Is Credit Utilization Per Card or Total? | Overall utilization across all credit cards or each card?

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#creditcards #creditutilization

[@ProudMoney]

You can support our channel by choosing your next credit card via one of the links below (in other words, we make money if you get approved): [Click "Read More" for Advertiser Disclosure] . - CardMatch™: rebrand.ly/p70ubk - Cash Back Credit Cards: rebrand.ly/8tz84x - Travel Rewards Credit Cards: rebrand.ly/27jk4y - Credit Cards For Good Credit: rebrand.ly/yi47oz - Credit Cards for Fair Credit: rebrand.ly/956h4w - Or, use our Amazon.com link: amzn.to/2PpQWoB . ADVERTISER DISCLOSURE: Unless otherwise noted, this channel receives compensation from our partner sites when you click through and are approved for a credit card through the links you see above. Compensation may impact how and where we place these links. While we try to include information on a wide variety of financial companies and products in our videos, we definitely can't guarantee that we've included every company or every available offer. NOTE: Credit card information in this video is not guaranteed; we have attempted to confirm all information to the best of our ability but we could simply be wrong or the information could be outdated by the time you watch this video. We are doing our best here, but check our work!

[@shay9993]

The answer is it can be both ways.

[@davewhite756]

Shay spoiler alert

[@ZoomerAdvice]

You really have a video for everything I need. Subbed.

[@vevenaneathna]

subscribed coz youre asking the right questions instead of goin with the flow like everyone else

[@mitchell.9632]

Nice to know you share (and utilize) some of the forums.

[@e_class1467]

I'll make it very simple for you!. Pay off mostly everything before the statement closes, just leave 1% of your total credit line, before it closes. This is going to be your total credit utilization. The statement will close at 1% .. the credit card company will take a snapshot of the 1% credit utilization, and they will send it out to the 3 credit bureau's.. Don't pay it off completely before the statement closes because your credit utilization will be at 0 and there will be no snap shot to send to the 3 bureau's and your score will drop. Then you will have 3 weeks to pay that 1% this is going to be your due date. Good luck!

[@altonbailey9702]

But they send the bureaus a snapshot of your 0 percent utilization.

[@e_class1467]

@@altonbailey9702 Exactly

[@altonbailey9702]

@@e_class1467 I did more research and I understand what you mean now. Hat's off

[@jamesd493]

I never knew it was a combination of both. Thank you for sharing.

[@wcdx1981]

I was hoping it was overall :\ instead of per card.

[@cxmais]

both matters - I have saved you 10 minutes

[@cross8215]

Yep. Keep it one percent or less for each card and one percent or less for all cards balances combined.

[@MUCHTHRE3]

Learned this the hard way both matter

[@jmb9377]

@cxmais oh, did you get confused and think you were doing a google search instead of playing a 10 minute video

[@Muzicboy3]

Just what I needed to know. Thank you so much!

[@williamvessel6924]

You’re the best credit card advisor on KZbin 🙏

[@ProudMoney]

Thank you!

[@stephenp2585]

Always great videos, thank you!

[@deborahanderson4211]

Hi there, thanks for this video!

[@blkbeauti05]

So informative. Thank you!

[@kingsboy1828]

great video. thanks

[@reneecopeland1095]

Thank you very much!

[@Futurevisiom]

As always super informative 👍 Ty

[@albertcastro409]

Good review thank you

[@gilloera8912]

Great info Adam! Mr gil

[@lisaw7633]

Great info. It's all a pain in the - - -

[@infantrycaptain9224]

Adam,your credit analysis is first rate. That FNBO EVERGREEN VISA is fantastic.

[@artofbusiness7593]

@PM / Great video. Explained accurately, and with surgical precision.

[@hugomendez5625]

Great content

[@lonestarstate9220]

Omg thank you

[@ProudMoney]

You're very welcome.

[@MikeBDaniels-bv8io]

One good reason to use just that one card, in the case of carrying a balance from to month, is if that one card has an interest free offer for a year. Sure, better to pay off everything every month but you if you got a big expense of some kind that isn’t so easy to pay off right away, well at least you won’t pay interest on it, can try to pay it off in a year.

[@mdog9161]

The credit pimp this guy is helpful.

