I paid off all my bills and my score went to 752 but then i didn’t use any of my cards with a limit of 16k and it drop 60 points. So recently I’ve been using my card and it went back up to 779 currently. The algorithm for credit card is tricky, it’s good that you use your card and pay off bills but you have to constantly do it and use a good amount of your limit. Basically you have to a good amount of side money to keep your score up
There are some misunderstandings here. If you wait until you get your bill and pay by your due date you won't pay any interest but you will have credit utilization. The only way to have 0% credit utilization if you use your card is to pay it off before the statement closing date. Once you get your bill it's too late to have 0 utilization. I have 19 credit cards. Use them all, always pay before the statement closing date, always have 0 utilization and always get credit for using my cards. If you can, that is the perfect way to use credit cards. Many people debate is it better to have 0% utilization or 1% and the difference isn't much but 0% is better as long as you are using your cards.
Hi Steven Miller: Thank you for your explanation of utilization. I am sorting through the information and some are contradictory as far as utilization. I share your position to go 100% and pay it off before the statement due date. However, it is good to know that it works because I am just getting started with only a few cards. Now, what is the best way to apply for new credit without it impacting your score due to inquiries? Thanks again!
DL Lieberman get an AMEX card, if you already have one that's great!!!!! Little known secret, if you have an AMEX card and have a good history with AMEX they will almost never do a hard inquiry again. Between charge cards and credit cards I have 6 AMEX cards that I have acquired over a 4 year period and they only did one hard pull, on my first AMEX card. Only company that does this. Perfect for getting new cards without getting more inquiries on your credit report.
Steven Miller, thank you so much for your sage advice. I will definitely get an AMEX card; I did not know the little-known secret they hold. Right now I am sitting out on acquisition because of my inquiries, which are too high.
what about using your card and paying it completely every month to have a 0 on your statement? Will it hurt or improve your credit score as oppose to having a few dollars on there?
I just got my first credit card to build my credit so I can buy a sick car I want. I thought using the card almost to the max then paying it off would be the most beneficial to building my credit score. Glad I went online to check out what to do. Was at about 420 of the 500 limit before my first statement. Made a payment on it to leave 40 bucks on it to say below that 9% utilization. Thanks!
Great videos. New subscriber here. Utilization is real. My score has jumped up 50 points in 2 months because of keeping utilization low before statements ended. I have had $0 balance recorded in the past and haven’t noticed much change. Thank you for your videos. I’m into finance too, just haven’t touched on credit cards much.
So let me get this straight, I don’t use credit cards and therefore don’t have cc debt, and I am treated as a credit risk. If I have zero debt, why in the world would a bank not want to lend me money. I am far more likely to be able to pay off a loan if I’m not strapped down with other debt than if I have a bunch of payments because i love using credit cards. Makes no sense to me.
True, but think of it this way. There is no proof that you have paid people off on time in the past. So that makes you a big question mark to them. They'd rather see proof of you making payments on time over time. Thanks for watching and commenting!
It’s a catch 22. Your free of debt. And free of credit. But you’re not likely to get credit - because you’re free of credit. No history = unknown risk (to them.) It’s terrible for you. Lenders want activity, because it makes them money. Lenders want activity because it shows them that you are active & responsible with the dough they promise you.
All thanks to *@Darkvictor* on *telegram* he help with bit coin flips and fresh cc with high balance and it work I don't no what I will do without you ....you are the real deal 💯
If You can.... avoid consumer debt.... steer clear.... just don't..... PAY CASH..... Miles and perks cost more than if You paid for a plane ticket or perk outright.
Hello 👋 👋 👋 O percent so far hasn't helped, I use it, but I pay it down right away. I thought if the credit card issuers saw activity that was good enough but it seems it's not. I'm not sure if the credit bureaus are seeing that I use my credit cards? Note I use credit cards a lot. I just pay it off and don't let the balances report except for maybe one credit card and I try to keep that under 3% but overall utilization seems to report a zero consistently. Do you think I should be doing something different?
Odins War do you have to carry a balance to have a utilization rate over 0%? Cause I only use $45 on a $300 limit but I paid the balance in full before the closing date. Is my utilization 0% or 15%?
Dave HardHitterz if you pay it after the statement closing date it’s 15%. If you pay before it’s 0%. Because if you have a balance after the statement closing date it gets reported to the credit bureau. If you pay it before, the credit bureau sees a 0% utilization
All thanks to *@Darkvictor* on *telegram* he help with bit coin flips and fresh cc with high balance and it work I don't no what I will do without you ....you are the real deal 💯
Another important point people miss. If you have a bad payment history, in order to get to 💯% good history. You need monthly, positive information, as well as more credit cards to increase your positive payment info.
