How I Achieved The Perfect Credit Score - Here's The Magic Formula I Used

Lynnette Khalfani-Cox, 54, achieved a perfect credit score for the first time in 2021. According to FICO, just 1.6% of Americans have a credit score of 850. Lynnette says the secret formula lies in understanding exactly how credit scores are calculated - and it can help anyone to drastically improve their credit score.
Subscribe to CNBC Make It.: cnb.cx/2kxl2rf
About CNBC Make It.: CNBC Make It. is a new section of CNBC dedicated to making you smarter about managing your business, career, and money.
Connect with CNBC Make It. Online
Get the latest updates: www.cnbc.com/m...
Find CNBC Make It. on Facebook: cnb.cx/LikeCNB...
Find CNBC Make It. on Twitter: cnb.cx/FollowC...
Find CNBC Make It. on Instagram: bit.ly/Instagr...
#CNBC
#cnbcmakeit
How I Achieved The Perfect Credit Score - Here's The Magic Formula I Used

[@earlwallace2015]

Credit Scores are a con game. My credit score is currently 820 and I'm offered credit cards with APRs in 20% and up. My brother and friend get the same offers and their credit scores are 660. We all got approved for the same loans. Same APR. Get out of debt and stay out debt.

[@angeluceta5688]

It is a con game.people will be influenced by this video and become slaves trying to build their credit instead of building their network instead.having a good credit score just means you borrow money

[@da0ud]

Con game indeed. Whats the point? Having a good credit so you can be a good rat in the rat race and borrow more, have more debt and keep repeating the circle? Just don't have debt and don't give to those sharks

[@riz4141]

Credit card is mass product, of course the APR will not tailored based on your score

[@earlwallace2015]

@noazucar but that's part of the con. Once I became financially literate (cash flow positive) I don't need a credit card to make basic everyday purchases. I can just use cash for that. Being given access to higher credit lines just becomes a larger liability.

[@earlwallace2015]

@@riz4141 yeah but here is the thing. What incentive does someone in my position has to maintain business relations or records with institutions that will give everyone the same options? Initially, having higher credit score gave you options/access to better priced/interest rate products.

[@girl2h4u]

Because of people like Lynnette, I never had credit trouble. My parents were not good with money and one them even went into bankruptcy, but because of people who share credit information freely, once I even got credit, it has been in the 600-700 range. Now I’m a consistently over 700, I can’t wait to get to 750-850 range 😇

[@bauttiet.h.u.g.5900]

My parents were/are the same way but my credit score is over 800. I will say, once your credit score is over 750 there's not much different.

[@johndoe-wv3nu]

I was forced to file bankruptcy due to divorce and health issues. My credit is above 820. Pay your bills, on time, every time. Don't buy things you can't afford. You will have good credit.

[@comfortn6473]

I used to be obsess with obtaining a “perfect” credit score. Not anymore. My only goal is getting out of debt. Staying debt free. & living below my means . Credit score is just a score that says “I have debt”

[@Manager_Mister]

Very well said. Live like nobody else, and you will live like nobody else. -dave ramsey

[@georgina4874]

Staying out of debt and paying debt on time will raise your score significantly. Staying below your means is a great mindset. 👍🏽

[@stacy-annmorgan6685]

Not really. I am Canadian and I have never paid interest on my credit cards been using over 6 years. Have over 20000+ all together. I have a car loan paying off this month, I only had it for one year and one month. I hate debt. I come from a mom who had debt and never wanted that. I use my credit cards to earn rewards. I get more reward out of credit cards. But it depends on the person. I don’t really care too much about my credit number it’s just good because I keep a good financial spending by habit. Score around 820 last I checked. Also since I’m paying off my car early my credit will take a dip. So u could see I could care less. I don’t like debt don’t want a car payment. I hate the whole number system. Funny enough it’s people with bad credit that get a lot of credit. 🙄.

[@jrbluedup]

Interesting take… although I am debt free and have an 800 credit score.

[@CreditSolutionist]

Yes and no. It mainly just shows that you know how to manage debt and can be trusted with large sums of money. Unless you'll be inherting a house or buying one cash, you're gonna need a credit score eventually.