[@rickycampos4770]

That's correct I think should keep under 6 % utilization

[@MisterMultiplayer]

I always understood "Balance" as how much is left on the card. I guess In the case of credit, it seems to be how much is used/owed. That unfortunately causes confusion for somebody who doesn't know about credit or is starting off fresh.

[@CaseyBurnsInvesting]

Both!

[@bobedaone]

Hi, Adam! Love your videos and appreciate your advice! I find the content valuable even for someone like me with reasonable knowledge and scores mostly in the upper 700s/low 800s. (The struggle to get all three over 800 I’ve discovered to be quite real) Not sure if this question has come up previously with respect to utilization, but how do Amex charge cards factor in? I have a number of cards, most of which report limits. However, the overwhelming majority of my spending each month goes on my Gold and Platinum cards. Those balances certainly get reported, but the denominator of total credit seems to be the sum of the other cards, so I’m curious if there is guidance regarding how to use charge cards in this context.

[@soda8010]

I just got 5 credit cards within this month. Thinking about putting a bill on each one card and keeping the utilization low on each card. I’m more focused on the statement due date

[@LuisRivera-iu6de]

Wow, congrats! What's your score?

[@eyevincast5440]

To sum it up use all your players 💳 but use them responsibly and reasonably

[@johnnybbop1]

Both

[@dcsconsumerreviews1632]

both. but different

[@thesurvivalist.]

It causes a problem when you do balance transfers, you're paying less because of a no fee transfes, but your score tanks, because you want to save money!

[@thesurvivalist.]

@@CheekyBird790 Discover allows up to 90%

[@davedimattei8988]

don't go over 10% on each card...it's that simple

[@mikek.9980]

How?? Most of the people are at 50%!

[@saidkulovs]

Can you please comment about new chase bonvoy card promotion.

[@wthomp148]

So, if you make a large purchase break up your payment over four cards. 😆

[@MJYouAreNotAlone1]

This is absolutely not the case for us. I have one credit card that I use and I do velocity banking. I use like 80% utilization on that one card all of the other ones have a zero balance. But monthly that balance comes down tremendously, and then I reuse it. I have zero interest card that I do this with and we just ask for an increase and they increased at $3000. We are only using 15% of our total credit available. Our credit score is 783.🙏❤️

[@TheDivaIsIntheDetails]

I just keep all my cards reporting below 8.9% when the statement hits and pay it all off by the end of the month. I charge whatever is in my budget and distribute payments over my cards each pay period so I end up paying on each credit card twice per month.

[@tblub.9270]

Have you seen positive results from this process?

[@TheDivaIsIntheDetails]

@@tblub.9270 hi, yes. My credit score used to be in the low to middle 700s prior to learning about keeping my individual card and total utilization well below 10% at the time each card reports to the bureau and I have seen a significant increase over the past year of zeroing in on that utilization. If you have no late payments in your history, utilization has the next greatest impact on your score if you are trying to increase that FICO score.

[@kimberlyandre7899]

Question, is credit utilization added into the total if a closed card has a balance. My Wayfair card was closed when they switched over to Citi Bank, deff lowered my available limit but Im not sure about the utilization.

[@tonymouannes]

The main issue with the individual account utilization is if you have a credit card with a very low limit and ends up getting a high utilization without spending much on it.

[@andreclark2472]

U have to pay it down before your billing cycle ends.

[@TheForteGt]

But what about if your other card doesn't report utilization?

[@richardvacanti4265]

I think that being punished by lowering your credit score because you may use 70% of you’re available credit on your credit cards is ridiculous. If you are approved for a car loan for 25,000 before you go and pick out your car. And a lot of times that happens you apply they tell you how much you can use for a car and then you go find one. But you are not punished for using 24,000 out of 25,000. Why in The world would your credit score be lowered if you have a $10,000 credit card and put $8000 on it. All that should matter is if you make your payment on time every month. Being punished or lowering your credit score because you use 70 or 80% of your credit card in my opinion it’s just bullshit. I really like your channel keep the great videos coming

[@bobtackleberry9861]

Balances on multiple cards have a negative impact

[@clippdiaz7015]

I used 1% utilization reported each 6 Credit cards...

