Apparently credit utilization does not apply for charge cards like Amex Gold since they have no predefined limits. So it may be a good idea to do larger purchases on these to not hurt your credit utilization as much it seems!
I appreciate the helpful videos as always! I started watching sometime ago when my credit score was low 600s. I was able to do everything you mentioned and currently have a 770 score. I have the savor one and venture x combo as my dailies, and mix it up with the amex gold and prime card from time to time. I was able to travel to El Salvador for free last year and rent a car with my amex sign up bonus points on the gold card. Currently sitting on 98k points on my venture X, so I will be planning another trip soon. Thought I would share since I have really benefited from all your videos.
Great video, as a financial adviser I'm surprised that even hnw individuals sometimes struggle with some of these concepts. I’ll be recommending this video
7:56 TIP - add an authorized user to your oldest credit card account that has no annual fee -- Most banks will keep that account open and in good standing, even it it is unused. Otherwise there is more of a chance that an unused account will be closed.
I treat CC like a debit card: "1. I don't use it unless I have the cash for it and 2. I pay all balances weekly as I detest to see any balance on the statements". I realize I don't have to, but it is a habit. Am I keeping my credit score from rising, even by a little, by doing so and having a $250K in CC lines (not counting several charge cards)???
@@Adiscretefirm score has been exactly at the same for months! Have a very long credit history, number of credit lines, and high limits. Just wandering if the payments before statement dates vs at/after would make a difference even if by a point.
Great video as always Daniel! Penny for your thoughts on the updated cash back percentage on the Costco Anywhere card? Also, don't tell my dad, but Go Birds!
Very helpful tipis, but what about closing dates and credit limits? I tend to pay my statement balance and put it in the negative. I also make sure my current balances are $0 on its closing dates. Credit Karma tells me if I keep my oldest card open for another 5 years + increase my credit limit by 10k, then I'll be excellent in all categories. I'm aiming for an 850!! (Currently in the low 800s)
I sorta messed up 6months ago. I was in the mid 700's but with crappy cards. The 5 cards i wanted the most, i applied for all at once. I was approved for all, and less than a month later, my score dropped by over 125pts. Now lower 600's... 😆 First few months I was mad, but now, i know with time it will be fine. I say in about 1.5yr, i should hit 800... maybe..😊
I’m almost in the 800 club!! 🎉 Honestly, I just use my credit cards for travel benefits. I couldn’t care less about anything else. The other perks are nice though. I may be able to fly business class for the first time this year since I’ve accrued so many points. Something I’ve always wanted to do 😁👏🏾
Hey Daniel, I accidentally got too eager and opened up back to back cards to start my credit card journey. Will this have any long term implications or will I be fine as long as I hold off on new credit cards in the meantime?
You're fine, you took a double hit for inquiries and new credit but the inquiries only count against you the first year and you are doubling the amount of on time payments and increasing the average age of accounts
Actually it does affect. If you pay off before the statement, the card's utilization is never reported to the credit bureau. It makes you seem inactive and can stagnate your credit score growth. It's best to leave like 1-3% or so of your max limit for each of your credit cards and allow that to show on a statement before paying off. You can pay off the bigger purchases right away (bigger than 10% of your credit limit) and leave the small ones to pay off after statement
@@michaelhealy7030okay I see thank you so much. I have 4 active cards right now, would you recommend me do this for all cards or just 1 card to keep my utilization down?
Here's a tactic that some of the more credit gurus use it's called All Zero Except One (AZEO). It's a great strategy to give a little boost right before an application or just for fun. It involves having all of your cards be 0% utilization except for 1 card that is at 1-3%. This gives a short term boost , no point in doing it if you aren't applying for anything.
I did same too, only difference only credit cards in the mix. The age of credit put me over the top. Which means simply the older you get doing exactly the same thing, your score will naturally go up because of age of oldest card.
So can I start using my CC after the due date, or is after the statement balance? (My payment due date is on the 25th but the statement “close date” is on the 27th) I’d really appreciate the clarification, Thanks in advance.
That payment due date of the 25th is from the previous statement balance from last months statement. The close date of the 27th is for the current period Here’s a video that explains it better: th-cam.com/video/MEjnGGYj3_0/w-d-xo.htmlsi=MQpVaW1gk0ceESLw
I am 18 years old and a 74 1 credit score. How long should I wait for me to get another card. My freedom rise is around 3 months old. Also I always pay my card 4 days before is due does it make a difference if I pay it the day that is due or 4 days early.
Wanna know the same thing. I've got above 760 score with freedom rise as well, hoping to get a card with better limits and benefits, but I'm not if applying within 3 months will be detrimental.
He has a video about the optimal order to get credit cards. I think he says around 6-12 months after your first card go for the chase freedom unlimited; and that’s what i just did i waited 6 months.
I personally would not apply for another credit card until the hard pull from the last card drops off of your report. This would be more important to someone with a limited history. But 740 should qualify you for a new card. I guess it depends on how badly you want a second card. But even with decades of history I would never open more than one until hard inquiry has dropped off.
