Should I Carry a Small Credit Card Balance to Build Credit? (Leaving Balance for Credit Utilization?

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[@jpknowledge8852]

Answer: No! Don't give the banks anymore money. I've had so many people tell me they do this to build their credit and I tell them stop! I have a 800+ credit score and never given the banks extra money. Save your money people. Save your money!

[@grc5618]

Something else to note: Any score that is 760 or higher is the same. Someone with a score of 760 will get the same rates and credit power as somebody with a score of 850. In other words, just maintain a score above 760 and be happy. Those shooting for 800+ are looking for bragging rights....nothing more.

[@andyraphael]

Great to know I'm at 720 right now working to get to that 760 you think I can achieve that in 2 months with good utilization rate

[@mitchellmullins6650]

Is it 760 or 761?Not that it matters. But at the moment I have to shoot for 600.If I hit 600 I`ll have bragging rights in S.E. Kentucky!

[@warfare112593]

@@andyraphael definitely not in 2 months. But it is obtainable.

[@robertswift6101]

mine is 764 and i want 800 lolol

[@helenayoung4064]

Exactly

[@cdpglam8895]

Thank you all for your replies. I did what you all recommended and have noticed my score changed already. At first, I would pay my cards off in full to a 0 balance and not touch the cards until after the report date. Well, this time in my highest cc, I left a balance of $275 and it was 1% credit utilization. Thanks everyone. I’m new to high end cc which is why I subscribed to this channel.

[@zacharywightman4798]

So you have two dates to worry about 1- Statement closing date 2- Due date You will want to keep your balance due at no more than 30%, or at 10% usage if you can swing it. This shows the creditor that you are controlling what your spending. If you have to go over 30% for what ever reason, make sure you make a payment before the statement closing date to have your balance reflect no more than 30%.usage. The statement closing date, is the date you receive your due date/bill. Then on your due date pay all of, if not as much as you can, of the balance. This will increase your credit score.

[@dispassionateobserver]

One thing.......Last month I paid all 6 of my cards down to zero and Experian penalized me 18 points. I left a little balance (1%) on one card this month and got the points back.

[@racewiththefalcons1]

Ideally, you want 1% utilization (not zero). To get that, pay every charge _before_ your bill comes in, except for one. Let that report until your bill comes in, then pay the bill in full. Do not *ever* pay interest. That is stupid.

[@zlistcelebrityYT]

Simple. 1. Find out your report date 2. Make sure you have a small balance on that report date. That is the date the issuer reports to the bureaus. 3. Pay your balance in full before your due date. Problem is most people don’t know report dates vs due dates and they give dumb ass advice about “leaving a balance.”

[@p51mustang24]

Problem is most CC companies won’t tell you the exact report date, since then everyone would be gaming it, and that doesn’t help them make money. So just paying it down to 10% as you go, and in full when due, is the best bet I think. Was concerned about this having a card with a tiny $500 limit, despite the fact that I have normal adult expenses. Have been debt and credit free for my whole life, so I never built up my score enough to get a more reasonable limit. Then I realized I was missing out on things like 2% cash back on every expense I had ever debited.

[@GrimyNaimese]

@@p51mustang24 do it 2 days after the due date to be on the safe side or 1 day

[@kimoni6]

@@GrimyNaimese some of them report to the bureaus before the due date. It's better to pay way before due date.

[@j0epark1]

How about just make multiple payments throughout the month and just make sure the statement balance is fully paid off

[@lili9648]

All of my cc companies say we don’t know and on top of that they say we report once per month

[@wthomp148]

Credit scoring is a game. 🙄 it’s like I have to think about it all the time. I have to be conscious of what card to use for every purchase.

[@onlyyours2411]

Right have to remember statement close dates and due dates for all cards

[@kimoni6]

@@onlyyours2411 I found that out a month ago and I Started paying most of my card down before the closing date.

[@justinstansberry7555]

@@kimoni6 thats what screwd me, had a card over two years showed only like two payments, cause I'd pay it off everyone I made a purchase.

[@mitchellmullins6650]

I`m in the same game. Have to keep track of what card I used. Keep utilization low, Pain in the Butt, But if ya gotta, then ya gotta

[@chiefexecutive]

Yep it’s a lifestyle for sure !

[@Blah678]

I have 115K in credit I stay around 3% utilization. Keeps my score great. No car payment. I built it up to that number to leverage later. I worked up from a 540 score. It took A LOT of discipline to get to 790. But it was worth it. I learned my lesson 😂 Don’t use what you don’t plan to pay. Even if it takes you awhile. Make a plan to pay and stick to it.

