@@mrsshelton226 No, the due date. If you pay your balance in full every month you get about 20 days float interest free if you pay the entire statement balance by the due date. But you have to have not carried a balance from the prior month.
@@mrsshelton226if you do this the credit reports 0 balance basically saying you are not using the card ! Pay cards before due date for the entire statement balance
Get rid of it! Use cash as much as possible. The banks business plan is to have you over spend and run up bills you can't pay off. Every time you swipe that card there is hidden money transfer fee. If you don't have the money, Your going to have a lot less using a card. The average person owes 15,000 dollars at all time high interest rates. Plus every business you charge at has fees and charges applied to them. The smaller the business the more they get screwed. That is why many places charge extra for that card. Stop! Think! Be smart.
This information is severely needed for young adults, and even older adults. This type of real life info should be taught in school to educate students of what this looks like in real life. I was never taught in school so I had to learn by getting into, and working out of, overwhelming credit card debt. Great job on the video.
@traybern yes, you’re right but not real life examples of what it looks like when it comes to loans, savings, etc. or at least they didn’t at the school I attended.
Let’s face it if it’s taught in schools people won’t pay attention. Just look at Civics class the class that literally tells you how the government works and the average person can’t even say how many senators there are
I’m a HUD certified housing counselor and have been teaching this stuff to folks for 25yrs. Not a lot of folks know about housing counseling (and subsequently credit & budget counseling) so I’m glad to see this content on TH-cam. It was succinct and spot on. I’ll be sharing your channel with clients…One comment I will make about zero interest offers - if it’s for a large amount, like an appliance, leaving the money you have already saved in an interest bearing account and using someone else’s money interest free, is a smart way to go. BUT only if you are disciplined. Make sure that the payments pay the balance off in full before the end of the offer or ALL the interest will be charged retroactively! Thanks for this great content.
Great explanations. It took me like 20 years to figure credit card bills out. I put two reminders on my calendar. One is a week before the payment due date and one is 3 days before.
Yes. I do like to barrow money and pay it right before the statement balance to avoid interest. Then take that money back out again right after the statement day.
@@lisareed5669 What? Um, i might have to pay $20 IF i barrowed like $500, i forgot exactly how much it would actually be but that $20 or whatever interest is less than the cash back balance in this scenario. Im not sure if I exactly got what you meant.
Good grief lol 😂! That was a lot. Basically pay your full statement balance by the due date to avoid interest. Im homeschooling my daughter and I pray she gets this with plenty of practice test BEFORE real life happens lol 😂. I don’t charge anything I don’t already have money for, so I’ve never worried about the due date. I use my cards for rewards by paying bills. Once I get my reward money, I stuff my savings envelopes. Im saving this video for my daughter.
Sounds like you’d be a trustworthy parent who could get her child’s credit score a head start by adding her, and then storing the card away, not to be used. When she’s old enough she’ll be happy to learn she already has some years to her advantage. Thank you for teaching her so young. 🤍
Some people aren't as perfect as you and can pay their balance off every month especially when they get slammed with unexpected doctor or car breakdown bills and have to pay by card.
My best best advice, around credit cards is make 2 payments on your credit card each month. Pay it off on the first of the month and then pay it off again on the 15th of the month. Assuming your card is actively used you'll never pay a late charge, and you will never pay interest. And you might also never forget to pay a card for the month. I started doing this 20 years ago. Best thing I ever learned.
Hi there. If you have a remaining balance after doing this method of paying on the 1st and 15th - will you still be billed with interest because you still have a remaining balance?
@@topazsun yes, you will always be build interest on a remaining balance that's carried over to the following months. However you will always pay the minimum so you won't get a charge for that. The first best practice is to always try to pay your credit card off each month. Don't use a credit card to purchase things you don't have the money for. Except in the rarest occasions when you must do this.
@@topazsun That's' why he said "pay it off" both times. Go online, check your balance on the 1st and 15th, and pay off that full balance. If you are doing it twice a month you'll never miss a due date, and never pay interest.
Wouldn't it be nice if credit card bills were simple to understand?? I guess it's just too difficult for the big banks to help us NOT pay interest... jokes aside, this is super important to understand if you're new to the credit card game. And even if you've had credit cards for a long time, understanding your bill and all of its intricacies could really help your score reach new levels. Great job on this one Daniel!
It's not rocket science. To avoid paying interest, pay the entire credit card balance off before the payment due date listed on the statement. It frightens me how dumb society has become. Perfect for the tyrants controlling us....
@@reesedaniel5835 Even if credit card bills aren't super hard to understand, that doesn't mean we shouldn't help people who aren't as familiar with them.
@@SpencerJohnsonOfficial but how would you make it simpler? The example he showed had 3 lines that were printed bigger than anything else, and those are the 3 most important things: The balance, the minimum amount to pay and the due date by which you have to pay at least the minimum and preferably the entire balance. Can't make it much simpler than that if you want to stick with a credit card.
@@Hans-gb4mv I think the confusing part for folks is that there are multiple different balances to pay off and multiple different dates to keep in mind. For those of us who have been doing it for a while or watch videos like this, it isn't difficult, but I'm speaking for those who aren't as experienced.
Question for a credit card vet like urself about credit utilization: Does using 50%-70%+ of my credit limit then going down below 10% before closing date (for the snapshot) affect my credit score increase? I have low credit limit for my first card that I want to use for bills but it’ll cut close to the limit which I can pay off quickly but don’t wanna if that will just do more bad than good. Thank you in advance!!
THANK YOU for explaining the Grace Period. You just confirmed what I've been TRYING to figure out for MONTHS/YEARS! THANK YOU, THANK YOU! And, yes, I subscribed.
Three things 1. Great video, most important information most people need to know. 2. I was occasionally missing payments because I would lose a statement or forget one. On day the simple solution hit me. I made a form with all of the bills listed in order of their due date. All of the bills due by the 25th I pay on the 10th and all bills due before the 10th I pay on the 25th every month I print out a new list every month and write down the amount paid and the date. 3. If a person has an emergency expense like car and refrigerator repair would it be better to put them on the credit card and then borrow the money from your bank or credit union to pay off the card.
You have to pay it in full on or before due date. By hook and by crook you have to i dont care if you borrow another money but pay it in full and never miss the due date everrrr
They used to have a thing called double cycle billing to increase what you owed even if you paid in full the previous month. Outlawed in the U.S. in 2009.
