Big mistake here though it's not 95% of your balance. It's you want to pay whatever your current balance is down and leave 5% of your credit limit. For instance if I have a $10,000 credit card I have a $200 balance if I paid 95% of my balance off that would leave a $10 balance that would report as 0.1% if you're shooting for 5% utilization on a $10,000 credit card you would have to leave $500 to report. I would love to discuss this more with you and about a way that I know that works that you can leave exactly the proper utilization
@ninaf7896 While this is long it's worth reading and following because it works HOW TO CORRECTLY PAY A CREDIT CARD! 1) Find your due date on your statement. Now that you have it, FORGET IT. NEVER worry about it again, wipe it fron the calendar, it never existed. Due dates are for calculating interest charges on the card only, not for utilization. So it does not matter what the interest rate is on a card since you never pay any as long as you pay your previous statement balance in full. 2) Now find the statement date, also called closing date or cycle end date. Put that date in big red letters on everything in the house. The kids forehead, calendars, front door glass, bathroom mirror, you get the idea. 3) Now two days BEFORE that date, pay down your card balance to 1-4% of the card limit. So if you have a $300 limit you need to pay down the balance so there is $3 to $12 left on the card. Leave it with a balance. The credit card will report to the credit bureau that you have 1-4% utilization for that card. This is the BEST percentage for FICO score boost. 4) Now this step is an important part to remember. Soon as your statement closes and reports, your due date will show the min due in 20 or so days away. This is the date you have to pay by to avoid any interest, but we dont care!. Now 2 days after the statement date, you know the one wrote in big red letters all over the house? Pay the card balance off back to Zero. Now you have already made the min payment due by the due date and avoided any interest charges. 5) You have eliminated your due date, reported the best utilization, and avoided any interest payments all with in 4 days. Now your card has a zero balance and you can use it as much as you want. You can MAX the card, pay it down again, MAX again, do what ever you like. BUT, look for your next cycle end date and start all over again. Go back to step 2 for that date. Repeat every month. You will never pay interest, can maximize your rewards if it is a rewards card and still get a great FICO boost. IF YOU ARE IN MID-CYCLE READ HERE Your due date is NEVER before the cycle date. You are seeing the due date from the last cycle date period. You need to pay down to 1-3% or pay down to zero BEFORE your upcoming due date and start the process from the beginning at the next cycle date. If you follow the steps above with a 1-4% balance at your cycle date you will never have to worry about a due date again as you will have a zero balance due on the due date. Follow this above it works extremely well. You want to make sure your previous statement balance is paid in full before the due date that way you don't get charged interest. The best time to pay your credit card bill is 2 days after getting your statement that way you have satisfied your credit card bill for the month way before your due date. Then you can go ahead and charge your card up whatever you want and then two days before the statement date bring your current balance down to 1 to 4% of your credit limit. Let that report your new statement balance will be that 1 to 4% that you left. Pay that 2 days after getting your statement. And repeat the same process next month. Oh and you need to be consistent with doing this keep it the about same amount every month.
Why when I paid my cards down to under 1.9 percent my fico scores dropped over 15 points? My vantage score stayed the same... Maybe it's because it looked like I haven't used my cards? I checked it shows I'm using a 0 balance after I paid down everything. Do you know how to boost my score back up? I'm pretty positive nothing else could be wrong...
As long as you are making your payments the same month they're due it won't be reflected negatively on your credit report. It's not good if you're past your due date but if your payment goes into the following month without payment that is considered a 30 day account and will affect your credit. The world of banking and finance runs on a monthly basis regardless of your actual due date.
Ur making this complicated and confusing people bro ….. let me make it easy $1,000 credit limit You used $750 Due date ex: Sept 12 Once everything is posted nothing pending Sept 10 11 or 12 pay $750 Closing Date ex: Sept 19 From the 12-19th don’t use the bloody card on the 19th the statement closes you will get the email. The report will be sent to the bureau’s. Sept 20 fresh cycle use up the card again till Oct 10 pay that full balance again then wait till oct 19 closing oct 20 fresh new cycle so on so forth this is easy … 779 - Credit score here 🤦🏿♂️ this isn’t rocket science lol
I need a little help with this. So my chase unlimited card opening day is the 15th, and the closing date is the 14th of the next month. But my payment due date is the 11th. I thought the due date would be after the opening and closing dates. What do I do in my case?