[@tyrusch]

Then when you start to factor in AZEO you really gotta stay on top of things

[@SummDude168]

Sure, but that’s really only necessary if you’re planning an upcoming credit application. Utilization has no memory, so you can shape it to your liking within one month of preparation.

[@faridr3134]

Hi. I'd like to challenge you with a question. you are saying credit bureau can not tell what kind of transactions you put on your credit cards and whatever balance is reported is what effects the Utilization rate and ultimately the credit score . if 0 balance is reported to the credit bureau, your credit utilization is 0 (or lets say 1) percent and you should get a perfect score in this part. OK, based on this, let's say I have 3 credit cards and each on has 10,000 limit. statement date for CC1 is 1st of the month, CC2 is the 10th and CC3 is 25th of the month. if I let CC1 balance to be reported with 0 to 1 percent balance, and 3 days later cash advance the 10,000 and pay my CC2 so it would also be reported as 0 to 1 percent utilization and repeating the same for the 3rd one. basically I only have 10k available and owe 20k, but based on what you say, I should be getting a perfect score because my utilization is 0 to 1 percent each month. but IT DOES NOT. I did it once, and NOPE. even with showing 0 to 1 percent Credit Utilization, somehow credit bureau knows there was a cash advance. how do you explain this? thanks

[@coo3disk1]

How does this affect your ability to get a new credit card?

[@CharlesINTEL]

Many say 10% or less and a few others state 1% or less is optimal. Any confirmed sources?

[@SuperBizalz]

5:41 - 6:45 - Yeah, I doubt they’re looking at the psychology of the matter in that way. Maybe they’re looking at other numbers that just happen to conocida when that psychology, but I don’t think they’re breaking it down like that. Lol!

[@tajerasmith31]

15 credit cards wow!!!and I'm here Afraid of even getting two credits cards.

[@Dirtyboxer1]

My dad used to say that credit is only offered to people who don't need it and won't use it. Once you get your credit score up, protect it with more vigilance than you do your family. Families are replaceable, but once your score dips for any reason, you're screwed forever. It's harsh, but unfortunately we live in a world where our worth and value as human beings is nothing more than a number. If you have a high number, then you're a worthwhile, "good" person worthy of being a member of society. If you have a low number, then you're a "bad", unworthy person.

[@mdblue7623]

Having a credit card that you can use 10% 20%, 30% if I can't Max it out I don't need it I'll just save my money up and buy what I want

[@Mr8675309ful]

You can max it out, just pay it down or pay it off before the statement date.

[@delanabmanning]

Rick Staheli exactly Rick! I max my cards out every month and my utilization stays between 0-1% utilization. Because I pay my total balance off every month on the due date and then wait until the statement day clears to start reusing the card again.

[@tblub.9270]

@@delanabmanning so if your statement due date is on the 1st and the the day the card post to the bureaus is the 4th, you would pay off balances before the 1st or the 4th? I’m just trying to understand.

[@rickyo8145]

The use of the one card may be on just the purchase of one item. i.e. a new riding lawn mower.

[@joshuastump2327]

I dropped 40 points when I went from 1% to 38% on one card, $2400 on a $6000 limit card. $86,400 total available credit.

[@qn5947]

Buy a high price item like an appliance and then pay 95% off before the statement date to keep utili down. This applies to those with total credit of 10k or less. Those with total credit of 50k+ should not worry about this problem at all. So get yourself to the 50k club and sleep well at night.

[@technerdgaming9259]

So I have 3 cards I use 10% on each so I'm using 30% overall?? Should I use all 3 a month? Just one? 2? I'm trying to build a score fast what do i do?

[@JoelElias2_1]

so what happens to the credit cards that have zero usage?

[@T.JAY.DEE.]

You don't benefit from it. You need to always have a small charge for your statement if you want them to see you actually use it and pay it back.

[@Cedib_]

Does this count for lines of credit

[@rlgwoody8966]

Thanks for the helpful discussion. A question for you. Wouldn’t requesting a limit increase impact my credit, as some finance companies may run a hard credit inquiry? I’d appreciate your thoughts. Thanks again.

[@ProudMoney]

It could, yes, but it might be worth it in the long run. Some only do a soft inquiry, though, depends on the lender.

[@rlgwoody8966]

Thanks for the prompt and insightful response.

