The 30% Credit Utilization Rule! Don't let this hurt your credit. #credit #explained #creditscore

The 30% Credit Utilization Rule! Don't let this hurt your credit. #credit #explained #creditscore

FREE STOCKS:
💸 SoFi Checking & Savings: Get up to 4.20% APY, pay no account fees and earn $250

RESOURCES:

FREE GUIDES:

PERSONAL LINKS:

PS: I am not a Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel

[EthanPatrick_CreditCards]

This is one reason why having high credit limits and multiple cards is so beneficial!

[fubarexress]

That's why when I got my secured card to build my credit I added 10k. That way I could put nearly every bill and expense on it and stay below 30% and churn it monthly.

[dthompson]

Proper credit card usage is a big part of how I repaired my credit in my 20's. In 3 years it went from low 500's to the mid 700's. Started with a secured card and worked up. Treat every card like a debit card and pay it off every week. If you find yourself in a similar situation, do not underestimate the power of a credit card.

[justscrolling]

Oh yeah! When I worked at a CC company (even as a supervisor) I would encourage them as soon as someone mentioned that keeping there balance low. Let me go over your cycle date, when you would want to make your last payment towards the statement, etc. I know the struggle 😂

[hoodiekemo]

Another thing you could do is almost pay off the entire balance before the statement close date for lower utilization. Ex. I owe $1, 500 of my $5, 000 credit limit, I could pay $1, 450 to have my utilization report as 0.01%.

[MetagonTeam]

great explain. thankful. Credit scores mistakes is consuming time and money

[CLove]

How about treating it like a debit card?

I got excellent credit by buying groceries with my Discover, then immediately paying it off in the parking lot.

[Smootier]

So.. my $200 secure credit card should only be used for $60 worth of goods? I'm just throwing $140 in to the wind?

[Sternschnuppen]

Do you know if one‘s credit score would be really affected if you discontinued a credit card that you just paid the balance off on? The interest is just way to high at 33%, and I need to just be better with my finances. Thanks for your insight!

[nbn_zali]

In Australia having a larger credit limit actually limits your borrowing capacity for real estate big time 😬😬

[surveytestmoney]

I have 0 usage which put me over 750 and I never carry a balance & always pay off my card as soon as I use it. I don't plan on using or applying for any more credit until all my inquiries have been wiped clean by 2025. Now I pay for everything cash/debit.

[Thedividendprojectt]

We just did a video at "Worried to Wealthy" about this in more depth. Great video, we strive for under 10% like yourself!

[PolymerJones]

I can’t find advice for paying off credit cards when there is no interest promotion involved. I could pay off my smallest card but in February I will get hit with $1200 accrued interest so shouldn’t I attack that one first

[kman]

So it’s bad to request a credit limit matching your spending. I set mine at 10k but spend 6k a month. Credit limit could be way higher. Mistake?

[CucumberNipples]

That’s crazy, I owed $300 before my bill was due. I was short on money so I paid only half of it off and pay the other when I get paid. My statement and score came in before I got paid so I still owed $150 but INTERESTINGLY enough… I didn’t owe any interests, got some cash back, and my score went up 6 points leading me to my current score of 780. These videos hiding a lot of something I don’t know about lol.

[iamnoob]

If you use more than 30% of your credit limit don't they make you pay interest, how can you maintain and pay really expensive things with no interest and good credit score at the same. time. I don't understand please explain🤔

[themrgumbatron]

What if you max out your available credit but pay it off in full every month. How does that affect your credit score?

[SP-rdnh]

Zero is under 10%. There is no detriment to not having a balance. Don't lose money to interest to try and get a better credit score.

[CrypticCobra]

The one thing I’m still confused on is does it hurt my credit to pay off the bill before the statement has even been sent to me. As in say I spent $500 this month, the statement close date is tomorrow, and I pay it in full. That means the bank will report $0 credit utilization that period.

I feel like that is bad :/

[NJgateway]

You would think they would want you to use your available credit. That's what makes the money right?