[@jayspov1576]

Score dropped 20 points today because I left a 0 balance after paying it off the month prior. Mad as hell. Thank you for the knowledge.

[@magellanmax]

For the most part, wen you pay off your balance entirely, a credit agency like Experian assumes you closed out the account and proceed to drop your score. For almost a year Experian calculated my score assuming I had a dormant card or at times assuming that I wasn't paying as agreed because my balance was always at zero (I have auto-pay set up to pay the entire current balance). I actually called the CC company and they told me to call Experian and tell them that my card was active since it was issued and had a stellar payment record. I opened a dispute and within four days my score was back up 15 points. Whenever your score drops after paying off a cc balance, open a dispute with any of the credit agencies that dinged your score and they always correct it after contacting the CC company.

[@andyraphael]

@@magellanmax yes Experian system stinks

[@osimeon00]

@@magellanmax This is ludicrous.

[@ruebenshaw]

If you find it difficult to stay under a certain limit or amount because they only gave you a small credit limit simply just get another credit card. Which will actually help your number of accounts and that too will raise your credit score.

[@ruebenshaw]

Guys listen this information that he is giving you saying that 30% as probly a good mark is a lie and is not true it is not going to help your utilization.

[@lisaw7633]

That is just another reason I didn't want credit cards but in order to build credit to purchase new car in the future you need one. Just way too many rules to keep up with!

[@r_keeferjr]

Just leave a small balance on one credit card . During the statement cycle. So u have 30 days to pay it.. if I pay off all my credit cards and. It shows. $0 on credit report my fico score went down 10 points. But. Leaving a $15 balance the following month my credit score will go back-up

[@trippleh1521]

Thanks so much.

[@showvideo1x]

Awesome information . Simple and concise. I really like that you don’t have crazy intros with annoying music and such. You get right to the point. Your energy and the way you deliver your message makes the information easy to digest. Thank you

[@Jstielo]

I've been experimenting since I began my rebuilding journey. I've been letting my utilization report low (1-10%) and my score was going up.. I paid it off in full..(actually had a credit) . let it report and my score dropped 20 points.. crazy how being responsible penalizes you. I make multiple payments monthly so o never have a min balance to pay and never pay interest but I'll def keep @ least $5 on my cards from now on

[@msleaanderson4955]

Ysssss that is what happened to me and I was like why I lost 20 points!

[@jat-justamaturetech-philpj8285]

But don't you have to still pay the $5 at the end of the month??

[@kimoni6]

@@jat-justamaturetech-philpj8285 duhhh...no he doesn't. He made his monthly payment and leave that 5 dollars so his score won't drop for paying it off in full. The credit bureaus penalized you for that.

[@s.matai2c155]

Hi there... Im a new fan and am already impressed with your method of explanation...the articulation is spot on. This topic is one I've always tried to better understand as I educate myself in rebuilding my own credit. But what I'm encountering is that mostly ALL of the videos I've watched/followed (Trust me when I say that I've watched/followed TONS of them.) lacked a clear explanation of the "why" behind this madness. And I think I'm encountering that "why" within your videos. So after watching this video I need some clarification on a couple of points: 1) Pay off balance by DUE date. I get that...easy to understand! Of all the good reasons why that rule MUST be followed but I believe the most important 'why' behind is to avoid paying any interests. 2) Leave a small balance - so i get that the #1 "why" behind that reasoning is so that the lenders could see that you are good in using credit and so on and so forth. Am I on the right track here?? Is the lender we're trying to impress or is it the credit card company itself? This is where I need clarification. Because if it's the Lender that I'm trying to impress then that scenario is clearly understood. Which means, I'd only do that in the month that I'm planning on making a big purchase or taking out a loan, correct? Which means for the rest of the months I shouldn't carry a balance. And when I do, as soon as I'm done with the paperwork for that loan or purchase I should pay off that balance ASAP and BEFORE due date...which means I need to be strategic in the dates of when I'm planning on applying for that loan or buying that car., etcetera, etcetera. Am i on the right path here? Thanks

[@johnhallback1560]

Very clear and accurate. I have gone through all of these scenarios and I think your explanation is the clearest. My mistake is I pay off my cards too early just because it is easier when I'm clearing my spreadsheets to do it all at one time but it has cost me because some of my cards look like I rarely use them.

