Should You Pay Off Credit Card IMMEDIATELY After EVERY Purchase to Raise Credit Score?

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  • Опубліковано 26 лип 2023
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  • @ProudMoney
    @ProudMoney  10 місяців тому +7

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    • @Red1Moon
      @Red1Moon 10 місяців тому

      Hi sorry to bother you. Question: If my credit card limit is $1000 and I'm paying for airline tickets of $2000 can I transfer $1000 to my credit card to make the purchase.. thanks in advance

    • @ernestjones6310
      @ernestjones6310 10 місяців тому

      1

    • @famicomnintendo
      @famicomnintendo 5 місяців тому

      hello, if your credit limit is 1000 you won't be able to complete a transaction over that limit but if you buy them at the counter, you could use multiple methods of payment to complete your purchase (for example you could bring 1000 in cash and pay the balance with a credit card)@@Red1Moon

  • @aggrodkreg4321
    @aggrodkreg4321 10 місяців тому +10

    I don't stress about it anymore. I get the statement, I pay off the statement. Activity gets shown on my credit report, payment history continues to grow. I understand the fear of people, I was there once. But credit doesn't have to make you that paranoid.

  • @MrJohnskippy
    @MrJohnskippy 10 місяців тому +105

    I pay off immediately all of the time. My score is 827, so I’ll just keep doing it this way.

    • @whereistheaccountability7353
      @whereistheaccountability7353 10 місяців тому +13

      My score normally ranges between 825 and 835 and like you I pay everything off monthly.
      In June, I mistakenly left a $300 balance on my AMEX, and it increased my credit scores to 845-848 on all my scores.
      Paid everything off as usual for July and my scores returned to 825 to 827 range.
      Its unusual but I think the premise is that the Credit Card business wants you to utilize credit use so they can make their money.
      Don't know how and why but that's what just happened to me.

    • @kcdav7
      @kcdav7 10 місяців тому +7

      My score is 825. I pay my card off monthly just before the statement date. It never reflects on my credit report and they will not close the card because I am using it.

    • @BlackMamba-gx4zl
      @BlackMamba-gx4zl 8 місяців тому +9

      I’m @840 and I always pay it off asap too. Just be responsible, if you don’t have it in cash don’t buy it with a card.

    • @ethericdezigns1528
      @ethericdezigns1528 6 місяців тому

      😮

    • @ericdraven7857
      @ericdraven7857 6 місяців тому

      @@BlackMamba-gx4zlThe typical american does not do that.

  • @chrissan6015
    @chrissan6015 9 місяців тому +16

    Fico literally has a chart on their website. Keep your overall utilization between 1%and 6% in order to get the extra 10 points. If your utilization is zero, you lose out on those 10 points.

  • @art21ace
    @art21ace 9 місяців тому +16

    I pay off almost daily and my score is 805. It works for me.

  • @michaelshay6264
    @michaelshay6264 10 місяців тому +20

    the only time i think it is worth the time to pay after each purchase is if card has very low limit and you are worried you will go over credit limit

    • @traybern
      @traybern 10 місяців тому

      Right, for DOPES who can’t ADD.

    • @NakitaCherie
      @NakitaCherie Місяць тому

      I just don’t understand my first card I got secured a year ago and is now unsecured. The limit is still only 200 and I do now have other cards.
      I just don’t understand how it works when reporting utilization. Is it the highest balance that you had is at the entire balance that you had through the month? Is it the balance at the end of the month? I’m so confused and I’m really trying to maximize my credit.

  • @SpencerJohnsonOfficial
    @SpencerJohnsonOfficial 10 місяців тому +8

    This is one of those questions I never knew the exact answer to. Thanks for covering this Adam!

    • @sjg6158
      @sjg6158 10 місяців тому

      $0.01 balances for each of your card

  • @ahnonamos
    @ahnonamos 10 місяців тому +5

    95k subscribers. Hopefully you hit 100k soon. Well Deserved.

    • @ProudMoney
      @ProudMoney  10 місяців тому

      Thanks, it's been a steady but slow climb!

  • @garyCauser
    @garyCauser 9 місяців тому +16

    you spend 100 on your card. pay 95 on it on your due date with no more spending until after your statement date then it reports 5% utilization for the month. So, then the day after your statement date pay it off......no interest is charged....(autopay is wonderful) I use two cards with 2 week apart due dates....piece of cake!

    • @Tristin471
      @Tristin471 2 місяці тому +1

      This seems to be the best way according to most on the internet. As a new credit card holder, I’m going to do this.