Credit history is frm tht one card wch u started using fr the first time, do whatever u want but never to close tht particular card, even wn u have to pay the joining fess. Close wch ever u want but not tht one card... She is bulls eye :- right (frm India wit lots of respect fr u)
Hi Missbehelpful, enjoy your videos! Question, I was paying all my low bal cards off then was going to tackle the larger card balances. Then i saw your video bout them closing inactive accts (ouch) how long is too long not to use a card? If i charge something every six months will i be safe from them closing my acct? or should i just make a small purchase every 3 months and then pay it off after it shows on the report?
The reason for this people will pay the total bill by due date to avoid interest. Example: make a purchase right after it is paid on due date (within 2 days later) and whatever you purchase that's the percentage that will be reported to the credit bureau because you may have made that next purchase before the statement date. The statement date gets reported to the credit bureau. My due date is 6 th of each month - I pay my bill in full to avoid interest My statement date 12th of each month If I make another purchase before the 12th that utilization gets reported to the credit bureau 💳 If I pay the next purchase off before the 12th it will be reported as 0 utilization I hope this will help anyone who read this comment!
Look anything below 30% you’re safe . Once i m within those lines I’m good. Because even if u keep it at 10% it’s not like they are going to give u 50 points off the bat.
This is confusing to me because my due date comes first. Due date 25th closing 28th. I tried: paid minimum+ before 25th and and full balance before 28th, and credit don’t change a point. And tired leaving a small balance below 10% and my score goes down🤷♂️ I’m so confused what to do now
Any outstanding amount that you carry past the due date will accrue interest. Any amount past the closing date will be reported to the credit bureau as a balance and will count towards utilization.
That’s because the due date is for the previous billing cycle not for the cycle you’re currently in. Cycle 1: October 29th-November 28th (Statement Close date: November 28th) Pay date for this cycle: December 25th Cycle 2: November 29th-December 28th (Statement Close date: December 28th) Pay date for this cycle: January 25th So, it will look like the payment is due before the close date, but it is with respect to the previous billing cycle. The pay date for a billing cycle is roughly 25-30 days after the close date of the statement.
I am totally confused! First, without knowing any better, I utilized more than 30% of my available limit (but I've never gone over the limit or was late making payments), and my score went down, as a result. So I was like ok, I will pay my balance completely off. So I did that, and then my score plummeted dramatically. It's not like I kept my card at zero without using it for a long period of time. This was just for one month that I had a zero balance, and then my score went way down. I don't get it! So now I'm trying the option of keeping my utilization under 30%, but over a zero balance, to see if this changes anything, positively. Is this a good idea?
Can someone please help I'm super confused. If a good utilization is -%30 and excellent is -%10 if I have 1000limit and use 500 (50%) and pay off enough to have 300 (%30) will that still count as 30% utilization rate? And if I pay everything off by say 3 day before due date will that count as 0% utilization?
Jose Jeffery Mendoza if you have a card with a $1000 credit line... you need to be only spending $150.00! Pay it off when you get an alert that your payment is “ALMOST DUE” pay it then once the payment posts... spend $150.00 before they report to the credit bureaus! Trust me!!!!
@@YeekTV_Atlanta if you can't use the balance that's ok the card them what's the point in having a credit card? As long as you pay it off in full each month went does it matter?
DUBPGOON It does matter... YOU ARE NOT supposed to use the entire balance on your card! Go ahead and try it and come back and tell me how dramatically your credit score goes down!
@@YeekTV_Atlanta I'm just saying wants the point in having a cc if you can't use it? I don't want anyone telling what I can spend especially since I put money into the card. I should at be able to spend that with no issues
Need some clarification, So I have a discover it card, I have a limit of $200, so my closing date is the 18th. So if I use $100 dollars and pay off $98 dollars 2 days before the closing date I’ll be left with $2 dollars on my statement making it utilization of 1% usage on my credit card statement correct?
Can so someone tell me why I paid down my loan to 23% and my credit card down to 0%, but NOT closed, and I lost 24 points on my credit. No other changes nor negative impacts occurred. Nothing else at all. Can't find an answer to that.
Okay I’m 18 and I got my credit card about a month ago and I’m still a little bit confused. So my credit score was at 752 or something like that before I even started because my brother did something with his credit cards that he put me under and I was getting credit for it. So when I opened mines up it went down a little to 742. So I have a credit limit of 1500 with BofA and the payment date is December 25 and my closing date is December 28 if I already used 1200 in credit and have the cash for it should I pay it before December 25 to have 0% utilization? Or just wait and pay it on January 25 when it’s supposed to be due ?
Hi I’m trying to rebuild credit and get as much points added to my credit score as possible, my due date is on the 17th of every month and the closing date is on the 20th of every month, so should I pay my balance in full before the 17th or after the 20th?
I have a question for the community. I have a 2% cash back card with a limit of only $500 I'm rebuilding. If I use it and pay it every week. Can I use more than the 30% rule if I have it below it every month when it reports or could I still hurt my credit that way. I want to keep building but I would like to get that 2% back on more purchases
Hey I’m not sure if this is on the same subject .I have a care credit that I used at one point at the dentist . And for the last two months I haven’t use it since I paid it off and I don’t use it and it’s 2500$ What should I do with his card?