[@romarocovington7697]

I’m experiencing the same but what I’ve learned from having multiple trade lines want matter as much it’s the purchasing power and on time payments give you the limit increase either way timely payments I pay them all off then get something small on each one 10-15 dollars to keep my utilization very low which one of the cards will definitely report

[@TheTyson35]

I seen if I carry a balance under 10-20% but pay 💰 it off in full before/ on due date, and still get points..Basically, the ideal way is keep it low but still able use it or keep activity on it through the month ..👍🏾

[@E3litecompany]

Pay it down to 10% before the statement report date. Ex: 300 spend as much as you want but make sure you pay it down to 30 dollars or 10 but leave a small amount, then on the due date pay the rest off. Simple Credit utilization.

[@sam.michaelis]

Should you repeat if? Like when you pay it off and the next month when the statement comes out it should be at 30

[@E3litecompany]

@@sam.michaelis yes

[@E3litecompany]

@Kenyan Rice Jr I think it’s because it’s a secured card I may be wrong I would do some research on that

[@cross8215]

The banker at my credit union told me that credit utilization is basically a myth and you only build credit by making your payments in full. I know that's not true but don't know how to convince these people. These people seem to not understand. What do I do? They seem to not even understand why I want my end statements dates. They just said get your e-statement and figure it out.

[@aung-myat]

I have been confusing between credit utilization and balance until I watched this video. You saved me. Really appreciate it.

[@qn5947]

Don't ever be a fool and pay any interest $$$ to the bank. Just live w/in your means and pay off all credit cards balance in full every month.

[@AntonioLopez-uj7pu]

Better yet pay it 3-4 days before to have a very low utilization or a 0% ideally by that statement closing statement and closing due date.

[@kimoni6]

Pay it in full after the statement.

[@fabiananeiros6425]

In terms of subject matter, this has to be one the most relevant videos you’ve done, ever. Reddit is full of people discussing whether they should have balances, even small ones, and the effects that may have on their credit. I’m going to save the link to this video to drop it on the next thread.

[@ProudMoney]

Thanks! Although I would guess the people on Reddit get even further on exact numbers for maximum optimization and would find this video not nearly specific enough to cover every possible situation 😃😃

[@docsays]

good topic. there's alot of misinformation about this on the net. I just make multiple payments before the statement closing date (not the payment due date) so only a very low balance is reported to the credit bureaus. Usually, only 5% or less utilization, and i never pay any interest. This method has raised my credit score from low 600s to mid 700s.

[@kimoni6]

So you had a small balance and they still didn't charge any interest?

[@docsays]

@@kimoni6 - nope, as long as the statement balance from the previous month is paid. For any new charges you’ll receive a 30 day grace period before interest accrues after the new statement closes.

[@kimoni6]

Okay I thought you meant you left a balance from the previous statement balance. My closing statement date was on April 4 and my due date is May 1st . I don't know why they did it like that. I've been making multiple payments too. I've already paid most of my new balance.

[@formula1dizzie326]

Best explained video I’ve seen yet explaining credit and how it works! so many miss leading videos out there that leave people confused it’s a shame… this was clear cut and easy to understand, very much appreciated👍I would recommend this video to anyone seeking understanding credit! Savannah, Ga tappin in

[@junitolopez3762]

I pay my balance in full, then after the closing date I add a small charge. And.....I mean a small charge, gasoline, maybe lunch on another, on and on. I have managed to increase my FICO by 70 points this year using the method. Most credit cards allow you change your due date. Mine are as close to each other as possible. Remember an unused cc is like a close account. You get initial benefits when paid off. Anyway that has been my experience

[@Iammarlonbrown]

Can you help me understand

[@Iammarlonbrown]

My due date is the 12th so I pay it in full before the 12th but they report it the 15th so my balance is 0$ by then how do I manage this so my score doesn’t fall

[@donh8223]

@@Iammarlonbrown The secret to building your credit with a CC is to pay your bill in full AFTER the closing date but BEFORE the due date.

[@rmg2419]

@@donh8223 How do you know this? and can you explain?

[@vikkicarr3255]

My score dropped 7 points because l didn’t understand utilization. I have an excellent history of paying my credit cards in full however for the holidays my utilization was 40%! Well I’ll never do that again. I must get my 7 points back. Great video and thanks for the info.