[@Fil0girl]

if you have Capital One, I know for experience they do a soft inquiry. That's if they haven't already done their periodic account review. I've requested CLI from them and never gotten a hard pull.

[@rlgwoody8966]

@Fil0girl, Thank you, I currently have two heavily-utilized Cap One accounts with high limits and low balances (pay them off before each statement closing). So I’m wondering if asking for a CLI will prompt Cap One to question my motives, prompting a hard inquiry. Buying a new car in a month so I’d like to keep my inquiries low. Maybe I’ll wait aware before asking. Thanks for sharing your experience.

[@Fil0girl]

@@rlgwoody8966 never a guarantee, but I've been through it several times and no hard pull. they ask you why you want it on the form, though.

[@garrymyers8459]

I lost 16 pts for putting 450 on a 500 dollar threw out the month then paying it at the very end carrie no balance and still lose 16 pts. 6 total acc. 2 year hist

[@richardujadughele6329]

One thing that I've always wondered, is the utilization portion of your credit score a historical trend or a month to month snapshot? If you have a 5% utilization in January and raise it to 60% in February, your credit score will take a beating. But if you drop it back to 5% in March, with all other things being equal (no new accounts open, no new hard inquiries), will your credit score return to where it was in January (indicating that it is a snapshot, and previous months' utilizations aren't counted)? Or will it be lower that what you had in January (indicating that the high utilization in February has a negative effect on your score for a foreseeable future)?

[@SOZO_xo]

That’s a good question. I wonder myself. I did see that in January 2021 that FICO 10 will be released and it will show a 2 years snapshot. So if someone pulls your credit right now they will only see your current score but with the new version they will be able to see your credit scores for the last two years.

[@optimoefpv2302]

Kate67XO will be? That was 8 months ago lol

[@optimoefpv2302]

I actually did this and yes the scores go back to what they were, what I’m not sure about is how creditors see that when reviewing your file when it’s not an instant approval. I was at 765 eq fico 8(using eq because all my accounts report there), took my lowest card from 3% to 83% score dropped to 713, paid it the next month back down to 3% and score went back to 766 and no action on any other card

[@SOZO_xo]

Maurice Clark - correction...January 2021. 🤗

[@SummDude168]

Utilization has no memory, so it is entirely a month-to-month snapshot. Literally just today my score went up 16 points from where it was yesterday, just because my total utilization went from 16% to 5%.

[@critter777]

What if you use a card but pay it off before your statement date? For example if I charge 90% of my limit but pay it off same day. I literally did charge more than 30 percent, but 0% on statement date.

[@boilbag8949]

This is exactly what I want to know

[@Eric-sq2to]

That is ok.

[@catdaddio8875]

You’re good.

[@MrKasnif]

I know this an old video but I hope I can get an answer to this question? How does utilization rate work with authorized users? If two people share the same same card can they both utilize 10% or must it be split between the both of at 5% each?

[@moejoe7677]

one card account, it'd be one utilization that would effect all parties even AU's.

[@jollyranch1026]

Yes iy is split

[@dannytorrez1800]

if my credit utilization is under 10% how long do should I have that card before I ask for a credit limit increase

[@FahmeedRokon]

6 months to 1 year depending on your credit score

[@rpowell5194]

😂 This sounds like they making shit up as they go along smh

[@nicholasdean3467]

Why are people saying both in the comments because if you keep it below 10% on all cards then it will be under 10% total credit.

[@KufLMAO]

that doesn’t take into account any installment loans tho

[@huhsnare]

I paid all of my cards off in full and my score went up. Then found your video about keeping it no more than 10%. So I let one of my cards report at 8% and my score dropped. Any idea why?

[@michaelharrison6547]

Probably because of the 8%, 1% to zero is better for your score

[@hairbarber-ology]

Yeah 😂 right these gurus

[@jnnkmm]

Why is my credit utilization so high when I never ever missed a payment, and I always paid the full outstanding balance, not minimum??

[@Nepthu]

Credit utilization is based on what percent of your overall credit allowance do you use each month. If you pay it off early, before the due date, it will look better on your credit report.

[@jnnkmm]

@@Nepthu ohh thanks!!

