Credit Card Utilization Myths

Most people will tell you to keep your utilization at 30%. Not me. You should actually keep it at 0% but actually use 100% of your credit. How can you do this? You see, if you use 100% of your credit limit and pay it off every month, you demonstrate you are a good credit card user and the issuer will quickly increase your score. Keeping your utilization at 100% will indeed make you score lower but there is a way to get around this by paying the full 100% right before the statement date. Using this method, I and many other are able to quickly increase the limit very quickly.
► More resources at my Patreon: / beatthebush
► My honest reviews on Amazon: www.amazon.com/...
► Mint Mobile, as low as $15/month: mintmobile.com...
► Moomoo, up to 17 FREE stocks: j.moomoo.com/0...
► Webull, up to 12 FREE fractional shares: bit.ly/2XwlcQ4
► Get $30 when you spend $30: www.rakuten.co...
► FREE Audible Audio Book: bit.ly/2Z4RrN7
► Build Credit w/ NO Credit by Self-Lending: self-lender.3q...
► BeatTheBush Honey Badger T-shirt: bit.ly/2FBAeLA
Other BeatTheBush Channels:
/ beatthebushdiy
/ beatthebushfoods

[@hangfire5005]

This guys credit and money videos should be required viewing in high schools..

[@BeatTheBush]

That's an interesting thought. =D I have about 40 hours of video so a 1 hour class a day would mean they would get through everything in 8 weeks, less if you watch just the finance vids.

[@lyndellprosper1059]

in need of legit hacker get with only this guy called alenzanda guchkov .a friend of my introduce him to me and i text him and confirm my self .i got $50,000 in my cash app after i have been scammed spending about $10,000 to fake people who pretend as an hacker but thank God i met a legit hacker at my end .this guy is special and good at all hacks in need of money get with him .he is a professional in all following hack.banks hack .credit card .upgrading of grades.paypal and cash app transfer .credit score upgrade .text message to spy on spouse phone .bitcoin hack.he also deal with western union and money gram email him [e-mail] whatsapp..[phone]

[@WhitneyDeivory]

👏🏾

[@TYESKEP170TH]

@News Now Adirondacks SAY IT LOUD ❗❗

[@ALANA-hu8qo]

You wish! It works better if not many people know how it works. They make more money if people don't know.

[@TheHyena-ru8bz]

Followed these exact instructions and doubled my limit and plan on to continue to doubling up my limit. You are on fire in this video! A lot of enthusiasm! Love it! Keep up the good work PS. I used your link for the audible

[@BeatTheBush]

Great to hear! =D Lol on fire? Ha ha, really had to get the point across. =D Thanks for supporting my channel with the audible link! Appreciate it!

[@littlemiss8867]

But what is your score?

[@TheHyena-ru8bz]

Yes you are missing that I have been watching his videos for some time now.

[@TheHyena-ru8bz]

A lot of this information is in his previous videos. Why don't you spend time watching his previous videos rather then just leaving annoying comments.

[@frankiegunnz8066]

The Wolf So have you been Increasing your limits any more?

[@ParentsVoice]

Approaching one year anniversary of this classic video and this advise is solid gold!

[@BeatTheBush]

Nice! Glad its working for you... I'm sure the value you get out of it would be good if you use that credit score.

[@ashleygraham6389]

When i got my credits cards under 30% utilization my score jumped tremendously

[@BeatTheBush]

It will jump even more if you get it down to 0%

[@scoobydoo7346]

ashley graham 0% is best, less than 10% is good.

[@byreadholliday3812]

How much it jump

[@yrichspirit2350]

BeatTheBush 0% means you don’t spend anything

[@RenzoIsHereYT]

Cici would 0% mean you didn’t use your card or does it means you paid all your card before the due date?

[@rx58000]

I used over 70% of my newly issued credit card for 2 consequent months and they increased my limit by 50%. Same with my moms card who had held the same card for over 5 years I used 100% of credit card limit to pay my exam fees and they increased the limit by 150%

[@MFRiley]

It's difficult to know how to build credit as a beginner, when different sources give different advice. 0%,

[@sphresh20]

I’m going through this now. What have you found works best??

