You’re better off showing as using 1-9% of your credit limit if you want to build credit. 0% doesn’t look as good and can even lower your credit at times.
@KingDiamondBones Pay enough to put your "credit utilization" under %30 when you're trying to build your credit score. You can find the percentage by googling, what is %30 of (your credit limit) Whatever that number is, that's what you want to keep your credit card under by your statement close date. Pay an extra $50-$100 for cushion if you can👍
@@KingDiamondBonesThe video specifically mentions the statement close date, not the due date. A lot of companies have it set up so that they're one day apart, but not all of them do. For example, let's say the statement close date (any purchases made after this date go on the next billing cycle) is the 1st of the month and the statement due date (when you have to pay the bill) is the 15th of the following month. On January 31st, you want to make sure your utilization is low so when they run the billing report on the 1st, your reported utilization is low. Then pay whatever balance was left from your Dec bill before the February 15th statement deadline, and you're golden. February 28th rolls around, and you're checking the utilization again to make sure it's where you want it, then March 14th you're paying the rest of the Jan bill. Rinse and repeat.
VERY well done ! I say this with 40+ years in mortgage finance & banking working with credit bureaus. Different models and parameters are used by different industries but *web backdoors* info is pretty much universal. If you're trying to max your credit scores, there is a happy medium between too many credit cards and none. Too many cards with zero balnce may actually hurt you in some cases. Even if you do not use them, you have a potential. To always pay cash & still have cards doesn't help your scores as well
trying to reach over 780 is basically pointless, no extra benefits, I open a bunch of cards to get the bonus initial rewards, credit companies hate this…
I have 2 chapter 11’s that are dismissed.The reason I have 2 is bcz I did not use an attorney.I was trying to stop an eviction,but when I went to try to add another month’s rent to the bankruptcy, but the guy filed another one. About a month later,I ended up losing my job.They are scheduled to fall off in January and March 2021.Since I’m looking to purchase a home soon but still there.I am currently enrolled in *850 Credit Restoration* and I must say,I am loving it thus far.I’m doubling it up with your podcast videos and learning A LOT! Thank you.I’m ready to join the millionaire club!!!
We need more immeasurably wise and compassionate humans like you on this planet. Thank you for sharing *Web backdoors* , Adam. I bet I'm not alone when I say this video found me at the perfect moment, and there are a lot of things here that I needed to hear right now.
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude sir and *Web back doors* was so helpful during the process of boosting my credit.
Took a year for me to build my score from mid 400s to 600 where I’m stuck now. I have 2 credit cards, a self account, auto loan. Everything paid on time and utilization 5-10% paid off every month. Thinking of applying for a new credit card or something cause my score isn’t increasing Great recommendation, this helped me alot. *850 credit restoration* was one of the best things I had come across as far as boosting your score. I don't remember the actual number of how much but it was somewhere cool!!
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude Marvin and *Top phase resolution* was so helpful during the process of boosting my credit
@@braceyourselvesfortruth2492 You sound like an idiot. It’s got nothing to do with business or playing the game. It’s got everything to do with the credit system existing solely to take money from people who don’t have it. Imagine giving someone $500 dollars and telling them that can only spend $400 of it. So they end up only spending $350 but you still punish them for using more than half even though they abided by YOUR RULES! Please for the love of god end your life. Not a single person will miss you.
How is it crazy? It shows that you don’t just use everything given to you, and spend within your means. A LIMIT doesn’t mean you need to go anywhere near spending it all. The less you borrow the better it looks. It’s basic common sense
If you can't pay off your credit card debt, then why would another lender want to lend you money? You're not being punished for anything except proving that you don't have the means to take on more debt.
Don't pay it down to 0 less than 10% utilization is the perfect amount idk if its true but i heard having cards at 0 does not look good and since you arent using credit responsibly you just arent using credit. Either way less than 10 percent is perfect and does not hurt. But it's still a great tip if you are utilizing more than 10% per month I have the exact same utilization each month thanks to this tip. But I had to figure it out on my own.
Just realized this myself a few weeks ago, my score popped from 780 to 805 after I brought my utilization down from 17% to 8%. Glad to see John spreading the info.
Alternatively, just have 100k of credit across like 10 cards, and set all of them yo auto pay in full every month. As long as you always have the cash to cover your expenses, you can use like 10k of credit without hurting your utilization much and just not worry about it.
@@olafharoldsonnii4713 your file is still relatively light though. I had a 750 within six months or something, but I still had to step up the CC ladder slowly. You can’t get approved for an Amex platinum or something, even with a 750; because your account file is light on paper
I heard that you don’t want credit card companies reporting zero utilization of your credit cards to the bureaus, and to aim for around 7%. I shoot for 6%. I rarely need to go over that. I was going by the 30% suggestion earlier on, but I heard around 7% or maybe even 9% is “excellent” utilization. It’s been working for me at least. I’m over 700 for my credit score currently. I’m still fairly new. I had a 771 at one point before I applied for a few other cards recently. I got approved for them all, but now I’m at around 720.
I pay my cards as soon as a purchase posts so my utilization shows as 0%. My highest score is 847 and the others are in the high 800 range. Having 0% utilization clearly has not hurt me.
