Skip to main content
Stesso

Strategize New Credit Applications (10%)

0:05
1:23
6.6K views

At 0:05 in

Money Monday credit score

Watch on YouTube

What happens here

This segment addresses the 'New Credit' component, which contributes 10% to your credit score. The speaker advises against opening multiple store credit cards, despite tempting promotional offers like 10% off a one-time purchase, stating that these are generally not beneficial for your credit score. The key instruction is that one responsibly managed credit card is sufficient. After this explanation, the speaker uses a hammer to physically knock down the wooden block labeled '10% New Credit'.

Goal: Minimize unnecessary new credit applications to positively impact the 'New Credit' component of your score.

Tools and materials

  • Hammer — Used as a prop to visually 'remove' the credit factor block
  • Wooden Block — Represents the 'New Credit' component of the credit score

What they say

Hide

Most people have no idea what actually makes up a credit score. Let's get after it. First one, makes up 10% of your credit score. You don't need a bunch of store credit cards because they offer you 10% of that one-time purchase when you're at Home Depot. Just one credit card, get it over with. The next 10% is credit mix. Don't think you need to go out and buy a new truck, you need to go buy a new ATV, you have to have that payment. Absolutely not. It's only 10% of your credit score, just

Auto-generated from the video audio.