HOW I TANKED MY CREDIT SCORE

[@ashermitchell2794]

This is what makes me keep coming back to AskSebby: he not only acknowledges out right that this video is going to look similar in substance to another leading credit card KZbinr's video, but he also straight-up says that that guy did a good job explaining concepts so he doesn't feel the need to rehash them.

[@SolidLiquidFox]

After the legendary credit card tier/ladder duplicate video situation, it's good to preemptively strike before the comments look for drama where there is none.

[@sf7234]

Next video: "Hey guys its ask sebby, I'm here in mexico dodging US Bank"

[@AskSebby]

"Hey guys, I had to leave Mexico since US Bank found me. I'm now in Bali..."

[@SolidLiquidFox]

"Hey guys, do what makes sense for you, remember your milage may vary, just don't mess with US Bank...they took Mandy!"

[@ChiPipil]

Ask Sebby “Hola muchachos, soy Pregunta Sebby...”

[@highway67theband]

ITUBE hahahaha

[@thecreditsavageofwallstree9898]

Sebby will be kicking it in Malta or the Azores. lol. Somewhere with no extradition. He's too smart for them

[@CaseyBurnsInvesting]

The government when you decide to make extra money:👋🏼 Just prepaid my cards. I’ve put all of my statement dates in my calendar app

[@ohmyfudgecakes]

Thanks for explanation and suggestions. My score went up almost 70 points in one month. Thank you so much!

[@TheCreditShifu]

Looks like you “beat” me by -13 points!

[@BuzzMediaUS]

Do any of the business credit cards offer balance transfers?

[@MrBuckaroo2014]

I always prepay each card before the closing date and discontinue use until it reports and then I use it again. I'll put another card in the rotation in the interim.

[@docsays]

same here

[@domingolucas6651]

Yes sir, it feels good to see we know what we're doing!

[@jeffthecoder]

I tend to go the "low balance forgiveness" route. Different cards credit for different amounts, but some don't at all. Discover, for example, will zero out the bill if the balance is $2 or less. Capital One, $1 or less. Chase, nada..

[@teflondonna139]

Same

[@RonnieBeatz]

Just paid off my Amex before the statement date and my score is projected to jump +52 points on the next update!

[@MrsEJV]

Ronnie Beatz Let us know if that actually happens? Seems like a big jump for paying off a balance. Usually when a card is paid in full it makes more of a five point difference. I have two Citi cards. One I owed nothing. Other was $14.00. They applied the payment to the wrong card and dropped my credit score 62 points. Since its usually about 800, I lost my mind. They did fix it and corrected it with the credit bureau. I'm 73 and when I applied for this apartment the agent said I had the most perfect credit report he’d ever seen. Never had one late payment. First late payment = 62 points? Big Brother! Hate the credit bureaus.

[@joeldamron8062]

@@MrsEJV I paid off my BofA credit card after carrying a balance for a while (~80% to 0% utilization on the card) and my credit score jumped 50+ points.

[@claudiooliveira4543]

Sebby. You are THE MAN!!! Thank god i found and subscribed for your channel!! You just told about a VERY VERY important thing that will help me a lot and i had no idea: The utilization of my business cards don't affect my credit score as long as i keep paying it as agreed. This changes everything for me!!! I am sure you talked about this earlier, but now you have another happy follower!

[@arthurr8670]

Yep, it's a great benefit. We have a chase ink with the 0% apr intro offer, sitting there with a high limit so I have more cash to play with. My personal cards have only small amounts on them, leaving me with a good score. Play the system so you can do better in life, but don't abuse it.

[@financiallift6185]

I tank my score all the time Why would anyone do that? .... So I can raise it back up again

[@RealityHurts923]

Hey man thanks for all the videos. A couple of topics I would like to hear from you if you havnt done already: 1. Talk about how long you should hold onto cashback rewards. Any cons of holding on to this? 2. A review if the app MINT to use for budgeting. I’m not to crazy about linking my credit card accounts to this but hear it’s safe. Anyway keep up the great videos!

[@kravenofspider]

I've been curious on how long to hold cash back rewards as well. Is there a opportunity cost, etc?