[@MFRiley]

@@sphresh20 It's actually pretty straightforward after you get everything figured out! A utilization rate under 10% is most ideal. I'm usually around 3%-5%. Just make sure it's not 0% because you need to actually have a balance to then pay off (on time) to build credit. But, there's a bit of a trick you can incorporate, especially when your card is new and you likely have 0% APR for a while. Spend as much money as you'd like using your credit card, you can even spend the entire limit (just make sure you can pay it back!!!). But, make sure you pay that balance down to under 10% before the statement period ends, so your effective utilization rate is under 10% even though you spent way more than that. The credit card company only cares what your balance is on the day your statement period closes for that month, so if you make sure to pay your card down to under 10% a couple days before that statement period ends, that spending will not effect your utilization rate. What it will do is show the credit card company that you have been spending a lot of your limit and you need a credit limit increase. They could give you this increase automatically, or you could ask for it after several months. Doing this is not a super important thing, so don't think you have to go out and spend every last dollar you can with your credit card, it's just a little trick that can help with a credit limit increase. Another bit of info incase you don't already know it: credit card companies only look at your utilization rate for the previous month to calculate credit. For example: Due to a personal emergency, I had to use pretty much 100% of my limit. Crippled my credit, I was in the low 500's at one point, and my utilization rate didn't change for a good 7 months because I wasn't able to pay it. But, I just recently paid everything off, down to a utilization rate of 3%, and my credit score immediately jumped to 720. So if something happens where you need to use a lot of money on your credit card, it's not the end of the world. Just make sure you pay it back ASAP and you'll be back where you should be. Good luck. What card are you starting out with?

[@sphresh20]

@@MFRiley Ah man I appreciate this response! Yea I’ve diving in different videos trying to find what’s best. I think I got it now. A lot of people say pay it all before the due date, but from what I’m understanding is that it’s best to pay 90% before the due date and leave that

[@sphresh20]

I’ve been looking at USAA heavy though I may pull the trigger on that one

[@OhWaker]

4:05 - 4:23 "You can even run your credit card all the way up to 100% and then pay it all off right before your statement date. Therefore you can get the best of both worlds where you can force a total limit increase several months down the line and you zero out your utilization ratio. So your credit score will not be impacted when you're doing this maxing out for several months." When you say "pay it all off right before your statement date" do you mean before the statement closing date or before the statement due date?

[@sjhnvra]

Statement closing date.

[@OhWaker]

@@sjhnvra Thanks, that's what I thought. BeatTheBush demonstrated very clearly the difference between the statement closing date and the statement due date in this video: kzbin.info/www/bejne/aV7On6mKbK-Vis0

[@overhaul7592]

39 people wished they watched the video 2 years ago lol

[@andretatesIII]

Bro now it’s 93...........crazy!

[@dr.sandiproy6795]

😅😅😅

[@chillinretreat5124]

I actually did not know this. Thanks for this...I find there is so little information about credit scores.

[@BeatTheBush]

=D You're welcome. Ahh well, I have a whole playlist on credit scores. =D

[@CreditCardJunkie]

Thanks for sharing I try to use this strategy with each of my cards. RBC just doubled my limit. Great content on your channel.

[@JazmineLAMBARCA]

Great video! This will help me a lot. i have been using my credit card and my score went down...even when i dont miss payments and all my payments are much more than the minimum. I love your finance videos so much because I learn a lot. Stuff that they never tought me at school. Thank you and please keep making videos on these things. if you can, student loans...i have a few and i hate them.

[@BeatTheBush]

Glad you learned something and I can see if you employ this trick it'll help your score back up. Sounds like you're keeping a balance on the cards so another reason to pay it off aggressively. Here's a vid I did on student loans a while back: kzbin.info/www/bejne/sH22g42bhp51j7c

[@nathanevans2846]

This is the only video explaining the point system like this

[@TeW33zy]

Pt.2 Your debt is also a portion which offsets the difference between original loan balance to current loan balance like a car loan. To get your full 30% max score you must have a low balance across all accounts not just credit cards. A car loan with a high balance wont give u many points until less than 30% of that loan balance is paid off. So to get the max 30% u need low utilization and low balance on your remaining loans including mortgage. I will never get a mortgage on my credit report cuz it adds debt

[@luisbarahona3722]

Wow bravo you are a genius because this is the information I was looking for. Thank you sir I appreciate your video

[@BeatTheBush]

Glad you got what you needed. =D

[@heart756]

I believed people are confused because every time you a account or a mortgage broker or even google says, that you utilization should be at 30% or lower. So people like me we tried to keep our credits cards on 30% ratio but now I’m going to pay them off to keep them at 0%

[@marksantucci4230]

I do agree with it depends upon the person . for somebody who lives at home with parents. let's say for example he's 25 years old let's say he has 2 credit cards. let's say on his chase card he has a 500.00 limit and on his Discover a 600.00 limit if he's paying his cards in full and he's using 90% of his credit but still putting away money , since he lives home with parents. he can use whatever limit like you said in the video the issuer will raise his limit. now if somebody is 40 years old has their own place, pays a Mortgage , common charges and has 3 credit cards all with a 5,000 .00 limit on each card I would charge about 250.00 per month. keeping the utilization below 30%.?