[@vikkicarr3255]

I got my 7 points back this month! March 2021! I’m on a role people😂

[@robertswift6101]

i didnt understand utilization either because i always just paid them off in full every month

[@HollywoodCharityAuctioncom]

So I guess the anwser is: Use 9% total credit and wait to pay AFTER the statement date (so that the credit bureaus see that you have used the card) and BEFORE the due date. Pay off monthly.

[@Muzicboy3]

This is where I was confused … after watching a million videos in confusion I get it now … thanks my mans

[@emmapeel4299]

Thank you for the upload. I appreciate your honest answer without being condescending. My parents, of course years ago, that may have been partially true but nowadays we all know that it’s no longer correct. I use your videos as a teaching tool for my kids as well. ❤️

[@ProudMoney]

Thanks, I always appreciate your comments!

[@kamilsultan1637]

Report 1 percent utilization on statement date and pay that balance off in full by the due date. If you have more than one card, use the all zeros except one approach.

[@effebey7538]

Thirty percent utilization is not a good move. The Godfather of Credit states that the key to maintaining an 800+ is 25-29%! Following this technique my scores went from 603 (01/02/21) to 704 (05/01/21). Zero balance gets your cards cancelled according to what I have read on myfico.

[@Un-Known-X]

He explained it in such a way that i feel as though im an expert after listening.

[@ProudMoney]

Appreciate that, thanks!

[@TxReese]

People make the simplest things difficult

[@kevinsatterfield9678]

Best explanation I’ve seen so far!

[@Beautyhuntress78]

Thank you sooo much, Adam... For clearing that up😉

[@albertbanks538]

This is the best explanation I've heard on this issue. Keep the great video's coming. 👍🏽👍🏽👍🏽

[@ca6vtec]

Funny that you made this video. I recently paid off a balance I had on my Discover and my Experian Fico Score went down 9 Points lol. Eventually, it will go back up but it a bit disheartening to see that.

[@cslaton921]

I did the samething

[@ca6vtec]

@@cslaton921 it sucks dude. It 's like you take a step forward and then the fico gods take 2 steps back

[@Beautyhuntress78]

I know what you mean. I paid my TargetRED card and my score dropped 16 points😆

[@ca6vtec]

@@Beautyhuntress78 damn, I just payed my red card. I am scared.

[@GrizzneyGames]

This is the best breakdown I've seen on KZbin for this!

[@coleg315]

Thank you for video. I was wrong and was teaching my daughter the wrong thing, thank you for explaining it and how to build credit. 👍👍👍👍👍👍

[@garrymyers8459]

I Pay the whole bill soon has it hits every time & I have gone from 670 on 2/1/20 to 730 now. 6 accounts

[@WeBeatMedicare6969]

I try to leave 1% on all my cards..I found that my score went down went I paid them all off..I’m currently pushing 800 in most models..other than one of the FICOs which only shows mid to high 700’s…it’s all too confusing

[@massive670]

The best explanation I've heard so far

[@virgendesign]

Great work! Very thorough and simple explanation. Exactly what I was looking for. I just got a credit card and looking to build up my credit score and you just answered one of my main questions I had. So many people tried to explained but ended up raising more questions. You covered it all. Thanks again.

[@SteinerSE]

Watching various videos the idea I've understood is to make at least 2 payments per month. First you need to find out that card reporting date (how?) and pay down to the utilization you want reported just before that day. Then the next payment by due date to take balance to 0 and avoid any interest. Is this correctly understood?

[@Selinak22]

This video is brilliant and you broke it down in a way I understand. In my 30s I'm getting my first ever credit card as a means to increase my credit score so my knowledge is very limited. I will go by your tips and see if that makes a difference.

[@WeBeatMedicare6969]

It’s so crazy that lenders could possibly look at somebody having 0% credit balance and look at it negatively compared to somebody carrying 25%…then again, that means you might not be in the business of paying them interest which is their business…that actually makes sense then

[@akw1312]

Lenders are in business to make money, not lose money. Why would someone want to lend you money for you to turn around and hand them back the exact same amount of money? That's ludicrous in and of itself. For that, go borrow it from a friend. That's like saying i'm going to open a retail clothing store and never markup the clothing and sell the clothes for the exact price that i bought them for. What sense would that make?

[@herman66mi83]

Been watching your Channel videos extensively. Appreciate how you get down to the “meat & potatoes.” I like your clarity and brevity.