[@arthurr8670]

I would say if it is something like chase UR points, which are cash or travel, it depends what you want to do with them. If it's just for cash, you are losing out not taking it out right away. That is money just sitting there, not doing anything for you. At least put it into a high interest savings account and make that interest. If it's for travel, you have to plan to get the best deals, so that might mean holding onto those points.

[@blkbeauti05]

Currently sitting at 753 FICO. I like to keep my utilization between 1-3%, no balances, no late payments, no black marks.

[@amaliataber3427]

0:41 “or did I” 😂

[@AskSebby]

👀👀👀

[@roxcyn]

😂🤣

[@wbaiey0]

When using my cards i enjoy paying the same week. It's a fun game. I dont buy anything i cannot pay for in one to two weeks. Keeping it simple

[@SpaceRanger187]

I can't wait til I turn 75 and max out all my cards and never pay them.muhhahah

[@mranderson8725]

@@SpaceRanger187 😂

[@JDTreadwell]

I dared to use 3% of a card with a large limit a couple of months ago and Experian decided I should loose 20 something points. 🤦‍♂️ The other two didn’t blink and even now Experian has only gone back up like 3 points. It’s not detrimental. But it irritates me to no end.

[@pedrocastro3951]

That’s why I don’t check my credit all the time, those small fluctuations never last. Only when I know I need a loan

[@nadiyahali2178]

Experian is an asshole.

[@thejokerspeaks]

I pay my credit cards about 10 days before they're due, current balance, rather than statement balance.

[@thejokerspeaks]

@Observe self Credit Score dropped 35 points.

[@swagattack24]

0% Utilization gang 😎

[@Zydash]

Holy shit. I'm so glad I clicked on this video. I have the Discover It secured and they just graduated my card this week and increased my CL. Good credit score, etc. The timing could not have been perfect because I was planning to make a $1k+ purchase next month and I was going to use debit. Now I was going to call Discover the day I want to make the purchase to very clearly let them know that I'm making the purchase and WILL PAY IT DOWN ASAP. I swear there's a rule 34 for everything in finance.

[@CarlyzClozet]

Thanks Sebby, for explaining how financial institutions look at credit utilization 👍🏽

[@nicholaslettiere6437]

4:28 "instead of having the luxury of paying $3600/month" *Laughes in middle class*

[@JStieloSoloPhysique1987]

Nicholas Lettiere good ol California rent

[@arthurr8670]

It's interesting both of you just covered this topic. I nearly maxed out 4 of 6 cards. Another one was around 65% and the last one still had a bit of a balance. My utilization sky rocketed, but I knew my score was going to drop doing so. I was worried that with covid and my sudden high high balance, it would bring too much attention and they would start limiting me. It never happened and I suspect it's because I've made some large purchases in my previous job, to the point I got credit limit increases. I invested a lot of money (well not my money I guess) into a business, and I knew I would get the money to pay my cards before the due date, so it was a free short term loan. Don't do this unless you know you will be able to pay and are willing to take the risk. I think my score dropped around 80 or 90 points, but it's back to normal now that I got everything paid off.

[@monsemoreno5247]

Always love seeing your videos!

[@AskSebby]

I appreciate that! :)

[@Coecoebrown]

I prepay or pay as soon as I spend, I make a payment to the card. It usually shows up as a negative before the transactions post AKA 0 when reported to the agencies.

[@MarkUnique]

A one month of tanked credit score is probably no big deal, but I could see how discovering the big drop, making sense of it, and making sure there isn't something more serious going on might cause some anxiety.

[@dcrump]

I had this happen with a Lowe’s credit card with a low limit.... smh 🤦‍♂️.... before knowing anything about utilization. Thanks to you and Credit shifu 💪💯💯

[@marystamara2012]

I watch my utilization on my cards cause I know that it will drop my credit score several points depending on how much over the 5% I go. I have had defaults in the past and all have since been removed from my credit report and I am pretty happy with my 750 credit score, however I do want to get it up to 800 as a buffer. I don't plan on getting a mortgage or buy a car anytime soon as I don't have an earned income to do that with.

[@RichardServello]

I had to push my usage to about 27% and lost about 30 points. After I got it paid down a few months later it went up 30 points more than it was before that.

