That last tip is really more for individual credit cards for the reasons explained, but if you have multiple cards, you'd probably want to stick with that tip in any case!
Thought combined utilisation shouldn't ever be above 30% of the limit? Pretty sure thats what I read when I was looking into the criteria of the top3..
Nice tips, thanks! But I have a problem to follow what you said. I cannot reach 30% of my credit card limit. All my monthly expenses are around 10-15% of all possible to take. Do I have to decrease the limit or it is ok?
I think I touched on it in the video - if you have a high limit, there’s no real issue… Especially if you are based in the UK or other non-US places. You can choose to reduce the limit but it won’t really have a material impact. All of these things are far more important for people who are new to credit or had issues with credit in the past. 👍
Just to confirm with credit utilisation, with the example given of having a £1000 credit limit and spending 30%. Are you spending £700 and having a £300 balance or are you spending £300 and having a £700 balance. Slightly confused here . Thanks
The balance is how much you have actually borrowed. Your credit limit is just the limit of how much you can borrow. So if your limit is £1,000 and you have borrowed (i.e. spent) £300, then your utilisation is 30%.
I got a bit excited with the 5% cashback so I've used almost my full allowance🤭. Will this negatively impact my credit score or just improve it less than if it was at 30%?
Best time to spend is just after you get billed and not just before If you spend just before then you only have around 25 days to pay back Example… You spend 100 on Credit Card on 9th August then you get billed on 10th August and your payment due date is 5th September giving you only 25 days or so to pay it back Now if you pay after you get billed you have around 50 days to pay it back so double the time Example… You get billed on 10th August and your payment due date is 5th September and your payment amount is £0.00 but you then spend 100 on your Credit Card on 11th August Now don’t get me wrong you still have to pay that 100 back in full to avoid interest fees but you will have all the way through to the 5th October to pay that back which gives you around 50 plus days or so to pay it back
Great video Sasha. I don’t have a direct debit set up, so once my statement comes through, I always pay it off in full on that day. Once the payment clears, only then do I start using the card again. Normally use around 20% - 30% of my CC limit each month.
Sounds like a very sensible approach although even if you're super organised, I still always recommend Direct Debit just in case for that one month where something happens that knocks you out of your routine. 👍
Hi! My credit limit is £900. After every purchase I make I usually pay the money back right away. I spent aroud £800-£9000 each month. Would that affect my credit score? If I make the payments after each purchase does the 30% of credit limit still apply?
A bit of a random q - what if you overpay on your credit card, so you’re in credit. Is that good/bad/neutral? Just to be on the safe side, it’s easier to set up a direct debit with an amount that’s higher than the average amount you expect to spend. But, not sure what that does to the credit score.
Bad. To start with, doing so intentionally technically breaks your terms and conditions and generally a bad idea for the data side of things too. Don't confuse a Direct Debit with a Standing Order. A Standing Order is the one where YOU set how much to pay. A Direct Debit is one where the Company will set the amount each month and they will take the exact amount - you don't have to do anything.
Hey Sasha, I have two credit cards at £200 and £250 limits. Capital One and Vanquis. Ive had these for 4 and 6 months respectively after getting my second chance with credit last year with Vanquis at 59.9%. Since getting them I have always paid in full. Last week, I was pre-approved by Aqua at 27.4%. I applied and was accepted. I woke up two days later with account registration and when registered, i found a £900 limit was given. I immediately had suspicion that i am being tested. Is a £900 limit unusual for a new card in this tier? Your advice whether i am right to be suspicious is appreciated.
Great as always really educational. I need advice I’m new to credit cards. My pending took three days to clear on a Ocado shop this means my credit card payment date is the Saturday and Ocado will clear Friday by the looks of things. Will that be carried as a debt or will it be added to my next statement. Anything I buy after the statement date will that go on my next month bill. How does that work? Thanks
Occupation will typically affect the credit policy and for some products may play into the score OR have different score cut offs. It is a much more important factor for larger sum borrowing like mortgages or larger loans than for things like credit cards.
