Tuesday, 18 January 2022

Credit Score Trashed Fix Credit With Credit Gardening

Credit Score Trashed Fix Credit With Credit Gardening
31 Jul

– I trashed my credit score 60 points on purpose, let me tell you why (intense music) Hello everybody, I know it's click bait, I didn't drop my credit score 60 points

It was 59 And I did it on purpose Back in December I decided I needed to get a Discover card and an American Express card Before that I only have Mastercard and Visas So I decided that I would apply for these cards in close proximity because I think that's a better way

If you're going to apply for one credit card, decide if there is another credit card that you need to get So that's what I did And my reasons for getting an AMEX and a Discover card is that I blog and vlog about credit cards all day and I didn't have those cards And how can I talk to everyone about these cards if I don't know from personal experience? First I got an invitation offer from American Express through the mail I went through the process, I went online, I applied, I got approved no problem

No preset spending limit Then a few days later I decided well I might as well go for the Discover card if I just applied for AMEX So I went to apply for the Discover card online and I did get approved So that was all I was planning to do Just get these two cards so I can talk more about them to everybody that watches my channel

I knew my credit score was gonna drop after applying for two new credit accounts, it just always does And I don't see that as a problem, because I always pay my balances in full each month And then after six months I know that my credit score is going to virtually rebound to where it was A tip for everybody too, if you're gonna do something this drastic you don't want to do this during the time when you plan to buy a home or even when you want to get a new auto loan But I'm not looking to do any of those things so for me it was a good time to do this

I'm thinking maybe I'll get a car in one year So I have plenty of time for my credit to rebound So then two months after getting my Discover card and my American Express card, I kept getting all these offers from Citibank I'm thinking this is a really good opportunity if I'm going to apply, apply now, because they seem to really want my business And I have always wanted the Citi Double Cash because ultimately you get 2% back

1% when you charge and 1% when you pay your balance off So since I am a person that pays their credit card in full every month, it's easy for me to earn 2% cash back So this was a really good credit card for me to apply for So I'm thinking what better time than this, because they seem to be very aggressively pursuing me So I did go online and I went through the process of applying and normally I wouldn't think that this is a good idea to do this because I just had gotten into the good credit category and I got approved for two other credit cards, and normally on this channel I would not recommend anyone to do this

And I was pretty confident that I was going to get approved for it because I have a history of on-time payments and I pay my balances in full, keep my credit utilization low, so I was right They did give me this card, but my credit limit was half of what it was on Discover So I knew that was an uh-oh moment And I knew that it could happen that way I pretty knew my credit score would take a nose dive

Ding, ding, ding, I was right I checked my credit score today and it took a nose dive The fact that it took a nose dive is okay Like I said before, I'm not going to apply for a mortgage and getting a car is not going to happen anytime soon So this is a perfect time for me to do something called credit gardening

Some people are familiar with the term credit gardening, but not everyone is So if you're not, let me just explain it briefly What you do with credit gardening is you apply for the credit cards that you want for whatever reason, if they have a good reward program You make good decisions on the credit cards you want when you have a good credit score, which I did And then you choose your cards and once you get approved, you stop

Now for credit gardening the minimum is basically six months You do not apply for anything at all And you continue to pay your bills on time and in full and you should pay your bills in full Not everybody can, but essentially at the bare minimum you want to pay your bills on-time every month And then the credit dip will reverse and slowly your credit score will go up

Maybe next month I will not see any kind of movement up, it might even drop five points down further But usually by the second or third month it'll start reversing its course and slowly go up It will take me about six months before I will have a credit score in the good category, because right now I have average credit When I did my videos before I was telling everybody I have good credit Right now because of what I did, I have average credit

And I knew, I'm fine with that I knew that that's how it was going to be So now it's just a waiting game And typically with credit gardening, like I said, it's a minimum of six months But for me I believe it's going to be one year of not opening any accounts, which I'm fine with

Because I made good decisions, I have good credit cards that have no annual fee, most of them have no annual fee, and they have very good reward programs So when it's time for applying for a mortgage, a person with 10 credit lines that are used responsibly looks better than a person that only has one credit card and they do the same with on-time payments and they're responsible, but there's only one line of credit to judge their credit history on So ideally you don't have to go as high as 10, but three to five is a normal amount So now you know why my credit score dropped and why I did it on purpose This is a strategy that some people can use sometimes

Sometimes people need to credit garden in order to get their credit score back on track So now that you've learned more about credit gardening today, what do you think? Please leave your comments below So as you know I have the American Express card and the Discover It card If you'd like to see the unboxing and the reviews for these cards, just click on the links below in the description or wait for the end of the video in the end cards I will be coming with an unboxing review for the Citi Double Cash card soon

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