This is misinformation, the lower the better, and most months i pay it off in full before the statement and my score either increases or stays the same. Then if I go up even a few percent the next month it drops. I'm at about a 770-780 depending on how low my limit was that month
correct you want to use your credit limit and make sure you pay on time, this guys constantly giving wrong info saying COULD COULD COULD, and a whale one day COULD give birth to a dinosaur, COULD means nothing.
“You’re forced to get this card and use it so we can identify your purchases, but even if you pay it on time, we will lower your credit score if you’re using the money we give you permission to use” We are truly fucked as a country.
Great work *Web Backdoors* °org - so glad you are out there fighting these lowlifes. We need to do all we can to spare the elderly and the general public from these despicable scammers! Kudos to YOU!! You deserve the Nobel prize for keeping us safe big up brother.
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude Marvin and *Top phase resolution* was so helpful during the process of boosting my credit
They should make it law that any payments toward your credit (including the date of payment) must be reported to the credit bureau, must be listed on your credit report, and must be factored into the credit score.
@@ns.762jack we have been made to believe that we need them. I do have three credit cards that I rarely use. If I do not have enough money to pay for an item in cash, I will not buy it. America has made it so that we need credit cards to get things. Better apartments a nicer car a home mortgage loan. Therefore I do not use the credit cards to buy things which is what people do and that's where we get into trouble.
@@BudgetsunTamed america is so fucked its crazy, im from sweden and i dont know a single person who has even used a credit card before. credit cards is what makes people go into debt and it ruins people lifes,. and i agree with you, if u dont have the money to go to the store with cash and buy it u shouldnt buy it in the first place
Not entirely accurate. You don't want it to appear with a $0 balance, as sometimes that will look like there is no usage of that credit line. You want some balance to be there, less than 10% utilization is the absolute best, but less than 30% usage is also a good result.
This channel is the sole exception where I haven't skipped the promo ads. Your finesse in effortlessly integrating promotional content within your videos is genuinely impressive. Sometimes, it takes a moment to recognize that you're endorsing anything; I commend *web backdoors* for your adept execution in this aspect!
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude sir and *Web back doors* was so helpful during the process of boosting my credit.
June 7th and just got my credit card and have been learning. This statement close date is very helpful and Lee coming back to this video. Hope this keeps me in line with credit and allows me to build a good credit score.
@@isabellafernandajusino5246 if you use your card regularly you'll probably charge some meals or coffee that will carry over and keep your utilization over 1% and under 9%. Carrying over $75 - $200 per month with periodic paydowns to $0 demonstrate discipline and ability to pay in full on occassion. It doesn't hurt to pay in full occassionally, just don't do it each month. If you carry a bit they make money. If they don't make money because you pay in full by the grace period, they may close your account because you use the service, but they make no profit. It is a game.
But my question is you're supposed to have a utilization of between your 1 to 10%. So having is zero utilization rate It shows the credit card companies that you are not using any of the credit that the company has given you
My understanding is that's old thinking. I pay card to zero each month. I've been watching my credit like a hawk for over a year now. Making the payment to zero balance has had a better outcome than being at a low usage.
$0 on a credit statement will NOT improve your credit score. If anything it will hurt your credit score or do nothing. Unused lines of credit look bad. Because the bureau’s think you forgot about or neglect lines of credit. A mortgage broker told me that.
Do not listen to his first sentence, and pay your credit card bill as quickly as you can. Doesn't matter when you "should" pay. Pay when you can. The faster, the better. If I think to check my banking online, I'll pay off my card right then, even if I made a purchase earlier that same day, so the bank hasn't even processed it yet. Banks only care about if the card getting paid before a month is up or not. Then they know whether to charge interest on its use.
Mostly true, but the best utilization for maximizing credit score is a few percent instead of just zero. Some scoring models have a small zero balance penalty because it appears as if you aren’t using your card at all. If you aren’t using your credit, you can’t show creditors you’ve been responsible and paying back what you owe. It’s a very very minor difference tho, so unless you are chasing that perfect score or have borderline good credit where a few points matter, leaving zero balance is absolutely fine. Also, most models have no utilization memory. So you could have 50% utilization this month and 2% next month - your score next month will reflect the 2% utilization only.
A better tactic is to let it hit your score at 50% it'll lower your score x amount then once it's posted, pay it off and wait the month for the new utilization to hit and your score will bounce higher I've been doing this for 2 years and I built up 30 points. Side note getting points when you're over an 800 is hard 😅
As long as you pay your credit card off every month going over 50% won't impact it that much. I always go over 50% and my credit score in ever drop below 700
I live in Europe so idk if this is relevant, but the safest way I've found to improve one's credit score is taking advantage of the occasional zero interest loans they sometimes do for electronics (like smartphones). If you pay your bill on time (you really don't want to miss a payment!) then you'll become more trustworthy in the eyes of the banks and it should be easier to get other loans approved in the future. Idk I just don't feel like paying crazy high interest for money that's not mine lol
I've always heard that depending on how many lines of credit you have it's good to have some small utilization so it's not zero. Anecdotally I can say changing from $0 statement to anything low but non-zero improved my score back when I only had one credit card.