To eliminate the chance of forgetting to pay, you can set up an automatic payment through the credit card website to take out the minimum payment (or any other amount you tell it). If you pay more than that amount manually before the payment date, it doesn't take out the automatic payment. But if you forget, then at least your minimum is paid and you don't get a late fee. Then when you get the email saying your automatic payment has been made, you slap your forehead and go to the website to pay the current balance (because yes, keeping the credit utilisation low is definitely a good thing).
Setup autopay with the minimum, so you don’t ever miss a payment. Create a spreadsheet or use an app to plan when you pay your bills. Make your full payments on those dates. I align it with my paydays. Ever since I made this change, I have had no accidental misses in payments. I like the spreadsheet method since I have a chance to review numbers across the board for all bills and savings.
Understanding the meaning of statement opening, closing, and payment due dates, and active/current balance vs statement balance is definitely extremely important for beginners to learn right away. Who would have thought that a simple credit card bill is not so simple after all. Great video Daniel and thanks for clearing the air on the big elephant myth in the room 👍🏾.
10:36 I’ve forgotten to pay my Capital One QS and AmEx BCE once each before and remembered the next day or around 5-8+ hours after the payment due date & time but then paid in full right when I noticed and I *did* get charged interest by both creditors, neither reported the payment as late to the bureaus. Was very happy to see I didn’t accidentally ruin my payment history. I stepped up after that and set reminders for all future CC bills and such because I NEVER want to take that chance ever again. I even tend to over-check the apps *just to make sure*, maybe partly due to my OCD, but it works. Thanks for your video :)
This is all very helpful stuff. Except in everyday spending with credit card(s), who is going to remember all this while out spending money from these credit cards. It's best just use card(s) sparingly throughout the month and pay off full balance by due date. If you can't do that, pay the last statement due amount with no interest by due date. The balance remaining is what gets the interest. Good luck. Going to need it when start getting mixed up banker lingo and credit cards.
I don’t think that’s true. Credit card companies have ways of getting your money coming and going. If you don’t pay the balance, they calculate the interest from the period before plus the current purchases, which wouldn’t’ve been included had it been paid in full. In other words, the interest is charged on the previous and current month’s charges. You’ll keep accruing interest on those purchases until the total balance is paid off. That’s why it’s so hard to pay off the balance and you pay so much more. Always pay the full balance or you’ll be paying through the nose!!
I always pay off each transaction the day it posts, and never keep a balance. It's a points card, and the goal is to accumulate enough points to redeem every year when I travel. If I don't have the cash to pay for the item right then and there, I don't charge it to my credit card. It keeps me honest.
I ask and look for cash discounts and skip the cards. That rip people and business off with hidden charges. Yes points that are worth less and less! No thanks
@@Westerner78 I totally believe what you say. I watch my statements like a hawk, and have never spotted any kind of hidden fees. Just the $95/year it costs to keep the card open. So far, between the free bonus nights and points, it’s saved me thousands on hotel stays.
This is the best advice, thank you so much! I'm someone who needs to do it this way 💯 so it's "just like using my debit card" and I spend it like cash. I so appreciate you sharing this strategy. No one ever taught me anything really, wish I'd heard this forever ago. ❤
This is a nice, simple, easy to follow guide to credit card statements and payments. The real screenshots are very helpful as well. Thank you for taking the time to spell it out clearly! When I started using credit cards in the 1990's, we didn't have web portals and apps. We did it by paper statements and paper checks and mail. With the instant up to date info these days, many new credit card users have no idea how credit card billing works.
I worked with a guy that would deposit his entire pay cheque to his credit card. He bought absolutely EVERYTHING, every month, on his card. He paid every bill he could with his card. His balance was always paid off when his pay cheque arrived. Of course any "extra" money he had on the card didn't earn any interest but the banks weren't paying interest on chequing accounts anyway. It was a travel rewards card . Every year he had enough points to go to France with his wife on vacation. We now do the same with our cards.
'Use your credit card like a debit card'. That's a keeper! Now... IF you can do this, then you have a pretty good handle on your checking account. The next step is auto payment of the stmt bal. on the due date. That way you don't have to make the payment. It's done automatically by the card company. You can also set it up for an amount or the min..
Great video. All great advice. During the GFC 2008 time frame credit card companies where scrambling to shed excess exposure. I had a few credit cards closed during that time as I had not used them at all in several months or years even. The cards I had balances on were not touched but did notice on some the credit limits were reduced. I mention this as were are possible moving into a recession, especially if interest rates stay elevated and we could see a repeat of the same.
Really good information. It makes so much more sense when you explain it. I do, however have one suggestion… You talk really really really fast and your sentences run into each other and I found it hard to grasp your meaning through all your really hard words. But thank you for the great info. I’m sure it will make a difference in my life.
When I worked, I played the balance every 2 weeks...every payday. Now that I'm retired, I pay it in full each month. I also setup a minimum automatic payment each month as assurance something is paid. My credit score last month was 812.
I think what you said at 4:38 about “carrying a balance” should be rephrased or narrowed down because this response was too broad for me and probably others trying to understand. From my understanding: yes, you DON’T carry over the STATEMENT BALANCE from the billing cycle that just ended to the next one (ex: October 29th - November 28th, $30.53). You pay the FULL amount of that statement balance BEFORE the due date the following month (December 25th, $30.53). However, in order to increase credit score, you DO need to carry over 30% or below of the CURRENT or OUTSTANDING balance ($48.73 was the CURRENT amount charged to the credit card before the closing date of December 28th). That way, $48.73 would show up as the STATEMENT BALANCE due as soon as it hits December 29th, the opening date (then you would fully pay off the $48.73 before January 25th). I kept misinterpreting this concept as paying off both current and statement balances IN FULL before the payment due date. You just have to pay off the STATEMENT balance before the due date, while keeping the CURRENT balance below the 30% threshold after the closing date.
Yes, it is all a bit confusing to understand. The way I understand it is that you have to make a payment between the statement closing date and the due date (the grace period). This part is specifically to help lower your credit utilization % reported to the credit bureaus. This helps raise your credit score. Then you need to make a payment for the remaining balance, Before the Due date. This way, the balance is paid off every month and you don’t accrue any interest payments.
What an excellent video! So much information, which was very helpful---I wish more TH-cam financial education videos were this value-packed. Please keep creating! 🙏
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!!
this was very informative and helpful! i love how you chose your words very carefully when explaining that made it 10 times easier to understand. you're awesome
The best advice for responsibly using Credit Cards @9:40 I too follow the same method. If I do any large transaction I take a fixed deposit of that amount which ends before my payment due date and so even if I want I can't use money that is to be paid for the cc bill.
