen7338]

Love the video I just have a quick question, I'm 24, live in Toronto and my cousin started dating this guy who is also the same age as I am. He claims to have a credit score of 890. How probable is that for someone my age and how does one get to a score that high?

[@PrinceofTravel]

Who cares? If his credit score is that high, it means he isn't maximizing his credit card rewards ;)

[@kyrie4451]

It is possible, particularly if his parents got him a credit card when he was a kid, and he had a revolving secured line of credit. But what for? If you are applying for a loan and hope to get a low interest rate, this would help. Otherwise, like Ricky said, he is not taking advantage of the rewards.

[@adittttya]

@@kyrie4451 ​ Umm, how does maximising rewards equate to a lower credit score? (I'm a fairly new credit card customer, so don't have much insight into how things work, thanks in advance!)

[@bigworld3025]

Do they check my credit score every time I apply for a new credit card? In other words, if I have a good payment history for an existing credit card with the same bank, do they still inquire my credit score?

[@Animegami]

ik this comment is an year old but yes. they will always check no matter what. however, for product switch, I believe they will as well as i got hit when i changed from MBNA alaska air card to the green cash back card

[@alimazloum1]

Hi Ricky, I would like to know what if I used only 1% of my available credit across all accounts ? as you said in the video we better to use 5-20% . But I wanted to use only 1% . Is there any negative impact ?

[@PrinceofTravel]

Nope, 1% is fine as well.

[@kimorahho]

Does closing your credit card affect your limit?

[@PrinceofTravel]

Closed credit cards remain on your credit file until they fall off 7 years later, so they'll continue to contribute to your Average Age of Accounts (AAoA) in the meantime.