Rule number one buy things you can afford three times over if you can't don't buy it Rule number two pay it before the statement boom you got amazing credit
What is the statement? Is that the deadline the bill needs to be paid, and does that mean it’s bad to pay the bill exactly on the day it’s due? I thought it was easier to have the computer automatically do it for you
@@ChriseanTaylorno the statement day is typically 3 or 4 days after u make the purchase but you can make sure when they send you the bill bc the statement day should be on there
don't pay 100% early. If there is 0 at statement close you won't get brownie points from credit beuro for paying a bill on time. There is no bill for 0.
Everyone only compares the credit utilization to ONE card, and not all of them, you can have a maxed card if you have other cards… say you have a 1k limit on one card, a 2k limit on another, and a 5k limit on one more. You will be fine if that 1k card is maxed out.your credit limits are stacked together.
It does not matter if it hurts your credit score if you don’t need to apply for anything immediately AND if you plan to pay off your debt in full by the next due date. People should not worry about monthly fluctuations in their credit score.
Well, then set your payment before the 24 days which should be about the 5th of every month. Or increase your credit limit to $15K so you are only using a third of your credit limit. Use two credit cards if you have to. You have to show that you are using your credit card in a responsible manner. Still, it is good to know that we are being checked every first week of the month. Thank you.
One important thing to know about credit utilization when it comes to your credit score, is that it has no "memory" or lasting impact. You could go for years using 60% of your credit, and then just one month decide to do what John's talking about here, and your credit score will immediately jump up as the statement closings are reported. So unless you're about to do something which requires your credit score to be high at the moment, there's no real benefit to doing it all the time.
Not in Canada. Using 100% of credit limit while paying it iff before the due date is best for credit score Only if you miss a payment is that 100% utilisation m”detrimental
sure but if you pay it off by next month it goes right back to where it was before. this only really matters if youre actively applying for a loan or something
But you lose out the cashback points as some credit cards calculate cashback on the bill generated. Credit score gets to normal after 1-2 months. I use my personal strategy, I own 2 cards, one for fixed expenses and other for spontaneous expenses. For example if your monthly expenses are of 1000$, I do the expenses on first day of statement and invest the same amount for 35 days in form of fd. Then fd matures and gives me an interest amount on it helping me save 5-10% every month.
I don’t know what my credit cards limit is, but I pay them off every month, never carry a balance. My credit score is in the upper 5% so apparently not carrying a balance doesn’t hurt.
Let me get this straight. The person can pay off a $5k credit card bill every month and you think he is worried about a credit score? That person is most likely making over $110k a year, before taxes and 401K contribution.
not always true because creditors look at how much debt you can go into at any moment, so have alot of available credit can hurt you in the eyes of a lender
Every video of this guy I have seen usually involves him giving wrong/bad advice. 0% utilization is bad as 50% because this companies love seeing you in some form of a debt no matter how small it is. Doesnt really help that Im seeing bot accounts in the comment section probably boosting this shorts either
you know what else would help? paying 1%. the benchmarks are 10%,30% and 50% even if you are under those by less than 1%, it still counts as 10/30/50. So consider 9%/29% and 49% to note: in video he had 50% usage, so 49% would've lowered him into a different bracket Best, still under 10% (literally, 9% or less) Good, under 30% Fair under 50% personally, just keeping it under 30 mark is very good and you can progress from there.
I thought the best was between 10 & 30? It's not really a measure of whether you're good with money, it's a measure of how good an investment you'd be. If you don't use your credit, you're not a good investment, was my understanding. It's kind of like how your credit score will actually usually take a hit if you pay loans off early, they aren't making the full anticipated interest amount, so you're not a good investment.
Nah, you wanna use it for everything for the first year or two cause there's typically no intro apr. After that just pay what you spent 18-24 days (depending on what your card is) after monthly cycle to avoid interest.
Most of the time, this is pretty unnecessary. The impact of credit utilization essentially resets monthly, so as long as you do this the statement closing date before needing a credit check, the rest of the time has no meaningful significance.
Yeah the credit system has got to go. It's literally becoming dystopian, this is not how wealth works and we are disincentivizing production of wealth in favor of production of currency
Pay it 2 to 3 days before your closing date as credit card companies take 24 hours or a little bit more to update your balance especially if its a company that only takes ACH as payment unless you go directly to the bank and pay it.
it dont matter anyway, you can do exactly that in the next month, or the month after that, or a year after that. you can always lower ur utilization for the very minor score bump, if you really need it. its an arbitrary score anyway. nobody makes financial decisions based on just your score. they take everything into consideration, thats why its called your credit history, not just low utilization 99.99% of the time. now why would they want to give u a new line/more credit when youre already not using your current ones? my limits doubled and my score is at an all time high and im keeping my utilization at 50%+ and not paying it off entirely each month.
Absolute zero is not the best thing, but no debt isn’t a bad thing. Up to the person to decide how important the credit score point difference is vs no debt
Its actually not true i belive, If you just keep it below 30% and then pay the 30% your score will get better Otherwise everyone who has credit card and never use will get best score but they don’t
Adulthood is a scam. Idk why we aren’t taught this in school. I’m just starting to learn about the ends and outs of credit and how everything works and my mind is completely blown. Like this is really setup to make you fail because there’s so many small little things that can trip you up.