Thirty or so years ago, when the cc companies started offering free 0% transfers for 6-12 months, we took advantage of them and that’s how we financed our debt for big purchases. I just transferred them when the time came and we virtually never paid interest or fees while paying down our debt. We were very careful to not get anywhere near our limits, and the cc companies would periodically increase them. We only used cc for big purchases, not everyday stuff. Today, we either finance what we need to, or pay cash, since the cc companies no longer do those 0% transfers with no fees We use the cc for everyday purchases and pay off the balance every month, while earning the rewards.
I got my first credit card in the 1970s and I've always paid my bill early. That was probably because I read the due date on the bill (and the terms on the back) and allowed time for my check to reach the bank via mail before the due date. Now that I'm older, I pay my credit card bills off electronically twice each month.
I bought a car a few years ago and the woman at the credit union talked me through setting up the payment to beat interest. I paid the car off a year early.
Are you building your credit by paying it all off before the due date?I've just started building my credit score and have chase unlimited freedom I have been paying it all off before the due date but I haven't checked my credit score im too afraid to see if I've went down or not I want to be able to correctly use my card plz lmk
I don't have a credit card, mostly due to them seeming sketchy and complex.. but my biggest issue is how do you pay it? Like.. what is the actual process to pay the card off? They existed before the internet right? I assume there are websites now, but like.. I don't have a credit card, so I have no way to know. I like to imagine a guy knocks on your door every month and asks for cash. So glad school taught me Spanish instead of actual things I need in life.
Back in the day, you'd send a check. Now, you link a bank account to your cards and pay directly I believe via ACH or e-check. If I'm wrong, someone please correct me
@@akinori08 That is correct! Even now, people can still mail a check but very few people do that since an ACH is faster, more reliable, and less costly.
even as someone who knows a lot about credit cards, I actually did not know about statement balance being what is used for utilization. I always thought it was total debts / credit limit. this video was super helpful
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!!
9:45 - Have money saved up to pay on bills?? That’s hard to do if you don’t make a lot of money! I try to put cash aside, but something inevitably comes up and I have to use it. 😖 Fortunately I am always able to make at least double the minimum pymt every month.
If your credit card gives you six months interest-free make sure you pay it off in 5 months because it takes at least 30 days before your first Bill also do not add anything else to the card you will only pay what the item or items were .
This occurred several years ago. I always paid my credit card bill in full on the same day every month for years, I got a statement that had a $35 late fee and interest charges. I called the credit card company to find out what was going on and they had moved my due date up a week and I hadn't noticed it on the statement. We had a "discussion" about it and they waved the extra charges. I wonder how many people they did this to and how much money did they make doing this! Hopefully they're not allowed to do this anymore. I cut that card up after that.
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!!
Excellent. A "basics" video that is super important to watch and understand for anyone getting into credit cards. It's videos like this that help people be responsible from day 1. As usual Sir, brilliant work.
That was exhausting, I use my credit card to pay for EVERYTHING/ALWAYS and pay it off when I get my paycheck every two weeks and have a 831 credit score. On occasion I will not cover the whole amount, however I get it back to zero on the next paycheck. Paying minimums or slightly more means "you broke". Works for me. If you cant maintain this, then you are in debt.
What works well for me, and I’ve been fortunate enough to have saved a cushion, and have consistent income, is to use the credit card to manage cash flow, and to have pre scheduled auto pay on 1st, 10th and 20th of every month. Ideally it results in a zero balance 3 x per month. adjustment transfers can always be made to bring the amount due to zero, or to adjust the scheduled payments to the amount due. Haven’t paid cc interest in a decade or two.
Always payoff balance by due date. Know your budget. Your credit line should be for emergencies. Example = little over a year ago my mother in law went into hospice care , two weeks later she died. For two weeks we we're there in a hotel, this took us of our budget. NO PROBLEM. We were there for her but was a big expense. Took us 3 months to get back on budget, that's what this is for. She was the perfect mom to my wife a I. She was 88.
In high school we had one single 45 minute class in dealing with checking accounts and credit cards. One day that's it. One of the most important things to know in adult life was glanced over in 45 minutes. We had tons classes dealing proper grammar, equality, history, blah, blah. Not saying those things aren't important but dear lord we need to spend more time teaching kids about the dangers of credit cards, minimum balances, etc.. I am no conspiracy theorists but it seems intentional sending kids out into the world without a proper understanding that certain mistakes can stay with you for a really long time. Sometimes a lifetime.
Not teaching real history. not teaching how to adult ( sorry!) but seriously "basic finance which would include a thorough or multiple courses in credit and money management. It is NOT taught purposely! Remember who said " Go Shopping? "America's economy is "Prescription drugs and debt circulation.
What I don’t understand is why my credit score went down if I reduced my credit utilization ratio from 5% to 0% Finished the cycle with $0 on my statement balance
Believe it or not, banks and credit card companies HATE people like us who pay their bill in full every month! They make -0- money off us, AND we earn rewards! 😅 It’s a win win for us!
Simple, always pay your total balance before it’s due to avoid interest charges ( I’ve been doing it for years.) It’s fun not paying interest to the creditors if you can. If not, then pay more than the minimum if you can afford it. Good luck👍
I got a Discover credit card 7 months ago, and recently got a score report which is excellent after following your advice. The thing that the report said was bringing me down was not having enough payment methods, so is there any other way to bypass that since I only have one debit card?
Usually that means you don't have a variety of debt. Credit cards, car pymt, house pymt, etc... I have an 800 credit score, but my report always "whines" about my lack of long term debt bcuz I pd off my car and house.
To make sure I understand... If my statement balance is $300 and I charge an additional $500 before the due date, if I pay $300 (statement balance) by the due date then when will interest begin accruing on the $500 I charged during the current billing cycle?
I would only do this to maximize my credit score before getting a major loan. One of the major benefits of credit cards for personal finances is smoothing out cash flow. You can just pay the whole statement balance after the statement closes on the due date and not pay any interest or fees, all while allowing you to manage your finances with ease. This does require tracking all your spending diligently. But we need to do that anyways.
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!!
Ok so here is what got me going on this whole thing. I got the chase freedom card too. With the zero APR promo. That said it ended September 18 (Pay due date, Sept 15) so I thought, anything I didn't get to pay off at the end of the promo would get an intrest rate and I'd see it on or after September 18. We'll, nothing happened. Why? Because it's going to hit on October 18 ! So basically I have another month to gather up anything I can and pay most if not all I have to pay. 🎉
Autopay can turn into autopay HELL. Don't do it. Set up alarms, mark your calendar, pay when you get the bill.... don't do autopay. Also if someone gets in my account online I know it was not me because I don't do that. CS over 800 and I'm low income, thrifty but not cheap.