Does a zero utilization ACTUALLY harm you, car and mortgage aside? Ive got 7 cards and pay every cycle, not due date... So my cc utilization is damn near zero. Please elaborate for the folks at home.
Zero utilization on the cards DOES NOT hurt any of your loans. Having the loans doesn't hurt, BUT your credit report will reap a lot more benefit from the loans when they get to the area of being 80%, 85% 90% paid. Why????? Those same 2 words again, LOW UTILIZATION. The loan is now 90% paid off. When your loan is only 20%, 30% paid off????? THAT'S HIGH UTILAZATION. It's at 70 to 80%. Have you ever read I did the Navy Fed pledge loan & I paid off 90% of it right away & my score exploded. It got really high. That's why. Low loan utilization percentage. More specific to the cards, a principle called AZEO (All Zero Except One) works great for me. All Zeros dropped my score by about 25 points. The one card that did report about a balance was only reporting $5.
The older you get the chances of your oldest card going away becomes bigger. My first two cards ever were issued by a retailer I worked for which is no longer in business, my second card was from a bank no longer in business. But my 3rd, 4th, and 5th cards still exist. 35 years old.
Apparently credit utilization does not apply for charge cards like Amex Gold since they have no predefined limits. So it may be a good idea to do larger purchases on these to not hurt your credit utilization as much it seems!
Correct, that's been the case with my Amex Gold and Platinum cards and is definitely a good thing to keep in mind!
So if I pay the whole card off before my due date on the 12th of every month, I can use again on the 13th without credit utilization being an issue?
I appreciate the helpful videos as always! I started watching sometime ago when my credit score was low 600s. I was able to do everything you mentioned and currently have a 770 score. I have the savor one and venture x combo as my dailies, and mix it up with the amex gold and prime card from time to time. I was able to travel to El Salvador for free last year and rent a car with my amex sign up bonus points on the gold card. Currently sitting on 98k points on my venture X, so I will be planning another trip soon. Thought I would share since I have really benefited from all your videos.
Great video, as a financial adviser I'm surprised that even hnw individuals sometimes struggle with some of these concepts. I’ll be recommending this video
7:56 TIP - add an authorized user to your oldest credit card account that has no annual fee -- Most banks will keep that account open and in good standing, even it it is unused. Otherwise there is more of a chance that an unused account will be closed.
I treat CC like a debit card: "1. I don't use it unless I have the cash for it and 2. I pay all balances weekly as I detest to see any balance on the statements". I realize I don't have to, but it is a habit. Am I keeping my credit score from rising, even by a little, by doing so and having a $250K in CC lines (not counting several charge cards)???
Set it on autopay for the statement balance on the due date. Continue to only pay for something if you have the cash.
Are your scores going up? How long is your credit history?
@@Adiscretefirm score has been exactly at the same for months! Have a very long credit history, number of credit lines, and high limits. Just wandering if the payments before statement dates vs at/after would make a difference even if by a point.
Same. I pay my balances just about every other day whenever I make purchases.
Woke up this morning to a 20 point increase now 21 sitting at a 755 credit score.
Great video 📹 👍
Great advice and video...thank you🙌
This is super helpful
Great video as always Daniel! Penny for your thoughts on the updated cash back percentage on the Costco Anywhere card? Also, don't tell my dad, but Go Birds!
Very helpful tipis, but what about closing dates and credit limits? I tend to pay my statement balance and put it in the negative. I also make sure my current balances are $0 on its closing dates. Credit Karma tells me if I keep my oldest card open for another 5 years + increase my credit limit by 10k, then I'll be excellent in all categories. I'm aiming for an 850!! (Currently in the low 800s)
if i appplied for a credit card 5 days ago can i still apply for another one where it would consider as just 1 hard inquiry ?
Is having 0 % credit utilization a good thing or should i leave a 1-2 % utilization each billing cycle?
0% credit utilization (all cards combined ) gives a slight penalty.
@@justgaming6245explain, I've heard this claim but have seen zero date to prove otherwise
What is better card
Yeah... If you have a vehicle loan, be very careful making additional payments as some loans comes with pre payment penalties.
"Waited until 20 years old to open my first credit card." Last year, i opened my first card at 28, so youre way ahead of me 😂
I sorta messed up 6months ago. I was in the mid 700's but with crappy cards. The 5 cards i wanted the most, i applied for all at once. I was approved for all, and less than a month later, my score dropped by over 125pts. Now lower 600's... 😆
First few months I was mad, but now, i know with time it will be fine. I say in about 1.5yr, i should hit 800... maybe..😊
I’m almost in the 800 club!! 🎉 Honestly, I just use my credit cards for travel benefits. I couldn’t care less about anything else. The other perks are nice though. I may be able to fly business class for the first time this year since I’ve accrued so many points. Something I’ve always wanted to do 😁👏🏾
Is it utilization each card or overall?