[@Goldie-kw5ju]

I have a discover secured card my credit score went up to 747 I have an American Express card easy to get discover secure card for 12 months I called discover and ask them why I have not graduated the response was you never carry a balance and that's one of the reasons why I have not graduated in 12 months everything looks good but you never carry a balance

[@e92bruh37]

So the best way to pay off credit cards is after the closing date before the due date

[@shannonmcwilliams26]

I have to disagree a zero percent makes your score stagnant. Only way it will go is with age.

[@CYCLEGAMER1]

Maybe I misunderstood what you are saying but the credit card companies do not reach out to the credit bureaus until AFTER the statement date, not every time you make a payment.

[@ProudMoney]

I am mostly saying that they report to the bureaus before your bill is due, so there is no need to underpay to keep a balance on the report and end up paying interest. my comment about paying during the month is to say that you can reduce the balance to an optimal utilization when it does get reported.

[@JaniceJParisMuzic]

Thank you sooo much, you are amazing and so clear on explaining things

[@charlesgomez4218]

I always make several payments on my credit cards,per month!! I constantly use and make payments- so I never have to pay interest!! Keep the videos coming✓✓

[@TheRenaissanceAmazon]

I’m confused. It seems like you’re saying two different things in this video. First you said it’s fine to pay it all off so we don’t pay interest. But then you said we should leave a little there so our utilization doesn’t appear to be 0. So which one is it?? 🤔

[@knc3245]

From how I see it. There’s technically 2 sets of charges on your credit card - the charges from last month and the charges from this month. He’s saying that you should always pay all of last months charges but while also leaving some charges from this month to roll over into next month.

[@reelreviews982]

Here is what he’s saying. Ex, your credit limit is $1,000. Your billing cycle is from the 10th of one month to the 9th of the next month. During that billing cycle (10th-9th), you spend the money you’re going to spend, while also paying it down to 10% of your balance. On the 9th (your closing date), they are going to report your 10% usage to the bureaus. Your bill will then be due the next month (let’s say the 4th). You then pay it down to $0 by the 4th of next month. So you’ve already showed you have credit, you use it, you manage it and can pay it. Make sense?

[@Bharlos]

Have a balance/charges on your card, and just pay it all off a couple of days before your due date. Your credit score is checked I think weekly, so they want to see a balance so they know you're using the card throughout the month. So as long as you do that, then pay it off before your due date, you'll build credit without paying interest. Ideally you should try to keep your balance at around 10-30% of it's total (so if you have $1000 limit around $300) through the month, and again, just pay it off before your due date so you're not charged interest.

[@JP-1969]

Exactly. Which is it ?

[@nilaypatel2595]

Thanks a ton for the information. You did it so simply. A great job, sir 👍🏻

[@kingsboy1828]

so much good information and great advice packed in 13 min...thanks and keep it coming.

[@rvmorgan47]

The thing I have found is you need to show activity not carry a balance. If you have a zero balance the card will not make an entry to the reporting agency. So if you have received a credit line increase if you have a zero balance this info is not updated to the credit agency.

[@ObstacleZone]

I gained over 100 points by paying my cards to 0% every month 10 days before due date. In 1 year.

[@geraldrichards3570]

Real knowledge,👌👍🤠

[@EmmanuelC0403]

Exactly, that part of this video is false. I pay every single of my purchases on my credit card off the second I get my receipt back. I treat it exactly like a debit card only with a few extra steps lol

[@justins6414]

@@EmmanuelC0403 That's not what he said lol.. He said he gained 100 points because he paid off his cards 10 days before his due date which means it made it before his statement closing date. You are just paying yours off right after you use it which isn't helping you at all.. Re-watch Adam's video too learn more..

[@EmmanuelC0403]

@@justins6414 true, now that I re-read what he said and that he pays it down to 0% utilization 10 days prior to the due date may indicate he’d still use his card for those other 10 days so he’d still have *some* utilization. However, having a 0% utilization rate still does not hurt you and it’s a myth. My sources come from credit karma, Experian, and Graham Stephan

[@Licaanswer123]

Great video. It helped me understand how it works very well. You explained it very well! Thank you.

[@Mikesa-tb5cr]

Ok,,, so I have 9 cc's which always report 0% utilization. This month, a $120.00 balance reported which brought my total utilization to 1%, and just for showing some utilization on a sock drawer card, I was rewarded with a 4 point drop on Experian,,,geeeeee Thanks!!!!

[@trippleh1521]

This one of your best videos. I always paid in full before statement date. So when the cards reported it was always 0 dollars,so thanks so much for the video.