Where's the part about paying on the 17th and why? That is the only reason I chose to watch this, was that big red arrow and the red circle around the 17th.
Yeah, this whole video is silly. Just find out when your credit card's deadline is, back up about 5 days, pay off everything you owe and forget anything about the "statement." You can pay through your bank, just find out what you owe completely 5 days before the deadline and pay it all off. Shred the statement when it comes in because it means nothing. Stop making all this such a convoluted mess when it's all designed to confuse you in the first place. Again, log into your credit card's website 5 days before the bill is due, disregard what they say is due, just pay attention to how much you have charged up until that time. Pay that all off. Next month, do the same. And you won't ever owe anything that causes interest charges, and you will always be current, and you can shred that silly statement that was written by the same people who wrote the bible and the IRS forms. Just pay it all off once a month, 5 days before whatever is due. Can it be any simpler than that?
Excellent video and for anyone out there if you can get a job as a bank teller, even a part time teller, YOU WILL UNDERSTAND ALL OF THIS INFORMATION! You may not be getting paid a lot, but the information you will gain in the long run will be worth it!
Before I’d graduated college I worked 3 or 4 different entry level bank positions. All of them taught me so much. Fraud clerk and mortgage assistant were very interesting.
Should I pay off my credit card with a check as soon as the bill comes--old school which is why I am asking? Or when the bill comes can I go online and pay off my bill with my debit card? I don't understand how I would do auto pay if I would not know the balance yet. Thanks
You can use a check, or save a stamp and set up autopay, which will take the money out of your checking or savings account. Just call your credit card, tell them you want to set up autopay and they’ll ask for the routing number of your account. Then you don’t have to worry about it from then on!
I guess my question is: do items that I buy during the end of my billing cycle, despite being pending, something I have to pay off in that same cycle. Or does pending items go to the next statement?
So basically have it auto drafted maybe 2 days before the statement close date and you wont have any interest and your balance wont show to the creditor therefore your utilization will be low, but you HAVE UNTIL the DUE DATE to pay it without incruing interest but your full balance will show to the creditors which depending on how much it is could effect your score.
I love how you mentioned some people have a due date before the close date because that was a problem I was having when watching your videos. A problem I think I have is I pay everything before the close date, so I have $0 by the due date .. does it look like I don’t use my card??
You can also set up autopay to pay the last statement balance on the due date. That way you never miss a payment. Just make sure you have the money in your account to cover it.
Great video Daniel! It’s super important to understand all of these terms if you want to truly take control over your credit score and overall journey. I used to always try and keep my statement balance at 0 because I thought I would be charged interest if I didn’t. I’m glad I learned this wasn’t the case and that I can simply off my full statement balance to avoid interest. Trying to keep it at 0 was super difficult because of the time it takes for charges to post to credit card account. It made using my credit card a little bit more stressful but I’m glad I don’t have to go to such extremes now. I’ve been taking advantage of the autopay features on my cards so I can pay off my full statement balance every month to avoid that interest.
What I want to know is why my credit score drops, sometimes a couple points sometimes 30 points, before any due dates with no changes (purchases or payments), on any card the previous month and all cards are current. What causes the random point drop?
I always pay off my credit card balance 2-3 days before it is due.
Pay it before your statement closing date, not due date. This way you avoid interest.
@@mrsshelton226 No, the due date. If you pay your balance in full every month you get about 20 days float interest free if you pay the entire statement balance by the due date. But you have to have not carried a balance from the prior month.
@@mrsshelton226 no, it is the due date. Pay in full by then and avoid interest.
Pay the entire balance each month by the Due Date and no interest is charged.
@@mrsshelton226if you do this the credit reports 0 balance basically saying you are not using the card ! Pay cards before due date for the entire statement balance
As someone who just got their first credit card, thank you for breaking this all down into a way that makes sense!
Get rid of it! Use cash as much as possible. The banks business plan is to have you over spend and run up bills you can't pay off. Every time you swipe that card there is hidden money transfer fee. If you don't have the money, Your going to have a lot less using a card. The average person owes 15,000 dollars at all time high interest rates. Plus every business you charge at has fees and charges applied to them. The smaller the business the more they get screwed. That is why many places charge extra for that card. Stop! Think! Be smart.
I pray for you...
This information is severely needed for young adults, and even older adults. This type of real life info should be taught in school to educate students of what this looks like in real life. I was never taught in school so I had to learn by getting into, and working out of, overwhelming credit card debt. Great job on the video.
@traybern yes, you’re right but not real life examples of what it looks like when it comes to loans, savings, etc. or at least they didn’t at the school I attended.
Let’s face it if it’s taught in schools people won’t pay attention. Just look at Civics class the class that literally tells you how the government works and the average person can’t even say how many senators there are
I took a personal finance class in High School, best subject ever!
I’m a HUD certified housing counselor and have been teaching this stuff to folks for 25yrs. Not a lot of folks know about housing counseling (and subsequently credit & budget counseling) so I’m glad to see this content on TH-cam. It was succinct and spot on. I’ll be sharing your channel with clients…One comment I will make about zero interest offers - if it’s for a large amount, like an appliance, leaving the money you have already saved in an interest bearing account and using someone else’s money interest free, is a smart way to go. BUT only if you are disciplined. Make sure that the payments pay the balance off in full before the end of the offer or ALL the interest will be charged retroactively! Thanks for this great content.
Great explanations. It took me like 20 years to figure credit card bills out. I put two reminders on my calendar. One is a week before the payment due date and one is 3 days before.
Best breakdown/understanding providing piece I've ever come across, as it pertains, to paying by statement bal-closing:.Thanks.
Yes. I do like to barrow money and pay it right before the statement balance to avoid interest. Then take that money back out again right after the statement day.
Is your cash advance balance less than the interest?
@@lisareed5669 What? Um, i might have to pay $20 IF i barrowed like $500, i forgot exactly how much it would actually be but that $20 or whatever interest is less than the cash back balance in this scenario. Im not sure if I exactly got what you meant.
Every highschooler should be learning these things as early in their life as possible.
These day's eh..