I turned 18 3 months ago and been taking care of stuff i will need as an adult, and for the past few hours of watching card stuff my head's starting to hurt man
It doesnt matter if you make your payment and dont leave a high balanced on it. Your score will stay the same or go up if you pay off or keep a low balance. If it drops it will come right back after the payment.
Credit score = number made up to scam people to pay money to improve it. Credit history = demonstration that you can borrow money and pay it back in a timely manner. Ironic that the better you are at handling money, the less you need to borrow but yet organisations are happier to lend you money.
You need to use at least some of your credit. I have a credit card I got just for international transactions as it doesn’t have fees, but I don’t use it everyday as it has no cashback like my other cards. I hadn’t used it in 3 months and as I had no credit utilisation my credit score dropped! Now I use it once a month to get a loaf of bread and some milk, just to keep it ticking over.
Remember that the laws and regulations governing financing are all passed by a congress that caters to those who make donations to politicians and their parties. The citizens are but a minor annoyance that has to be listened to every 4 years. That's how it works 🤷♂️
My payment due date is consistently 3 days before my closing date. Although I pay on time, it shows 0% credit utilization, preventing my credit score from increasing. I requested my bank to change the due date, but they adjusted the closing date to maintain the 3-day gap as well. Any advice friendly people?
Here’s one that doesn’t come up too often: Carried interest. Chase has gotten me a few times with this one, despite the bill being paid before the card’s closing date. Now I kind of look at past statements and guesstimate what to add if paying too close to the cycle’s end.
If you are using a credit card for the purposes of generating good credit then pay it off imediatly (as per this video) so your utalisation is always at 0% If you are using a credit card for any other reason then cut it up.
You’re better off showing as using 1-9% of your credit limit if you want to build credit. 0% doesn’t look as good and can even lower your credit at times.
So when it’s the statement date do u pay the outstanding balance or nah it’s getting me confused now
@@KingDiamondBones pay it till it's 9 percent left
@KingDiamondBones Pay enough to put your "credit utilization" under %30 when you're trying to build your credit score. You can find the percentage by googling, what is %30 of (your credit limit) Whatever that number is, that's what you want to keep your credit card under by your statement close date. Pay an extra $50-$100 for cushion if you can👍
I did this and my credit score jumped up from a 726 to 745
@@KingDiamondBonesThe video specifically mentions the statement close date, not the due date. A lot of companies have it set up so that they're one day apart, but not all of them do.
For example, let's say the statement close date (any purchases made after this date go on the next billing cycle) is the 1st of the month and the statement due date (when you have to pay the bill) is the 15th of the following month.
On January 31st, you want to make sure your utilization is low so when they run the billing report on the 1st, your reported utilization is low. Then pay whatever balance was left from your Dec bill before the February 15th statement deadline, and you're golden. February 28th rolls around, and you're checking the utilization again to make sure it's where you want it, then March 14th you're paying the rest of the Jan bill. Rinse and repeat.
VERY well done ! I say this with 40+ years in mortgage finance & banking working with credit bureaus. Different models and parameters are used by different industries but *web backdoors* info is pretty much universal. If you're trying to max your credit scores, there is a happy medium between too many credit cards and none. Too many cards with zero balnce may actually hurt you in some cases. Even if you do not use them, you have a potential. To always pay cash & still have cards doesn't help your scores as well
trying to reach over 780 is basically pointless, no extra benefits, I open a bunch of cards to get the bonus initial rewards, credit companies hate this…
I have 2 chapter 11’s that are dismissed.The reason I have 2 is bcz I did not use an attorney.I was trying to stop an eviction,but when I went to try to add another month’s rent to the bankruptcy, but the guy filed another one. About a month later,I ended up losing my job.They are scheduled to fall off in January and March 2021.Since I’m looking to purchase a home soon but still there.I am currently enrolled in *850 Credit Restoration* and I must say,I am loving it thus far.I’m doubling it up with your podcast videos and learning A LOT! Thank you.I’m ready to join the millionaire club!!!
We need more immeasurably wise and compassionate humans like you on this planet.
Thank you for sharing *Web backdoors* , Adam. I bet I'm not alone when I say this video found me at the perfect moment, and there are a lot of things here that I needed to hear right now.
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude sir and *Web back doors* was so helpful during the process of boosting my credit.
Took a year for me to build my score from mid 400s to 600 where I’m
stuck now. I have 2 credit cards, a self account, auto loan. Everything
paid on time and utilization 5-10% paid off every month. Thinking of
applying for a new credit card or something cause my score isn’t
increasing Great recommendation, this helped me alot. *850 credit
restoration* was one of the best things I had come across as far as
boosting your score. I don't remember the actual number of how much but
it was somewhere cool!!
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude Marvin and *Top phase resolution* was so helpful during the process of boosting my credit
Absolutely crazy that you can still be punished for not going over your limit.