That's a question that doesn't have as easy an answer as it should. Technically just one will be enough as long as you don't have A LOT of other cards, BUT: Not all credit cards submit to all/the same credit reference agencies. So if you really want to optimise it to the max, I'd do it with more than one card. That way if one only reports to credit reference agency A and the other reports to B, then you get to have data go to both. This is not quite as relevant in the US, where FICO rules the world but is still an important consideration - I'm not sure where you're based!
Hmmm. I wouldn't ever recommend that people borrow on a credit card to invest - that's definitely NOT a good idea. But I actually just finished scripting a video about cheap ways to borrow money with a credit card - should be coming out later today!
Sorry if this is unrelated to this video but I just wanted to ask if you're still Bullish on FVRR? It ran up sometime after your video but now back in the 170s. What do you have to say to the 40x P/S valuation for a currently unprofitable company? With your 350$ PT, that would imply some hefty multiple. Are you concerned that a market could wipe quite a bit off its market cap? Thanks
I'm still bullish and I've been buying more. It might go up and down in the short term, but my current long-term view places it in the top 5 companies in my personal portfolio. Then again I might be completely wrong so who knows! :)
Interesting info thanks. Would you be able to make a video about the best cashback/ rewards/ holiday points credit cards in the UK please? Basically the best return card for spending on a credit or debit card in the UK - you seem very knowledgable , thanks :)
I might need to do an update - did a couple of videos a few months back about the American Express cards which were streets ahead of the rest but we have Chase doing a bit of disrupting (albeit not with a credit card) - coming soon!
Hey Sasha. I’ve currently got a Capital One starter credit card that I’m using for my daily purchases - using around 30% of my credit limit. In the future I would like to get an Amex Gold or something similar. If I were to be approved for this card, should I switch my spending primarily to the Amex in order to maximise points or should I keep spending on the Capital One card too? Also, will only spending on the Amex and leaving the Capital One card as £0 balance for several months hurt my credit score? Thanks!
I just passed my first year with my first amex card, and got the £140 annual fee on my statement. Do amex still do pro-rata refund if i cancel that card and upgrade to a new one?
Hey Sasha. Before you bought your first residential property, did you focus on improving your credit score or an independent mortgage broker can always find you a good deal regardless of your credit rating status ?
An independent mortgage broker COULD in some circumstances improve your chances or at least find/negotiate deals that are much harder to do direct. But at the end of the day your credit is a far more important and bigger factor. I personally was very lucky in that I was buying my first property during the biggest property lending boom in history where lending criteria were so loose you pretty much just had to hit the Submit button - back when banks would give you 125% mortgages so you could do up the property you were buying after buying it with no deposit (I didn't actually get one of those but that's the sort of time it was! 🤪)
@@SashaYanshin woow, you must have been very young when you purchased your first property. Those 125 percent mortgages were only available a long time ago. congrats )))
I talk about that in the middle of the video somewhere - you can spend before the payment comes out to try and keep your balance more steady. No real reason not to unless your balance will go too high.
Was literally thinking about when to start spending on my new credit card. Sasha. You did it again. Answering all my life's questions
Errr. Really?
@@SashaYanshin Honestly! Got it in the mail today. I remember you did the same few months back about another credit card video
I did the same sort of video about the best time to PAY your credit card so thought it was about time to talk about the other side!
Very insightful ✅
Is it the same to keep credit utilisation under 50% for combined credit (of all cards)? - Btw amazing videos!!
That last tip is really more for individual credit cards for the reasons explained, but if you have multiple cards, you'd probably want to stick with that tip in any case!
Thought combined utilisation shouldn't ever be above 30% of the limit? Pretty sure thats what I read when I was looking into the criteria of the top3..
Nice tips, thanks! But I have a problem to follow what you said. I cannot reach 30% of my credit card limit. All my monthly expenses are around 10-15% of all possible to take. Do I have to decrease the limit or it is ok?