[@FIREPsyChat]

Financial coach here 👋 she didn’t say we should all hit 850 credit score. 760 or above you’re in the excellent range.

[@GoogleAccount00]

What is the fastest way to increase credit points??

[@CreditSolutionist]

That's a great nugget of truth. What you can qualify for at 760 is just about the same as if you had a 850 score.

[@askthemoneycoach]

Thank you for having me on @CNBCMakeit

[@anabettencourt6943]

Love her story and trajectory! Thanks for sharing. I cannot wait to get to the 800s currently on the 700s

[@nachamivillage4267]

Something magical begins to happen when people raise their credit scores. More revenue flows in, a new sense of pride in one's assets rises, a new level of personal responsibility kicks.🤩

[@CreditSolutionist]

So true!

[@552mustang]

Complete nonsense. All it means is you qualify to get into more debt

[@DrSeussTruth]

@@552mustang welcome to the matrix Neo.

[@tightwad]

I'm 850 and not walking on water yet. But CHASE promo offers are easy $600-900 for necessary purchases that take VISA

[@kashfortheking]

This is a great video and definitely inspirational. This lady has clearly gone through the 400 FICO score struggle and rebuilt her life to a perfect score. That’s awesome 👏🏾

[@shannonjohnson4314]

She just inspired me! 😊 I've been working on my credit and at times it has been tuff due to job lose or ect. However I won't give up on accomplishing my goals.

[@Manager_Mister]

Dont give up. You didnt get to the point you are at overnight. It takes time. Just beware of those who are offering to help you for a fee. You dont need to pay anyone for a quick fix. What you need is time, discipline, and income. You can do it. I did, it took me 18 months and two jobs, but i did it. It made me realize the difference between want and need.

[@nursebondemcanada]

Same

[@redholiday5555]

I don't even pay attention to my credit anymore and I've had a perfect credit score before. All it took was a shipping fee dispute with Google and it tanked. It can go up 10 points but decrease by 20, it will literally drive you crazy if you obsess over it. Personally I like cash better, don't owe anything you get what you want and out of sight out of mind.

[@fdoctor79]

The goal is to be debt free and have more cash flow. A "perfect" fico score would be an added bonus. Although I believe cash is King, congrats on fulfilling a major financial milestone, Lynette!

[@PinkHypatia]

Why is perfect credit even a goal? Isn’t 760 enough to get all you need or want?

[@a.h.2667]

Perfect score just gives you bragging rights.

[@drew5266]

That’s like saying why get a new phone when your old phone does everything you want it to do 😂

[@licia822]

I consistently maintain a credit score between 800 to 845. Once you get to about 750 the scores have the same value in terms of approval and rates.

[@psnisy1234]

The score itself doesn't matter after a certain point. Having a 720+ (750+ in a reccession) is typically all you need. What's more important is the items on your report and the status of those items then it is the score.

[@currencyenthusiast5360]

For people who don't borrow money, why should we care about a credit score?

[@sharoncarsons5734]

A good credit score is almost always needed to buy a home.

[@landonbrown9943]

Just pay your bills on time & live below your means.

[@imcelestial1417]

It's not that simple

[@landonbrown9943]

@@imcelestial1417 yes it is. Pay your bills mf

[@politcallycorrect5816]

unfortunately that's not how it works

[@justicemarketinghq8180]

I should have saved for a casket instead of getting cancer treatments. At least I would have died with a high credit score.

[@greeneyes1313]

Perfect timing. Last night my husband and I were wondering what it took to get a perfect score once you’re over 800.

[@Rashaadthegr8]

Alot of debt over decades. The amereican way.

[@wiseonwords]

@@Rashaadthegr8 - You should see what it's like in the UAE!

[@Rashaadthegr8]

@@wiseonwords I thought UAE was rich. America is #2 in the world. Japan #1.

[@Manager_Mister]

800 or 850, it really dont matter. It is just a number that floats up and down. You can get it tomorrow and lose it again. Invest in yourself and bank cash. Best to both of you, from Texas

[@RLFLOWS]

Once you have a credit score of 781 or better you will receive the same APR as someone in the 800s.