Hi, I have a credit card that was bought by another card. And they closed out the first one it looks like I closed it . What can I do about that? Thanks Gilda
Can closing all your credit cards and having none hurt your credit history and can you lose all years and if you apply later will they start your years over
@@missbehelpful are u saying to have 0 percent utilization is better for credit than to have like 2 percent? I heard the credit bureaus have to see ur utilizing some credit for score to go up.
People, stop leaving balances and paying interest! Pay it off in full before every closing date! You don’t need to leave a % to get a high credit score. And yes you can use every nickel of your available credit limit as long as you pay before closing date. If you don’t, just pay it by the next closing date. Horrible advice in the comment section here keeping people in debt and paying interest to achieve a high credit score. There are many parts to a high credit score and one of them is time.
I'll help! Say today I opened a credit card on 3rd of the month, but statement date is say 27th. When first statement date comes in I want to owe 2% to 7% of my available limit. As long as I pay by the due date 100% in full I won't owe any interest on the second statement date. But after I payed balance 100% in full. I want to make sure to owe them that 2% to 7% on my second statement date. 2 steps to follow first step pay small balance owing 100% in full before due date so don't get charged interest on second statement. Second step asap then use your card and make sure you owe that 2% to 7% on next statement date. you won't be charged interest because you payed small balance owed in full before that 2% to 7% showed up on next statement date. Hope this helps any chance I didn't confuse you?
Those with excellent credit score are known for having 6% to 7% utilization show up on each statement date. Sometimes because of a holiday or your statement date ending up on weekend they may report earlier to credit bureau that month so what out for this. For me seven days before a statement date I only do small spending or no spending at all.
I pay the card balance in full once i get my paycheck. I do not care about the utilization but every fortnight i pay the balance in full. Does that affect my score?
Would ithurt my credit if i pay off the current balance in full instead of the statement balance every due date? I do this so that my utilization ratio is low. Would having my utilization at 0 hurt my credit also even tho i use my credit card but pay off the whole balance?
*please help me on this question* if i have a $1000 credit limit and say i spend $900 and if i pay $890 (BEFORE THE STATEMENT DATE) and leave a $10.00 balance would that count as a total of 1% Utilization or a 90% utilization.
As long as the payment gets posted before your billing cycle ends itll count as 1% so you have to time it right. Some banks take longer to process payments so I'd say make the payment at least 3 business days before. Doing this ive had a few statements come out as saying my balance is $0-4
@@h2o775 So things have changed. I have two additional cards now. Nonetheless, my behaviors have remained the same. I spend and spend and spend. However, just before closing; I bring them all the way down. So when everyone reports, I sit at that 2%. FICO now 780.
1% utilization is the best. For best possible credit score and to stay out of debt that I believe should be the rule of thumb. Because from experience I tried both ways between having 1 and 2% utilization on my credit bureau, believe it or not it still can definitely make a difference. At 2% utilization my credit score was 772. When I even brought that down to just 1% that then went up to 793
I use my cards once a month and pay them off right away or a couple days later. I can't keep up with the closing date etc. it's just too nuanced for me getting it to 1% by the closing date which one of my credit card co's won't even give me.
Yo Yo I've looked into this. It's 3 different closing dates (3 cards)-- and one of my cards won't tell me that date. And I have a brain injury-- so you can actually go fuck yourself.
Kreate Space oh it must be hard to write them down. Obviously it closes the day or day before you get your statement. You can also make all your due dates the same so your statements close at the same time. 🙂
So I kniw ur suppose to use only 29 percent of ur limit or 9 percent for better credit score. Wat if my limit is 500 can I spend more than that percent if I pay it off before closing date? or will it lower my credit score?
I have a question, what if you pay it off on time every month which will give you a 0% utilization but after so long of having a 0% utilization wouldn’t it look like you inactive after so long because every month it’s 0% ?
How does it affect your score when you upgrade your oldest card to a different card with a new number? Like going from a Chase Freedom to a Chase Sapphire preferred.
Hey I have a 614 credit score I want my score to go up and I am getting frustrated because I pay my credit card on time and bills on time I am never late I’m just frustrated because my credit score is not going up what should I do so my credit score can go up???
IF MY BILLING CYCLE IS 11/10/19-12/19/19 if I paid everything off before that cycle but my BILL IS DUE JAN - 06 would the CREDIT-BEAU count it, or should I just pay in full by the due date??? Is it good to pay your balance in FULL every month will this help my credit score go up, is what I'm asking. I know it helps with avoiding interest rates) >> can I pay a month advance? Is it also good to make multiple payments in one month?
Your bill due date is just the minimum you'll have to pay by the date provided in your bill in order for the creditor to report your account as paying on time to the credit bureaus. You can pay your entire balance the moment you receive your bill or make multiple payments. Any remaining balance left in the account by the following month's closing date (in this case it most likely is Jan 19th) will be reported to the credit bureaus and will be part of your next month's billing statement
So the best thing to do is use your credit card but pay it off before the statement closing date. So your account is still considered active but your utilization is 0% when it closes.