[@frankpodesta8048]

I have had this bizarre issue arise. I have over $70k of available credit. I pay all my cards down to $0 before the statement date. That said, recently, my wife posted $1350/$1400 on one of her cards that I am an AU on. It tanked my credit briefly.

[@johnny-hustler1669]

Do u mind if I ask how many points were taken off?

[@moe_flow5794]

Please answer is it better to keep at 0%

[@amelliamendel2227]

I have 1 card with $1000 limit with no cash back and a card with a $500 limit (just starting). I use the cashback card for everything and I've even maxed it out a few times. Do I just get more cards?

[@zzygyy]

Yes. Slowly overtime each year.

[@michaelharrison6547]

Yes. You need more cards but know how to manage them and keep your inquiries to 3 or under per bureau

[@hairbarber-ology]

They want you to get more debt so go and get more credit cards, crazy game but that's how it works so eventually you need more credit cards

[@amelliamendel2227]

The average is 8 credit cards, that's nuts

[@jollyranch1026]

Yes

[@artemt777]

Hello. I have a question. My available credit limit is 10000, starting balance at the beginning of the period is 0. I make a one-time purchase for 5000, immediately pay off 4000 of the debt and at the end of the period I receive a statement with a balance at the end of the period of 1000. Is my credit utilization ratio in this case 50% or 10%?

[@F50Aircraft]

For your situation - its 10% because your total credit amount that can be used is $10,000 (one card or more then one card). You have $1,000 remaining to be paid = $1,000 on a $10,000 credit limit is 10%

[@skiidzman]

@@F50Aircraft If using his same scenario above, if I have a credit card with a limit of $10,000, and I put $1431 on said card but have it on autopay, will my credit card utilization always be 0% since I paid it off? Or does it count the fact that I put $1431 on the card in general and for that month I would have 14.31% utilization? I just want to use this 1.75% cash back on all purchases man but I am scared it'll ping me lol

[@F50Aircraft]

@@skiidzman yep

[@Eric-sq2to]

10%

[@Gospeed777]

I've herd you should pay 95 percent by the statement date then the other 5 by the min day so that the credit utilization is reported. Thoughts?

[@SpencerP96]

No it's still reported even if it's 0%. 0% is the best you can aim for.

[@WollisWorld]

I was told never follow the herd

[@GraceofGod1121]

@@SpencerP96 0%, no. 1%, best. You do want to show a balance even if tiny.

[@KevinPerez-fd9xq]

Show 1% on your bill and pay it off right away. 🏆

[@mteevie1609]

You want to use the one with the lowest interest and offer the best benefit. it shouldn't matter each which card. Their idea isn't realistic. Why would you want to use a 22% credit card and offer no cash back.

[@wcdx1981]

i just put a large charge on a 0 APR card, but it is going to push my utilization to 88%. All my other cards are around 6% and below. I'm sure i'll take a hit, but i'll be able to drop it back down in a few months and not have to pay any interest on it. Seems like a worthy trade off.

[@gilloera8912]

I used my credit cards but within the limits. I used about half of the limits. My score went down a whopping 35 points! That happened last week. I paid off all credit cards and have zero balance. Will score go up quickly?

[@Bugzthestar]

Did your scores go up after paying down to a $0 balance, ..? I’m thinking about doing that as well .

[@terryjames5552]

It goes down faster than it goes up. 😂

[@toboekey]

Theres a credit cycle every 7 days your credit report will reset to your new updated score

[@ohhclipz7743]

Let say my card has a 500 dollar limit. Within the month I use it on gas and food and Max it out but I pay it off in full by my due date. Is that bad?

[@cnelly749]

Yes that’s bad. When it gets reported it’ll show you have “no revolving credit utilization” since you pay it to 0. You wanna carry a small amount to your statement date that way the company knows you are actually using it!

[@maximorumba]

You want to pay off the majority (not everything) by the STATEMENT CLOSING DATE. That's when the balance gets reported to the credit bureaus.

[@roadrunner40]

Yes that is bad. By the time the due date comes around the usage and balance has already been reported to the credit bureau. You must pay $450 before the closing date. Then 10% usage and $50 balance will be reported to the credit bureau. Your due date will be 28 to 31 days later. Even if you use your card after the closing date your balance on your due date will still be $50. Pay the $50 to avoid interest. I believe this is the correct answer to your inquiry.