[@FatboyyTransport]

A credit score is nothing but telling banks that you love debt

[@Rosetteismyname]

Hey Dave Ramsey robot

[@larontyson]

6:05 is the magic formula, rest of video is kinda filler material

[@Bykv78]

My score is 874. I didn't think it was an important thing! I never get loans except mortgage. I pay my credit cards every week and never pay a cent of interest on them.

[@heyvern]

Chasing the perfect credit score will fore sure almost always keep you in debt with someone else.

[@chrissiology]

She's amazing and I'm proud of her!! She "knows" what she's talking about. I am a Black woman and am interested in Finance as well.

[@mherring9648]

Thank you for this informative video and the information breakdown. I monitor my credit score and debt ratio information and try to achieve a 760-780 range. Seeing your video confirms my aspiration to achieve 850.

[@suzannevanleer3774]

I paid off all my debt, and my credit score went down. Really confused me. Might it be that I don't have a mortgage in my mix? I have always paid on time, and hardly ever have much debt. Still, in the upper range, so that's good. 😊

[@investedfemelle7564]

Credit was designed for you to borrow. No borrowing equals low credit lol

[@landonbrown9943]

Well you’re out of debt so that’s good.

[@suzannevanleer3774]

@@investedfemelle7564 yes, I have heard that you need to use the cards, so I have started using periodically, and paying the full balance when I get bill, in hopes of keeping my score on the upper tier, if not raising it. Thanks 😊

[@thaddeusbrown1009]

Same happened to a family member of mine. It may go up later. If you are concerned about carrying a large balance. I would put any subscription services or gas on the cc. since those things will be in your budget when you get paid send that money to the cc company.

[@Manager_Mister]

That happen to me. Borrowed 20k and payed it off in 12 months. My credit dropped from 836 to 802. Reason i no longer was making payments. Credit companies want to be paid interest in exchange for an arbitrary number. Dont let a number cost you money. If the number is important, then just pay as little as possible on an extra card. Keep the balance of $20 to allow a payment each month. When the miminum is taken, you get put it back. Easy

[@mr.millionaire4570]

My credit score is at 762 once I get to 850, I'm going to get a hug loan, luxury apartment and also invest in a big laundry mat along with vending machines also real estate. passive income to financial freedom so not only will I become part of the 1.6% population of Americans, but I'll also have my money working for me growing. God is ordering my steps just being patient while in the process of so many great things on the way. 🙏

[@meejinhuang]

By never taking out a federal student loan

[@GoogleAccount00]

🎯

[@ccb6013]

A lot of people get really extreme during credit conversations like these and are either too pro (financing everything and not keeping cash on hand) or, just as commonly, are too anti (don't want to borrow _ever_ and are close-minded even towards income-earning debt, i.e. a reasonable mortgage on a rental property). I much prefer a less biased approach and see value in the combination of a good credit score, a substantial emergency fund, living below my means and, yes, even leveraging the bank's money.

[@JJJ_JJ1]

Notice how she’s an older woman. (No this is not an insult whatsoever). Typically you need lines of credit open for decades (along with low utilization and perfect payments) to achieve a perfect score. A mortgage helps. So for many this is simply impossible based on age alone.

[@Hedgeflexlfz]

Dave Ramsey enters the chat

[@GoogleAccount00]

😂

[@earlwallace2015]

I'm canceling my only credit card due to Dave Ramsey. He is absolutely correct around credit scores.

[@Hedgeflexlfz]

@@earlwallace2015 No he’s not, as long as you don’t pay interest and treat it as a debit card having good credit and taking advantage of the cash back is not a bad idea.

[@earlwallace2015]

@@Hedgeflexlfz but statistics prove he is actually correct. Most people are not disciplined in that way. The banks/Creditors know it. 900 Billion to 1 Trillion in credit card debt and you are talking about how he is not correct.

[@Hedgeflexlfz]

@@earlwallace2015 most people, If you are like the average person then yes you shouldn’t have credit card.