Long time 🤔 Young Ppl did Not have credit cards like now
That
Maybe 60 yrs Ago
They can't make money off them or their families if they teach them.😂
Good grief lol 😂! That was a lot. Basically pay your full statement balance by the due date to avoid interest. Im homeschooling my daughter and I pray she gets this with plenty of practice test BEFORE real life happens lol 😂. I don’t charge anything I don’t already have money for, so I’ve never worried about the due date. I use my cards for rewards by paying bills. Once I get my reward money, I stuff my savings envelopes. Im saving this video for my daughter.
Sounds like you’d be a trustworthy parent who could get her child’s credit score a head start by adding her, and then storing the card away, not to be used. When she’s old enough she’ll be happy to learn she already has some years to her advantage. Thank you for teaching her so young. 🤍
No kidding. TL;DR version. Pay everything. If you can't cut the card up until you can.
Some people aren't as perfect as you and can pay their balance off every month especially when they get slammed with unexpected doctor or car breakdown bills and have to pay by card.
@abigmonkeyforme Fake money bags like you times are coming
@abigmonkeyforme No chips on shoulders here..Just the church of the painful truth!
My best best advice, around credit cards is make 2 payments on your credit card each month. Pay it off on the first of the month and then pay it off again on the 15th of the month. Assuming your card is actively used you'll never pay a late charge, and you will never pay interest. And you might also never forget to pay a card for the month. I started doing this 20 years ago. Best thing I ever learned.
Hi there. If you have a remaining balance after doing this method of paying on the 1st and 15th - will you still be billed with interest because you still have a remaining balance?
@@topazsun yes, you will always be build interest on a remaining balance that's carried over to the following months. However you will always pay the minimum so you won't get a charge for that. The first best practice is to always try to pay your credit card off each month. Don't use a credit card to purchase things you don't have the money for. Except in the rarest occasions when you must do this.
this is exaclty what my mom told me it tricks the system
@@topazsun That's' why he said "pay it off" both times. Go online, check your balance on the 1st and 15th, and pay off that full balance. If you are doing it twice a month you'll never miss a due date, and never pay interest.
Why not just pay in full in advance of the due date? Is this just to make a payment linked to bimonthly paychecks?
Wouldn't it be nice if credit card bills were simple to understand?? I guess it's just too difficult for the big banks to help us NOT pay interest... jokes aside, this is super important to understand if you're new to the credit card game. And even if you've had credit cards for a long time, understanding your bill and all of its intricacies could really help your score reach new levels. Great job on this one Daniel!
It's not rocket science. To avoid paying interest, pay the entire credit card balance off before the payment due date listed on the statement. It frightens me how dumb society has become. Perfect for the tyrants controlling us....
@@reesedaniel5835 Even if credit card bills aren't super hard to understand, that doesn't mean we shouldn't help people who aren't as familiar with them.
@@SpencerJohnsonOfficial but how would you make it simpler? The example he showed had 3 lines that were printed bigger than anything else, and those are the 3 most important things: The balance, the minimum amount to pay and the due date by which you have to pay at least the minimum and preferably the entire balance. Can't make it much simpler than that if you want to stick with a credit card.
@@Hans-gb4mv I think the confusing part for folks is that there are multiple different balances to pay off and multiple different dates to keep in mind. For those of us who have been doing it for a while or watch videos like this, it isn't difficult, but I'm speaking for those who aren't as experienced.
Question for a credit card vet like urself about credit utilization: Does using 50%-70%+ of my credit limit then going down below 10% before closing date (for the snapshot) affect my credit score increase? I have low credit limit for my first card that I want to use for bills but it’ll cut close to the limit which I can pay off quickly but don’t wanna if that will just do more bad than good. Thank you in advance!!
THANK YOU for explaining the Grace Period. You just confirmed what I've been TRYING to figure out for MONTHS/YEARS! THANK YOU, THANK YOU! And, yes, I subscribed.
Great to hear that the explanation was helpful! Thank you so much for watching and subscribing! 👍
Three things
1. Great video, most important information most people need to know.
2. I was occasionally missing payments because I would lose a statement or forget one. On day the simple solution hit me. I made a form with all of the bills listed in order of their due date. All of the bills due by the 25th I pay on the 10th and all bills due before the 10th I pay on the 25th every month I print out a new list every month and write down the amount paid and the date.
3. If a person has an emergency expense like car and refrigerator repair would it be better to put them on the credit card and then borrow the money from your bank or credit union to pay off the card.
I like that 10th/25th rule. That keeps it simple, will be using this moving forward. Thank you.
BRILLIANT !!
Amazing video! As someone who was an authorized user for a year, this is a great video for anyone getting their first card.
You have to pay it in full on or before due date. By hook and by crook you have to i dont care if you borrow another money but pay it in full and never miss the due date everrrr
They used to have a thing called double cycle billing to increase what you owed even if you paid in full the previous month. Outlawed in the U.S. in 2009.
@@decimanightelf4135. Miserably 😅
It’s crazy what was allowed prior to the financial crisis of 08’
To eliminate the chance of forgetting to pay, you can set up an automatic payment through the credit card website to take out the minimum payment (or any other amount you tell it). If you pay more than that amount manually before the payment date, it doesn't take out the automatic payment. But if you forget, then at least your minimum is paid and you don't get a late fee. Then when you get the email saying your automatic payment has been made, you slap your forehead and go to the website to pay the current balance (because yes, keeping the credit utilisation low is definitely a good thing).
Setup autopay with the minimum, so you don’t ever miss a payment. Create a spreadsheet or use an app to plan when you pay your bills. Make your full payments on those dates. I align it with my paydays. Ever since I made this change, I have had no accidental misses in payments. I like the spreadsheet method since I have a chance to review numbers across the board for all bills and savings.
Speaking of apps, it blows my mind that Comenity doesn't have one...
"Setup autopay with the minimum, so you don’t ever miss a payment" THIS!
That not the issue you want a balance reported for utilization
That's not a bad idea. Since I get paid every other week I just pay off the current balance every payday.
Understanding the meaning of statement opening, closing, and payment due dates, and active/current balance vs statement balance is definitely extremely important for beginners to learn right away. Who would have thought that a simple credit card bill is not so simple after all. Great video Daniel and thanks for clearing the air on the big elephant myth in the room 👍🏾.