[@BeatTheBush]

If your limit is too high use it all, then you can only use what you normally spend. In that case, you can just spend as usual and your limit will rise naturally. If you want to use your credit score at some point, you can use the boosting trick and make it 0% while spending normally. Boost trick here: kzbin.info/www/bejne/gqqlm5afr5lgsMk

[@davide4607]

lol this channel isn't a primary credit card channel yet the credit card information is better than the channels that are primarily about credit card advice.. BeatTheBush is the GOAT! Every time I hear that 30% recommendation I get triggered. As far as your credit score goes it means nothing. It's not optimal, it's not anything. It's completely arbitrary. Ideal is actually 1% or 0%. Anything above that gets progressively worse. 10% is worse than 20%, 30% is worse than 20%, 40% is worse than 30%, etc. Why is it that so very few understand this?

[@SteveRichfield]

Interesting. This probably wouldn't work at all on my two cards having limits already approximating my annual income, but it sounds like it would work on other cards having lower limits. It seems by this logic that I should pick a low-limit card and charge it up to its limit, then pay it off and charge another low-limit card up to its limit, etc. My high-limit cards have periodic offers of zero-APR to pay off other cards, which I can use to pay off low-limit cards to jack up the limits on those low-limit cards - resulting in more high-limit cards. Right? Thoughts?

[@user-su5if2ns3z]

good video and i learn alot with your videos. I was just wondering if the maximum points allowed for UTILAZATION is 255pts or if it's (165 pts)**** >>> I think it's 30% of 550pts because the credit score is... 300-850 so that's = 550 points -30%= 165pts for utilazation [I might be wrong]

[@BeatTheBush]

=D Very good point. The formula I point is of course an estimate but it helps with understanding the concept.

[@user-su5if2ns3z]

BeatTheBush With your help I understand credit a lil better now. thanks

[@BeatTheBush]

You're welcome. =D

[@calical22]

I was just a to make the same point as David Vasquez. 192 points for Payment History 165 points for Utilization 82 points for Credit Age 55 points for Credit Mix 55 points for New Credit

[@ejsupatrukkacatlin3452]

K

[@prisoneroftech2237]

I got a new card, kept the utilization below 30 - 40 % consistently for 6 moths , never went over 50% utilization and the credit card company themselves reached out to increase the limit from $1000 to $4500.

[@BeatTheBush]

Nice one. I think that is fine way to do it. You demonstrated responsible usage.

[@scottivlow9962]

I like this video so much. Thank you for making this video. I don't intend to open any type of loans or open any new credit cards accounts anytime in the future. I don't care about my credit score at all. I make huge payments on my one credit card weekly. This Summer I plan on making one huge purchase on Amazon on my credit card and will need my bank to more than double my credit limit so that I max it out so I can pay for it. My utilization percentage will be at the high end first month or so but even in the first month should drop because of my intent to pay high weekly payments in the first month. The only company that needs to see my credit report every 6 months is my Auto Insurance company for the insurance score from Transunion. Why do I need to care about my utilization if only my bank is the one I making payments to? Last month I paid more in payments than my credit limit.

[@joejokool]

all this time i've been using my card and paying each month BEFORE the statement date. a banker told me i need to make payments after the statement date, and to have a low utilization ON the statement date, THEN pay off that following amount before the next due date on my balance. OTHERWISE the credit bureau has "nothing to report" and my score will "stay the same" rn the goal is just to get my secured card to an UNSECURED CARD, get my deposit back and continue making these payments on time, FOREVER lol. so wtf am i doing wrong, my card is more than a year old and still with a secured card.

[@BeatTheBush]

Paying before only works short term to raise credit limit. You want to pay after statement date to make sure the record is recording on your credit report.

[@joshuajones888]

So I know I’m super late to this video, but I have a question that I can’t seem to find an answer to. Say I have a card with $100 (for easy numbers) and during the month, I use $50, but I pay off all $50 of it before the due date. Since on the due date I have $0/$100, is my utilization rate 0%, or is it 50% because I spent the 50 for the entire month?