[@justinwilliams2273]

LETSSS ROLLLL SEBBBBBBBBB AND I DIG THE HAIR LOLOLOL 🤙🤙🤙🤙🤙

[@AskSebby]

Blame Mandy :) instagram.com/mandyroams/

[@kschuman1152]

I find another big benefit of getting in the habit of prepaying all accounts is that I start to think of the statement date as the 'due date'. Because of that, if I space out and end up paying 'late', I'm not really late and still have weeks to pay off the balance within the grace period. Helps keep me far, far away from ever making 'real' late payments (which really tank one's credit score, for a long, long time).

[@RichardServello]

I pay the statement balance as soon as I see a balance due. Got me from a 660 CS to a 831 in about a year.

[@athlon9394]

Both you and Credit Shifu are showing the Vantage score to show the huge drop in credit score. I can tell you that Fico is not nearly as harsh when 1 card is nearing 100% utilization.

[@AskSebby]

I mentioned in another comment that FICO dropped ~20 points vs. the FAKO. I didn't really cover that part since Credit Shifu focused heavily on that already (and I didn't want to step on his feet there).

[@claraodamo5192]

Yes, I loved it AskSebby👌🏿🇬🇧 I really do Love your channel. I’ve 12 credit cards, 2% utilisation (these are two interest free money transfer balances) and my score is currently 999

[@DaBlockPartyTvShow]

@clara Odamo 999???? I thought the max credit score was 850

[@claraodamo5192]

DaBlockPartyTvShow Sure.. but the max is 999 in the U.K

[@epshtielsl]

Your channel icon looks exactly like the yellow KZbin ad indicator icon when scrolling. It’s suuuuuper easy to just scroll past your videos even though I’m subscribed. Just making an observation.

[@wayneonpark]

American Express is the worst card to have in many ways. They lowered my credit limit from 25k to 8k in the blink of an eye this year. I had spent 2k on my card at having my Lexus serviced (yes, they occasionally break down, ugh!) at a Lexus dealership and within days my entire credit score went down due to the effect of the utilization of my entire creditworthiness. It was like a domino affect. Credit is all interconnected, so my Fico score dropped about about 50 points. It showed my utilization of almost 100 percent on my AM/EX and all of this happened just days before the corona-virus hit. I hope to be back to normal sometime around Christmas, but I will certainly think long and hard before pulling out that American Express card again. I also should add that Am/Ex is well known here in the U.S., but not necessarily around the world. For travel, security and other benefits, I think, your much better off using Visa/MC.

[@tyrusch]

Something to keep in mind when managing your pre pay...know which issuers will let you pre pay your pending transactions (that might not post til near or on the statement date.) Navy Federal will let me pay any amount I want where Citi will only let me pay the actual current balance.

[@prettyacct]

If you initiate the transaction from your bank, you can pay any amount you want.

[@dperin00011]

Some banks dont allow prepaying your credit cards. They only allow you to the pay the posted balance or pending balance. one way around that is to use bill pay from your checking account to push the payment to the credit card instead of using the credit card to pull it. Just a tip

[@davishlamburnt3734]

Learned something new today. Thanks Sebby. Not the same but a friend of mine had auto pay set up and it didn't go through so it knocked 60+ points off his score for a long time. He even tried to dispute it and they wouldn't budge.

[@parabellum1002]

I had a US Bank Premier credit card with a $16,000 limit. I don’t usually carry a balance but this time I had to. I had a big unexpected expense and put it on the card. I had a balance of 7k. They lowered my limit to 7k and changed my credit card to a personal line of credit. That totally tanked my score. I’m a little irked with US Bank. It’s not like I missed a payment, I just used the card and paid the minimum payment. 😖

[@AndrewHosford]

Lol, I just accidentally did this too. Opened a BBY credit card to take advantage of their 0% financing for 24 months and immediately maxed the card out for the TV I was buying. Took my credit score down from 803 to 754. Wack yo.

[@jakehuang3545]

I think it’s not just US Bank, it’s Elan Financial, which actually runs their credit card system. I have the same issue when I opened another cc with a different bank that also used Elan.

[@teflondonna139]

If I cannot pay down to zero by the reporting date, I make sure the balance is no more than the last statement.

[@randyg1143]

You mentioned that Barclays reported business accounts to the CRAs. If this something new? Love the hair.