I think I touched on it in the video - if you have a high limit, there’s no real issue… Especially if you are based in the UK or other non-US places. You can choose to reduce the limit but it won’t really have a material impact. All of these things are far more important for people who are new to credit or had issues with credit in the past. 👍
Just to confirm with credit utilisation, with the example given of having a £1000 credit limit and spending 30%. Are you spending £700 and having a £300 balance or are you spending £300 and having a £700 balance. Slightly confused here . Thanks
The balance is how much you have actually borrowed. Your credit limit is just the limit of how much you can borrow. So if your limit is £1,000 and you have borrowed (i.e. spent) £300, then your utilisation is 30%.
@@SashaYanshin perfect thank you!
I got a bit excited with the 5% cashback so I've used almost my full allowance🤭. Will this negatively impact my credit score or just improve it less than if it was at 30%?
Depends on a million factors but definitely won't be disastrous, especially in the longer run. 👍
Thanks Sasha 😃
Best time to spend is just after you get billed and not just before
If you spend just before then you only have around 25 days to pay back
Example…
You spend 100 on Credit Card on 9th August then you get billed on 10th August and your payment due date is 5th September giving you only 25 days or so to pay it back
Now if you pay after you get billed you have around 50 days to pay it back so double the time
Example…
You get billed on 10th August and your payment due date is 5th September and your payment amount is £0.00 but you then spend 100 on your Credit Card on 11th August
Now don’t get me wrong you still have to pay that 100 back in full to avoid interest fees but you will have all the way through to the 5th October to pay that back which gives you around 50 plus days or so to pay it back
Great video Sasha.
I don’t have a direct debit set up, so once my statement comes through, I always pay it off in full on that day. Once the payment clears, only then do I start using the card again.
Normally use around 20% - 30% of my CC limit each month.
Sounds like a very sensible approach although even if you're super organised, I still always recommend Direct Debit just in case for that one month where something happens that knocks you out of your routine. 👍
Hi! My credit limit is £900. After every purchase I make I usually pay the money back right away. I spent aroud £800-£9000 each month. Would that affect my credit score? If I make the payments after each purchase does the 30% of credit limit still apply?
A bit of a random q - what if you overpay on your credit card, so you’re in credit. Is that good/bad/neutral? Just to be on the safe side, it’s easier to set up a direct debit with an amount that’s higher than the average amount you expect to spend. But, not sure what that does to the credit score.
Bad. To start with, doing so intentionally technically breaks your terms and conditions and generally a bad idea for the data side of things too.
Don't confuse a Direct Debit with a Standing Order. A Standing Order is the one where YOU set how much to pay. A Direct Debit is one where the Company will set the amount each month and they will take the exact amount - you don't have to do anything.
Yesss! It's been a while since your last credit card video.
Need to make some more!
Hey Sasha, I have two credit cards at £200 and £250 limits. Capital One and Vanquis. Ive had these for 4 and 6 months respectively after getting my second chance with credit last year with Vanquis at 59.9%. Since getting them I have always paid in full. Last week, I was pre-approved by Aqua at 27.4%. I applied and was accepted. I woke up two days later with account registration and when registered, i found a £900 limit was given. I immediately had suspicion that i am being tested. Is a £900 limit unusual for a new card in this tier? Your advice whether i am right to be suspicious is appreciated.
Great as always really educational. I need advice I’m new to credit cards. My pending took three days to clear on a Ocado shop this means my credit card payment date is the Saturday and Ocado will clear Friday by the looks of things. Will that be carried as a debt or will it be added to my next statement. Anything I buy after the statement date will that go on my next month bill. How does that work? Thanks
do occupations affect credit score?
Occupation will typically affect the credit policy and for some products may play into the score OR have different score cut offs. It is a much more important factor for larger sum borrowing like mortgages or larger loans than for things like credit cards.
As a beginner is it important to keep credit utilisation above 0% on all credit cards you have or is using one enough?
That's a question that doesn't have as easy an answer as it should.
Technically just one will be enough as long as you don't have A LOT of other cards, BUT: Not all credit cards submit to all/the same credit reference agencies.
So if you really want to optimise it to the max, I'd do it with more than one card. That way if one only reports to credit reference agency A and the other reports to B, then you get to have data go to both.