@@calbarton No. That's the monthly due date for the past 7 years. The 11th of every month. I look at my statement and it says the 11th is the due date. The 15th is the opening date, and the 15th is the closing date. This is on all my statements. This is why I'm confused and asking for help. Any suggestions or idea what I should do?
My due date is on the 20th and my closing is on the 23rd. Every month I charge something on the 20th that's 1 percent of my cc limit and allow that to close which then gets reported. I don't carry a balance are pay interest bc I pay my full balance a few days before payment due date which is the 20th. Rinse and repeat. My fico score is excellent btw good luck
As he said…the due date of the 11th is for whatever balance you charged to your card from the PREVIOUS cycle. So let’s say you bought $100 worth of stuff between the 15th of January and the 14th of February, you have to pay the minimum balance of those charges by the 11th of March. If not, you’ll be charged interest and a late fee. Get it now?
Don't the issuer know when you use the card because they see it they gave it to you. No one else can close the card but the user. If I use my amex card to 0% Amex sees my usage. So why would they close it?
What if you’re trying to rebuild your credit with secured cards and let’s say you always pay them down to 8% of the credit limit before the statement closing date so it gets reported you’re using only 8% then before the due date you pay off the balance completely. If you keep doing that each month won’t that look like you’re not using the card to the credit bureaus or how does that work I’m a little confused on that part if you’re trying to to rebuild your credit score. I have 2 secured credit cards and a credit builder/savings loan or however you call it. I’m also an AU on my sisters credit card but she has like 40% utilization on that card currently.
I'm a creature of habit. I like to pay off debt and know I don't owe money. If I make a purchase, can I pay off 95%, as soon as I make the purchase? At the end of the month, when I report date hits , can I pay that off remaining 5% payment with the same results?
Making multiple payments in a pay period is NOT a waste of time at all. For example if your bill is 800 making 4 payments of $200 is better then 1 payment of 800. Faxx
Pay the day before the bank reports to credit bureau each month. Thats varies so call your banks and apply for auto-pay to pay 100% balance. Pay 100% balance the day before the bank reports to the bureau. That day is different from the due date.
Doesn't akways work because ACH is so slow. Even if you oay it could be on hold for over a week. I paid off 13k the day before they reported but because it took a week to clear it didn't reflect for another 30 days.
So if they want to see 10%. How do I have 10% but not owe interest? I charge 10% a day or two before the report date? The 10% is of my overall all credit limit totalled for all cards?
New charges since the last statement date won't be charged interest. Assuming you've sent a payment (before the due date) for at least the full amount of the latest statement date, you will avoid interest. Most cards will tell you how much is left to pay this month in the "payment" section of their online account (the place where you let them know how much you are paying). I usually charge about $2000 per month in everyday purchases. I get paid every 2 weeks, so I pay about $1000 from each paycheck. My balance at the end of the billing cycle is usually less than $500, so it gets completely paid by the $1000 payment from my next paycheck.
My guy, you started off with “carrying a balance is a myth” and then ended with “if you have a 0% utilization, you will be penalized” Can you explain it better sir?
Hey, if I can help, by “carrying a balance”, he means still having a balance AFTER the payment DUE DATE. This is bad because you will be charged interest. When he talks about getting penalized for having 0% utilization, he means you paying your whole balance before the CLOSING DATE AKA STATEMENT DATE AKA REPORT DATE. This is bad because having a 0% utilization aka 0 balance on your card before the statement date, the bureaus will see the report and say “oh this person has not used their card this whole month”.
This is too bam complicated. Living, breathing, and having a roof over our head should not require people to jump hurdles, crawl under barbed wire, and dart across a busy express way. That's what all of this is! Ughhh!
I've had probably 20 different credit cards over the years. I've never had one with a statement date that was before the due date. I'm not sure this guy knows how to read an account statement.