10:36 I’ve forgotten to pay my Capital One QS and AmEx BCE once each before and remembered the next day or around 5-8+ hours after the payment due date & time but then paid in full right when I noticed and I *did* get charged interest by both creditors, neither reported the payment as late to the bureaus. Was very happy to see I didn’t accidentally ruin my payment history. I stepped up after that and set reminders for all future CC bills and such because I NEVER want to take that chance ever again. I even tend to over-check the apps *just to make sure*, maybe partly due to my OCD, but it works. Thanks for your video :)
This is all very helpful stuff. Except in everyday spending with credit card(s), who is going to remember all this while out spending money from these credit cards. It's best just use card(s) sparingly throughout the month and pay off full balance by due date. If you can't do that, pay the last statement due amount with no interest by due date. The balance remaining is what gets the interest. Good luck. Going to need it when start getting mixed up banker lingo and credit cards.
I don’t think that’s true. Credit card companies have ways of getting your money coming and going. If you don’t pay the balance, they calculate the interest from the period before plus the current purchases, which wouldn’t’ve been included had it been paid in full. In other words, the interest is charged on the previous and current month’s charges. You’ll keep accruing interest on those purchases until the total balance is paid off. That’s why it’s so hard to pay off the balance and you pay so much more. Always pay the full balance or you’ll be paying through the nose!!
Geeez... he talks fast... but covers a lot so not even mad about it.
Really slow it down!
That's funny, I've sped the video up to 2x and am not having any problems understanding 😄
@@tracy419 congrats
I had to watch this at 2x because it's too slow for me. 😂😂😂😂
I always pay off each transaction the day it posts, and never keep a balance. It's a points card, and the goal is to accumulate enough points to redeem every year when I travel. If I don't have the cash to pay for the item right then and there, I don't charge it to my credit card. It keeps me honest.
I ask and look for cash discounts and skip the cards. That rip people and business off with hidden charges. Yes points that are worth less and less! No thanks
@@Westerner78 I totally believe what you say. I watch my statements like a hawk, and have never spotted any kind of hidden fees. Just the $95/year it costs to keep the card open. So far, between the free bonus nights and points, it’s saved me thousands on hotel stays.
Me too
This is the best advice, thank you so much! I'm someone who needs to do it this way 💯 so it's "just like using my debit card" and I spend it like cash.
I so appreciate you sharing this strategy. No one ever taught me anything really, wish I'd heard this forever ago. ❤
@@TimesUp8888 There are major issues too with debit card, check out being hacked and what happens then.
U earned a new sub Man U explained this so perfectly bro I’ve watched a couple vids that left me confused but yea man you got this great job
Thank you so much!!! You have answered my question that I was not being able to get clarity from the credit card company customer service.
This is a nice, simple, easy to follow guide to credit card statements and payments. The real screenshots are very helpful as well. Thank you for taking the time to spell it out clearly!
When I started using credit cards in the 1990's, we didn't have web portals and apps. We did it by paper statements and paper checks and mail. With the instant up to date info these days, many new credit card users have no idea how credit card billing works.
You didn’t mention anything about the title on the video to “pay on the 17th”!?!
I worked with a guy that would deposit his entire pay cheque to his credit card. He bought absolutely EVERYTHING, every month, on his card. He paid every bill he could with his card. His balance was always paid off when his pay cheque arrived. Of course any "extra" money he had on the card didn't earn any interest but the banks weren't paying interest on chequing accounts anyway. It was a travel rewards card . Every year he had enough points to go to France with his wife on vacation. We now do the same with our cards.
I hit 800+ for the first time this week. Feels good. I used to be in the mid-500's quite often. Never again.
tips?
@@malsroomm This video and many others have them don’t count on the comment section
How long did it take going from 550 to over 800?
'Use your credit card like a debit card'. That's a keeper! Now... IF you can do this, then you have a pretty good handle on your checking account. The next step is auto payment of the stmt bal. on the due date. That way you don't have to make the payment. It's done automatically by the card company. You can also set it up for an amount or the min..
Great😊 information, only one thing need to slow can for some of us. Talking a mile a minute ago. 😢
It's ESSENTIAL to understand these basics in order to take advantage of your credit cards 🙏🏽 well said Daniel (banks despise videos like this 😆)
Great video. All great advice. During the GFC 2008 time frame credit card companies where scrambling to shed excess exposure. I had a few credit cards closed during that time as I had not used them at all in several months or years even. The cards I had balances on were not touched but did notice on some the credit limits were reduced. I mention this as were are possible moving into a recession, especially if interest rates stay elevated and we could see a repeat of the same.
Really good information. It makes so much more sense when you explain it. I do, however have one suggestion… You talk really really really fast and your sentences run into each other and I found it hard to grasp your meaning through all your really hard words. But thank you for the great info. I’m sure it will make a difference in my life.
Can confirm. Been doing this for over a year now. My score shot up.
When I worked, I played the balance every 2 weeks...every payday. Now that I'm retired, I pay it in full each month. I also setup a minimum automatic payment each month as assurance something is paid. My credit score last month was 812.
Thank you! I have experience using credit cards badly but I’ve gotten it together and I’m new to being "a credit card person"
Thanks. Best advice that I’ve received about CC payments.
I think what you said at 4:38 about “carrying a balance” should be rephrased or narrowed down because this response was too broad for me and probably others trying to understand.
From my understanding: yes, you DON’T carry over the STATEMENT BALANCE from the billing cycle that just ended to the next one (ex: October 29th - November 28th, $30.53). You pay the FULL amount of that statement balance BEFORE the due date the following month (December 25th, $30.53).
However, in order to increase credit score, you DO need to carry over 30% or below of the CURRENT or OUTSTANDING balance ($48.73 was the CURRENT amount charged to the credit card before the closing date of December 28th).
That way, $48.73 would show up as the STATEMENT BALANCE due as soon as it hits December 29th, the opening date (then you would fully pay off the $48.73 before January 25th).
I kept misinterpreting this concept as paying off both current and statement balances IN FULL before the payment due date. You just have to pay off the STATEMENT balance before the due date, while keeping the CURRENT balance below the 30% threshold after the closing date.
Yes, it is all a bit confusing to understand.
The way I understand it is that you have to make a payment between the statement closing date and the due date (the grace period). This part is specifically to help lower your credit utilization % reported to the credit bureaus. This helps raise your credit score. Then you need to make a payment for the remaining balance, Before the Due date. This way, the balance is paid off every month and you don’t accrue any interest payments.
What an excellent video! So much information, which was very helpful---I wish more TH-cam financial education videos were this value-packed. Please keep creating! 🙏
I've watched a few of your videos now, but this one earned you the sub. Definitely the most well explained video on this topic on TH-cam!
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!!