Think of it more like being rewarded for having discipline. It's business economics, it's not personal. Just learn the game so you can do better.
Absolutely crazy that I get penalized for using the credit card
@@braceyourselvesfortruth2492 You sound like an idiot. It’s got nothing to do with business or playing the game. It’s got everything to do with the credit system existing solely to take money from people who don’t have it. Imagine giving someone $500 dollars and telling them that can only spend $400 of it. So they end up only spending $350 but you still punish them for using more than half even though they abided by YOUR RULES! Please for the love of god end your life. Not a single person will miss you.
How is it crazy? It shows that you don’t just use everything given to you, and spend within your means. A LIMIT doesn’t mean you need to go anywhere near spending it all. The less you borrow the better it looks. It’s basic common sense
If you can't pay off your credit card debt, then why would another lender want to lend you money? You're not being punished for anything except proving that you don't have the means to take on more debt.
Don't pay it down to 0 less than 10% utilization is the perfect amount idk if its true but i heard having cards at 0 does not look good and since you arent using credit responsibly you just arent using credit. Either way less than 10 percent is perfect and does not hurt. But it's still a great tip if you are utilizing more than 10% per month I have the exact same utilization each month thanks to this tip. But I had to figure it out on my own.
Just realized this myself a few weeks ago, my score popped from 780 to 805 after I brought my utilization down from 17% to 8%.
Glad to see John spreading the info.
Alternatively, just have 100k of credit across like 10 cards, and set all of them yo auto pay in full every month. As long as you always have the cash to cover your expenses, you can use like 10k of credit without hurting your utilization much and just not worry about it.
Or 250K with 50 cards 😬
yeah, you have to already have good credit to even get 1 card with a 10k limit 😂
@misasaii it's not hard to build good credit. Just pay your bills on time.
7 months of building credit from nothing and I have a 705 credit score
@@olafharoldsonnii4713 your file is still relatively light though. I had a 750 within six months or something, but I still had to step up the CC ladder slowly. You can’t get approved for an Amex platinum or something, even with a 750; because your account file is light on paper
I heard that you don’t want credit card companies reporting zero utilization of your credit cards to the bureaus, and to aim for around 7%. I shoot for 6%. I rarely need to go over that. I was going by the 30% suggestion earlier on, but I heard around 7% or maybe even 9% is “excellent” utilization. It’s been working for me at least.
I’m over 700 for my credit score currently. I’m still fairly new. I had a 771 at one point before I applied for a few other cards recently. I got approved for them all, but now I’m at around 720.
I pay my cards as soon as a purchase posts so my utilization shows as 0%. My highest score is 847 and the others are in the high 800 range. Having 0% utilization clearly has not hurt me.
This is misinformation, the lower the better, and most months i pay it off in full before the statement and my score either increases or stays the same. Then if I go up even a few percent the next month it drops. I'm at about a 770-780 depending on how low my limit was that month
correct you want to use your credit limit and make sure you pay on time, this guys constantly giving wrong info saying COULD COULD COULD, and a whale one day COULD give birth to a dinosaur, COULD means nothing.
Share the crap out of this! John, you’re the man! God bless, Brother.
“You’re forced to get this card and use it so we can identify your purchases, but even if you pay it on time, we will lower your credit score if you’re using the money we give you permission to use” We are truly fucked as a country.
Repeal the Federal Reserve Act and abolish all Usury laws.
Great work *Web Backdoors* °org - so glad you are out there fighting these lowlifes. We need to do all we can to spare the elderly and the general public from these despicable scammers! Kudos to YOU!! You deserve the Nobel prize for keeping us safe big up brother.
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude Marvin and *Top phase resolution* was so helpful during the process of boosting my credit
They should make it law that any payments toward your credit (including the date of payment) must be reported to the credit bureau, must be listed on your credit report, and must be factored into the credit score.
I pay my bill weekly. I treat it like cash and I am happy to get the discount. I have like a 2% utilization rate with a 810 score.
Oh yeah what about now
I recently started buying with credit to get the benefits and paying it off the same week. Honestly it's changed my life and saved me thousands
I... Wow... America is messed up man! I'm so glad we don't use a system like that
Yea it is here. It's so unfair. Just another way to keep poor ppl down. AND no one teaches this!! 😢
@@BudgetsunTamed u don’t need a credit card?
@@ns.762jack we have been made to believe that we need them. I do have three credit cards that I rarely use. If I do not have enough money to pay for an item in cash, I will not buy it. America has made it so that we need credit cards to get things. Better apartments a nicer car a home mortgage loan. Therefore I do not use the credit cards to buy things which is what people do and that's where we get into trouble.
@@BudgetsunTamed america is so fucked its crazy, im from sweden and i dont know a single person who has even used a credit card before. credit cards is what makes people go into debt and it ruins people lifes,. and i agree with you, if u dont have the money to go to the store with cash and buy it u shouldnt buy it in the first place
@@ns.762jackCourse no, debit works here, and we can actually manage our financial.
Not entirely accurate. You don't want it to appear with a $0 balance, as sometimes that will look like there is no usage of that credit line. You want some balance to be there, less than 10% utilization is the absolute best, but less than 30% usage is also a good result.