@@LEP021085you’re not slow, it’s just confusing. Let’s say for example you have your opening statement date on the 9th of March, 30-31 days later is your closing statement date which is around April 9th. Your payment due date WILL be about 21 days after April 9th which would be around the 30th of May. From March 9th to April 9th is your billing cycle. Between those two dates, ANY purchases you make will be due on May 30th. You will have a payment due date before April 9th (the closing date) BUT THAT PAYMENT DUE DATE WILL BE FOR THE PREVIOUS BILLING CYCLE.
Wtf. Have 6 cards. All have a 21st due date. The next thing is the closing date, all are the 24th. So where is the opening date on my cards and why does this guy show the closing date as a few days before the due date when it's actually 3 days after? So in in other words need to pay off your balance in full by the due date then over the next 2 days u need to put up 5% or so of utilization in purchases? This guy seems wacked
www.ottopay.com/calbarton ⏩ Pay off debt faster
How would i know when my report date is?
This link doesn't work after I hit "get started"
5:17 watch from here
Thanks so much
Thank you!
It makes more sense to me to make sure you pay on time and make sure by the report fate you have the lowest balance possible
Great Presentation 💯
Big mistake here though it's not 95% of your balance. It's you want to pay whatever your current balance is down and leave 5% of your credit limit. For instance if I have a $10,000 credit card I have a $200 balance if I paid 95% of my balance off that would leave a $10 balance that would report as 0.1% if you're shooting for 5% utilization on a $10,000 credit card you would have to leave $500 to report. I would love to discuss this more with you and about a way that I know that works that you can leave exactly the proper utilization
Would love to know more about your way!
@ninaf7896 While this is long it's worth reading and following because it works
HOW TO CORRECTLY PAY A CREDIT CARD!
1) Find your due date on your statement. Now that you have it, FORGET IT. NEVER worry about it again, wipe it fron the calendar, it never existed. Due dates are for calculating interest charges on the card only, not for utilization. So it does not matter what the interest rate is on a card since you never pay any as long as you pay your previous statement balance in full.
2) Now find the statement date, also called closing date or cycle end date. Put that date in big red letters on everything in the house. The kids forehead, calendars, front door glass, bathroom mirror, you get the idea.
3) Now two days BEFORE that date, pay down your card balance to 1-4% of the card limit. So if you have a $300 limit you need to pay down the balance so there is $3 to $12 left on the card. Leave it with a balance. The credit card will report to the credit bureau that you have 1-4% utilization for that card. This is the BEST percentage for FICO score boost.
4) Now this step is an important part to remember. Soon as your statement closes and reports, your due date will show the min due in 20 or so days away. This is the date you have to pay by to avoid any interest, but we dont care!. Now 2 days after the statement date, you know the one wrote in big red letters all over the house? Pay the card balance off back to Zero. Now you have already made the min payment due by the due date and avoided any interest charges.
5) You have eliminated your due date, reported the best utilization, and avoided any interest payments all with in 4 days. Now your card has a zero balance and you can use it as much as you want. You can MAX the card, pay it down again, MAX again, do what ever you like. BUT, look for your next cycle end date and start all over again. Go back to step 2 for that date. Repeat every month. You will never pay interest, can maximize your rewards if it is a rewards card and still get a great FICO boost.
IF YOU ARE IN MID-CYCLE READ HERE
Your due date is NEVER before the cycle date. You are seeing the due date from the last cycle date period. You need to pay down to 1-3% or pay down to zero BEFORE your upcoming due date and start the process from the beginning at the next cycle date. If you follow the steps above with a 1-4% balance at your cycle date you will never have to worry about a due date again as you will have a zero balance due on the due date.
Follow this above it works extremely well. You want to make sure your previous statement balance is paid in full before the due date that way you don't get charged interest. The best time to pay your credit card bill is 2 days after getting your statement that way you have satisfied your credit card bill for the month way before your due date. Then you can go ahead and charge your card up whatever you want and then two days before the statement date bring your current balance down to 1 to 4% of your credit limit. Let that report your new statement balance will be that 1 to 4% that you left. Pay that 2 days after getting your statement. And repeat the same process next month. Oh and you need to be consistent with doing this keep it the about same amount every month.
