Paying A Credit Card Bill (I Wish I Knew THIS)

In this video we’re talking about your credit card bill to answer some important questions like "when to pay your credit card bill to avoid interest?" We’ll be going over 12 key terms on your credit card statement that everyone needs to know so that you can pay your credit card bill the right way to not only avoid interest, but also increase your credit score!
To summarize this video, the best time to pay your credit card bill is after the statement closing date but before the payment due date. That period of time is called the grace period, and when we make a credit card payment we should be paying off the full statement balance as well. This video will explain that concept in much more detail as I go through one of my real credit card bills.
Overall, using your credit cards the right way is not too difficult once you understand the terms in this video. By learning this info, I’ve been able to always pay my credit card bill on all of my 15 credit cards in full every single month. I’ve never paid a dollar in interest and my goal is for everyone out that watches this video to do the same!
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The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Daniel Braun is not a financial advisor. This video is for entertainment and educational purposes only, it is not financial advice.
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[@donaldhollingsworth3875]

I always pay off my credit card balance 2-3 days before it is due.

[@mrsshelton226]

Pay it before your statement closing date, not due date. This way you avoid interest.

[@robertworden9810]

@@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.

[@robertworden9810]

@@mrsshelton226 no, it is the due date. Pay in full by then and avoid interest.

[@robertworden9810]

Pay the entire balance each month by the Due Date and no interest is charged.

[@tashamac623]

@@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

[@Z3R0FiR3]

As someone who just got their first credit card, thank you for breaking this all down into a way that makes sense!

[@Westerner78]

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.

[@ldballoon4]

I pray for you...

[@sherrypace8980]

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 KZbin. 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.

[@Laswm4950]

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.

[@LoveLightVibration]

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. 🤍

[@DJCloroxx]

No kidding. TL;DR version. Pay everything. If you can't cut the card up until you can.

[@timboc105]

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.

[@timboc105]

@abigmonkeyforme Fake money bags like you times are coming

[@timboc105]

@abigmonkeyforme No chips on shoulders here..Just the church of the painful truth!

[@AllThruChrist]

Best breakdown/understanding providing piece I've ever come across, as it pertains, to paying by statement bal-closing:.Thanks.

[@celieboo]

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.

[@ES-uf7zp]

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.

[@ES-uf7zp]

@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.

[@jackmendez8579]

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

[@johnlynch6540]

I took a personal finance class in High School, best subject ever!

[@mikesawyer1336]

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.

[@topazsun]

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?

[@mikesawyer1336]

@@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.

[@stevenrubio-vasquez3552]

this is exaclty what my mom told me it tricks the system

[@mehardin]

@@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.

[@Trenchant468]

Why not just pay in full in advance of the due date? Is this just to make a payment linked to bimonthly paychecks?

[@billclancy4913]

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.

[@SpencerJohnsonOfficial]

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!

[@reesedaniel5835]

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....

[@SpencerJohnsonOfficial]

​@@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.

[@Hans-gb4mv]

@@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.

[@SpencerJohnsonOfficial]

@@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.

[@YukyDoodle]

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!!

[@patrickbennett439]

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]

Is your cash advance balance less than the interest?

[@patrickbennett439]

@@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.

[@Lasertrac]

Every highschooler should be learning these things as early in their life as possible.

[@sipvypkbj103]

These day's eh.. Long time 🤔 Young Ppl did Not have credit cards like now That Maybe 60 yrs Ago

[@Ceo2King]

They can't make money off them or their families if they teach them.😂

[@lisaruiz6799]

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.

[@Daniel_Braun]

Great to hear that the explanation was helpful! Thank you so much for watching and subscribing! 👍

[@anthonyyyyy]

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 :)

[@ItsMeCJ]

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 👍🏾.

[@juliancen2815]

Amazing video! As someone who was an authorized user for a year, this is a great video for anyone getting their first card.

[@zurkpdx1]

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.

[@JohnSmith-qj6bj]

I like that 10th/25th rule. That keeps it simple, will be using this moving forward. Thank you.

[@sunset6010]

BRILLIANT !!

[@tca666]

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

[@HeatherAckroyd]

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).

[@joanndavis4843]

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.

[@luanneneill2877]

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!!

[@tom_graber]

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.

[@bc1969214]

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.

[@mollypaintscows]

@@decimanightelf4135. Miserably 😅

[@Tru3_kills]

It’s crazy what was allowed prior to the financial crisis of 08’

[@Regina.Clarke]

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.

[@danymalsound]

Speaking of apps, it blows my mind that Comenity doesn't have one...

[@geraldlair2888]

"Setup autopay with the minimum, so you don’t ever miss a payment" THIS!

[@Brianpeckin]

That not the issue you want a balance reported for utilization

[@Rye_Toast]

That's not a bad idea. Since I get paid every other week I just pay off the current balance every payday.

[@ChaseYokoyama]

It's ESSENTIAL to understand these basics in order to take advantage of your credit cards 🙏🏽 well said Daniel (banks despise videos like this 😆)

[@TVHouseHistorian]

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.

[@Westerner78]

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

[@TVHouseHistorian]

@@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.