This is not quite as relevant in the US, where FICO rules the world but is still an important consideration - I'm not sure where you're based!
@@SashaYanshin Thank you so much! honestly learnt so much thanks to your content!
Glad it's useful! 👍
Would you be able to make a quite in-depth video about using money/balance transfers for 0% credit to invest? Great vid as always!
Hmmm. I wouldn't ever recommend that people borrow on a credit card to invest - that's definitely NOT a good idea.
But I actually just finished scripting a video about cheap ways to borrow money with a credit card - should be coming out later today!
Since I’ve been watching your credit card videos my credit score has gone up a lot🙏🏽
I am super glad they are helping! 👍
To much gab
Thanks 🙏
Thanks for watching!
Sorry if this is unrelated to this video but I just wanted to ask if you're still Bullish on FVRR? It ran up sometime after your video but now back in the 170s. What do you have to say to the 40x P/S valuation for a currently unprofitable company? With your 350$ PT, that would imply some hefty multiple. Are you concerned that a market could wipe quite a bit off its market cap? Thanks
I'm still bullish and I've been buying more. It might go up and down in the short term, but my current long-term view places it in the top 5 companies in my personal portfolio.
Then again I might be completely wrong so who knows! :)
Just watching your video I hope you’re well mate
Thanks! All good here! :))
Interesting info thanks. Would you be able to make a video about the best cashback/ rewards/ holiday points credit cards in the UK please? Basically the best return card for spending on a credit or debit card in the UK - you seem very knowledgable , thanks :)
I might need to do an update - did a couple of videos a few months back about the American Express cards which were streets ahead of the rest but we have Chase doing a bit of disrupting (albeit not with a credit card) - coming soon!
@@SashaYanshin yes! i saw that with the Chase debit card at1% - be interesting to see your thoughts on this. thanks .
Hey Sasha. I’ve currently got a Capital One starter credit card that I’m using for my daily purchases - using around 30% of my credit limit. In the future I would like to get an Amex Gold or something similar. If I were to be approved for this card, should I switch my spending primarily to the Amex in order to maximise points or should I keep spending on the Capital One card too? Also, will only spending on the Amex and leaving the Capital One card as £0 balance for several months hurt my credit score?
Thanks!
So 0 spending is bad. Cus I just got my card but dont spend that much at all. I have 0 monthly payments as I live at home. Should I return the card ??
I just passed my first year with my first amex card, and got the £140 annual fee on my statement. Do amex still do pro-rata refund if i cancel that card and upgrade to a new one?
Thanks sasha , awseome stuff. you should teach this in schools...instead of what they currently get brainstained with.
Hey Sasha. Before you bought your first residential property, did you focus on improving your credit score or an independent mortgage broker can always find you a good deal regardless of your credit rating status ?
An independent mortgage broker COULD in some circumstances improve your chances or at least find/negotiate deals that are much harder to do direct.
But at the end of the day your credit is a far more important and bigger factor.
I personally was very lucky in that I was buying my first property during the biggest property lending boom in history where lending criteria were so loose you pretty much just had to hit the Submit button - back when banks would give you 125% mortgages so you could do up the property you were buying after buying it with no deposit (I didn't actually get one of those but that's the sort of time it was! 🤪)
@@SashaYanshin woow, you must have been very young when you purchased your first property. Those 125 percent mortgages were only available a long time ago.
congrats )))
@@Andromedaxterr I appreciate the flattery but I am older than you might think 🤣
@@SashaYanshin hahaha ))))
I use my credit card as debit. Pay everyone by credit and when statement arrives pay in full. Is it good?
another great video, very clear advice, thank you!
Thank you Jennifer!
Very useful vid thanks
Thanks Kevin!
Credit Card King ✊
Ha!
Awesome stuff 👍
Thanks!
Sasha lol I’m first to see your video always ..🙂
🤔
Should I spend on the credit card after the statement balance is made
I talk about that in the middle of the video somewhere - you can spend before the payment comes out to try and keep your balance more steady. No real reason not to unless your balance will go too high.