[@ProudMoney]

Thanks for the comment!

[@horaciosigler1097]

Thanks for sharing! Very clear and concise video...

[@fogrunr5075]

Pay in full when the monthly statement is posted. Then the next month's usage accumulates, the next statement is posted, then pay it off again. Do that with each card. My all cards utilization swings between 2.5% - 3.5%. But my statement utilization is about 3.5%, which is rounded up to 4%. Credit bureau scores love 5% utilization, but I won't operate there just for another 10 points on my FICO. I use 0% offers (from current cards) when practical to keep my total interest below $5/month. The highest single card utilization I ever carry is 29% when using a 0% balance transfer offer, which I quickly pay down below 20%, then 10%, then 9%, then pay it slowly down from there.

[@kittleeagle]

I pay all mine off on the due date, I don't even keep a balance now. My due dates and statement dates align within 3 datys of eachother. Never had credit before 7 months ago and now I'm up to 20K Credit Line. I'm doing alright and I'm happy. It's definitely a work in progress. I'm thinking about taking out a personal loan through Navy Federal for 1K at 12 months with 4% interest and having it pay off monthly just to build that way also with a Loan. Got to love the system

[@GrimKiLLzGaming]

You're english is bad but atleast you have good credit.

[@T.Q.]

@@GrimKiLLzGaming Your*

[@roelsvideosandstuffs1513]

There is technically problem with that 50$ reasoning and it is not a good comparison to credit card. In the real world if you owe someone and you pay them in full. That's when they know you can probably be trusted. The time you pay it is not exactly relevant. Of course it better if you pay someone early. But it is really depends on both party on how the Debt be settle.

[@ARMG3-e9t]

Thank you so much!!!! This was the most helpful new subscriber ❤️❤️❤️❤️

[@paulwilliams5013]

Excellent stuff.Thank you!

[@jlsc4125]

I can tell you I had two cards cancelled because I DIDN"T use them.

[@Shaolin91z]

You weren't generating any profit for the card company.

[@jlsc4125]

@@Shaolin91z Yea, but they sure did a job on my credit report by cancelling them. You'd think not using a card would be a plus, the whole system is a rip off.

[@cross8215]

@@jlsc4125 Well it's not a plus because they're paying their employees, paperwork, processing and transferring fees etc all to the credit bureau just to see 0 utilization. It wastes the banks time. I know it may sound good on paper, but in reality it's not

[@jlsc4125]

@@cross8215 I repeat, the whole system is a rip off, forcing you to use credit you don't need.

[@tonyyero7231]

you DO pay RESIDUAL INTEREST if u keep even a small balance.

[@joshnadamproduction]

Thanks for the clarification on how much to pay and when I was guessing it was just like that but wasent sure until I watched this video my score is gonna rocket 🚀

[@kirkdunn1379]

I got dinged when I had 0 balance on 1 card....how does CRA know you used the card if statement shows paid in full?....thats the only number that gets reported is what I've been told...

[@timwong8556]

On certain credit cards, I do leave a really small balance between 99 cents and $2. Depending on the credit card company, it will waive these small balances. Using this trick, I can get over $100 of free Amazon gift card reload. I know not a lot of money, but at least I can buy five free books a year. I know this is off topic from this video. Unless I have a zero percent introductory APR card, I always pay my balance in full, unless it is one of those cards that will waive a small credit balance

[@ProudMoney]

I've heard people say this before, but it's not something I've ever tried.

[@stuartjakl]

Graphics would be helpful...

[@Socko818]

Thank you Adam I was wondering about that for awhile paying the balance off right away right after purchase which I’ve been doing lol now I know not to do that

[@feliciastewart972]

EXCELLENT!! That helped me so much! Thanks..🙏🙏♥️

[@stacistaci6657]

I paid off all my debt last month and and was paying my monthly annual charge, I looked at the statement and saw a 9 cent interest tacked on. Last month I only charged 1% of my limit and paid it off three days later , which was the first time the bill showed up online so I paid it off in full weelllll before the due date and they still charged me 9 cents in interest! The customer service lady seemed to be pissed at me and said i had that interest because of my purchases last month! I kept telling her I paid it off in full well before the due date ad she kept saying there was interest charged on the purchase. How can this be? I know it's only 9 cent but I thought you dont get charged interest I'd you pay off your bill on full by the due date. I paid it off in full 3 days after the purchase! I have to disclose that I have credit one bank shitty card.