[@livefreevinnie]

That’s odd because my credit score tanked once I started leaving $20-30 balance on my all of my credits card then payoff before due date. Equifax stated that I have a lot of credit cards with balance on it compare to last month. I am confused. Should I leave a balance? If I keep them at zero balance, I will be denied for credit limit increase due to not using the card enough. However, I use them everyday, but I pay them off to zero before the billing statements.

[@fastlife619]

7k on Costco gift cards does sound like a scam to me.

[@edwardtam8282]

Easy way to remember is to have all your credit cards closing date be the same. thats what i do so i simply pay everything out a couple days before that. Having different statement dates makes it harder to remember.

[@be_obee9024]

Your great advice has long earned my subscription. Thank you.

[@tootsiekilla]

i don't use any more than a few hundred dollars on my credit card every month. (not including the rent that comes directly out of my checkings account). yet my credit balances are so low, that i have to prepay every month to achieve a 9% utilization rate on my card. i'm looking forward to the day that my credit balance is larger, and AutoPay will suffice😌

[@PassportBrosBusinessClass]

My credit score is 843. My credit utilization stays below 3% of $50,000 total available credit.

[@PassportBrosBusinessClass]

Credit Shifu did a video on this last week. Maxing a credit card to $15,000

[@zackattack91000]

0:18 I love your hair baby. Keep rocking that fade

[@iiltoxic]

I almost never carry a balance on my credit cards. I try my hardest to maximize the rolling categories with my Chase Freedom card and couple that with my Chase Sapphire Reserve. I almost treat my credit cards as if they were debit cards and tend to make “micro payments” throughout the billing cycle. This keeps me on top of paying off my balance and removes the money from my checking account that technically no longer belongs to me. In the past 11 months of having the CSR, I’ve accumulated just over 100,000 points and this doesn’t include sign up bonus. I was ineligible for the sign up bonus because I already had the plain jane Sapphire card. I will point out that some of those points I earned with the Freedom card and just transferred them over. I’ll be taking a nice, relaxing and free vacation once I accumulate enough points to do so. My credit score is currently sitting at an 818.

[@draektears2794]

wish I was you

[@angelinaramon]

My credit score just tanked down by 53 points since it's now at 30% usage. I can pay it off anytime, but the company I work for in the Bay Area has us on work furlough again. However, my card is 0% interest for awhile, so I'm taking my time.

[@AskSebby]

That makes sense. If you're not applying for anything, you should be fine -- it'll bounce back up afterwards :)

[@roxcyn]

Interesting topic, Sebby!

[@eclectic_musafir]

I scheduled a large payment via Plasitq to post to my Chase Sapphire two days AFTER the statement closes, as I'm threading the needle between having it factored into this month's budget in Mint before the end of the month, while also benefitting from not having to pay it right away.

[@boondoggle4820]

I pretty much just pay all of my credit cards by my earliest due date, because it’s all coming out of that second paycheck of the month anyway.

[@AskSebby]

Sounds like a good approach :)

[@brocklin000]

surprised Sebby took the action he did which drove his FICO down - he knows how the formula works. That said - 740 still not bad and IMO FICO has long been inconsistent. I have seen my own fluctuate from 820 down to 802 and then back up to 817 yesterday - all within a 45 day period where NOTHING changed in my financial profile.

[@azalex91]

Most usbank employees don’t even know the statement thing. Been with them for 7 years and I found out by tanking my credit score when it reported a 90% utilization so I always make sure all 4 of my usbank cc are paid at end of month

[@AskSebby]

I find that customer service reps are good with basic questions. Not great with nitty-gritty ones, sadly.

[@Holdeenio]

How come your limits are so low? 🤔 Surely if you're regularly hitting such high % spends and repaying in full, you would prevent such high utilisation by simply requesting suitably larger limits? I'm UK based, but ensure my limits accommodate my higher monthly spends, sticking under 10% utilisation.

[@AskSebby]

Depends on issuers but I generally decrease limits to minimize shutdown risk: www.asksebby.com/blog/why-you-should-consider-lowering-your-chase-credit-card-limits This was also the limit on 1 specific card from one of the most risk-adverse issuers in the US.

[@gatesstudygroup8913]

I’m signing up and using his promo he drops too much good information

[@AskSebby]

Thank you! Appreciate the support :)

[@gregstargell8839]

Barclays business cards do not report to your personal unless default but the Business Discover and Capital One business cards do report to personal.