I have a couple credit cards that I opened four months ago I haven’t used it yet and the reason I haven’t used it yet is because I’m trying to purchase a house so I can’t use any of my cards do you think that they will close it down because I haven’t used it yet?
You can use your credit cards (keeps them active) and pay them off during the month. That way you don’t hurt your score and you don’t lose the cards which, ironically, would hurt your score by shortening your age of credit, potentially.
I can’t fathom why you would want to increase it, as that is 30% of your credit score. Higher utilization bad, lower utilization good. If you want a limit increase, running a balance and paying it off every month should still help.
2000 credit limit on one of my cards. I paid it down to $13 which I know is less than 1%. 1% would be $20 should I go put an extra $7 on the card or should I be okay.? I’m trying to get the most of the utilization to keep boosting my credit score.
Understand, the credit bureau doesn’t care. The cc company charges interest. Pay in full as much as possible.leaving a 13 or 20 dollar balance does nothing. Horrible advice in the comment section here
MissBeHelpful, wouldn't the credit card company think you are a waste of time if you pay it off in full every month and you have have '0" utilization every month and not paying interest?
Credit card companies make money in a number of ways. Keep in mind every time you swipe a card the credit card company gets a percentage of the sale. Credit card companies would rather have someone never pay interest and just collect processing fees instead of someone who will run up a huge balance and default on their payments.
I paid off all my bills and my score went to 752 but then i didn’t use any of my cards with a limit of 16k and it drop 60 points. So recently I’ve been using my card and it went back up to 779 currently. The algorithm for credit card is tricky, it’s good that you use your card and pay off bills but you have to constantly do it and use a good amount of your limit. Basically you have to a good amount of side money to keep your score up
I keep my utilization at 2%. I believe in the U.S. the top tier credit individuals stay between 2% and 7% utilization
Yes they do! That's a great strategy!
I always stay between 20%-30%. I'll give that range a try next month.
@@Zhello79 do you mean total utilization or on a single card?
@@KaliforniaKurupted total utilization. Even if you have a single card, it still applies.
But having just one or two cards, it is easy to manage.
Zhello So what happened? Did your score go up after using 2% utilization?
There are some misunderstandings here. If you wait until you get your bill and pay by your due date you won't pay any interest but you will have credit utilization. The only way to have 0% credit utilization if you use your card is to pay it off before the statement closing date. Once you get your bill it's too late to have 0 utilization. I have 19 credit cards. Use them all, always pay before the statement closing date, always have 0 utilization and always get credit for using my cards. If you can, that is the perfect way to use credit cards. Many people debate is it better to have 0% utilization or 1% and the difference isn't much but 0% is better as long as you are using your cards.
Hi Steven Miller: Thank you for your explanation of utilization. I am sorting through the information and some are contradictory as far as utilization. I share your position to go 100% and pay it off before the statement due date. However, it is good to know that it works because I am just getting started with only a few cards.
Now, what is the best way to apply for new credit without it impacting your score due to inquiries? Thanks again!
Steven Miller I
DL Lieberman get an AMEX card, if you already have one that's great!!!!! Little known secret, if you have an AMEX card and have a good history with AMEX they will almost never do a hard inquiry again. Between charge cards and credit cards I have 6 AMEX cards that I have acquired over a 4 year period and they only did one hard pull, on my first AMEX card. Only company that does this. Perfect for getting new cards without getting more inquiries on your credit report.
Steven Miller, thank you so much for your sage advice. I will definitely get an AMEX card; I did not know the little-known secret they hold. Right now I am sitting out on acquisition because of my inquiries, which are too high.
what about using your card and paying it completely every month to have a 0 on your statement? Will it hurt or improve your credit score as oppose to having a few dollars on there?
I just got my first credit card to build my credit so I can buy a sick car I want. I thought using the card almost to the max then paying it off would be the most beneficial to building my credit score. Glad I went online to check out what to do. Was at about 420 of the 500 limit before my first statement. Made a payment on it to leave 40 bucks on it to say below that 9% utilization. Thanks!
Pay it down or off before the statement date before it is reported to the credit bureau
Great videos. New subscriber here. Utilization is real. My score has jumped up 50 points in 2 months because of keeping utilization low before statements ended. I have had $0 balance recorded in the past and haven’t noticed much change. Thank you for your videos. I’m into finance too, just haven’t touched on credit cards much.
I think credit cards are the most incorrectly used tool in personal finance! It hurts my heart! Thanks for watching and commenting!
So what did you do exactly?
This is it folks!! Below 6% the credit bureau let you know how fantastic you are. Also 1% is the ideal secret sauce.
So let me get this straight, I don’t use credit cards and therefore don’t have cc debt, and I am treated as a credit risk. If I have zero debt, why in the world would a bank not want to lend me money. I am far more likely to be able to pay off a loan if I’m not strapped down with other debt than if I have a bunch of payments because i love using credit cards. Makes no sense to me.