[@beedee9534]

I did that and they told me no utilization was 0 no increase in Fico

[@BrokeAristocrats]

I have a credit score that is about 850, but I did not use fancy math. I pay my bills and live below my means. I have two good lines of credit, but I do not rely on them.

[@BeatTheBush]

About 850 out of 850 or 900? Yeah those methods are also good ways to get a good score but will take a long time. There are specific things you can do to help it along.

[@BrokeAristocrats]

Thank's for your channel. I did not do anything amazing to get a good score, I chopped up a few cards after paying them off, and kept two lines of credit with good interest. I kept my record spotless for many years. My big challenge now is student loan debt from graduate school (well over 300K) for older students who are on RePaye, it is hard to know whether or not to pay it off or focus on retirement savings. I would love for you to cover this issue. Over 40, over 100K in student loan debt and on RePaye. Should they invest in their retirement and only pay the interest, or put their retirement on hold and pour everything into getting out of student loan debt?

[@BeatTheBush]

$300k wholly .... omg. Paying off a loan is sort of like getting a fixed rate return. Investing gets you possible returns with risk. Student loan is no different than other loans other than some possible tax advantages depending on your earnings. Here's a video on paying off loan or investing: kzbin.info/www/bejne/epvRg5J7fqZsl68

[@BrokeAristocrats]

Thank you for that. I am on RePaye, so not gathering compounded interest. For now, I am choosing to pay down a credit card and then put my discretionary income into building up my business and building my retirement. What is left over will go to debt. This is not a perfect formula, but it is the best I could come up with. If worse comes to worse, in 20 years, when I am in my 70's, I will pay the interest and taxes from my earnings and investments.

[@marcussavina2726]

Broke Aristocrats yea but this channel is for people trying to do what you did, faster

[@julius.150]

This is the best video si have ever seen on the KZbin channel for me to watch

[@atidmatabenisrael2779]

Thank you so much. Ppl got to stop saying it's bad to use credit cards thank you so much

[@OhWaker]

The formula for credit utilization score should be Utilization points = 90 + 165 (1 - Credit Used/Total credit limit across all credit cards). The 90 scores is from 30% of the default total initial 300 points.

[@demariowright3216]

This video helped me cause I was like how do I raise my credit limit without going over my 30% credit utilization

[@Ndasuunye]

so true. I got a flyer credit card and goofed with it for 6 months, paying it off on time every month. I got 4 times my original credit limit in increase in 6 months. I didn't even ask, they just did it.

[@BeatTheBush]

Nice one. Pretty soon, you wont even care to have a higher score when it is very high already.

[@SlyDellian]

Very informative videos. However, I see that you came up with the 255 point figure by calculating 30% of 850. Actually, since FICO scores range from 300-850, there are 550 points at stake. Since 30% of these points are in the utilization category, there are really 165 points at stake (30% of 550).

[@BeatTheBush]

It really depends how you want to look at it. In the end it doesn't really matter, just know it's a 'portion' of it.

[@kkmahe]

I think BeatTheBush caliculation is right , my wife don't have any single credit card until last few months , all ways she use to use debt card , the FICO score was always shows up it as Zero . when she opened up one credit card recently score got turned up to 550 .

[@prabhawapearl]

You are subscribed :D. Your videos are really helpful for money management and life planning. Everyone, especially college students should get a chance to watch some of your helpful tips and hacks. I do disagree with some of your advice on increasing the net worth (another video). You take a very traditional approach of "a penny not spent is a penny saved," and save a couple of 100K's for the future.That's a heck of a risk, and it is not only you but also a lot of people have the same mentality. I see money as a leverage, not a security, and I really couldn't grasp your concept. Life forbids, but what is your plan if you get sued for millions for some nonsense or have to pay thousands for someone else's medical treatment? Trust me, people do that! esp. in Cali.

[@BeatTheBush]

Well, I think it depends on how secure you want your life to be. I prefer to be on rock solid foundation that is immovable. Of course, to protect yourself from this you'll need to store any sort of significant value in a vehicle that cannot be sued.

[@prabhawapearl]

Hmm.

[@marksantucci4230]

So I have a question for people who live home with there parents and have a 500.00 limit every time they use there full credit limit does there credit score really go down? or only the people with a 1,000 limit or more? when your new to credit you look at the price of items plus they pretty much only have 1 credit card how can you ask somebody to only spend 75.00 a month? when some body has 2 cards and a 1,000 limit on both cards even with how much merchandise cost today you can ask people not to spend more than 300. so with the 1,000 limit that I understand if you go over 30% your credit score goes down. when you look at all the places that take credit cards how can anybody keep there credit score below 30% even the people who live home with there parents? when I was a kid roughly 18- 21 these places didn't take credit cards. fast food restaurants grocery stores hair salons /barber shops movie theaters taxi cabs bagel shops port authority bus terminal consession stands for ball games and hockey games not sure about spas. I guess the fair thing to say is if you want people to keep there credit score below 30% then there should more places not taking credit cards?