[@yehudakrauss872]

I’m an American student studying overseas and would love to c a video on how to spend/ best way to use my dollars. International fees, exchange rates etc

[@Aamiller312]

Get a Charles Schwab checking account because you pay no money on ATM withdrawals for cash and make sure that your credit cards have a 0% foreign transaction fee.

[@yehudakrauss872]

GustaviAaron thx

[@thecreditsavageofwallstree9898]

Shifu did this yesterday!!! lol. You seen those new targeted SUBs of 125K for the AMEX Platinum and 70K for the AMEX Gold? Those are solid! I'm gonna predict that Chase comes back with the 100K for the CSR. Times are rough. I'll probably do a video on that. lol

[@thecreditsavageofwallstree9898]

So awesome that you did the video about the 125k and 70k targetted SUB's. More people will know about this now.

[@HangNguyen-ih8rf]

Took me 3 years of using cc to figure this out...try this and never worry about your score. Put all your cards on auto payment to be withdraw 13 DAYS BEFORE the DUE DATE. Choose “pay statement balance.” And of course keep all of your cards utilization below 10%.....ideally for me 6-7%.

[@james-p]

Even better is "pay current balance." That would put the balance at zero.

[@HangNguyen-ih8rf]

James P very true but most American live pay check to pay check.

[@james-p]

@@HangNguyen-ih8rf True, that.

[@joybarber2430]

My credit score went down 4 points last month because my utilization on 1 card went up 5 dollars and another card went up 18 dollars. I even pay my cards once the transactions clear, not when they're due. I was like bruh 😑.

[@iiltoxic]

I’ve seen some lame things happen as well. I paid my student loan off back in 2018 and once I did that, my score went down (3 points or so if I remember correctly). I was highly annoyed by this.

[@goddesst]

I just had 2 collections removed from my report and it dropped 10 points 😒

[@JStieloSoloPhysique1987]

I’m confused. Sometimes you guys say pay your balance in full, then other videos the same ppl say it’s best to keep a small balance... which is it?

[@2808Heavy]

Not to mention that Credit Karma shows Vantage scores will almost no major lender uses anyway...there score is usually WAY off from FICO scores.

[@AskSebby]

The main risk (in my head) is shutdown risk. Amex seems VERY trigger happy right now with risk.

[@gif24gt60]

Love the hair

[@davidhimmelsbach557]

What about the teasers of 0% on your balance for nine-twelve-fifteen-eighteen months?

[@jeraldb2868]

I missed your entire discussion, your hair was too distracting. Now I have to replay this video, with audio only 😂

[@Joniyah444]

My credit definitely got hit this year by a similar way of utilization. Don’t sweat it, we don’t know what’s going to happen. By the way love Costco and the videos

[@micco6020]

Off topic. I ran into trouble with a credit card. I had a low credit line so i would pay it off several times a month. They freaked out. I ?think? The problem was i was spending 4 times my credit limit a month. I honestly thought the same as Sebby in this video. The only number that counted was the balance on the closing date. Boy was I wrong. I lost that card. And the why was I was trying to get the points for all my spend I made.

[@jeffthecoder]

Interesting. I always figured that nearly maxing out and paying back down a card numerous times a month would signal to the bank that the credit limit is too low

[@PassportBrosBusinessClass]

Busting Out only makes sense if you flee to a country without extradition

[@jimlogan9883]

Extradition? For credit card fraud? Doubtful.

[@lianalonge1984]

Due to anxiety, I pay my balances as soon as they appear in my credit card/bank apps. 💳😬💲😅

[@BinJinWonie]

I’ve been treating my credit cards likes cash. So I tend to use my credit card but pay it off immediately. So I end up not having any balance by end of my statement cycle or negative balances because I overpay. Is that a bad thing?