[@jollyranch1026]

Very bad

[@skiidzman]

@@cnelly749 Wouldn't you have to pay interest on the balance held, then? If he has $500 but pays $490 and lets the $10 slide, he would end up having to pay interest right >.

[@moe_flow5794]

Is it better to keep my utilization rate at 0%? Or should I have at least 1% to show that I'm using my card. Although I am still using it on both occasions, the second option i would just pay 99% instead of the whole amount

[@killacam139]

U don't want 0% util

[@WeBeatMedicare6969]

I leave 1% on all my 4 CC…when I paid them all off to 0% balance at close date my score went down..so dumb

[@seangardner1186]

Lately I’ve been in a category 2 situation with one of my cards. But does it matter as much if I’m completely paying them off every month (sometimes paying them off 2-3 times. A month)? They always report at 0.

[@SummDude168]

As long as you pay off the full balance before the report date, it will report as $0.

[@terilphelps1122]

Is there anyway you can raise your FICO BANKCARD SCORE?

[@thesurvivalist.]

Paying down the debt does that! And getting your average age up, get someone with good credit to put you on as a authorized user!

[@TVLuxuryLife]

What if you pay off your card before the end of the month ? I’m confused my limit was 200$ I spent 154$ but paid it off like 3 days later for some odd reason I got 0 utilization

[@loyalpatriot9747]

Best advice... In that example, pay down the majority of the card and leave maybe $10.00. Let your statement CLOSE with $10 remaining, which you pay PRIOR to the Due date... $10 of $200 = 5% utilization. Most banks report balances to the credit bureaus at that time, which it could take maybe 7 days to reflect on your score. Your utilization is calculated based on the reported balance when your billing cycle ENDS each month. NOTE: If you pay off your acct BEFORE your billing cycle end date each month, it will show 0% utilization, which doesn't help you because it looks like you're not using your credit. Let you bill cycle end with small amounts. Since you will be paying these small amounts off when the statement comes in, you won't have any interest either. Hope this helps

[@elowezye3467]

@@loyalpatriot9747 you my friend are a boss, that was the question I had and came looking for on KZbin, thank you!

[@michaelharrison6547]

Zero utilization is what you want so you don't pay interest. Pay in full by report date so that you don't pay interest

[@loyalpatriot9747]

@@michaelharrison6547 That is not correct. Credit bureaus like to see utilization, and will report more positive with small utilization percentage (1%-9%), then they would with 0%. In fact, if they see 0%, that doesn't give them any info on how well you handle credit. It looks like you just put the card in the sock drawer. It could hurt your score some

[@michaelharrison6547]

@@loyalpatriot9747 you are not correct, you are mislead. You don't have to have utilization to get a goid credit score. However a very small % won't hurt. My advice is through experience not assumption

[@allisbookishadventures8260]

Hey Adam, I have an amazon prime Visa card with $2500 limit, freedom flex with a $2300 limit, quicksilver with $2500 and discover with $1000 limit. I pay my bill for each card multiple times every month to make sure the utilization isn’t high, but how long should I wait to call discover and ask them to increase my limit? Also - I product changed into the freedom flex from the freedom and in the chase app I’m not seeing an option to pay the bill anywhere. What am I missing? When I had the freedom i could pay it directly from the app

[@joshuastump2327]

Also one of my FICO scores changed there algorithm to 40% on one of the five ingredients.

[@ProudMoney]

What do you mean by changed the algorithm?

[@joshuastump2327]

@@ProudMoney on Chases credit journey they now use payment history as 40% instead of 35% on impact level. Unless I'm mistaken that changed recently.

[@justinredman4389]

@@joshuastump2327 Chase Credit Journey doesn't use FICO, it uses Vantage Score 3.0. Its a different risk assessment model. Pretty much garbage as lenders mostly use FICO model. Vantage Score models show an "artificially" higher score than FICO

[@coo3disk1]

So, how high can your highest card be then to be considered good?

[@moejoe7677]

if I sock drawer 4 cards for the rest of the year, how much charge should I place on them so they don't close? and what bare min frequency should I use them for the rest of the year without them closing out on me sir?