850 Credit Restoration on their website
This info is amazing!😎🔥
Thanks so much, glad you liked it!
this was very informative and helpful! i love how you chose your words very carefully when explaining that made it 10 times easier to understand. you're awesome
The best advice for responsibly using Credit Cards @9:40
I too follow the same method. If I do any large transaction I take a fixed deposit of that amount which ends before my payment due date and so even if I want I can't use money that is to be paid for the cc bill.
Thirty or so years ago, when the cc companies started offering free 0% transfers for 6-12 months, we took advantage of them and that’s how we financed our debt for big purchases. I just transferred them when the time came and we virtually never paid interest or fees while paying down our debt. We were very careful to not get anywhere near our limits, and the cc companies would periodically increase them. We only used cc for big purchases, not everyday stuff.
Today, we either finance what we need to, or pay cash, since the cc companies no longer do those 0% transfers with no fees We use the cc for everyday purchases and pay off the balance every month, while earning the rewards.
4:27 What I don’t understand is if you paid the previous balance, why is it still owed?
I got my first credit card in the 1970s and I've always paid my bill early. That was probably because I read the due date on the bill (and the terms on the back) and allowed time for my check to reach the bank via mail before the due date. Now that I'm older, I pay my credit card bills off electronically twice each month.
I bought a car a few years ago and the woman at the credit union talked me through setting up the payment to beat interest. I paid the car off a year early.
Excellent tips as always, Daniel! Great video and I love my CHASE Freedom Flex card! 😊
I pay my entire balance on time and before the due date, whether I’ve spent $50 or 5000 I am not paying interest
Are you building your credit by paying it all off before the due date?I've just started building my credit score and have chase unlimited freedom I have been paying it all off before the due date but I haven't checked my credit score im too afraid to see if I've went down or not I want to be able to correctly use my card plz lmk
I don't have a credit card, mostly due to them seeming sketchy and complex.. but my biggest issue is how do you pay it? Like.. what is the actual process to pay the card off? They existed before the internet right? I assume there are websites now, but like.. I don't have a credit card, so I have no way to know. I like to imagine a guy knocks on your door every month and asks for cash.
So glad school taught me Spanish instead of actual things I need in life.
Back in the day, you'd send a check. Now, you link a bank account to your cards and pay directly I believe via ACH or e-check. If I'm wrong, someone please correct me
@@akinori08 That is correct!
Even now, people can still mail a check but very few people do that since an ACH is faster, more reliable, and less costly.
Daniel I appreciate your the info and enjoy your content 👍🏽
Thank you so much for these videos man.
even as someone who knows a lot about credit cards, I actually did not know about statement balance being what is used for utilization. I always thought it was total debts / credit limit. this video was super helpful
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!!
850 Credit Restoration on their website
The best thing that they ever did was to send those email prompts. If you pay as soon as you get one of those you dont have to worry.
9:45 - Have money saved up to pay on bills?? That’s hard to do if you don’t make a lot of money! I try to put cash aside, but something inevitably comes up and I have to use it. 😖
Fortunately I am always able to make at least double the minimum pymt every month.
You're explanation was magnificent. Thank you! 👍
If your credit card gives you six months interest-free make sure you pay it off in 5 months because it takes at least 30 days before your first Bill also do not add anything else to the card you will only pay what the item or items were .
Been very addicted to your videos 🤝
This video provided me with the knowledge that can put me in a position of success. Thank you Daniel!
This occurred several years ago. I always paid my credit card bill in full on the same day every month for years, I got a statement that had a $35 late fee and interest charges. I called the credit card company to find out what was going on and they had moved my due date up a week and I hadn't noticed it on the statement. We had a "discussion" about it and they waved the extra charges. I wonder how many people they did this to and how much money did they make doing this! Hopefully they're not allowed to do this anymore. I cut that card up after that.
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!!
850 Credit Restoration on their website
Excellent. A "basics" video that is super important to watch and understand for anyone getting into credit cards. It's videos like this that help people be responsible from day 1. As usual Sir, brilliant work.
Great info. Goes really really fast though.
That was exhausting, I use my credit card to pay for EVERYTHING/ALWAYS and pay it off when I get my paycheck every two weeks and have a 831 credit score. On occasion I will not cover the whole amount, however I get it back to zero on the next paycheck. Paying minimums or slightly more means "you broke". Works for me. If you cant maintain this, then you are in debt.
Man...where was this information 20 years ago?
Thanks for making this though. At least the kids coming up won't fall into this trap.
@traybern sure. I see that NOW. But this stuff isn't always easy to see or figure out if its not explained to you.
The knowledge you gave about statements 💯🔥💯👍🏾
Happy to share it! Thanks for watching Raul!
Earned a new subscriber!
What works well for me, and I’ve been fortunate enough to have saved a cushion, and have consistent income, is to use the credit card to manage cash flow, and to have pre scheduled auto pay on 1st, 10th and 20th of every month. Ideally it results in a zero balance 3 x per month. adjustment transfers can always be made to bring the amount due to zero, or to adjust the scheduled payments to the amount due. Haven’t paid cc interest in a decade or two.
This was really useful! Thank you
The explanation at 6:14 is when I Subbed this was the best video I’ve seen put together on this and I’ve watched dozens 👏🏾👏🏾👏🏾
Always payoff balance by due date.
Know your budget.
Your credit line should be for emergencies.
Example = little over a year ago my mother in law went into hospice care , two weeks later she died. For two weeks we we're there in a hotel, this took us of our budget. NO PROBLEM. We were there for her but was a big expense. Took us 3 months to get back on budget, that's what this is for. She was the perfect mom to my wife a I. She was 88.
Always pay your balance before due date, or before your monthly payment is due if you have a on-going credit card debt.
Awesome video Dan 😀
Thanks for this important information! 😎
Awesome vid. If u ever wanted to know how to have utilization of 1-3% AND pay NO interest, this breakdown is spot on!!
In high school we had one single 45 minute class in dealing with checking accounts and credit cards. One day that's it. One of the most important things to know in adult life was glanced over in 45 minutes. We had tons classes dealing proper grammar, equality, history, blah, blah. Not saying those things aren't important but dear lord we need to spend more time teaching kids about the dangers of credit cards, minimum balances, etc.. I am no conspiracy theorists but it seems intentional sending kids out into the world without a proper understanding that certain mistakes can stay with you for a really long time. Sometimes a lifetime.
Not teaching real history. not teaching how to adult ( sorry!) but seriously "basic finance which would include a thorough or multiple courses in credit and money management. It is NOT taught purposely! Remember who said " Go Shopping? "America's economy is "Prescription drugs and debt circulation.
