If you feel it isnt for you then leave it till you feel mature to have one honestly.. just becuase you have 4k in credit does not mean you freely are able to spend 4k.. IF YOU FINANCIALLY CANT PAY IT OFF IN REALITY and more then anything "WITHIN A MONTH spand. Due date like she explained all transactions should be payed off to be save at least 3-4 days before that due date.. and next closing date is days between your due date and closing date that the bank sees your transactions amd if everything is all payed off "on time" or you wekl be back with negative numbers and month by month interest. Does not matter if its 50 150 200 dollors oay it off that same day as possible or when your able to pay it off that same week.. started off qith 150 bucks to use now 4k within a yr and a few things i have on my own car which well bring me more credit to my name no miss payments ever.
I use mine like I would use a debit card. I buy everything with my credit card and pay off the balance every time I get paid. This way I am constantly building credit and if my card becomes compromised it isn't connected directly to my bank account.
The statement date is the day you want to pay by to not incur any interest…not the due date. It’s important to note that this date may differ from your due date.
I was told to pay it down to a small amount about 10 or 30 dollars at the statement date and then pay the remaining Balance at the due date and it will boost your credit fast.
No, you pay in full by the due date to avoid interest charges. That’s why it’s called a grace period. Paying it down by the close date is a good idea though because it reduces your utilization and boosts your score. Doesn’t save you anything in interest though
The right way to tackle debt is first selling your most valuable possession to use towards your debt hence using avalanche method then use the snowball method to pay off remainder if your assets were not enough to cover it all. I sold my pokemon binder plus some old pokemon games to pay off my highest balances then my earning from work to pay off from smallest to largest and now I’m currently 90% debt free….brought my debt from 33k all the way down to only 3500. Huge accomplishment and I did it in three months. Anything is possible if you put your mind to it!
Yes. But that could also do some harm. Lenders usually want to see some utilization being used on a credit card so that they know you can properly manage and pay a credit card on time. If you have a zero utilization rate then they’re not really seeing much, which is why a lot of people usually have a utilization rate of less than 30% on their card ;)
@@Ziixtythis make no sense. Lenders will see that it is being used by the transactions not the balance. Are you referring to other lenders on the credit report? Actually, they don’t care if balance is left. They care more about it being paid off fully and the utilization rate being 0%.
Yes, you won’t accumulate any interest this way. Some banks make it easy to see where you’re at with this like Chase. Others make it more difficult, you have to figure it out yourself; US Bank, Capital One
Paid off by the end of the monthly cycle, which is before the due date anyway. Chase charges you interest if you have a balance as of the end of the monthly cycle, which is usually like two weeks before the due date.
If you can, also pay to keep the balance as low as possible even before you pay it in full for the due date. The percent of your credit limit that you’re using when they report to credit bureaus is a major factor in your credit score. So, for example, if you’ve got a $1000 credit limit, they’ll bump up your credit score if, at the time they report to the bureaus, you only have a balance of $10. Whereas if you have a balance of $700 that’ll drop your score, even if you pay in full by the due date every month. If you spend $700 you want to pay off most of that before they report to get a better credit score, even if it’s not the payment due date yet. If you pay each time you spend, to keep your balance as low as possible all the time, not only will it make it harder to use credit for things you can’t afford and get into major debt, but it’ll also help raise your credit score if they see you appear to be using very little of your credit.
@@scottb_02you wouldn’t pay any interest either way. You should pay off 95% of your current balance on the statement close date, then 100% of the statement balance that remains after that the following day.
I totally feel this! I have $1000 of payments each month between debts😅 we got this though!! I do stuff on the side of my full time job so I can send lump sums
Why not consolidate the debt with a loan? Credit score will dip slightly for the loan inquiry but will jump the next month because your credit utilization will be between 0-10% also it'll make your interest lower
Cars aren't cheap. My car was hit by someone and ended it being totaled. Inhadntonget a new car and let me tell you. My heart hurts for my monthly payment
This is a super helpful explanation for people without the guidance of someone with financial literacy in their lives. You don't know what you don't know until someone tells you! Especially since a lot of credit card marketing makes it appear like credit cards are free loans.