I love creators like you who give actual good and useful financial advice for the common man. Doing great work man
Hey John!
Can you please make a long video about this please!?🙏
This channel is the sole exception where I haven't skipped the promo ads. Your finesse in effortlessly integrating promotional content within your videos is genuinely impressive. Sometimes, it takes a moment to recognize that you're endorsing anything; I commend *web backdoors* for your adept execution in this aspect!
I stumbled across your video and instantly knew this was made for me. I'm going through the same thing with my business but just knowing that I'm not the only one who's experienced this just pushes me to go harder. Continue to put out informational content and sharing your story, THAT is what separates you from the rest. Much gratitude sir and *Web back doors* was so helpful during the process of boosting my credit.
leave 1-5% so they report low utilization instead of no utilization.
So when Should I have that 1-5% utilization? Is it after I pay on my due date?
I have an 818 credit score and typically have 0% utilization. It doesn’t hurt to have 0%
@1KingFisher Yes I agree I'll just pay off my balance in full each month
@@albuquerqueturkey1567You need to pay before the due date for it to lower utilization, or else you need to only use 1-5% of your credit limit.
@@1KingFisherthis what I’m confused for. Some people said leave it at least 1 % but why dont we just pay full. :/
June 7th and just got my credit card and have been learning. This statement close date is very helpful and Lee coming back to this video. Hope this keeps me in line with credit and allows me to build a good credit score.
Do you know what’s the right percent to use for a first time credit card
@@Jg-hs5yc typically below 30%, ideally below 10%. Just make sure it’s mostly paid off by your statement close date.
I switched to paying my current balances weekly. My credit score jumped from the mid 700’s to 800+
Would that make your utilization zero?
So if I use 10% of my credit limit on Monday, I have to pay it next week of Monday the 10% that I spent?
@@isabellafernandajusino5246 if you use your card regularly you'll probably charge some meals or coffee that will carry over and keep your utilization over 1% and under 9%. Carrying over $75 - $200 per month with periodic paydowns to $0 demonstrate discipline and ability to pay in full on occassion. It doesn't hurt to pay in full occassionally, just don't do it each month. If you carry a bit they make money. If they don't make money because you pay in full by the grace period, they may close your account because you use the service, but they make no profit. It is a game.
@@gaizkatorresvenegas4919the week starts on Sunday the first day of week and ends on Saturday the last day of the week.
@@gaizkatorresvenegas4919did you figure it out
But my question is you're supposed to have a utilization of between your 1 to 10%. So having is zero utilization rate It shows the credit card companies that you are not using any of the credit that the company has given you
In his case of 50% usage that’s over the 30% .. I would get it to 20% anyway it helped my score when I pay it off to zero.
My understanding is that's old thinking. I pay card to zero each month. I've been watching my credit like a hawk for over a year now. Making the payment to zero balance has had a better outcome than being at a low usage.
@@adam37886so pay it in full or no
$0 on a credit statement will NOT improve your credit score. If anything it will hurt your credit score or do nothing. Unused lines of credit look bad. Because the bureau’s think you forgot about or neglect lines of credit. A mortgage broker told me that.
Do not listen to his first sentence, and pay your credit card bill as quickly as you can. Doesn't matter when you "should" pay. Pay when you can. The faster, the better. If I think to check my banking online, I'll pay off my card right then, even if I made a purchase earlier that same day, so the bank hasn't even processed it yet.
Banks only care about if the card getting paid before a month is up or not. Then they know whether to charge interest on its use.
Mostly true, but the best utilization for maximizing credit score is a few percent instead of just zero. Some scoring models have a small zero balance penalty because it appears as if you aren’t using your card at all. If you aren’t using your credit, you can’t show creditors you’ve been responsible and paying back what you owe. It’s a very very minor difference tho, so unless you are chasing that perfect score or have borderline good credit where a few points matter, leaving zero balance is absolutely fine.
Also, most models have no utilization memory. So you could have 50% utilization this month and 2% next month - your score next month will reflect the 2% utilization only.
smart.. but the bank reps are not even allowed to discuss this as they are not trained bout credit scores and how it works.. thanks for the tip..
If you want to increase your credit limit for a card then high utilization helps
A better tactic is to let it hit your score at 50% it'll lower your score x amount then once it's posted, pay it off and wait the month for the new utilization to hit and your score will bounce higher I've been doing this for 2 years and I built up 30 points. Side note getting points when you're over an 800 is hard 😅
As long as you pay your credit card off every month going over 50% won't impact it that much. I always go over 50% and my credit score in ever drop below 700
Recently got my discover card, and I’ve been using this hack to stay under 10% every month. Awesome advice! Keep it comin
Is this your first at card cus I am planning to get my first but am still trying to figure out what’s the right percent to use
That’s why I always pay the day before, but I like to keep it between 1-10% because I herd that helps
I have an 818 credit score and typically have 0% utilization. It doesn’t hurt your score.
Instead of carrying a balance, people should pay off their credit cards each month. Apparently, there is a specific time when they should do that.