Your credit score is going to factor in both
It would be nice if you summarize it. Thanks
Hey Daniel, I accidentally got too eager and opened up back to back cards to start my credit card journey. Will this have any long term implications or will I be fine as long as I hold off on new credit cards in the meantime?
You’ll be fine. It’ll even strengthen your credit in the long term because you have more accounts that will eventually mature in age.
You're fine, you took a double hit for inquiries and new credit but the inquiries only count against you the first year and you are doubling the amount of on time payments and increasing the average age of accounts
what if i pay my cards off as soon as the balance shows each time compared to statement balance? js there a difference for my score?
Actually it does affect. If you pay off before the statement, the card's utilization is never reported to the credit bureau. It makes you seem inactive and can stagnate your credit score growth. It's best to leave like 1-3% or so of your max limit for each of your credit cards and allow that to show on a statement before paying off. You can pay off the bigger purchases right away (bigger than 10% of your credit limit) and leave the small ones to pay off after statement
@@michaelhealy7030okay I see thank you so much. I have 4 active cards right now, would you recommend me do this for all cards or just 1 card to keep my utilization down?
@@michaelhealy7030i have 4 active cards at the moment, do you recommend me do this for all or just for 1 or 2?
I do all these steps and I’m stuck at 797
I means that’s basically 800 in my eyes and the eyes of lenders. Getting up to around 800 is the goal and time will take care of the rest
Here's a tactic that some of the more credit gurus use it's called All Zero Except One (AZEO). It's a great strategy to give a little boost right before an application or just for fun.
It involves having all of your cards be 0% utilization except for 1 card that is at 1-3%. This gives a short term boost , no point in doing it if you aren't applying for anything.
The key have multiple loan in your credit report i have like 5 since 2018 utilization 4% (810)
I did same too, only difference only credit cards in the mix. The age of credit put me over the top. Which means simply the older you get doing exactly the same thing, your score will naturally go up because of age of oldest card.
What if I pay the current balance? I’ve been doing it for a while but I’m not sure if it’s better or not
Due date = paid in full
Statement date = balance should be less than 30% (preferably 10%)
So can I start using my CC after the due date, or is after the statement balance? (My payment due date is on the 25th but the statement “close date” is on the 27th) I’d really appreciate the clarification, Thanks in advance.
That payment due date of the 25th is from the previous statement balance from last months statement. The close date of the 27th is for the current period
Here’s a video that explains it better: th-cam.com/video/MEjnGGYj3_0/w-d-xo.htmlsi=MQpVaW1gk0ceESLw
Thanks for the link!
I am 18 years old and a 74 1 credit score. How long should I wait for me to get another card. My freedom rise is around 3 months old. Also I always pay my card 4 days before is due does it make a difference if I pay it the day that is due or 4 days early.
Wanna know the same thing. I've got above 760 score with freedom rise as well, hoping to get a card with better limits and benefits, but I'm not if applying within 3 months will be detrimental.
He has a video about the optimal order to get credit cards. I think he says around 6-12 months after your first card go for the chase freedom unlimited; and that’s what i just did i waited 6 months.
I personally would not apply for another credit card until the hard pull from the last card drops off of your report. This would be more important to someone with a limited history. But 740 should qualify you for a new card. I guess it depends on how badly you want a second card. But even with decades of history I would never open more than one until hard inquiry has dropped off.
What if your credit score isn't changing for a month or so even after paying everything before closing date and keeping utilization as 0-1%
Any reason why Amex plat declined me?
Does a zero utilization ACTUALLY harm you, car and mortgage aside? Ive got 7 cards and pay every cycle, not due date... So my cc utilization is damn near zero. Please elaborate for the folks at home.
I know for Capital One it can because it shows that you might not spend on their card; for Amex I don't think so
@birddoesnottalk1032 Amex is a charge card. I'm specifically asking about CCs
Zero utilization on the cards DOES NOT hurt any of your loans. Having the loans doesn't hurt, BUT your credit report will reap a lot more benefit from the loans when they get to the area of being 80%, 85% 90% paid. Why????? Those same 2 words again, LOW UTILIZATION. The loan is now 90% paid off. When your loan is only 20%, 30% paid off????? THAT'S HIGH UTILAZATION. It's at 70 to 80%. Have you ever read I did the Navy Fed pledge loan & I paid off 90% of it right away & my score exploded. It got really high. That's why. Low loan utilization percentage.
More specific to the cards, a principle called AZEO (All Zero Except One) works great for me. All Zeros dropped my score by about 25 points. The one card that did report about a balance was only reporting $5.
The older you get the chances of your oldest card going away becomes bigger. My first two cards ever were issued by a retailer I worked for which is no longer in business, my second card was from a bank no longer in business. But my 3rd, 4th, and 5th cards still exist. 35 years old.
👍🏻
Thanks as always for stopping by! 👍
My credit score dropped 26pts today because I had a 53% utilization so if I have a low utilization next closing date would I get that 26pts back?
Yes
What if I pay the current balance? I’ve been doing it for a while but I’m not sure if it’s better or not