Pay minimum plus add interest.Don't charge.more than your weekly or bi weeks salary. Or pay in full the following month and always on time or use only as an emergency card
sadly for me i went into manic psychosis and racked up..... a bad amount on my credit card and i'm currently struggling to pay it off.. with suffering from job loss ): but i love watching your videos gives me hope
Also you should try and pay off 90-95 percent of your balance by your statement due date and then pay off the remaining balance by your due date. This way when it’s reported to the credit bureaus it shows you’re only using 5-10 percent of your total credit per card.
@@Ygtrecey I'm no financial expert, but I try to pay off 90%-95% because then it leaves only 5%-10% of the credit that's reported and lower is generally better. The 70/30 rule is kinda the standard though to my understanding so try both and see how it affects your credit. Most videos and sites I've seen say you should just try to stay below 30% credit utilization that is reported so as long as you pay at least 70% and then the remaining balance afterwards when it's due, you should be good.
@@Ygtrecey70% is for the 30% utilization…that’s the standard… but if u really wanna see a jump of your credit score, you’ll keep the utilization under 10%…
tf? Your bank.. you use your bank to pay off your cc’s. Ya know the one where your paychecks gets deposited.. link it to the cc company (s) my U.S. Bank checking account is linked to Chase, Citi & Capitol One
Not last month but constant due as soon as a charge put on the card and many statements start and end in the middle of a month . When paid my balance due in the bank there was left on that account showing up on receipt paid . In reality every charge activity is a due amount that can happen several times a day .
Keeping interest payments at or near zero is the key. If you find yourself in a situation with long term credit card debt, doing a balance transfer periodically is a great idea. Making as large of a payment as you can afford during the promotional period and when it ends do another balance transfer. Keep it up until it is paid off. Don't KEEP ACCRUING CREDIT DEBT or it will never be paid off.
Typically, you get a 21 day grace period before any interest is calculated. The statement due date is the end of your grace period. So, pay the statement balance by the due date.
I just use it for big purchases in a row (bad ik and sometimes till max, very rare, only did it once) and pay $90 very month on the same day till its paid off, then i give it a few months break before i use it again…
@@scottb_02 statement date and due date are two different things. If you don’t have the money for to pay it off by the due date, you can pay it off before the statement day (about a week later) and it’s the same exact thing.
This seems pretty obvious but nonetheless it’s golden advice and the best way to make sure you’re paying your CC on time and in full. Easy to set it and forget it, but always good to review your charges every couple of weeks to make sure they are legit. Also while you’re doing that, good to check for promotions. This month my Chase Amazon card offered 5x gas 5x groceries for this month.
You get a month to pay your purchases which should be paid in full your last month statement balance not your current balance. While the rest of your money should be invested in a savings acoount to gain interest to pay your purchases
These comments and this video have further confirmed that I will never use credit cards. It's all just a confusing way to juggle around debt it seems 😩😂
Nooo its super easy if you are conscious about money in general, I NEVER EVER go more than 30% of use on my cards but lets be honest I use not even 5% bcz I became frugal and minimalist lately and have 2 cards. There is limits to what u can pay with credit cards so I don't see how people need 15k worth of credit limit unless its a renovating a house situation😂 just trust urself its not that hard
Sometimes credit cards are a necessary evil . If an emergency car repair comes up , you have to rent a car , and low on cash use plastic. Manage the expense of credit cards utilization rate effectively. Keep each card about 30 % utilization rate or less. Pay off high interest cards first . I have 2 new cards 0 % interest they will be paid in 3 months, no interest. 6 cards , 2 completely paid off . $22k total credit available. 790 trans union/ equifax . Never hurts to have credit cards . If you have them use them and pay each card before due date in 28 days . You will become known as a ‘ deadbeat ‘ By the credit card companies. Because they will never make any money off of you .. plus you build credit.
@@G20Tthis isn’t true, u don’t get a fee by making weekly payments. As long as u pay off ur balance. This is better to check ur bank frequently and not miss a payment and utilization rate appears lower on credit report
I get this, but what do you do when you have an unexpected expense you can’t afford? If my car breaks down and I don’t have the money to pay for the repair I still need to go to work.
Do you pay your bill on the due date or couple days before so it can process? I have a chase freedom rise account and someone had told me to pay it off couple days before so it can process so when the bureau checks the statement it says $0
That person was referring to the statement closing date the statement closing date is different than the due date as the statement closing date is when the credit card company will send the information of your balances for that month to the credit bureau so if you pay your full balance before that date, it will show a zero balance on your credit report but if you pay only a little bit, it’ll show a lower amount on your report.
My fico score dropped so much from only paying statement balance and are you sure I was supposed to only pay off statement balance on your due date instead of current balance? Before I used to pay my statement balance on my due date I normally would pay it off with current balance and it helped a lot. The only problem is I’m paying so much from paying it full.
You pay the statement balance in full, not the current balance. If say your statement balance is $1000, but when you go to pay you see your current balance is $1300, you still only have to pay $1000. The other $300 plus any other charges you put on it before the next statement closes will be due on the next months statement. If you regularly use a card, you will never see it at zero, but as long as you pay the statement balance in full, you will never a cure any interest.
So on one of credit cards , my payment date is 16 of the month and closing statement date is 19th of every month . I have setup a recurring payment to pay my statement balance every 16th . Should I keep it that way or pay it full just before the 19th ?
Keep it. It takes typically 2-3 days for payments to clear you want to make payments a few days before the statement closes. I learned the hard way by paying the day before my statement ended😭
That's not correct, to keep from paying interest you need to pay it off by the statement close date. The due date is generally 25 days after the statement closing date. Be careful
@@AjaDang no, I sit down and go thru our bills every Friday and pay our CC off, we pay for everything but our mortgage on our card. When we became debt free, we were almost fanatical about our money. We are very careful now.
Same! And if needed I just dividing by how many pay periods I have before the due date. It’s a little annoying to keep up with but worth the 2-5% off everything. My mortgage company lets me pay with a card, they charge me $12 but with a 2%card it’s a gain! I then use that accumulated savings/points for free travel! The cc points game is a hobby for me, I have 6 cards that I use and keep paid off. Cash+ for 5% off internet & Utilities, CSP for dining & travel(3%), CFF for 5% category spend right now gas, CCC for groceries 5%, Venture X for non category spend 2% (and travel perks) and last Amazon Prime 5%. Cheers
@@Moonblossom62Hi! Question: I'm seeing comments saying to pay off 90-95% and then leave 5-10% for "reporting purposes" to build credit. Does it work this way? Or, should I pay off in full every week/month before the cycle closes?
can i use the card after i pay off after the statement date? for example my statement date is July 14 and my due date is gonna be like July 18. but i pay off the card July 13, is it okay to use the card on July 15 onwards?
@@stoneyjosephine okay thanks so much. this is my first ever credit card and english not being my first language so everything is kinda confusing haha.thank you!!
If you regularly use a card, it will never be at zero. As long as you keep the statement amount paid off by the statement due date, you will never a cure interest
If u don’t already u should work on having a good amount in a savings account. Stuff happens in life and u might find yourself with an unexpected expense where u can’t pay your card off in full. Much better to borrow from yourself than to carry over balances with a 23% APR!
Please help me I’m so confused my bill is due on the 17th and my statement is on the 20th how do i report a balance for credit to build credit with out being late I’m so confused please help I’m reporting 0 and it’s hurting my credit not building it thank you so much your video is amazing!! And very helpf
No, first, you need to use less than 30% of ur limit, but I suggest even less. Second, have a higher limit if u can and ur close to the 30%, thirdly, you also need to keep the money a few days in the card to show that you use it because it takes around 3 days for the system to process ur payments then pay it all 100% of what u spent until the other purchases are posted. Don't let debt rot.
Hmm.... I don't get 21 days after due date for the closing date like that. What if your statement show you have due date 3 days before closing date? Like example, due date on May 3 and closing date on May 6.
Don’t worry about due date, leave 3% balance 2 days before statement closing date. Then pay remainder 3% 2 days after statement closing date to boost credit. Paying 2 days after closing date will cover the payment fr next due date. Then keep repeating
Yes and no. If you've made a large purchase, you will want to pay it down to a low credit utilization rate before the statement closing date. If you have a high utilization, your credit will go down. But you want a little balance in the card and pay it off when your statement comes out because the credit bureau will record that you actually borrowed and paid it back on time.
@@libertarian4323 Not incorrect. You don’t pay interest but your credit score is always going down because you credit utilization is really high. Paying 90% of your balance by the statement closing date avoids interest, fees, and high credit utilization. Your credit score won’t go down
I rather just pay it off in full the moment the statement posted. Rather do it early than to forget it. Tho auto pay does help you if you do forget. Either way just make sure to pay it off in full before the due date passes.
Either way, as long as u have autopay on to pay your statement balance you won’t incur interest. Paying a couple of times a month is a good way for some people to keep things in check by not letting their balance get too high. It’s also a good way to keep your utilization low which helps with your credit score. This is advice I hear all the time but the reality is it’s just more work. Your credit score really in,y matters when you’re looking to get a loan or another CC which for me isn’t very often, but when I do I just pay all my cards to zero for a couple of months or at least keep my Utilization
Just wondering if the average american joe would still be sane knowing EU banking structures and payment models, i.e. payments reflected on your CC instantly!!! It's just stupid how US banks like to stretch things to its limit leaving payments pending for 3-5 days. Come visit EU, let your minds be blown! 😅
I have $600 between two credit cards. I use both for household things each month. One is a Walmart capital one card and the other is just a regular capital one card. The pay by dates are within 3 days of each other and I pay off both when the first one is due. So by the second pay off date, it’s already paid for. My credit is steady, it’s not going up or down but I want to raise it. How do I do this? 😭
People who don't have financial literacy benefit greatly from basic information like this! If you are raised in a family where credit cards are not used or have been misused, it's understandable to not know this. Nobody starts out knowing this from birth. We all have to learn at some point
Common sense isn’t common place. Most people are idiots w/cc’s and need to follow Dave Ramsey‘s approach. For the rest of us free travel and cashback baby!
Yes. Paying a statement balance means you don't pay interest. Paying a minimum balance means that you are paying interest on the difference between the statement balance and the minimum balance. For example: Statement balance: $400 Minimum payment: $30 If you pay the minimum balance of $30, you are paying interest on the remaining $370. If you end up using your credit card for an emergency, and are unable to pay the statement balance on time, pay as much as you are able as quickly as possible to avoid continuing to accrue debt in the long term. Making multiple smaller payments throughout the month has helped me before when I've had a similar situation.
Yes! If you’re only paying the minimum your financial hardships won’t be going anywhere.. most people aren’t credit card people, probably need to cut it up..
Pay your credit card weekly and avoid paying any interest. Don't wait to your due date by then you will have earned interest for the credit card company. Be smart with your money and earn points from the credit card companies with out giving them any of your money in the form of interest.
Whats the point of a credit card if your paying it weekly? Thats actually stupid asf and thats coming from a person who was young and did the exact same thing. Learn to budget and pay half 15 days before the due date and 3 days b4 pay it off.
@@liltruck2021 you still get rewards and cash back and maintain low credit utilization - so there are benefits to having a card even if it’s paid weekly
You don’t need to pay a card off weekly to avoid interest…..it’s a lot of extra work, especially if u have multiple cards. U just need to do what the video says and turn on autopay. To pay the statement balance. The only time I might pay weekly is if I’m going to be applying for a loan, to lower my utilization which helps your credit score.