Now I'm getting confused! i paid my balance one-time and got it to 12% today is the closing date and they claim
You should pay again on that date
@@daciasdiy1861 two days after the statement date paying full
@sinned96 How many pts does this method generate, per card, per month? 1 pt, 2 etc?
Great information… thank you
So basically pay ur credit cards down to 10 % before due date is this correct so when statement date hit it will show 10% will this work
Hey cal,, you said Pay 95% on the statement date and pay the other 5% 2 Days Later is that 95 percent of the credit limit
Thanks for the strategy 👍
Why when I paid my cards down to under 1.9 percent my fico scores dropped over 15 points? My vantage score stayed the same... Maybe it's because it looked like I haven't used my cards? I checked it shows I'm using a 0 balance after I paid down everything.
Do you know how to boost my score back up?
I'm pretty positive nothing else could be wrong...
Try leaving 3% of your overall credit limit.
Mine is the same
Thsi method makes a lot of sense. I needed this. Im going to try it oit and get back at you by the end of the year.
As long as you are making your payments the same month they're due it won't be reflected negatively on your credit report. It's not good if you're past your due date but if your payment goes into the following month without payment that is considered a 30 day account and will affect your credit. The world of banking and finance runs on a monthly basis regardless of your actual due date.
Hi Cal, what happened to Otto? It can’t be found is it closed?
Is this the same or is the effect the same for a line of credit or is this only for credit cards
Ur making this complicated and confusing people bro ….. let me make it easy
$1,000 credit limit
You used $750
Due date ex: Sept 12
Once everything is posted nothing pending
Sept 10 11 or 12 pay $750
Closing Date ex: Sept 19
From the 12-19th don’t use the bloody card on the 19th the statement closes you will get the email. The report will be sent to the bureau’s. Sept 20 fresh cycle use up the card again till Oct 10 pay that full balance again then wait till oct 19 closing oct 20 fresh new cycle so on so forth this is easy …
779 - Credit score here 🤦🏿♂️ this isn’t rocket science lol
Thanks very clear and simple
I need a little help with this. So my chase unlimited card opening day is the 15th, and the closing date is the 14th of the next month. But my payment due date is the 11th. I thought the due date would be after the opening and closing dates. What do I do in my case?
That due date of the 11th must be from the previous month's billing cycle. The due date has to come after the closing date.
@@calbarton No. That's the monthly due date for the past 7 years. The 11th of every month. I look at my statement and it says the 11th is the due date. The 15th is the opening date, and the 15th is the closing date. This is on all my statements. This is why I'm confused and asking for help. Any suggestions or idea what I should do?
My due date is on the 20th and my closing is on the 23rd. Every month I charge something on the 20th that's 1 percent of my cc limit and allow that to close which then gets reported. I don't carry a balance are pay interest bc I pay my full balance a few days before payment due date which is the 20th. Rinse and repeat. My fico score is excellent btw good luck
As he said…the due date of the 11th is for whatever balance you charged to your card from the PREVIOUS cycle. So let’s say you bought $100 worth of stuff between the 15th of January and the 14th of February, you have to pay the minimum balance of those charges by the 11th of March. If not, you’ll be charged interest and a late fee. Get it now?
I'm at 831 pay on the due date and only use 7% of income. Don't borrow what you can't afford. stay below 10% of income
Everything else in your video is on point especially that 15 3 hack what a joke that doesn't even make sense like you said
Don't the issuer know when you use the card because they see it they gave it to you. No one else can close the card but the user. If I use my amex card to 0% Amex sees my usage. So why would they close it?
What if you’re trying to rebuild your credit with secured cards and let’s say you always pay them down to 8% of the credit limit before the statement closing date so it gets reported you’re using only 8% then before the due date you pay off the balance completely. If you keep doing that each month won’t that look like you’re not using the card to the credit bureaus or how does that work I’m a little confused on that part if you’re trying to to rebuild your credit score. I have 2 secured credit cards and a credit builder/savings loan or however you call it. I’m also an AU on my sisters credit card but she has like 40% utilization on that card currently.