[@nataa_hopkins]

Use 2% of each one every other month so they don't close your cc

[@bearbear4030]

I’m freaking out because I had to use my $3000 discover card for a $1000 car repair

[@bearbear4030]

Boss Bogan hey, thank you for responding. I went from a 428 FICO to 706 in 6 months. I boosted pretty quick. My utilization dropped because Comenity pulled out from Wayfair and they closed all accounts associated with them 🤨 I normally pay off my cards monthly but left that balance alone and I’m paying minimum payments for payment history longevity. I took a 17 point FICO hit applying for a pre-approved capital one card. Now this $1000 repair came and didn’t know if I should pay off Comenity or just keep it like it is for now. I’m at the beginning of my billing cycle so, I’d like to pay this down before interest hits that balance. What’s the best thing to do here? Does payment on accounts that were closed still aid your payment history? Or is it a hindering factor?

[@DarknessFalls29]

Start an emergency fund so you won't have to freak out about your credit score when a situation like this arises. It took quite a few "emergencies" for me to learn that lesson.

[@bearbear4030]

DarknessFalls29 I’m doing this now again. I had an emergency fund...COVID and my lay-off ate through it quick. Thank you for your response.

[@DarknessFalls29]

@@bearbear4030 Eeek! I'm sorry you had to go through that. I hope you can get back on track and save even more. Keep at it.

[@bearbear4030]

DarknessFalls29 it’s tough, I only get $173.00 a week unemployment 😬

[@thesurvivalist.]

34 cards Utilization under 2% for each card!

[@richardvacanti4265]

What are you supposed to do if you buy tires for your car and they’re $1500 and say you have 4 credit cards that are 2000 each . Charge one tire on each card . Because in essence that is what they are telling us to do how stupid. And why is our auto Insurance partially based on our credit. So if I miss a credit card payment it means I’m going to go through a stop sign or get into an accident. At one time in my life I had absolutely the worst credit in the world. But I am one of the best drivers out there in my Opinion. No Speeding tickets in the last 20 to 25 years. And the same with excellence. And no claims in that amount of time at all so what gives . Very poor And unfair system. Basically made for people who are higher up in the earnings bracket. Because if you look at it most of the time people that are poor have poor credit. Those those are the people that need the help the most but that’s punish them.

[@shawnlee664]

It's a system set up to control people. It has nothing to do with measuring a person's ability to repay a debt.

[@shawnlee664]

I discovered the conspiracy when I became aware that just adding yourself as an authorized user to a good credit account will raise your credit score! Doing nothing but add oneself! Conspiracy i tell you.

[@mitsospiros]

If you buy tires that use up most of your utilization, pay it off as soon as it posts so it won’t show up on your credit report.

[@richardvacanti4265]

@@mitsospiros I understand that. But if I could pay it off Fast enough so it won’t show up on my credit card is only worth 30 to 45 days. Well if I could get that amount of money in that short of time I wouldn’t even bother using my credit card then

[@bennyschapero2049]

Hello, I'm rebuilding my credit, I just got a Capital One Quicksilver card with a $300 limit. Can I use all of it and just pay it off every month without hurting my credit?

[@zoulkarneinbagagnan3995]

No I have the same and I spent around 90 dollars which is the 30% limit and pay them 45 dollars 15 days before the due date and 45 dollars 3 days before the due date. Doing this made my credit score go up this month

[@catdaddio8875]

Lol. You can max it out. Just make sure you pay it down to 1%-10% before closing/statement date, then fully pay it off shortly after it’s been reported to the bureaus.

[@dewey563]

Hi just make sure your statement closing amount is less than 10%. So pay in full by the payment due date, and if you use it make sure the statement closing date is less than 10% for best results.

[@SenorDennis]

None of this should matter.. if you can’t pay your card down to 20% before the statement date then cut your card up and go back to using debit cards.

[@thesurvivalist.]

It does matter because your losing points for holding a debt too.

[@smiley0407]

I have a question for the community. I have a 2% cash back card with a limit of only $500 I'm rebuilding. If I use it and pay it every week. Can I use more than the 30% rule if I have it below it every month when it reports or could I still hurt my credit that way. I want to keep building but I would like to get that 2% back on more purchases

[@thebluecat343]

You can max the card out, just make sure you pay off 350$ of it before your statements end so it reports 30% utilization. Only what you owe at the end of the month goes to creditors.