True, but think of it this way. There is no proof that you have paid people off on time in the past. So that makes you a big question mark to them. They'd rather see proof of you making payments on time over time. Thanks for watching and commenting!
It’s a catch 22.
Your free of debt. And free of credit.
But you’re not likely to get credit - because you’re free of credit.
No history = unknown risk (to them.)
It’s terrible for you.
Lenders want activity, because it makes them money.
Lenders want activity because it shows them that you are active & responsible with the dough they promise you.
2nd time I was looking for credit card Info and found one of your videos. Very helpful 🙏🏾
I have 2 cards from capital one. I only use them to purchase stuff under $5 like a 1 gallon water or a energy drink lol.
I had a 738 and had a 0% and didn’t use it for ONE month, I found it ridiculous how my score dropped 23 scores down!
Another wonderful video from you. Keep shining on your light to this world sweetie
Thanks so much! :)
Are you sure you’re not tired? You’ve been running through my mind all day.
Franklin Martin lol
this video was really helpful answered everything I was thinking about
I could watch her talk about firewood
nsmcgirt 😂😂😂
True lol she is pretty :)
She is very easy on the eyes.
She is fine
All thanks to *@Darkvictor* on *telegram* he help with bit coin flips and fresh cc with high balance and it work I don't no what I will do without you ....you are the real deal 💯
If You can.... avoid consumer debt.... steer clear.... just don't..... PAY CASH..... Miles and perks cost more than if You paid for a plane ticket or perk outright.
Finally got the answer to my question answered about using or not using a credit card. Thank you!
Hello 👋 👋 👋 O percent so far hasn't helped, I use it, but I pay it down right away. I thought if the credit card issuers saw activity that was good enough but it seems it's not. I'm not sure if the credit bureaus are seeing that I use my credit cards?
Note I use credit cards a lot. I just pay it off and don't let the balances report except for maybe one credit card and I try to keep that under 3% but overall utilization seems to report a zero consistently.
Do you think I should be doing something different?
%0 utilization is a sure fire way to get either your credit limit lowered or your card closed altogether.
It's always good to show at least $1 on the card n show utilization
Odins War do you have to carry a balance to have a utilization rate over 0%? Cause I only use $45 on a $300 limit but I paid the balance in full before the closing date. Is my utilization 0% or 15%?
@@davehardhitterz1146 it's 0 if you pay it off
Dave HardHitterz if you pay it after the statement closing date it’s 15%. If you pay before it’s 0%. Because if you have a balance after the statement closing date it gets reported to the credit bureau. If you pay it before, the credit bureau sees a 0% utilization
Dave HardHitterz oh my bad I reread your comment. Yeah it is 0% because you paid before the closing date.
All thanks to *@Darkvictor* on *telegram* he help with bit coin flips and fresh cc with high balance and it work I don't no what I will do without you ....you are the real deal 💯
Another important point people miss. If you have a bad payment history, in order to get to 💯% good history. You need monthly, positive information, as well as more credit cards to increase your positive payment info.
I payed my accounts in full by the due date and my score dropped by 20 points.
Mad af right now.
Same😑
That happened to me and I was mad. I even called trans union, Experian and FICO I was mad!!!
What utilization percentage were you at on the report date? If it was higher than 30% then that could be the reason why you dropped 20 points.
AEZO look that up! Don’t make your utilization reach 0%. You should always have revolving balances, don’t pay the full amount before the due date
You can drop 20 points for no reason. Credit score is a scam. They make you think this way to spend money thinking you “did something wrong”
I wondered about this question. Thank you!
Credit history is frm tht one card wch u started using fr the first time, do whatever u want but never to close tht particular card, even wn u have to pay the joining fess.
Close wch ever u want but not tht one card...
She is bulls eye :- right (frm India wit lots of respect fr u)
I lost 18pts paying off my cc to 0% it went down on experian because it stating that I haven't used my cc
Great information… thanks
My credit card got 1800 n i only use it for Netflix . Pay it off every month I only use 2%
You are great at explaining things
So? It would be a bad idea to cancel my credit card that I’ve had for 5yrs cause I’d ruin the relationship/credit I’ve built with my bank?
Great video thanks I learned from this!!!
Hi Missbehelpful, enjoy your videos! Question, I was paying all my low bal cards off then was going to tackle the larger card balances. Then i saw your video bout them closing inactive accts (ouch) how long is too long not to use a card? If i charge something every six months will i be safe from them closing my acct? or should i just make a small purchase every 3 months and then pay it off after it shows on the report?
Makes complete sense
Helped me a lot to understand
The reason for this people will pay the total bill by due date to avoid interest. Example: make a purchase right after it is paid on due date (within 2 days later) and whatever you purchase that's the percentage that will be reported to the credit bureau because you may have made that next purchase before the statement date. The statement date gets reported to the credit bureau.