[@BeatTheBush]

That's why you do the boosting trick and spend as you need and it will still show up as 0% utilization.

[@aaronhelwig]

He should be a financial advisor. He kind of is a financial advisor on KZbin because he enjoys it but, I meant like have an office. It makes sense what he's saying.

[@rhyan1986]

My score dropped 50 points. They reported way before the closing date.

[@isabellacostello3037]

Rhyan Anderson *I’ve been down because of my credit card debts and my car loan, I almost lost my car before I contacted [phone] on whatzapp, he cleared my debts and charged nothing from me , I’m so glad*

[@truestoryyo2717]

First month doing this. Doing this with Capital One $300 credit limit. My score dropped 23 points even though I paid it in full. But, now I guess just keep doing this for a few more months then?!?! If I understand correctly???

[@BeatTheBush]

Because they measured your credit score when you used up your credit limit. There is a way to not have this happen by paying twice per month. Check out my video on credit score boosting.

[@Naural2024]

Question I have 300 credit card limit. I spent 300 and pay 250 before my statement come.then 10 day later before my due day I pay the 50 dollar. Is that ok?

[@datboinate0192]

You the best in the business of credit bro.... Good stuff....

[@BeatTheBush]

Thank you!

[@bradleymaguire7179]

I just applied for my first credit card and was offered like a 4,500 limit. I didn't need to increase it. So should I just use 30% I don't need it to be boosted

[@truestoryyo2717]

I guess I don’t get it. I used up all of my credit, 100% and my credit score dropped 40 points. They didn’t like that. So if I keep doing this, it will just keep dropping my credit score????? So what’s the point???? So how many times do I use it to 100 percent??? Won’t it just keep dropping my score??? Idk I don’t get it.

[@bigweenie4564]

Use the 100% but before the statement happens pay it off in full.

[@aliyudanboyi6453]

Hey there, reach out to ray_consult on Instagram he helped me boost my credit score to the best figure he also did same for my friends his a pro you should check on him if your needing help.

[@spirit1663]

What if you're like me and use like 300% of your credit limit meaning you use the credit card to 100%, pay it off, use it, pay it off, use it, pay it off, multiple times before the bill is due isn't that good to be reported on your credit reports

[@BeatTheBush]

They will likely raise your limit pretty quickly. If not, ask for it.

[@parthpatel8051]

If my Card Limit is 16k and I used 12k and paid 9k before Bill generation date.Then what will be my credit card utilisation 3k or 12k?

[@judelandenorceide79]

If I have a credit limit of $1000 and I spend $70 and I pay it off the next week then spend $70 dollars again within the same month then pay it off again before the closing date. Is that still more thsn 7% utilization rate?

[@CraftyDelights128]

Very well explained! Thank you!

[@BeatTheBush]

Thanks!

[@MsJcmJcm]

Don’t they report the highest balance during that month? So if u run it up n pay b4 reporting date, they’ll report ur highest balance, ending balance n payment amount. So many different theories to play this game 🧐

[@BeatTheBush]

No, they report a snapshot of the current balance at the time of report.

[@whatsup89100]

So if you have a secured credit, as a building credit user, should you just worry about keep the utilization at 0 as the secured card is more temporary and you will move to a different on secured card, before you would really start to increase you limit.

[@50kArchipelagos]

It's music to the ears of those who were very stressed to plop down 600.00 on a secured Discover card because when the card arrives you can instantly breathe again, and carry on again. I'm giving myself 5 seconds to quit thinking about this. Ok I'll do it.😆

[@555hotline]

this makes sense .. why is it taught otherwise everywhere else .. thank you 😅

[@beedee9534]

Experion said and I quote usage 30% and below is where you want to be Experian

[@BeatTheBush]

Lower the better but still keep it active.

[@alexcrisan2669]

Hello. I would like to know if for example I max out my credit cards and immediately pay them back then max out again and repay back in full before the statement date 2-3 times each mont. 1. Will it affect my credit score negatively? 2. I assume that if I do that a few months in a row will help increase my credit limit faster. Am I right? Thank you in advance! Regards P.S. Please keep up the great work you do with the chanel!