[@adrianramirez5104]

@@thebluecat343 so far example if i have a $1500 limit and i purchase something that is $1200 will my credit be okay if i pay off $850 of it before my statement ends

[@artemt777]

@@adrianramirez5104 Have the same question. Did you find the answer?

[@jesusismysavior844]

So they'll lend you the money but they don't want you using most of it 😂 even if you pay for it in full 🤡

[@thineshmahandran]

Yeah makes no sense

[@ammooth1592]

Thank you for reminding me proud money. Let me call bank of america, for a credit increase ✔

[@terilphelps1122]

Apple Card made a mistake reporting my card utilization increase from 29% to 59% which brought my down 727=714 TransUnion 700 =690 Experian. Should I dispute? Or should I just wait till my next report?

[@joeycarrino2529]

It will fix it's self next report

[@AP.Production]

Pay it off in full each month

[@kevinfogarty5081]

Personally, I don’t understand why people have so many credit cards! I have one American Express card, and one Visa card. Why do I need more cards than that? Wtf?? 😂 Okay...one amendment...I do have one Capital One MasterCard that I NEVER use, but who the cat shit wants to do business with capital one anyway ? 🤣🤣

[@moejoe7677]

don't judge us for having multiple credit cards and we won't judge you for having a crapital one card? 🤣🤣 jk

[@michaelharrison6547]

It's called being able to manage more than one card/account. Anyone can manage 1 card and creditors like to see if you can handle multiple accounts when making a decision on extending credit to a customer

[@patrickwilson4902]

CAPITAL ONE PLATINUM HASN'T BEEN GOOD TO ME..THAY SAY I'M DOING EVERY GREAT. BUT, THAY DON'T DO ANYTHING FOR ME. I'VE BEEN WITH THEM FOR ABOUT ONE YEAR. I KNOW WHAT YOU MEAN 😏

[@michaelharrison6547]

@@patrickwilson4902 hang in there. You're still kinda new

[@DigitalDestiny]

Credit card companies are evil. Utilization was under 25%, then summer 2020 came around and companies started randomly closing accounts that weren't really active. $8k card account closed here. $5k card account there. Through no fault of my own, these companies cut my available credit by $14k, raising my utilization to 35% and tanking my score.

[@DarknessFalls29]

@LadyVix The same thing happened to me at the beginning if the year just before COVID-19 was a problem. They cut me down because they were minding my business with my other creditors. Smh

[@thesurvivalist.]

In any sport you play by their rules, but people who want to borrowing without rules in up in massive debt, and a poor credit history! I do not like it either, I had cards and lines of credit cut by, $7000 and by $49,000, my score tanked twice when they did that! I put a dollar on every card account every 3 months, just too keep them active!

[@SKush182]

Just put a automatic bill on every card

[@Nemo2807]

Question. If I have a 2700 limit and I make a 1500 purchase but pay it off within 4 days completly will my score be hurt?

[@hairbarber-ology]

Mo no it want actually that's very good.

[@Nemo2807]

@@hairbarber-ology ok thank you. i take it i have to leave it there for a while

[@AM-bi1bu]

From all my research, instead of paying it all off ($1,500) within 4 days of purchase, rather pay it down to about 2% utilization BEFORE you statement END date. Then pay that 2% off (in full) a couple of days BEFORE your DUE date...cheers!

[@jollyranch1026]

Yes it will hurt.

[@garbygarb31]

Per card is literally the same thing as overall lmao

[@WeBeatMedicare6969]

Wrong

[@dahenry8888]

Sorry..That's BS. They really don't want anybody to know anything.. smh

[@netaverse7694]

Wym

[@DoorDashers791]

Shouldn't have any at all the bible says the borrower is slave to the lender..yes its debt not credit

[@jmedia1660]

How'd this Dave Ramsey follower get here?!

[@DoorDashers791]

@@jmedia1660 the Bible is not Dave Ramsey that's the problem too many people have no interest in the Bible but they have interest in hell

[@DoorDashers791]

Yes there will be a judgment day and it happens a hundred years from now you will notice

[@qb6570]

@@DoorDashers791 🥱