My due date is 6 th of each month - I pay my bill in full to avoid interest
My statement date 12th of each month
If I make another purchase before the 12th that utilization gets reported to the credit bureau 💳
If I pay the next purchase off before the 12th it will be reported as 0 utilization
I hope this will help anyone who read this comment!
Great info! Thank you.
Never leaving 0 percent utilization my scores dropped 60 points & thats BS
Should you pay your credit cards weekly vs monthly? Thanks
Hello if I have a $300.00 credit limit what is the limitbI should spendbto keep it down to1-5 percent
Okay this answered my question, thanks!
Look anything below 30% you’re safe . Once i m within those lines I’m good. Because even if u keep it at 10% it’s not like they are going to give u 50 points off the bat.
Knowledgable and Gorgeous. Thank you for explaining the 0% Utilization. Subscribed
Shes mine ....well i like her she pretty and smart huh
Thanks awesome video.
Thanks for watching and commenting!
This is confusing to me because my due date comes first. Due date 25th closing 28th. I tried: paid minimum+ before 25th and and full balance before 28th, and credit don’t change a point. And tired leaving a small balance below 10% and my score goes down🤷♂️ I’m so confused what to do now
Any outstanding amount that you carry past the due date will accrue interest. Any amount past the closing date will be reported to the credit bureau as a balance and will count towards utilization.
That’s because the due date is for the previous billing cycle not for the cycle you’re currently in.
Cycle 1: October 29th-November 28th
(Statement Close date: November 28th)
Pay date for this cycle: December 25th
Cycle 2: November 29th-December 28th
(Statement Close date: December 28th)
Pay date for this cycle: January 25th
So, it will look like the payment is due before the close date, but it is with respect to the previous billing cycle.
The pay date for a billing cycle is roughly 25-30 days after the close date of the statement.
Love your videos thank you
You're welcome! Thanks for watching!
So why do people recommend getting so many credit cards? You have to utilize all of them from my understanding of this video. Please help.
I am totally confused! First, without knowing any better, I utilized more than 30% of my available limit (but I've never gone over the limit or was late making payments), and my score went down, as a result. So I was like ok, I will pay my balance completely off. So I did that, and then my score plummeted dramatically. It's not like I kept my card at zero without using it for a long period of time. This was just for one month that I had a zero balance, and then my score went way down. I don't get it! So now I'm trying the option of keeping my utilization under 30%, but over a zero balance, to see if this changes anything, positively. Is this a good idea?
@ Thank you for breaking that down for me. I appreciate it.
@ now that was aswome review! Better than her review, but I still give her points because she is beautiful!
I understand i lile your videos advice is use more viuals like charts and white board with outline and details as well as
My credit score went down 18 points because of 0% credit utilization
Can someone please help I'm super confused. If a good utilization is -%30 and excellent is -%10 if I have 1000limit and use 500 (50%) and pay off enough to have 300 (%30) will that still count as 30% utilization rate? And if I pay everything off by say 3 day before due date will that count as 0% utilization?
Jose Jeffery Mendoza if you have a card with a $1000 credit line... you need to be only spending $150.00! Pay it off when you get an alert that your payment is “ALMOST DUE” pay it then once the payment posts... spend $150.00 before they report to the credit bureaus! Trust me!!!!
@@YeekTV_Atlanta if you can't use the balance that's ok the card them what's the point in having a credit card? As long as you pay it off in full each month went does it matter?
DUBPGOON It does matter... YOU ARE NOT supposed to use the entire balance on your card! Go ahead and try it and come back and tell me how dramatically your credit score goes down!
@@YeekTV_Atlanta I'm just saying wants the point in having a cc if you can't use it? I don't want anyone telling what I can spend especially since I put money into the card. I should at be able to spend that with no issues
DUBPGOON Hey man I don’t make the rules...
Need some clarification, So I have a discover it card, I have a limit of $200, so my closing date is the 18th. So if I use $100 dollars and pay off $98 dollars 2 days before the closing date I’ll be left with $2 dollars on my statement making it utilization of 1% usage on my credit card statement correct?
MuFaSa Tv yeah
Hey did it work for you that way? Bc Iam trying to do the sand thing but I want to make sure my credit score goes up
jennifer C yes it definitely helps
Ammar.r.r how much has your score improved over the last 5 months?
I will like to know the same, Iam trying to get the maximum points
Can so someone tell me why I paid down my loan to 23% and my credit card down to 0%, but NOT closed, and I lost 24 points on my credit. No other changes nor negative impacts occurred. Nothing else at all. Can't find an answer to that.
Such a lovely credit card lesson lady.
Jabba The Plutocrat Thanks!
Are you a financial advisor or just a web babe?
Okay I’m 18 and I got my credit card about a month ago and I’m still a little bit confused. So my credit score was at 752 or something like that before I even started because my brother did something with his credit cards that he put me under and I was getting credit for it. So when I opened mines up it went down a little to 742. So I have a credit limit of 1500 with BofA and the payment date is December 25 and my closing date is December 28 if I already used 1200 in credit and have the cash for it should I pay it before December 25 to have 0% utilization? Or just wait and pay it on January 25 when it’s supposed to be due ?
would having a negative balance on my credit card help my credit score? if I pay more than my balance
Mine went down
also, is the utilization per card or is it looked at as all cards combined or both?