I live in Europe so idk if this is relevant, but the safest way I've found to improve one's credit score is taking advantage of the occasional zero interest loans they sometimes do for electronics (like smartphones). If you pay your bill on time (you really don't want to miss a payment!) then you'll become more trustworthy in the eyes of the banks and it should be easier to get other loans approved in the future. Idk I just don't feel like paying crazy high interest for money that's not mine lol
I've always heard that depending on how many lines of credit you have it's good to have some small utilization so it's not zero. Anecdotally I can say changing from $0 statement to anything low but non-zero improved my score back when I only had one credit card.
Rule number one buy things you can afford three times over if you can't don't buy it Rule number two pay it before the statement boom you got amazing credit
The inflation: 👁👄👁
What is the statement? Is that the deadline the bill needs to be paid, and does that mean it’s bad to pay the bill exactly on the day it’s due? I thought it was easier to have the computer automatically do it for you
@@ChriseanTaylorno the statement day is typically 3 or 4 days after u make the purchase but you can make sure when they send you the bill bc the statement day should be on there
@@ChriseanTaylordid you figure it out
don't pay 100% early. If there is 0 at statement close you won't get brownie points from credit beuro for paying a bill on time. There is no bill for 0.
It took me many years to find out the statement closing date is different than the due date.
Man, it is good living not having to care about a credit score. So little worries, so little involuntary homework.
Everyone only compares the credit utilization to ONE card, and not all of them, you can have a maxed card if you have other cards… say you have a 1k limit on one card, a 2k limit on another, and a 5k limit on one more. You will be fine if that 1k card is maxed out.your credit limits are stacked together.
This only applies to the USA. Other countries have other credit score systems.
It does not matter if it hurts your credit score if you don’t need to apply for anything immediately AND if you plan to pay off your debt in full by the next due date. People should not worry about monthly fluctuations in their credit score.
Well, then set your payment before the 24 days which should be about the 5th of every month. Or increase your credit limit to $15K so you are only using a third of your credit limit. Use two credit cards if you have to. You have to show that you are using your credit card in a responsible manner. Still, it is good to know that we are being checked every first week of the month. Thank you.
One important thing to know about credit utilization when it comes to your credit score, is that it has no "memory" or lasting impact. You could go for years using 60% of your credit, and then just one month decide to do what John's talking about here, and your credit score will immediately jump up as the statement closings are reported. So unless you're about to do something which requires your credit score to be high at the moment, there's no real benefit to doing it all the time.
“Do not pay your credit card bill”
Me: ok
Said the homeless person 😂
@@J040PL7The house: 🏚
Amazon did this crap to me the other day. Knocked my score 30 points. I have 0 missed payments on all 4 cards.
Only watched the first 4 seconds, instructions unclear credit card company very angry
Not in Canada. Using 100% of credit limit while paying it iff before the due date is best for credit score
Only if you miss a payment is that 100% utilisation m”detrimental
sure but if you pay it off by next month it goes right back to where it was before. this only really matters if youre actively applying for a loan or something
pay before the grace period if possible, then get some rewards.
this means the card pays you... the costco credit card gives you a decent rebate.
It doesn't matter once you pay off whatever it is that you owe your credit score will go back up
But you lose out the cashback points as some credit cards calculate cashback on the bill generated. Credit score gets to normal after 1-2 months.
I use my personal strategy, I own 2 cards, one for fixed expenses and other for spontaneous expenses.
For example if your monthly expenses are of 1000$, I do the expenses on first day of statement and invest the same amount for 35 days in form of fd. Then fd matures and gives me an interest amount on it helping me save 5-10% every month.
Thanks so much... awesome message
Link here for more savings and top card bonus offers!
bit.ly/johnsfinancetips
Good video. Simple and to the point. Thank you.
Why wouldn’t you wanna just pay it on the due date? As long as you pay it on time, it shouldn’t affect anything.
Really only matters if you are expecting an unexpected need for credit.
If you are planning it, just plan a month in advance.
Ever since I saw this I've been paying before the Statement Close Date. Had I not seen this I would have been totally clueless. Thanks John
I don’t know what my credit cards limit is, but I pay them off every month, never carry a balance. My credit score is in the upper 5% so apparently not carrying a balance doesn’t hurt.
Hot take credit score online matters if you actually need to use credit.
Yes you wanna hold a little of your limit its better because your showing that your a responsible borrower
Let me get this straight. The person can pay off a $5k credit card bill every month and you think he is worried about a credit score? That person is most likely making over $110k a year, before taxes and 401K contribution.
not always true because creditors look at how much debt you can go into at any moment, so have alot of available credit can hurt you in the eyes of a lender
But having an unused 10000 card limit could prevent you from gaining further credit
didn't stop me from getting further credit.
@bobowon5450 It would eventually depending on your overall exposure
I heard you don’t want to pay off your credit card but keep in in the 15% or less but not 0 utilization to get the most points to your score.
Less than 25% utilisation is fine.