I'm a creature of habit.
I like to pay off debt and know I don't owe money.
If I make a purchase, can I pay off 95%, as soon as I make the purchase?
At the end of the month, when I report date hits , can I pay that off remaining 5% payment with the same results?
How do i know when my credit report date is?
Call your cc company and ask
My due date is on the 5th and billing cycle is on the 11th so I’m confused
same
Same
Making multiple payments in a pay period is NOT a waste of time at all. For example if your bill is 800 making 4 payments of $200 is better then 1 payment of 800. Faxx
Some cards now have started blocking you from making additional payments during the billing cycle.
Pay the day before the bank reports to credit bureau each month. Thats varies so call your banks and apply for auto-pay to pay 100% balance.
Pay 100% balance the day before the bank reports to the bureau. That day is different from the due date.
Doesn't akways work because ACH is so slow. Even if you oay it could be on hold for over a week. I paid off 13k the day before they reported but because it took a week to clear it didn't reflect for another 30 days.
But then you'll be paying interest. CC companies make money each time you use it based on the charge fees.
I thought he said... "After the closing date, pay the remaining balance "?
Where do you find the report date?
They almost never tell you
So if they want to see 10%. How do I have 10% but not owe interest? I charge 10% a day or two before the report date? The 10% is of my overall all credit limit totalled for all cards?
New charges since the last statement date won't be charged interest. Assuming you've sent a payment (before the due date) for at least the full amount of the latest statement date, you will avoid interest. Most cards will tell you how much is left to pay this month in the "payment" section of their online account (the place where you let them know how much you are paying).
I usually charge about $2000 per month in everyday purchases. I get paid every 2 weeks, so I pay about $1000 from each paycheck. My balance at the end of the billing cycle is usually less than $500, so it gets completely paid by the $1000 payment from my next paycheck.
My guy, you started off with “carrying a balance is a myth” and then ended with “if you have a 0% utilization, you will be penalized”
Can you explain it better sir?
Hey, if I can help, by “carrying a balance”, he means still having a balance AFTER the payment DUE DATE.
This is bad because you will be charged interest. When he talks about getting penalized for having 0% utilization, he means you paying your whole balance before the CLOSING DATE AKA STATEMENT DATE AKA REPORT DATE. This is bad because having a 0% utilization aka 0 balance on your card before the statement date, the bureaus will see the report and say “oh this person has not used their card this whole month”.
This is too bam complicated. Living, breathing, and having a roof over our head should not require people to jump hurdles, crawl under barbed wire, and dart across a busy express way. That's what all of this is! Ughhh!
yes sir
I've had probably 20 different credit cards over the years. I've never had one with a statement date that was before the due date. I'm not sure this guy knows how to read an account statement.
Am I slow? All of my due dates are before the end of the statement date.
@@LEP021085no your not that’s what am asking myself too
@@LEP021085you’re not slow, it’s just confusing. Let’s say for example you have your opening statement date on the 9th of March, 30-31 days later is your closing statement date which is around April 9th. Your payment due date WILL be about 21 days after April 9th which would be around the 30th of May. From March 9th to April 9th is your billing cycle. Between those two dates, ANY purchases you make will be due on May 30th. You will have a payment due date before April 9th (the closing date) BUT THAT PAYMENT DUE DATE WILL BE FOR THE PREVIOUS BILLING CYCLE.
Wtf.
Have 6 cards. All have a 21st due date. The next thing is the closing date, all are the 24th.
So where is the opening date on my cards and why does this guy show the closing date as a few days before the due date when it's actually 3 days after?
So in in other words need to pay off your balance in full by the due date then over the next 2 days u need to put up 5% or so of utilization in purchases?
This guy seems wacked
Whodis?
hyy
Have at least 9% utilization or lower by report date!
These comments and this video is false! Just pay in full before statement date! Boom! And there it is!