[@jackiesmith787]

Me too

[@TimesUp8888]

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. ❤

[@Westerner78]

@@TimesUp8888 There are major issues too with debit card, check out being hacked and what happens then.

[@slightgainz6970]

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

[@createandimprove7]

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.

[@SlyKooper1029]

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.

[@NothingBtBlueskies]

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.

[@packman536]

'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..

[@NotSoAmazing]

I hit 800+ for the first time this week. Feels good. I used to be in the mid-500's quite often. Never again.

[@malsroomm]

tips?

[@wkatc007]

@@malsroomm This video and many others have them don’t count on the comment section

[@alabamaflip2053]

How long did it take going from 550 to over 800?

[@marceld6061]

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.

[@KUNJANPATIL16]

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.

[@akashvyas5070]

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

[@patrickeppler6438]

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.

[@ABasedTohan]

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 👏🏾👏🏾👏🏾

[@sjg6158]

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.

[@piratedragon703]

Geeez... he talks fast... but covers a lot so not even mad about it.

[@tinacarvelli6884]

Really slow it down!

[@tracy419]

That's funny, I've sped the video up to 2x and am not having any problems understanding 😄

[@piratedragon703]

@@tracy419 congrats

[@MikeOxlongBoi]

I had to watch this at 2x because it's too slow for me. 😂😂😂😂

[@quingofcozycastle]

What an excellent video! So much information, which was very helpful---I wish more KZbin financial education videos were this value-packed. Please keep creating! 🙏

[@jayefoster3212]

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.

[@Nickkeating99]

This video provided me with the knowledge that can put me in a position of success. Thank you Daniel!

[@marysews1]

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.

[@artharrison294]

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.

[@xyzzy64]

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

[@luisalcocer6457]

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!!

[@luisalcocer6457]

850 Credit Restoration on their website

[@luanneneill2877]

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.

[@TheRealMattHerdman]

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.

[@dtsang508]

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…

[@hlima1hm]

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"

[@Dumbluck14]

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.

[@CastroMKE]

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 KZbin!

[@leemaricachouinard7127]

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!!

[@leemaricachouinard7127]

850 Credit Restoration on their website

[@ron1061]

Excellent tips as always, Daniel! Great video and I love my CHASE Freedom Flex card! 😊

[@wells2429]

Can confirm. Been doing this for over a year now. My score shot up.

[@allblackallblackandmorr8888]

Thanks. Best advice that I’ve received about CC payments.

[@barbarasapp1234]

Great😊 information, only one thing need to slow can for some of us. Talking a mile a minute ago. 😢

[@Mr.DJones]

Thank you for your time.

[@j.taylor822]

Awesome vid. If u ever wanted to know how to have utilization of 1-3% AND pay NO interest, this breakdown is spot on!!

[@donnafarmer111]

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.

[@patriciayohn6136]

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!

[@sam12587]

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.

[@Strawberrycheesecake364]

I worked at several banks and none of them handled this. Credit cards were sent to customer service over the phone unfortunately.

[@darleneaparicio1500]

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 .

[@OLDGUY7301]

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.

[@johnlynch6540]

Always pay your balance before due date, or before your monthly payment is due if you have a on-going credit card debt.

[@MaeSekou]

Thank you so much for these videos man.

[@jihanmakram4688]

You didn’t mention anything about the title on the video to “pay on the 17th”!?!

[@anuajihdeYahweh]

This was phenomenal 👍👌 just subscribed

[@hotdrumchick]

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.

[@timoromeo7663]

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.

[@recoveringsoul755]

Basically don't buy anything on credit unless you can afford to buy it. Then you just pay the bill in full when you get it. Use it to build credit history. Or emergencies. Some things require CC like i think renting a car. I would make sketchy purchases with a CC because you can dispute them.

[@flackenstien]

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.

[@akinori08]

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

[@j29maniac]

@@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.

[@synergy1772]

Daniel I appreciate your the info and enjoy your content 👍🏽

[@101Checks]

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.

[@shayc.2562]

You're explanation was magnificent. Thank you! 👍

[@chestersidd1626]

Hi Daniel, awesome video!! I was wondering if it’s okay to pay your credit card in full before receiving your billing statement? For example, if I used my capital one credit card to pay for gas on January 25 but quickly pay my balance in full the next day on January 26. Will this affect my credit score in a positive way since my credit utilization will be 0%. I know people would pay majority of their balance before the billing statement, so they have a credit utilization below 10% and avoid lowering their credit score. I was wondering if there’s a downside of paying your bills in this kind of method. Thanks and continue making these awesome and informative videos on credit cards.

[@carlosbernal6035]

I’d like to know the answer to this, too.

[@adrieljones4526]

I pay my cards every Friday. Anything I charged that week. I’ve been doing it for years. No complaints from the companies.

[@jilbertb]

That's what I do, shop and pay the bill the same or next day. (Because you don't spend what you don't have money to pay for!) But it still registers your credit utilization on what you charge, not on what you pay.