[@latinworldexplorer]

It can be. With Experian. I had been doing the same for well over a year, and recently Experian (and only Experian) lowered my score by 17 points. So, I’ve started paying off my credit cards by making payments of the balance minus $20 (any small amount will do, so long as it is below 10% of your credit limit). I have kept doing that in the hopes that my statements closed at $20, or very close it. It’s taken me less than 2 cycles for my Experian score to regain 11 out of those 17 points I had lost less than 2 months ago. Again, let me stress that I’ve only seen this with Experian. And yes, when I checked on their app for the reason why my score had dropped 17 points, it did say that I had had no balance on ANY of my credit cards recently. All my statements were coming back as “nothing owed”, even thou I use my credit cards pretty much every day. My Experian credit score is currently in the 760 range. Credit Karma scores both above 800. Hope that helps!

[@qb6570]

Make sure you aren't spending close to your limit and paying it off multiple times within a month. You'll be flagged for credit churning.

[@BinJinWonie]

Q B Thank you. I do use my card very often. And I make payments immediately after using it. I sometimes overpay to. Like right now for 3months now I have -4000.00 statement balance. Because I made a recent purchase which I immediately paid off. But, the merchant ended up canceling my order and not charging me.

[@BinJinWonie]

latinworldexplorer thank you. I new to these and I really wanted to do well. Apparently, I’m overdoing it I suppose. I have to be mindful. I’m running with 3months at -4000.00 statement balance now because of a purchase I paid of but the merchant ended up canceling the purchase and not charging me😭 and I’m feeling anxious of how it’s affecting my score now.

[@franny5295]

@@qb6570 I need to do this right now because I'm making repairs and it's expensive. I don't do it ordinarily though. Not multiply times a cycle. Could I just explain that if they call?

[@totenfreight2362]

Use some of that 315 on on a good barber 💈 that can fade a cut to the contour of your head! Also take credit shifu with u to get a good cut as he always needs one 😂

[@AskSebby]

I would, but SF is still in lock down. :( Wouldn't be surprised if barber shops are closed until 2021.

[@totenfreight2362]

Ask Sebby in that case it looks great buddy! 👌🏻

[@snr4573]

Sebby I appreciate the content, you have helped me a ton and I’m a big follower. But please tell me you meant to say Capital one and Discover are the two banks that report business cards to consumer bureaus and not Barclay’s. You are scaring me, I just picked up 2 Barclay’s biz cards

[@mythrol]

I haven't noticed any big drops in my credit score due to high utilization. I have an Amazon prime card that only has a few thousand dollars as the limit but I don't want to raise it because when I called they said they'd have to run my credit to increase the limit. I have everything on auto pay and never pay early. Som of these Covid months I've had 70-90% utilization. My score bounces around within a 5-10 point range every month but I'm still over 800 so I don't care. The biggest hit I took was about 6 months ago I opened a new card. My credit dropped about 20 points. It's climbed up about 10 points since then. I wonder if Chase doesn't report utilization if you have auto pay turned on for the entire statement balance. They don't even let you choose your payment date with auto pay. This would make sense why I haven't had any drops.

[@kevincobb7828]

Hey Sebby, thanks for the informative video. Is it better for my creditscore to always prepay everything up front or leave 1-5% of utilisation on my statement?

[@arthurr8670]

Leave a small amount. It's good to see a little action, but keyword, little. Up to 10% is the general rule. 1 to 5% is great.

[@J0SH.0]

Mine took a 40 point hit by finishing my student loan... So stupid.

[@majedulhayat4518]

It's because you no longer have that revolving acct . I know it's stupid. It happened to me when I finally paid my car loan off. I lost 36 points.

[@GrulkeLamonte]

We pay our balance daily. That way whenever they decided to snapshot our account, it will in general be low.

[@mattmorton1593]

My score dropped 33 points in the same month. My student loan accounts had been paid off 2 prior, so I thought a delayed reaction was possible. I had 1% utilization on all my other credit. I wonder if the formula changed for that reporting agency.

[@lewis20002000]

Seb, I am a little disappointed you didn't plan better or even paid that balance off within 3-5 days. How long did you take to pay it off?

[@TheDivaIsIntheDetails]

Fresh haircut. Hi Sebby!!!

[@AskSebby]

Thanks! :)

[@tommyjenkins2598]

Thank you this was helpful.

[@BertiferousRex]

Yep - I just hit 90% utilization on one card b/c I paid for a cruise (fingers crossed I get to go!) and I wanted to hit a SUB, so I signed up for the WF Amex Propel. But WF only gave me a $3k limit, so oh well one bad utilization month. -35 points.