[@dh2266]

I don't think that's beneficial in any way. Actually it could be detrimental and the bank could close your account if that becomes a pattern.

[@alimahbeautyandbrains6478]

No... I do this a lot on my very 1st credit card because the limit is only $500. I only just got my second cc and the limit is 10k so I have far more credit now so I will not max that card out anymore.

[@cuttingedgecool7235]

Excellent, excellent info, thanks!

[@BeatTheBush]

You're welcome! =D

[@schereed]

THANK YOU !!! This was awesome

[@osamadias1756]

I THINK I'm going to call experian my self and see if utilizing 80 or 90 percent literally every month and paying in full on time everymonth is true that it can higher my credit score.

[@FC-py6xk]

Question - when you max out your credit card with the goal of increasing your limit, do you mean that the max credit number appears on your monthly statement OR do you simply have to reach your limit at some point during the month??

[@BeatTheBush]

Some point during the month.

[@FC-py6xk]

BeatTheBush thanks!

[@tonyd.6957]

So, how would paying off a car loan early affect my score? - You showed in the chart that accounts such as car loans, mortgages, personal loans... represent 10% of my FICO score. - I am nearing 48 months on a car loan which term is for 72 months. I am able to pay it off much earlier. Will this increase or decrease my credit score? 🤔

[@BeatTheBush]

Hard to say but it will have a positive effect. Paying it off early is good for you more than just the credit score. I assume it's meaningful interest they are charging so you will save on that.

[@tonyd.6957]

Thanks. 👍

[@incredible-isntit3239]

So u r saying if one pays off before the statement date and leaving 2$, the credit score will not get impacted negatively right ?

[@americanmuscle2993]

Bro, can you do a video including with the same mathematics illustration factoring in the 15% from age and 10% from types into say 100% history from both payments and utilization please!

[@frenzobloxroblox1003]

Okay I think I understand where you are coming from, you want to show the bank that you need a credit card increase. So we do your formula of going to max the card but also paying it on time the bank sees this and increases your score. You work your way up and eventually have it so that you have way more to spend yet you're not even going close to a 30% utilization rate. Problem is for me I've been using my banks credit cards and I don't think I will get an increase unless I ask them, is it fine to ask? Because I'd like to keep them or I can open up another credit card like capital one or something and use this method.

[@joc9128]

Vantage Score 3.0 Self lender uses this method how close is it to your actual Fical score ? And is there any kind of math formula to figure it out?

[@BeatTheBush]

The two scores are based on different criterion so you cannot convert it directly. I wouldn't look at the score that closely and just think of it as a rough indicator.

[@JkDubbed]

Came back to this to review. Different question. What's the goal credit limit for each card until you move on to the next one? 2,000$? 20,000$?

[@jayhernandez6812]

I have a statement date of 12-22-20 and due 12-20-20, should due date after statement due?

[@faheeta5036]

Credit Karma says below 30% but I am going to listen to you.

[@BeatTheBush]

How can I not agree. =D

[@WATEROWL]

this is my question, biggest question I have and no one can answer it, can the banks see you maxed out your card or even what you used on your card even if you pay it all back before the statement date , like are they not able to see you maxed out your card unless you dont pay it off????????? would love an answer if you know , thanks , nice video I subbed and liked

[@americanmuscle2993]

Yes, the banks know exactly what you are spending the money on because cash back cards give back on specific items grocery shopping, gas, travel, or everything else and how much of your limit is being used.!!!!

[@j.c9317]

Very nice! Thanks for sharing!

[@BeatTheBush]

You're welcome! =D

[@tee9115]

Thank So much For this Video Really Helped Alot!!

[@BeatTheBush]

You are welcome!

[@listentorpo9521]

Nice breakdown bro

[@dl7049]

You make sense, Thanks

[@americanmuscle2993]

If you zero out your utilization ratio before the statement date would report zero to the credit bureau so wouldn't that look like you weren't using the card and not result in a positive point increase?? , awesome mathematics illustration by the way.!!!!!

[@1x56]

This is probably a stupid question but 0% utilisation is when you use from 0.01% to 100% of your credit but you pay it in full before the due date, so it's counted as 0%? It's not taking out a credit card and not using? xD

[@Jaemwilliams]

Just got my new credit card from Capitol one of a 200$ credit limit. Spent a total of 198. And change should I pay 198. And change?