[@ProudMoney]

Some Credit One cards have no grace period and charge interest from the day you make the purchase. It's a really bad thing that i don't think any other bank does.

[@robertswift6101]

9 cents from you and everyone else they have would add up,,,,,,seems like theft

[@martincoppa6417]

This video is still great!

[@HijaDeCristo18]

I’m super liking this !!

[@mekelbreg8893]

Hey thanks Adam, helped clear up some gray area for me 👍🏼

[@markbeiser]

A young coworker of mine was getting frustrated that his credit score wasn't moving, despite him using his credit card a lot, and always paying it off. Turns out, he was following someone's advice to pay it every night, so he never showed any utilization on his statements, for like 3 years!🤣 Once I got him to let a little of it go past the statement closing date, his FICO score went up almost 100 points in 3 months.

[@mssha1980]

These people be telling people to do crazy stuff

[@osimeon00]

Can you explain this in detail? I'm still confused. I'm not retarded, I just don't fucking get it.

[@markbeiser]

@@osimeon00 When you are new to credit, it is especially important to have data reporting that shows you are both actively using the account, and using it responsibly, otherwise your score won't grow much, if at all. Maybe just by a handful of points every few months as your file ages, but there is only so far that will take you if you only have one account that it doesn't appear you are actually using. Credit scoring is kinda complex, and none of the bureaus are transparent about all of the details, but it is generally a bad thing to have all zeros for balances on revolving accounts. It doesn't help that some of the crappier starter credit card companies don't really report consistently, or actually bother reporting payments if your statement balance is always $0. It would be best to have at least two cards, but stay away from ones with fees just for having them. Secured cards are good to start with, but make sure they have a fairly quick path to graduating to a secured card with no fees. Once you graduate to better cards, never close those first cards if there are no fees involved with them, as they will be the anchor point for your age of credit. I screwed up and closed old cards years ago, so instead of having my oldest account being >30 years old, it is only 15 years. I'm far from an expert on all of this, just sharing from my MIT education (Mistakes I've Tried).🙃

[@osimeon00]

@@markbeiser Thank you for all the advice! Definitely helped me gain insight into all of this. 🙏

[@mssha1980]

@@osimeon00 simply put, you want to report under 10% of utilization. Some say 1-3% is even better. The date the credit companies report your balance is the statement date. So make sure your credit card balance is no more than 10% of the total credit limit on the statement closing date. As you get more credit this won’t affect you as much but you still need to keep your utilization low.

[@lindagreen8956]

Well done!

[@reginasavage102]

Excellent information.

[@MoDavI-sl7iy]

Adam you're funny! "But that's another topic."🤭

[@ZestyLemonBoi]

Brilliant!

[@tino503]

Great content! Thank you for what you do and your channel!

[@gatsbylight4766]

@ProudMoney - OH! WAIT! Here's a question I never thought about. Dig this: A) If my closing date is Nov 10 B) And then my due date will be Dec 8 C) BUT, the reporting date (the day that the CC company reports to the credit bureaus) is Dec 1st; If I pay my bill (pay full balance) on Nov 25th, does that mean that when the CC company reports to the credit bureau (on Dec 1st) that it will report a zero balance ?? [*The credit card companies typically report to the credit bureau once per month, but we know (?) that they don't rush out and report your individual account immediately the day after your closing date each month. Or doooooo theeeeyyyyyy?] Thanks much.

[@isaiahsmith8523]

I think it's worth dilleniating the differences between "the credit card company" and the credit reporting agencies. The reporting agencies don't see your actual transactions so showing you use it doesn't matter. The lower your utilization the better.

[@ProudMoney]

But if it is always zero when the card company reports, it looks like no card usage at all on your credit report.

[@isaiahsmith8523]

@@ProudMoney True, very good point! Although, because they are open accounts it will show positively in terms of their overall credit utilization. When creditors look at their history it would show that they have access to money and always pays back in full.

[@billywatts889]

Great video very helpful 👊

[@TarunBathija]

I never knew this - i've been obsessed recently with seeing my debt column in mint at $0 so i pay off each card after each transaction but now i wont! Thank you

[@devontehibbler40]

You should find out when your credit card company reports to the credit bureaus.. that way you got can show a low utilization then pay it off on the due date .. and so on

[@travisnapoleansmith]

This might not have been a bad idea to also talk about those intro apr periods where you get 0% for so many months. What to do when you have them with credit utilization. With those I actually do carry a balance and am willing to go over 30% on that one card during that no percent apr time. But keep all my other cards reporting 0 or near 0 or under 10% depending on how I want to do things. I refuse to pay interest unless I have to. I don’t mind paying a yearly fee if the card gives me offsetting perks that make sense with the amount of the yearly fee.