[@austindavis7415]

Wow this is great info! I use the cash plus to pay bills and pay off before the statement date but it always reports a balance. Now I know! Thanks!

[@philipkroupa8977]

If they just would have signed up for an executive membership for $120, they would have earned $140 back and not have to carry around 7k in gift cards

[@franny5295]

I have maxed out my credit card this month. Twice. And today's the 4th. But I pay it as soon as they process the transaction. I only have a $3000.00 credit limit though so it's not hard to do.

[@amadoudiallo8129]

Good morning Ask Sebby: I have a question regarding cash withdrawal using my Amex platinum card in case I have an overpayment. Actually I received a refund from an Airline company following a trip cancellation. So, I phoned Amex to check how I could get this cash quickly. They offered only one option: sending me a check which would take many weeks to arrive. Since I needed that cash instantly, I went on to withdraw some cash at an ATM using my Amex platinum card . Got denied 2 times before the third ATM approved my cash withdrawal. I was charged a fee of 3% plus another fee from AMEX. NOW my question is: can situations like this negativity affect my credit score? For your information, I’m in Canada, but I think AMEX rules in Canada shouldn’t be that different as in the US. Looking forward to your reply. Thank you 🙏

[@julioc4978]

will the score go up by the same amount it dropped the month you pay that balance ? Great video. Cheers

[@hussmain6911]

The hair cut fits you

[@Chinese080808]

Newbie here! Statement date and closing date mean the same thing? 🤔

[@DMVyungin]

Utilization was 16% 748 cs, paid down cc balance to 5% cs dropped to 685 no bad marks...i do not understand 😕

[@carlospulpo4205]

What happens to a person who has a small income and gets a credit card, runs it up to it's limit and refuses to pay it? I know the money goes to collection, however if the person ignores the calls and letters indefinitely what can eventually happen? It appears they cannot do anything if the balance is only a couple thousand? Remember we are talking a person who makes part time minimum wage and got in debt with the first card and doesn't own any assets like a car or house.

[@james-p]

Barclays sued me over a lousy 1200 bucks. Had they won the suit (they didn't) or had I simply ignored the summons and not responded to the suit (I didn't) they would have obtained a judgement for the $1200 plus court costs and then garnished my wages. If I didn't have a job at the time, the judgement would just sit there, waiting until I ever tried to apply for credit again or get another job. Judgements don't expire. So, the person would essentially be screwed.

[@JacksonWelch]

I pay my card off multiple times a month, is there any problem to doing this?

[@james-p]

A lot of people do that so it's not likely a problem. But you don't need to. I just pay the whole balance down to zero before the statement date - in one payment. I'll leave a few dollars on 2-3 of my cards just to show they are getting used though. What you do _not_ want to do is make multiple payments in order to spend more than your credit limit in one month. For example, spending and paying off $1,500/week on a card with a $5K credit limit would put you at $6K for the month - and they might shut you down for that.

[@iiltoxic]

Nope, I do the same thing. The credit card companies hate it because they aren’t earning interest off of people like us, but it’s not against their terms.

[@ezioaltairac]

Experian is finicky when it comes to a 0% utilization, but Equifax loves it for some reason.

[@Thafashionshow]

Nope

[@joemontero725]

@@james-p great answer James thanks

[@jasonshowalter5446]

Great video but credit karma is way off from your fico score

[@micco6020]

Wait. I missed how much his score dropped

[@lillians.4384]

Me too

[@PokeCommunity1]

You read my mind! I was just worrying about my usage and now I’m even more worried! 😅 hopefully I can pay mine off before statement closing lol.

[@AskSebby]

Glad to help :) I feel like a lot of people are thinking about this right now.

[@g.p.5018]

My credit score is very important to me so very careful of low utilization rate/balance if any

[@CedricBeasley]

Thanks for this video! I learned a lot about US Bank--I have one of their cards and thinking about getting another. So to be clear, , they report on the very last day of each month or the last in common date like the 28th of every month?

[@AskSebby]

Last business day. You might want to pay it down before that just to de-risk.

[@CedricBeasley]

@@AskSebby Thanks for getting back to me... What benefit do you think they get for doing it like that when none of the other banks do?

[@SolidLiquidFox]

Sebby about to go super saiyan with that haircut

[@AskSebby]

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