Both....collectively and individually
you have taught me so much in half an hour than i have learnt in my life lol thank you so much. really appreciate it
Glad to hear that! You're welcome!
I pay off my entire balance and only 6 points up ? that's mess up
Let your account age
YOU ARE SO COOL . I LEARN ALOT FROM YOU I THINK YOUR SO ALLSOME....TOTALLY.
Thanks for watching and commenting!
How little do you have to use your credit card to not be considered an inactive/ closed account?
MissBeHelpful more like MissBeautiful wow!!! Thanks for the info
Hi I’m trying to rebuild credit and get as much points added to my credit score as possible, my due date is on the 17th of every month and the closing date is on the 20th of every month, so should I pay my balance in full before the 17th or after the 20th?
I have a question for the community. I have a 2% cash back card with a limit of only $500 I'm rebuilding. If I use it and pay it every week. Can I use more than the 30% rule if I have it below it every month when it reports or could I still hurt my credit that way. I want to keep building but I would like to get that 2% back on more purchases
how many years will it have damage on your credit score?? After it gets closed by accident
7 to 10 years
For someone with only 1-2 credit cards trying to create/ build credit with no loans how much utilization should I use combined and for each card?
Hey I’m not sure if this is on the same subject .I have a care credit that I used at one point at the dentist . And for the last two months I haven’t use it since I paid it off and I don’t use it and it’s 2500$ What should I do with his card?
Is it good or bad for my credit score to have a negative credit balance? I paid more money to the credit card than I spent before my closing date.
Hi, I have a credit card that was bought by another card. And they closed out the first one it looks like I closed it . What can I do about that? Thanks Gilda
Can closing all your credit cards and having none hurt your credit history and can you lose all years and if you apply later will they start your years over
I like this video, you are smart. I try to pay my credit card bills on time.
Yep! Good move!
@@missbehelpful are u saying to have 0 percent utilization is better for credit than to have like 2 percent? I heard the credit bureaus have to see ur utilizing some credit for score to go up.
People, stop leaving balances and paying interest! Pay it off in full before every closing date! You don’t need to leave a % to get a high credit score. And yes you can use every nickel of your available credit limit as long as you pay before closing date. If you don’t, just pay it by the next closing date. Horrible advice in the comment section here keeping people in debt and paying interest to achieve a high credit score. There are many parts to a high credit score and one of them is time.
So is it better to ha e 0% at due date or statement closing date?
I'll help! Say today I opened a credit card on 3rd of the month, but statement date is say 27th. When first statement date comes in I want to owe 2% to 7% of my available limit. As long as I pay by the due date 100% in full I won't owe any interest on the second statement date. But after I payed balance 100% in full. I want to make sure to owe them that 2% to 7% on my second statement date. 2 steps to follow first step pay small balance owing 100% in full before due date so don't get charged interest on second statement. Second step asap then use your card and make sure you owe that 2% to 7% on next statement date. you won't be charged interest because you payed small balance owed in full before that 2% to 7% showed up on next statement date. Hope this helps any chance I didn't confuse you?
Those with excellent credit score are known for having 6% to 7% utilization show up on each statement date. Sometimes because of a holiday or your statement date ending up on weekend they may report earlier to credit bureau that month so what out for this. For me seven days before a statement date I only do small spending or no spending at all.
That was very helpful
Glad it helped
0% utilization is great,Bonita!
I pay the card balance in full once i get my paycheck. I do not care about the utilization but every fortnight i pay the balance in full. Does that affect my score?
Would ithurt my credit if i pay off the current balance in full instead of the statement balance every due date? I do this so that my utilization ratio is low. Would having my utilization at 0 hurt my credit also even tho i use my credit card but pay off the whole balance?
*please help me on this question* if i have a $1000 credit limit and say i spend $900 and if i pay $890 (BEFORE THE STATEMENT DATE) and leave a $10.00 balance would that count as a total of 1% Utilization or a 90% utilization.
As long as the payment gets posted before your billing cycle ends itll count as 1% so you have to time it right. Some banks take longer to process payments so I'd say make the payment at least 3 business days before. Doing this ive had a few statements come out as saying my balance is $0-4
I like to be at 2%. I came from 544 March 2020 to 752 FICO Feb 2021.
Goals
So do you never spend more than 2%? Or you just bring it down and roll 2% to the following month?
@@h2o775 So things have changed. I have two additional cards now. Nonetheless, my behaviors have remained the same. I spend and spend and spend. However, just before closing; I bring them all the way down. So when everyone reports, I sit at that 2%. FICO now 780.