This is all great! THANK YOU ! ! !
Glad to hear that you liked the video! Thanks for watching 👍
What I don’t understand is why my credit score went down if I reduced my credit utilization ratio from 5% to 0%
Finished the cycle with $0 on my statement balance
Believe it or not, banks and credit card companies HATE people like us who pay their bill in full every month! They make -0- money off us, AND we earn rewards! 😅 It’s a win win for us!
How many CS pts per month per card does this method generate? 1, 2, etc?
If u have 5 cards does this give u a 5 pt boost? 10 pts?
Simple, always pay your total balance before it’s due to avoid interest charges ( I’ve been doing it for years.) It’s fun not paying interest to the creditors if you can. If not, then pay more than the minimum if you can afford it.
Good luck👍
I got a Discover credit card 7 months ago, and recently got a score report which is excellent after following your advice. The thing that the report said was bringing me down was not having enough payment methods, so is there any other way to bypass that since I only have one debit card?
Usually that means you don't have a variety of debt. Credit cards, car pymt, house pymt, etc... I have an 800 credit score, but my report always "whines" about my lack of long term debt bcuz I pd off my car and house.
To make sure I understand...
If my statement balance is $300 and I charge an additional $500 before the due date, if I pay $300 (statement balance) by the due date then when will interest begin accruing on the $500 I charged during the current billing cycle?
If the charge hits your account prior to your statement closing date it'll occur interest. If it hits it after then it'll be on your next cycle.
I would only do this to maximize my credit score before getting a major loan. One of the major benefits of credit cards for personal finances is smoothing out cash flow. You can just pay the whole statement balance after the statement closes on the due date and not pay any interest or fees, all while allowing you to manage your finances with ease. This does require tracking all your spending diligently. But we need to do that anyways.
Thank you for sharing all these useful informations.😊
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!!
850 Credit Restoration on their website
Great video, Daniel. Thank you.
Well done! ⭐️
Ok so here is what got me going on this whole thing. I got the chase freedom card too. With the zero APR promo. That said it ended September 18 (Pay due date, Sept 15) so I thought, anything I didn't get to pay off at the end of the promo would get an intrest rate and I'd see it on or after September 18. We'll, nothing happened. Why? Because it's going to hit on October 18 ! So basically I have another month to gather up anything I can and pay most if not all I have to pay. 🎉
Autopay can turn into autopay HELL. Don't do it. Set up alarms, mark your calendar, pay when you get the bill.... don't do autopay. Also if someone gets in my account online I know it was not me because I don't do that.
CS over 800 and I'm low income, thrifty but not cheap.
Where's the part about paying on the 17th and why? That is the only reason I chose to watch this, was that big red arrow and the red circle around the 17th.
Yeah, this whole video is silly. Just find out when your credit card's deadline is, back up about 5 days, pay off everything you owe and forget anything about the "statement." You can pay through your bank, just find out what you owe completely 5 days before the deadline and pay it all off. Shred the statement when it comes in because it means nothing. Stop making all this such a convoluted mess when it's all designed to confuse you in the first place. Again, log into your credit card's website 5 days before the bill is due, disregard what they say is due, just pay attention to how much you have charged up until that time. Pay that all off. Next month, do the same. And you won't ever owe anything that causes interest charges, and you will always be current, and you can shred that silly statement that was written by the same people who wrote the bible and the IRS forms. Just pay it all off once a month, 5 days before whatever is due. Can it be any simpler than that?
Excellent video and for anyone out there if you can get a job as a bank teller, even a part time teller, YOU WILL UNDERSTAND ALL OF THIS INFORMATION! You may not be getting paid a lot, but the information you will gain in the long run will be worth it!
Before I’d graduated college I worked 3 or 4 different entry level bank positions. All of them taught me so much. Fraud clerk and mortgage assistant were very interesting.
I worked at several banks and none of them handled this. Credit cards were sent to customer service over the phone unfortunately.
Should I pay off my credit card with a check as soon as the bill comes--old school which is why I am asking? Or when the bill comes can I go online and pay off my bill with my debit card? I don't understand how I would do auto pay if I would not know the balance yet. Thanks
Debit unless you’re in a branch and use a check.
You can use a check, or save a stamp and set up autopay, which will take the money out of your checking or savings account. Just call your credit card, tell them you want to set up autopay and they’ll ask for the routing number of your account. Then you don’t have to worry about it from then on!
This info is f golden
I guess my question is: do items that I buy during the end of my billing cycle, despite being pending, something I have to pay off in that same cycle. Or does pending items go to the next statement?
So basically have it auto drafted maybe 2 days before the statement close date and you wont have any interest and your balance wont show to the creditor therefore your utilization will be low, but you HAVE UNTIL the DUE DATE to pay it without incruing interest but your full balance will show to the creditors which depending on how much it is could effect your score.
I love how you mentioned some people have a due date before the close date because that was a problem I was having when watching your videos. A problem I think I have is I pay everything before the close date, so I have $0 by the due date .. does it look like I don’t use my card??
No, that's fine. Your report will reflect you pay in full, which is good.
Ah I'm learning
You can also set up autopay to pay the last statement balance on the due date. That way you never miss a payment. Just make sure you have the money in your account to cover it.
Great video Daniel! It’s super important to understand all of these terms if you want to truly take control over your credit score and overall journey. I used to always try and keep my statement balance at 0 because I thought I would be charged interest if I didn’t. I’m glad I learned this wasn’t the case and that I can simply off my full statement balance to avoid interest. Trying to keep it at 0 was super difficult because of the time it takes for charges to post to credit card account. It made using my credit card a little bit more stressful but I’m glad I don’t have to go to such extremes now. I’ve been taking advantage of the autopay features on my cards so I can pay off my full statement balance every month to avoid that interest.
What prompted you to think you’d need to keep the balance at zero? Common sense should have redirected you to a more reasonable conclusion. SMH…
Thank you Sir, really appreciate
Thanks!your voice is perfect!keep me awake thru that Long Credit Journey!😁a lot info...to lean from,thank youuuuu for your vid.chao..👋🙏💪🇨🇴🇺🇲❤
What I want to know is why my credit score drops, sometimes a couple points sometimes 30 points, before any due dates with no changes (purchases or payments), on any card the previous month and all cards are current. What causes the random point drop?
Because computers are in charge not humans!
if i treat credit card as debit card, then why should I keep credit card? only for those idiotic reward points?