[@bingbonggg]

805 as of a week ago. Early 30's.

[@Manager_Mister]

What she failed to mention is how long she kept that perfect score of 850. She implied that she still has it and will keep it. Truth is, she will keep it only for a while. The score varies up and down regularly. The score over 760 to 850 is treated all the same when it comes to borrowing money. Face it, she is selling her products and services. I would not trust anyone who lies by omission. To me, what else is she not telling you? By the looks of it she makes a decent living to help having a good credit rating. Most of those she is paid to help don't have the same income level. Best thing for most people is to pay off debt and remain liquid. And NEVER TAKE FINANCIAL ADVICE FROM A POOR PERSON. There, didn't cost you anything for good advice she would be happy to be paid . There is nothing wrong with making a living, but provide full disclosure.

[@cheryesjerome1427]

I love your inspiring comment. Thank you.

[@Rosetteismyname]

You sound bitter.

[@Xtremeproducts]

Honestly, if you have 750 (even 720+)scores with a mixed/thick file, you don’t need a 850

[@budgetmeboujie9602]

This didn’t even give you information I was looking for her to say pay collections then write letters she gave motivation

[@LMays-cu2hp]

Thank you for you help.

[@M.....................]

Credit is a vehicle you don't want to drive for too long ... use as necessary then keep it moving!

[@sharoncarsons5734]

An excellent credit score helps with large purchases. I get 0 percent credit card offers which helps when I buy large items like appliances and want to pay them off time without paying interest. My home equity line was also at prime minus 50 basis points, and my mortgage rate was also low.

[@shae1967]

I to have achieved the elusive score of 850! It feels great knowing that I will be approved for any credit product option.

[@karan_karan_karan]

why did she not mention credit utilization ratio?

[@chrissiology]

She did. It's called "Amount Owed". It's the one that she said that was worth 30% of your credit score

[@karan_karan_karan]

@@chrissiology shouldve went more in depth about the percentages

[@chrissiology]

@@karan_karan_karan i understand

[@johnnettarodgers9205]

Thank you so much for your positive energy while telling your story. It's motivational to for me. God bless you 🙏

[@amsthe3rd]

A toast to good financial discipline and habits. Cheers! Meanwhile world governments owe trillions and sleep good at night lol.

[@GoogleAccount00]

That part.

[@djrx2]

I also had an 850 score 2 weeks ago. Second time in 6 years.

[@thehandleishothott]

Old age, long good credit history works.

[@thehandleishothott]

My credit is much like hers. It’s already good.

[@o.fatima7175]

Glad this video came up! I'm trying to clean up my credit. Do you pay debts that have been sold to a law firm? If not, how do you pay the original creditor? And how do you repay charge offs?

[@dreamer2512]

Repaying charge offs screw your credit up even more if I could go back I wouldn't pay it at all and just let it fall of after 7 years I would still be in the same boat as I am now but at least I would have had that money instead of screwing up my credit more

[@FG-xc5qj]

You don't need Roy and Dreamers advice is bad too. Yes, contact the creditor and make an arrangement to pay off the debt. You can offer them 25% of what is due and they will usually take it. Never leave debt just lingering and waiting 7 years is a long time and irresponsible.

[@Mimzy-qu3yc]

Make arrangements to pay off the debt. However, make sure you request (and receive) a “pay to delete” letter from the creditors before making the final payment. If you don’t get that letter the debt will remain on your credit report for years! Comment from experience!😕

[@tegulvedameile989]

*Think big, set goals, work hard and succeed.* I realize in life there’s no shortcut to getting rich, but investing remains the best way to go about it.

[@quin5155]

I’m really interested and wish to start investing. Can you share some investment ideas I can engage in? Thanks 🙏

[@tegulvedameile989]

@@quin5155 I engage in prolific investments such as:- real estate, NFTs, crpto and stocks and through proper advice and management by a licensed financial adviser (Hamilton Phoebe zoe), I achieved good returns on investment. For a better investment experience work with an expert . That’s just my advice.

[@quin5155]

@@tegulvedameile989 I appreciate this information, how can I get in touch with your financial advisor as I am really interested and want to start investing?