[@nolixss694]

So is paying back in full more important than the utilisation percentage or are they both equally important? And after how long of using credit card should you start to use under 30-10% Thanks

[@JulioJimenez-yq5oj]

So if i have 10,000 and i spend it all off how im gonna pay back 10,000 the next month...bad advice 😱

[@roeazy]

I think this is for people with small limits so they can get higher limits like yours. After they increase it to 10000 or more you dont need to do this trick

[@BlakeJames42]

I wanted to get the Amazon/ chase credit card for the $150 gift card. I pay almost exclusively all expenses on one cash back card and some on my first credit card. My score is +800 and im pre-approved for a mortgage . I dont want a hard pull to mess up my score because of the lending on a mortgage i will have. Should i even worry about it?

[@MKMESIAS]

very informative

[@BeatTheBush]

Thanks! =D

[@Christian_Villanueva]

Question to anyone who could answer. If I have a limit of $500 and use all of it but pay it off before my due date and I use say another $300 of it but pay it off completely before my due date, does my bank report that I used 130% of my credit or 0% of it since I paid it off before by statement closing date?

[@jonathanluna1069]

I max out may cards at least twice a month but pay them off. Hoping to get a credit limit increase.

[@businessmanph]

Is it bad to have a high credit line on one card. I transferred credit line from 1 old to 1 new Chase. I did that again up to 70k. I applied for a bofa cc and was denied. Should I reduce my credit line?

[@Fiasco117]

does credit utilization matter if i pay my bill in full every time? like if i'm spending $500 on a $1500 limit every month and always pay it off. Or will that still count as 35% utilization even if i still pay it off?

[@BeatTheBush]

Yes it does because your utilization is measured on the statement closing date not right after you pay. Yes that will still count at 35% utilization even if you pay it off. You need to pay right before the statement date. This vid for more info: kzbin.info/www/bejne/gqqlm5afr5lgsMk

[@tylercampbell1677]

Good stuff thanks for the information

[@BeatTheBush]

You're welcome!

[@pedronava7163]

I just got my first credit card! Can I use this method multiple times within the month? For example, I have $1500 of available credit, I max it out, pay it off, and do it again all within the span of a month. Also, do I have to wait to max it out before I pay it off, or can I simply make multiple payments?

[@BeatTheBush]

Yes but sometimes, they limit it to say 2.5x your limit. Depends on the card. Wait to max it out before you pay it will be better since they can auto detect you are close to your limit. After that, they may just freak out and extend you more credit limit.

[@pedronava7163]

Makes sense. Thanks a lot!

[@resharddurdley6987]

You will boost your credit score every month by having a 0% utilization score

[@pjmazzonna]

Awesome video, thank you! :) any chance the issuer can go back and drop your limit after your spending on that card decreases (or zeros all together)? I ask this because I did exactly what you outlined in this video and I have a high limit on a few of my cards, however most of these cards are almost useless to me now that I have a deeper "card portfolio". Canceling them is out of question (as they have no annual fees) however I just want to make sure they wont drop the limit after a few months/years of no/minimal spend.

[@BeatTheBush]

I haven't seen a limit dropped before but I guess it can happen. Even if you have a lot of cards, consider keeping them active with this trick here: kzbin.info/www/bejne/r3LdnHiBbb5pe5o I agree, do not cancel if there's no annual fee. You could if you have a really high score though. If you leave them idle, they could cancel the card after a few years and I've seen this multiple times myself.

[@pjmazzonna]

Sounds good, I will definitely be using the Amazon reload! Thank you for your response! :)

[@BeatTheBush]

=D

[@lukasvilla2657]

So currently my credit limits are $125, $200., and $400. I've only been using 30% but after watching this video I feel I can comfortably use 75-85% of it, pay it off before the bill is due that way I can increase my credit limit. I have one card that has a $75 annual fee. Does that come off on my first bill? Because my limit is still showing $400 instead of $325. Also my $200.card I put a $99 deposit because it's a secured one, do I get that money back? It's a Capitol one secured platinum. Thanks!

[@ezmoolah6395]

So basically your saying use ALL OF YOUR LIMIT, and pay it off day before due date?

[@BeatTheBush]

Over the long term this will increase your credit score. But this will cause a high utilization ratio. Also, do not try to use all your limit just for the sake of doing so. Do it only because you will spend that money anyway.

[@akamaterasu]

Thank you very much for your helpful video. I'm very new to credit cards and was thinking about getting a secured card soon. Would you advise getting a credit card and just having absolutely no expenses? Would the credit score increase after a few months?

[@12345robbie]

Once you reach a limit you are happy with, and go back to regular spending habits, at what point does the bank drop your limit back to something closer to your normal spending habits? Is it a back and forth game?