[@miriamdavis2988]

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. 🎉

[@theonlybuster]

Good video! I remember first learning about CC, I was always told to keep a small balance to carry over each month. I'm pretty sure this advice was spread by credit card companies in an effort to put more money from interest and fees into their pockets.

[@lightninguru26]

Utilization= Debt. The closer to 0 the better. 0 is the goal.

[@jilbertb]

Absolutely. Even if you carry over say $2.50, read the fine print - minimum interest chg is $1. If the credit card co. has 1M customers and 25% of them are carrying over $2.50, and pay that extra $1, they are still making $250K a month on that $1!!!

[@Somewhere-In-AZ]

4:27 What I don’t understand is if you paid the previous balance, why is it still owed?

[@coopyduck6901]

Great info. Goes really really fast though.

[@ronh7434]

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👍

[@OTseven]

Excellent. Embarrasingly, there are factors talked about on this vid that I did not know. I'm a highly educated professional with years of a perfect credit score. Still, I was unaware of some points until you mentioned them. 5hx much.

[@CGC1954]

I pay my entire balance on time and before the due date, whether I’ve spent $50 or 5000 I am not paying interest

[@groovylola4576]

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

[@syedtalhanoor21]

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?

[@jilbertb]

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.

[@09dave1952]

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.

[@leemaricachouinard7127]

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!!

[@leemaricachouinard7127]

850 Credit Restoration on their website

[@rodan2852]

Im just got my first starter card at age 32 after i got my spending under control, and actually had savings for the first time. They gave me 1500 limit so i use only $130 every month. I write the amounts on a strip of paper i wrap around the card to keep from using it too much lol. Ill always be old fashioned so dont try and change it lol oh and i just keep $1500 in my checking at all times to act as a zero mark. The rest to savings(car/ house/home imp.) and investments.

[@luisalcocer6457]

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!!

[@luisalcocer6457]

850 Credit Restoration on their website

[@Barbara-lu7ch]

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.

[@medina1718]

Great video. I didn’t know this but I’m also very good at paying on time and never missed a payment.

[@Ryan-ff2db]

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.

[@metaphysician9]

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.

[@LionsDad.]

This info is amazing!😎🔥

[@Daniel_Braun]

Thanks so much, glad you liked it!

[@phototouch]

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.

[@leidya7070]

I use my credit cards, go home, get on my laptop and pay it in full each time that same day. So, I never have a balance. I only use them to get my points to buy free stuff, hotels, car rentals, airline tickets, etc. Also, a little tip. ALWAYS lock your credit cards! Unlock when you need to then, lock it immediately after!

[@APennyPinchersGuide]

Great video as always Dan! Question for you, do you use automatic payments or manual?

[@derekcho2312]

i GOT MY FIRST CREDIT CARD AT 22, ON A FRIDAY. I had a pre-planned road trip that night to Reno. Y'all know what happened, even used it at mustang ranch.

[@rafaeldelvalle6836]

Good detailed video, thanks! 1 question, you said you aim for 1-2% on the credit utilization but on the statement you had a $300 balance, which would go over. Does paying a 300$ balance during the billing cycle and leaving 1-2% left optimal?

[@Bubbles99718]

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?

[@StevenTheGreat_]

New to this credit card thing and still haven’t got mine. But I’ll just pay 2 days before the due date every month to be safe.

[@gregbenwell6173]

I find a lot of people have COMPLETE trouble understanding HOW credit cards work....and the worst of those folks simply assume "Credit Cards are Free Money" which is how b both my ex wives thought about them!! Other people I have met think "I can just pay the monthly amount due", then wonder "why doesn't my bill ever go down?" when they refuse to understand that they are only paying on the interest and not so much on the principal of the loan! And like I just explained to my present girlfriend, "it isn't about WHEN to make your payment, but HOW MUCH you are willing to pay on your payment, that makes the most difference!! Or to put it another way, it is more about TIME, then it is about MONEY!! And the fastest you can pay back your debt, the faster you can raise your credit in most cases!!

[@wesleywilliams1186]

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.

[@ruthnehi]

This was really useful! Thank you

[@josecepeda2050]

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

[@mrs.c5471]

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!

[@dannycarter4810]

Remember you cannot have a grace period for purchases and a promotional offer together. Cannot double dip. If you have a promotional offer for like balance transfers use a different card for purchases. Also, may take a cycle or 2 to kick in but set up auto pay for the statement balance to put the burden/responsibility on the bank. ❤

[@raulreid8294]

The knowledge you gave about statements 💯🔥💯👍🏾

[@Daniel_Braun]

Happy to share it! Thanks for watching Raul!

[@Anonymousone-i3c]

When are you getting the Charles schwab Amex platinum? Please make the video well and go into depth I’m waiting to pull the trigger but I’m still doing my research

[@playersam]

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.

[@playersam]

@traybern sure. I see that NOW. But this stuff isn't always easy to see or figure out if its not explained to you.

[@goatgirl5968]

I had a friend who worked for a credit card company and at least once a month someone would call and ask when the balance would be "refreshed." They thought the limit was a monthly allowance. Don't be that person.

[@anthonymontes7301]

Been very addicted to your videos 🤝