1% utilization is the best. For best possible credit score and to stay out of debt that I believe should be the rule of thumb. Because from experience I tried both ways between having 1 and 2% utilization on my credit bureau, believe it or not it still can definitely make a difference. At 2% utilization my credit score was 772. When I even brought that down to just 1% that then went up to 793
@@fadisalem2710 I have 9 accounts now, I’ve stayed at the 2%. I’m now over 800. I think everyone should do what works for them.
I use my cards once a month and pay them off right away or a couple days later. I can't keep up with the closing date etc. it's just too nuanced for me getting it to 1% by the closing date which one of my credit card co's won't even give me.
Just keep you running balance under 10% and you'll be fine. Won't have to track anything.
Kreate Space no you’re just lazy as hell lol the closing date is the same date every month.
Yo Yo I've looked into this. It's 3 different closing dates (3 cards)-- and one of my cards won't tell me that date. And I have a brain injury-- so you can actually go fuck yourself.
Kreate Space oh it must be hard to write them down. Obviously it closes the day or day before you get your statement. You can also make all your due dates the same so your statements close at the same time. 🙂
Yea - I get that - That's why I always say divide by 10 then spend ;P Thanks for commenting hon!
1:00 your welcome
So I kniw ur suppose to use only 29 percent of ur limit or 9 percent for better credit score. Wat if my limit is 500 can I spend more than that percent if I pay it off before closing date? or will it lower my credit score?
Can I not just pay my credit card after every purchase? Does that hurt my credit?
I have a question, what if you pay it off on time every month which will give you a 0% utilization but after so long of having a 0% utilization wouldn’t it look like you inactive after so long because every month it’s 0%
?
Not necessarily. They keep track of purchases at display it in your monthly statement.
How does it affect your score when you upgrade your oldest card to a different card with a new number? Like going from a Chase Freedom to a Chase Sapphire preferred.
Hey I have a 614 credit score I want my score to go up and I am getting frustrated because I pay my credit card on time and bills on time I am never late I’m just frustrated because my credit score is not going up what should I do so my credit score can go up???
They should teach this in school
Normal comment passing through the spammy ones lolol
Good thing I found this. I'm going to leave my country next year and I never use credit so I guess I better stay away from them.
Thank you it help my credit score plus r beautiful thank you 🙏🏿
IF MY BILLING CYCLE IS 11/10/19-12/19/19 if I paid everything off before that cycle but my BILL IS DUE JAN - 06 would the CREDIT-BEAU count it, or should I just pay in full by the due date??? Is it good to pay your balance in FULL every month will this help my credit score go up, is what I'm asking. I know it helps with avoiding interest rates) >> can I pay a month advance? Is it also good to make multiple payments in one month?
Your bill due date is just the minimum you'll have to pay by the date provided in your bill in order for the creditor to report your account as paying on time to the credit bureaus. You can pay your entire balance the moment you receive your bill or make multiple payments. Any remaining balance left in the account by the following month's closing date (in this case it most likely is Jan 19th) will be reported to the credit bureaus and will be part of your next month's billing statement
Great advice !!! As always , thank you for the knowledge
Thanks for watching!
Love your accent...thnx for info
So the best thing to do is use your credit card but pay it off before the statement closing date. So your account is still considered active but your utilization is 0% when it closes.
I have a couple credit cards that I opened four months ago I haven’t used it yet and the reason I haven’t used it yet is because I’m trying to purchase a house so I can’t use any of my cards do you think that they will close it down because I haven’t used it yet?
You can use your credit cards (keeps them active) and pay them off during the month. That way you don’t hurt your score and you don’t lose the cards which, ironically, would hurt your score by shortening your age of credit, potentially.
THANK YOU!!! You explain things soooo well. I knew there was something I was not doing right. I will try this. Thank you, again!
By the way how many credit score can get best buy visa card ? Thx
If I have a $315 balance on a $1000 cc can I pay $215 now and $100 on the due date that way my statement shows only the 10% use of the card
I tried to leave at least $10 to $20..each month I never paid it off to 0…
Also how can i raise my credit utilization? Is it by getting closer to the credit limit for example 1500? Or using ur card more frequently?
I can’t fathom why you would want to increase it, as that is 30% of your credit score. Higher utilization bad, lower utilization good. If you want a limit increase, running a balance and paying it off every month should still help.
Would.
Nice video 👌
Thank you so much 😀
2000 credit limit on one of my cards. I paid it down to $13 which I know is less than 1%. 1% would be $20 should I go put an extra $7 on the card or should I be okay.?
I’m trying to get the most of the utilization to keep boosting my credit score.
Understand, the credit bureau doesn’t care. The cc company charges interest. Pay in full as much as possible.leaving a 13 or 20 dollar balance does nothing. Horrible advice in the comment section here
MissBeHelpful, wouldn't the credit card company think you are a waste of time if you pay it off in full every month and you have have '0" utilization every month and not paying interest?
Credit card companies make money in a number of ways. Keep in mind every time you swipe a card the credit card company gets a percentage of the sale. Credit card companies would rather have someone never pay interest and just collect processing fees instead of someone who will run up a huge balance and default on their payments.