[@tegulvedameile989]

@@quin5155 Just make quick internet search with his name *Hamilton Phoebe zoe* to get in touch and write her ..

[@swicheroo1]

If I had 100K in credit card debt--God Forbid--I would file for bankruptcy. The compound interest on a sum like that will choke you. And that is why bankruptcy protection has been put into place. You can still rebuild your credit after a bankruptcy.

[@utarsh01]

It's not about 100k, it's how much you earn. People have paid off 500k loans. If you earn substantially, paying it off isn't an issue.

[@daysofcarnivore]

Having a high credit score and maintaining it is a losing proposition.

[@keithwisdom1663]

Having wealth is key not just credit taking risk many of millionaires have filed for bankruptcy at least a few times

[@whitneybrown4067]

This is Gonna b so Helpful🔥🔥🔥👍….

[@zchoicez]

Thank you for explaining!

[@didine256]

It starts at 4:20 before its just uninteresting

[@atlygroup]

Thank you.

[@sahildhiman8702]

After watching this i paid my credit card bill 😂lol

[@confidentialprivateusa6519]

A FICO SCORE is nothing more than an "I AM IN DEBT SCORE." I rather have a low credit score than DEBT!!! Nevertheless, this is a good commentary.

[@jesussoto845]

Awesome message! great video.

[@austengreen6827]

So getting into debt is what increases your credit score. Paying that debt just to get back into debt is to maintain your credit score. So what happens if I don’t have debt and don’t need a credit score

[@jasonfbaker]

That is what international students and immigrants deal with. My partner is a professor at a major university but being from another country, a car loan was difficult to get despite food salary.

[@WisdomToAll]

Thanks for sharing this tips .Amazing. Keep a moderate credit score 720+ (750+ in a reccession) as isaac mentioned and use the credit balance with 0% interest you own wisely

[@michaelnelson7240]

Car dealerships are awful while your undecided dealer after dealer wants to pull credit you can crush your credit just looking for a car in one day

[@bernardbarbour]

That's why you get pre-qualified for a loan at your bank, credit union or have cash. Don't let them pull your credit, unless they have great terms or APR.

[@JessieBlandingJr]

I don't like the credit score scam that we all are forced to use if we want something. Then again the upside if you are in a terrible situation and got whatever perfect credit is then you know as long as your decent income you basically have the gates open to get credit cards and loans from $20k and up. If you lost your job but had excellent income and credit then you can use that to live off of until you get situated

[@nursebondemcanada]

Great advice

[@JeffreyQProductions]

I really wish they showed her net worth. Getting an 850 is kind of a pointless achievement as the score is only a means to an end.

[@HelloHaven]

As a young adult she had $100K in credit card debt that she paid off in 3 years? How did a young adult even get approved for credit cards with limits that would total upwards of a $100K and how did a young adult then pay those off in 3 years, which is an average of putting $35K a year plus interest on the cards? She must have had an extremely good job.

[@whatupdoemia]

She probably lived way below her means for 3 years, saved and sacrificed a lot, it can be done. Depending on her career and how much she made, she could have taken most of her income to pay down debt and live out of the rest.

[@tightwad]

Just hit 850 but still cant walk on water. Its a bragging point but wont do much else except make me worry I'll go back to 825😮

[@keya2714]

Let's get business credit now

[@tylascraig9306]

She didn't say anything too new that's basically common sense. Don't overspend, don't apply for new credit unless you know you'll get approved and you absolutely need it, etc. She also spent 3 mins (45%) of the vid bragging.

[@MaryAlexaaandra]

I wanna video on how she got out of that 100,000-credit card debt.

[@deebrown7160]

Im over 840+. I have 50k credit cards. Most of my cards are 25-50k.

[@coreyjordan2745]

good job

[@andysofly1]

How do you have 100K in credit card debt

[@youtubesucks8024]

What a scam. Effffff this credit system.