[@BeatTheBush]

They don't really. The limit is based on your buying power which is highly dependent on your income level.

[@12345robbie]

So once you use the "boost method", you get to keep the limit you boost to

[@anthonyrose6686]

I keep my utilization 3% to 7% that’s it

[@latoyawilson8638]

How do you do that

[@cassandra19961]

I will try this once I’m done with school and get a job that allows me to max out

[@mkt92z]

I'm just curious if you still hold this view? I noticed in another video you recommended leaving a tiny balance no less that $2.00. Thanks for all you do. You are awesome!

[@BeatTheBush]

If you want all your cards active, you need $2.01 to make it work with all cards. Really... if you charge $5 or $10, it'll be just as good realistically.

[@bettykillebrew9301]

Thank you for great info

[@BeatTheBush]

Any time!

[@missdesireindependance5194]

So I should max out and pay off every credit card I have in order to get a higher credit limit? I have been doing this with one of my cards the others I barely use.

[@BeatTheBush]

Only spend as much as you normally would. Never spend more just to max out a card. And it works better with unsecured cards since you do not need to add money to secure the additional limit.

[@orangeblock9174]

Fan-TASTIC video BTB!

[@jeuby3695]

Thats a great way to get into high credit card debt lol.

[@LG-pj4qh]

You are so right. Most people are not capable of following this formula.

[@MrWarrenRB]

@@LG-pj4qh no kidding, you would have to be a billionaire to max out all your available credit and pay it off every month. That's impossible because eventually your credit limit will surpass your means to pay for it in 30 days

[@garytrevino6186]

So charge what you can afford to pay back

[@simplevisuals]

What you charge on credit cards are what you normally pay for with cash. I use my credit cards to pay my rent, auto loan, car insurances, phone and internet bills, groceries, etc. I max my credit limit and then pay it all off by the end of the month so now it’s 0% utilization. Obviously, all these bills are what I’ve already budgeted from my paycheck so it’s easy to pay them back. Don’t buy that $2k Smart TV with your credit card with a $2k credit limit when you don’t have the cash to pay it off by the end of the month. Now that’s how you get into high debt. Once you learn how to use credit cards CORRECTLY, this formula stated in the video will make sense.

[@jesse94xp]

Hey BeatTheBush, may you please do a video with a formula analysis of the effect of a single late payment? I know the recency and the total on time payments made also affect it so I don't know how to set up the math

[@jesse94xp]

I liked the mathematical analysis on the whiteboard for the utilization myths

[@BeatTheBush]

Single late payment? I doubt I can do that since the total formula is just a guess. It also depends if you have a really long history already or just a few years.

[@ThyHoneyNut]

so let me ask you this... I'm just starting out, i just got a secured credit card. im trying to improve my fico score. Is it better to not even use my credit card at all? are you saying it will increase it more if i don't use it?

[@josenino7140]

The trick is to pay all the balances a day or 2 days before the closing date. Card issuer will see you as a good payer on their point of view for credit limit increase.

[@bethm3152]

Is utilization ratio for across all cards or is it per credit card?

[@Thonking]

Awesome!

[@BeatTheBush]

Thanks! =D

[@NDTHEBEAST]

Is this method called velocity banking

[@HangNguyen-ih8rf]

That is very true....but the key point is “paying if off.”

[@sheilahernandez1915]

Awesome explanation!!!

[@BeatTheBush]

=D

[@Jbell440]

I made sure my credit card utilization was at 0% on the day it is reported to the credit bureaus for the first 4 months and it increased my score but at a very slow rate. this past month i tested the under 30% utilization technique and left it at 28% and my score dropped 22 points!?..do you have any clue as to how this is possible?. i thought under 30% was good.

[@BeatTheBush]

0% or very close to it is good. The best thing you can do it get near 0 but not at 0. So use your card like normal and pay it down right before the statement date to $2.01. This will make your card look active and yet have a very low utilization. The rest of it is then paid off by the due date, preferably with autopay.

[@Jbell440]

BeatTheBush im just confused as to why it dropped 22 point for bringing it up to 28% if thats considered "good"

[@BeatTheBush]

Bringing it up to 28% is NOT good.

[@Jbell440]

BeatTheBush ok i was thinking this too..so if i would have started my payments from the first month by leaving 28% than i would be ok, but since I've paid it down to 0% every month for the past 4 months then this month left 28% its bad cus i increased by 28%?

[@viniciusmoussa7256]

Is this method worldwide valid or just for Americans credit card scores in specific?