[@fogrunr5075]

I used a 0% Discover card (with a $2,500 credit limit) as a pivot point to triangulate funds out of a credit union higher interest card and back onto a new credit union Platinum 0% card ($25,000 limit). I made several successive transfers during the initial Discover 0% transfer period, moving $12,000 off of a high interest card and on to the new 0% Platinum card. Then the last transfer I left on the Discover card at 0%.. And just like that I had $12,000 that I had paid a 3% transfer fee on but I wasn't paying high interest on. After working hard and paying those two down, I did it again one year later with a new Bank of America 0% transfer card ($4000 credit limit). And after 2-1/2 years I had eliminated $24,000 of high interest debt. Both the Discover and Bank of America cards regularly offer 0% offers. Discover is more reliable with their offers. Usually there's a 3% transfer fee. Sometimes it's 5% which I won't use. But also sometimes they'll have an offer with $0 transfer fee yet at a interest rate of 4% - 5%. I use those offers to move money from higher interest loans out and back in to my lowest interest credit union card, without having to pay any transfer fee. When I have money sitting on a 0% transfer offer I do not use that card for purchases. And then after I have paid off the 0% transfer amount, I make sure to exercise the card for regular purchases while paying it off in full each month. Each year Discover and Bank of America will bump up my credit limit $500. After using that strategy I was able to acquire a NFCU Flagship Visa (easily done by converting a second platinum card I had to that), a Chase 0% Freedom Unlimited Visa, as well as a Capital One SavorOne 0% Visa. They're all no annual fee cards, with the exception of the Flagship card which is $49, but it reimburses for TSA travel fee, so that knocks it down along with the cash back I get. The portfolio of cards I have now allows me to get 3% back on virtually everything I buy. The NFCU Flagship card and the Capital One SavorOne card are both no FTF (foreign transfer fee) cards, so they work well with foreign purchases and overseas travel. And of course Discover Cards are all no foreign transaction fee cards. So whether it's gas, groceries, restaurants and carryout, drug stores, travel, or entertainment, I use the correct card to get 3% back. And for travel I get more than 3% by using that card's Travel Service. Also I run all of my monthly bills through my Flagship card, which gives me 2% back on everything.

[@michaelstevens5782]

Great job on explaining very helpful 👍🏽

[@blkcatzette]

Thank you ProudMoney very informative.

[@michaelkim2147]

I noticed if i keep 1.9% credit utilization gives me 834 vs 0 balance with 824

[@MLMWarriors]

No. Pay on time.

[@RD-nc8xt]

Should I wait for statement end balance to pay off the balance to build my score.

[@mariodeshaies7779]

PAY it ALL... so they do not make $$$ do not be a "revolver"

[@myiawilliams8008]

Great video love it,!!!

[@progers001g]

Correct me if I'm wrong but I believe the credit card companies transfer information about your monthly high balance to the reporting bureaus, which negates most of what you talk about in your video. So if I have a cc with a limit of $1000, I can charge $800 during the first week of the month, pay off the balance immediately and the info sent at the EOM to the reporting agencies will indicate my high balance was $800 and ending balance was $0.

[@akw1312]

I can't speak for everyone else but in my cases, no that did not happen to us at all. But, I have 2 of the cards that I pay off every month before the due date and on the statement release date. Those cards show a zero balance and 2/3 agencies always show a zero balance and zero usage. The 3rd agencies shows what you mentioned. So i believe it is based on the agency itself to whether they include your total month's usage.

[@Munce72]

Great work Adam! Scooby snacks for you. My allegiance is to Liberty, the Repubic and Democracy.

[@be14mi]

I have a credit card from Chase that came with no interest for the first 15 months. I can carry a small balance for that time and not pay any interest. In that scenario where you don't pay the full balance but don't pay any interest how does that work to increase your credit score?

[@Kuolitee]

You still want to stay below that 10% utilization. However, don't get into the habit of revolving a balance when you have a 0% interest promotion. No real purpose in doing that. It is useful if you NEED to make a big purchase that you know you will not be able to pay in full. At the end of the month. IMO, it is better for you to just get into that mindset of paying off in full every month and act as though you never had that promotion to begin with.