[@Joshualibbyy]

Getting an 850 credit score means absolutely nothing. U can have a 750 or above and still have similar rates it's not worth to fight for a 850

[@DaintyDaphne1]

very nice 👍🏾

[@analuisaibarra8143]

I don't find that something impressive. It is much more impressive when you can save the money you need to buy something.

[@FinancialShinanigan]

Never understood the obsession to get highest credit scores, above 780 is all the same. She's probably super competitive and will destroy you if you win at monopoly

[@investedfemelle7564]

Well she said she wasn’t trying to achieve it. But yea 760 and up really doesn’t matter, gonna get the same int.

[@rainthomps694]

Lol, she stated in the video she wasn't aiming for 850.

[@BookofFuture]

😂😂 “destroy you if you win at monopoly”. That’s such a common experience.

[@Chloeeezyyy]

Another person who didn’t pay attention

[@omarileedelegance]

YES I RECEIVE IT❤

[@oco987]

Cash in the bank is better

[@nicholasali2182]

SHE'LL GET APPROVED FOR ANYTHING, BUT THAT PERFECT SCORE WILL NOT GET HER THE PERFECT RATE💯MORE IMPORTANT TO SERVICE YOUR DEBT TO BE DEBT- FREE 🙏🏿

[@thaddeusbrown1009]

Plz explain? I haven't heard this viewpoint yet.

[@AnhTuPhucDerrickHoangCanada]

the real one

[@jenniegauthier4344]

How can I build credit after bankruptcy? Do I really have to wait for 7 years until it gets off of my credit report?

[@newguyguy2578]

Dave Ramsey is coming for you!😁

[@TexasTaxedToDeath]

Want to lower your credit score? Don't borrow money and watch it go down. WTF

[@dral22]

The people who say they have a perfect credit score can never prove it. We don't want to hear you yap about it, folks wants to see it Live! on your phone. I will judge you, PROVE IT! 😛

[@tightwad]

Don't know how to add pic to replies but I'm 850 till I buy a new car this. Month. It was exciting for 24hrs

[@valeriadelariva3342]

I love her but girl how you pay off the 100k 😩

[@sebastianpayancristancho5027]

👁️👁️She is so intelligent! I need a woman like this in my life! SO BAD!😍😍😍 What a Beautiful smile she has!😜

[@NURREDIN]

"Credit is for people who don't have any money"........Ted Turner

[@great456789]

Having an 850 credit score is not a good thing. I’d rather have a net worth of $1M and no credit score. And pay cash for everything. That way you don’t have the risk of having debt and not being able to pay it off if something happens to your income.

[@FG-xc5qj]

That's dumb! You still need credit even with the "net worth" of $1million and that amount is next to nothing in this day and age. Like she stated, having a perfect credit score is like having cash, because there is not one thing you would be denied having. As rich as Jay-Z is, he still understands the importance of having good credit and why it is useful.

[@MrBemnet1]

Yiu get punished for using your credit limits

[@Honeypepper.]

How I don't care!

[@bauttiet.h.u.g.5900]

Married black women tell the simple keys to a high credit score without tricks, hustles or scams. Take good note that she is married.

[@bauttiet.h.u.g.5900]

@Dee lol, nope. I am like the majority of black men who are single and childless. Maybe I'll cut a deal with someone sooner or later. But my credit score above 800 tho..

[@bauttiet.h.u.g.5900]

@Dee prove it. Where's your stats to back what you say up? Not sure i know what stats you are referring to so back your opinion up with sited sources. And what's your credit score?

[@bauttiet.h.u.g.5900]

@Dee so most black men don't finish highschool? Smh, it's obvious the only black men you know are highschool dropout felons who are baby daddies. All I can say to you is, do better.

[@shiba6923]

1st 👁️👄👁️

[@Oneeeeee1]

Yeah people don’t realize the owner of credit and utilizing OPM to grow your cashflow…. Finally got up to 819 and I’ve seen endless opportunities Poor minded people don’t understand good and bad debt, good debt produces cashflow bad debt snatches your cashflow

[@BatistaInvests]

If you DONT USE YOUR CREDIT what good is it? The answer --- It does you no good. Learn to use other people's money to make money. Periodttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttttt