5 Keys To Achieving a 700+ Credit Score | Jason White Interview

Hey, welcome back to the show. Today we got with us Jason White, author of Credit Building Secrets. I actually have his book in hand right now. Got an incredible YouTube channel, go check him out. Yeah, probably is popping up on the screen right now, Jason White. I'm gonna have my editor put that in there, but go check out his channel. Does an incredible job helping people understand money, understand wealth, and especially understanding credit. So Jason, welcome on. What are the biggest misconceptions about credit?

Well, the biggest myth when it comes to credit is that all you have to do is pay your bills on time and you'll have a great credit score. That is not true, okay? And, you know, throughout our conversation today, I'm going to, you know, give you the breakdown on how that works. But let's just say that just paying your bills on time is actually one of the 5 components of a credit score. We have payment history, which is the most important, but it's not the only component. We have also credit utilization, which is the second component, length of history, the third, credit file mix, the fourth, and then the fifth, we have inquiries. Okay? These are 5 components of the credit score. And the whole point of me sharing that is that you have to do more than just pay your bills to improve your credit.

Well, let's walk through each one of those then. So let's go payment history first. Let's go to that. So payment history and then credit utilization. Let's go to that one next.

Okay. Yeah. So payment history is basically how well are you keeping the agreement? Okay. We give you a line of credit and you agree that you're going to make 250 payments of $25. Okay. Payment history is basically, are you keeping your word? Are you paying this bill on time? Payment history is 35% of your credit. So—

Yeah.

With payment history, it's very, it's very easy. All you have to do is just pay your bills on time. That's the easy part of fixing your credit or raising your credit score or managing your credit. The second component we have is credit utilization. This is the comparison of your credit balances, the credit balances that you have to the credit limits. All right. So we're looking at your revolving accounts. These are your credit cards. Okay.

So, so funny enough, I'll cut you off for a second. This is my first fund that I set up was to help people with credit utilization.

Okay.

So if they had a maxed out credit card, meaning it was 100% utilized, we would get it below— try to get it below 45% or 40% utilization. So if it was a $10,000 credit card, we would give them a loan of $6,000, which would get their utilization down below 40%, and we'd have it update for a few months and it would help their credit.

Yeah, I have a lot of clients that could use a service like that. So, uh, If you think of bringing it back, let me know. Okay. But yeah, the second component is credit utilization. Okay. And if you don't know how that works, that's basically they're looking at your balances of your credit cards to your limits. But typically what you want to do is you want to make sure your credit utilization is under 30%. For our clients in our community, we usually recommend under 10%. That way you're maximizing that component of your credit score.

So paying on time and then keeping just your credit card balances low.

Right, exactly. Uh, next is length of history. Okay, this is 15% of your credit score. Length of history is basically how long do you have experience with managing debt. One of the, the worst things that you can do for your credit is to close an account that you don't have to, because the longer that account remains on your credit report, the better for your credit score, the better for your length of history. Um, and then fourth, we have, um, Credit file mix. These are the different types of accounts you can have on your credit report. Revolving accounts, whether it's secured, unsecured, a revolving account with the bank, a line of credit, those are one type of account. Then we have installment accounts. These are student loans, mortgages, bank loan, personal loans. All of those loans are considered installment accounts. And And then we also have open accounts. These are more like the, you know, the black card. You know, you don't have a limit. You just have to make sure you pay that bill off every month, right? The better the variety between the revolving and installment accounts, the better for your credit score. So typically we recommend that our clients have at least 4 credit cards and at least 1 installment account on their credit report. That's 10%. That's 10% of your credit score. And then the, the last 10% of your credit are inquiries. How often are you looking to get a new line of credit? Okay, the more that you're searching for new lines of credit, you look desperate, right? And the more inquiries you have on your credit report, the more it's going to hurt your credit score, up to 10%. So yeah, those are the 5 components of a credit score. Focus on ownership. You want to own the accounts that are on your credit report. Okay, and, uh, the best way to do that, which is secret 1 in my book, which I highly recommend that you all get my book anyway, Credit Building Secrets. And the first secret is you cannot achieve a 700 credit score without this particular account, and that is you need a credit card and begin to focus on building, uh, your credit using that tool. That tool alone will take your credit to the next level. There's a lot of people who don't believe in credit cards because of the information spread in America, how, you know, everybody's in debt. Credit card debt is the scariest thing. Well, just because you open up the line of credit does not mean you need to max it out, okay? We're all— we're talking about managing credit responsibly, and the most responsible thing that you can do when managing your credit is spend it how you would spend money normally. You only spend what you have, okay? Some people are overleveraging themselves by using their line of credits to, you know, live a bigger life.

And back to your point with rewards points, I probably make every quarter, I make, I don't know, $2,000 to $5,000 on rewards points every single quarter just from using our cards. Anyways, side plug for cards. I love that first point.

It's a great way to make money by doing things that you would normally do anyway. So yeah, the second secret, if you have a credit card, you wanna optimize your credit card, okay? And what do I mean by that? What you wanna do is you want to contact your creditors directly and request a limit increase every 6 months, okay? And as long as your credit is good, Or moving in the right direction and you have on-time payment history, majority of those creditors will increase your limit. And that's a great way to double, triple your limits over time without having to open up new accounts. Doing that will increase your limits and also lower your credit utilization because now you have more room to work with.

Real quick, before I— I've got one or two more last questions for you. Real quick though, where can people find your book? can learn more about your channel. Give us a little plug for you. I want to hear where people can find you, all your stuff. I know you got a lot of great products out there, and then we'll, we'll find out, we'll finish up the last couple questions.

Okay, I appreciate that, man. Um, so if you're interested in getting my book Credit Building Secrets, um, you can go to witnessriches.com. Uh, we have links provided where you can purchase this. It's only $20. Uh, you can also find this book on Amazon, Credit Building Secrets by Jason White. Um, but one of the things that we're real big on is, uh, our credit repair service. It's called The 700 Club Credit Repair. If you're interested in, you know, working with a team of professionals that put your interests ahead of our own to help you fight negatives that are hurting your credit report, feel free to reach out to us. You can visit our website, the700clubcreditrepair.com, or you can find me on Instagram @WitnessRiches. That's @WitnessRiches. And N-E-S-S Riches, R-I-C-H-E-S. Find me on Instagram. Feel free to send me a direct message and, you know, we can have a conversation. And also we have more going on at witnessriches.com as well.

That's where I found Jason in the first place was his YouTube channel. He's got an awesome YouTube channel, got plenty of free content there. Check out his book, 720 Club. I love that. And I'm sure if you go to YouTube channel, Instagram, you'll see all their stuff there. So, okay, Jason, thank you for coming on. Last question. I ask this to everybody. I like to hear— now we talked credit this entire episode besides the camera stuff and anyways, whatever. I want to open it up a little bit and I love last question. I'm going to give you open mic to our audience.

Okay.

You've got 2 minutes. I'm not going to interrupt you. You can talk religion, politics, faith. You can talk family, entrepreneurship, credit, whatever you want to talk about. What do you think would be most important to leave this audience with? Here we go, Jason. You got 2 minutes. Give us your thoughts.

So in my opinion, I feel like we make, we make things that are not important more important than what life is really about. And those are our loved ones. Those are the people that we live this life with. And what I feel that we need to do to live a happy life is to keep that in mind and understand that life could be over at any moment. So how do you want To live the remaining parts of your life around people that you love, people that you enjoy, and doing things that's going to create that for you. So in my opinion, we need to focus on happiness. We need to focus on our loved ones, doing things that we love. And if we can do that, we will maximize life. That's what I got. That's what I got.

That was awesome. I love that. I love it. Jason, thank you for coming on. Again, the book is Credit Building Secrets. Go check out Jason White's YouTube channel. and his Instagram as well. Jason, thank you so much for coming on today.

Thank you.