Every video of this guy I have seen usually involves him giving wrong/bad advice. 0% utilization is bad as 50% because this companies love seeing you in some form of a debt no matter how small it is. Doesnt really help that Im seeing bot accounts in the comment section probably boosting this shorts either
you know what else would help? paying 1%.
the benchmarks are 10%,30% and 50%
even if you are under those by less than 1%, it still counts as 10/30/50. So consider 9%/29% and 49%
to note: in video he had 50% usage, so 49% would've lowered him into a different bracket
Best, still under 10% (literally, 9% or less)
Good, under 30%
Fair under 50%
personally, just keeping it under 30 mark is very good and you can progress from there.
I thought the best was between 10 & 30? It's not really a measure of whether you're good with money, it's a measure of how good an investment you'd be. If you don't use your credit, you're not a good investment, was my understanding. It's kind of like how your credit score will actually usually take a hit if you pay loans off early, they aren't making the full anticipated interest amount, so you're not a good investment.
Easy Credit build up:
-Buy a Credit Card
-Don't use it
-Bam, better credit
Nah, you wanna use it for everything for the first year or two cause there's typically no intro apr. After that just pay what you spent 18-24 days (depending on what your card is) after monthly cycle to avoid interest.
This only makes sense if you are on the borderline and about to need credit. Otherwise, you are giving them an interest free loan paying it early.
Credit utilization in my experience only affects you for that month. It would be smarter to keep the 5k in a high yield account until the bill is due.
Most of the time, this is pretty unnecessary. The impact of credit utilization essentially resets monthly, so as long as you do this the statement closing date before needing a credit check, the rest of the time has no meaningful significance.
If u pay your bills on time...u will have good credit period.
I don't have a credit card, went to the bank and got a home loan no drama, credit score is a load of shit
Payments are not processed in a day. Generally it takes 3-5 business days.
Yeah the credit system has got to go. It's literally becoming dystopian, this is not how wealth works and we are disincentivizing production of wealth in favor of production of currency
Pay it 2 to 3 days before your closing date as credit card companies take 24 hours or a little bit more to update your balance especially if its a company that only takes ACH as payment unless you go directly to the bank and pay it.
it dont matter anyway, you can do exactly that in the next month, or the month after that, or a year after that. you can always lower ur utilization for the very minor score bump, if you really need it. its an arbitrary score anyway. nobody makes financial decisions based on just your score. they take everything into consideration, thats why its called your credit history, not just low utilization 99.99% of the time. now why would they want to give u a new line/more credit when youre already not using your current ones?
my limits doubled and my score is at an all time high and im keeping my
utilization at 50%+ and not paying it off entirely each month.
Absolute zero is not the best thing, but no debt isn’t a bad thing. Up to the person to decide how important the credit score point difference is vs no debt
I accidentally did this when I overspent and a 5% utilization was reported instead of 33%
Its actually not true i belive, If you just keep it below 30% and then pay the 30% your score will get better
Otherwise everyone who has credit card and never use will get best score but they don’t
Adulthood is a scam. Idk why we aren’t taught this in school. I’m just starting to learn about the ends and outs of credit and how everything works and my mind is completely blown. Like this is really setup to make you fail because there’s so many small little things that can trip you up.
I turned 18 3 months ago and been taking care of stuff i will need as an adult, and for the past few hours of watching card stuff my head's starting to hurt man
Ben here, welcome to the ER!
It doesnt matter if you make your payment and dont leave a high balanced on it. Your score will stay the same or go up if you pay off or keep a low balance. If it drops it will come right back after the payment.
Credit score = number made up to scam people to pay money to improve it.
Credit history = demonstration that you can borrow money and pay it back in a timely manner. Ironic that the better you are at handling money, the less you need to borrow but yet organisations are happier to lend you money.
But its not per credit card. Its percentage of your total available credit
You need to use at least some of your credit. I have a credit card I got just for international transactions as it doesn’t have fees, but I don’t use it everyday as it has no cashback like my other cards. I hadn’t used it in 3 months and as I had no credit utilisation my credit score dropped!
Now I use it once a month to get a loaf of bread and some milk, just to keep it ticking over.
Remember that the laws and regulations governing financing are all passed by a congress that caters to those who make donations to politicians and their parties. The citizens are but a minor annoyance that has to be listened to every 4 years.
That's how it works 🤷♂️
My payment due date is consistently 3 days before my closing date. Although I pay on time, it shows 0% credit utilization, preventing my credit score from increasing. I requested my bank to change the due date, but they adjusted the closing date to maintain the 3-day gap as well. Any advice friendly people?
I pay the day after the transaction...9 years not a penny paid in interest. My cash back was a hefty down payment on my Bike
Here’s one that doesn’t come up too often: Carried interest. Chase has gotten me a few times with this one, despite the bill being paid before the card’s closing date. Now I kind of look at past statements and guesstimate what to add if paying too close to the cycle’s end.
0 makes your credit score go down as u wont have revolving account
In Brazil it's the opposite. The more you use the limit, the more they give you, as long as you pay it in full.
No need for a credit score if you pay cash and have no debt.
He teaches more than school ever did u deserve a sub brother
If you are using a credit card for the purposes of generating good credit then pay it off imediatly (as per this video) so your utalisation is always at 0%
If you are using a credit card for any other reason then cut it up.
Absolute crazy that you even need a credit card and some abstract credit score.
Just use a debit card like a normal being.