  • @TorisGarage
    @TorisGarage 10 місяців тому +8

    Personally I got into the habit of paying right after I make purchases, kinda makes me anxious to have my charges sit there, while that money is still in my account.

  • @charleeviolet234
    @charleeviolet234 3 місяці тому +4

    My comment is THANK YOU!! A Google search did not answer the question that you just did so I appreciate you making this video because I always wondered about this. Now I need to find a good credit card and start using it. I'm going to watch more of your videos and hopefully learn about some good cards out there and more info

  • @juangalvez8594
    @juangalvez8594 10 місяців тому +2

    Adam, thanks for the great advice as always !! 😀

  • @golazo2863
    @golazo2863 Місяць тому

    Great information exactly the answers I’ve been looking for 🙏🏿

  • @Jeana4life
    @Jeana4life 9 місяців тому +11

    I literally just pay my cards every 2 weeks. I have a score of 804.

  • @mrgarrettscott
    @mrgarrettscott 10 місяців тому +2

    Great video! After beginning my rebuild with a secured credit card with a $300 limit, my strategy was to make \purchase and pay it as soon as it posted. During the first 12 months of having the card, a balance was never reported on it. Now, I use different version of the same strategy. When I make a purchase I pay 90-95 percent of the purchase as soon as it posts. Then, after the billing cycle closes, I autopay a small balance which is always 10 percent or less depending on the credit limit and how much spend I put on the card.

  • @dylanschang6386
    @dylanschang6386 10 місяців тому +3

    I have a student card currently (I’m looking to upgrade soon) and my limit is only $800. In order to stay under 5% utilization, I make it a habit to pay the card off every Friday, and leave automatic payments on to catch anything left over. This has worked great for me and now I’m ready to get a better card now that I have a great score

  • @leafylawd8716
    @leafylawd8716 4 місяці тому +1

    I just wanna say , from the bottom of my heart thank you!
    I was confused and scared but you explained so well , thank you

    • @leafylawd8716
      @leafylawd8716 4 місяці тому +1

      I mentioned to a coworker of mine that I did this exact thing of just paying off right away after using my credit due to my serious paranoia and she mentioned that it’s “bad “ and during my whole shift I was internally thinking like “oh I fudged up…😐💔” but this clarifies everything !

  • @cardojp
    @cardojp 10 місяців тому +1

    Great content as always, thanks Adam!!!

  • @joycemerritt3492
    @joycemerritt3492 10 місяців тому +4

    Thank you for explaining this! I pay my cards, both ways. It depends on what my utilization percentage, at the time. I have multiple rewards cards and they all have different cycles, so I strategize how I pay them to keep my utilization around 10%. Everything you said is accurate! 👍🏽👍🏽👍🏽

  • @dancq4237
    @dancq4237 10 місяців тому +7

    I pay twice a month (in full), on the 1st and the 15th, because it's easy to remember.

  • @mitchell.9632
    @mitchell.9632 10 місяців тому +3

    Such a hassle. Plus like I have said in the past some issuers look at the posted balance for credit limit increases.

  • @jmb9377
    @jmb9377 9 місяців тому +10

    I swear you’re practically the only person worth listening to about credit on UA-cam. I was a financial adviser for some years, and there are so many accounts giving bad/vague/repetitive/inaccurate/self-serving advice. Or, using clickbait titles and thumbnails and spouting a lot of hot air for 10+ minutes, then telling you you should sign up for 10 high annual fee cards a year/by age “x.” I guess the biggest difference is that when you talk, you’re actually saying
    things

    • @xodima
      @xodima 9 місяців тому +2

      That's the reason I watch this channel almost exclusively. One of the very few credit channels that doesn't try to appeal to some upper middle/wealthy fantasy life to people who are mostly just trying to find stability and perks within their means.

  • @avburns
    @avburns 10 місяців тому +3

    I did things Dave's Way (Dave Ramsey) for around 15 years and had a "eureka, what if I need a good credit score" moment. Having used a debit card during my Dave's Way Phase, I just pay my expenses when I make them (Amazon, Chase & BOA) or when they post. Since, payment history & credit utilization are the two biggest factors I'm confident in my credit card usage because these factors are automatically taken care of. When I'm in the mood for a new credit card, I let one of the cards post a balance and now I'm practicing AZEO which maximizes the credit utilization factor.
    Also, since all my cards show zeroes, I'm sure to some credit card issuers it looks like I'm not using my cards but since I'm am using the cards, activity is always reported so I'm getting credit for using my cards and I don't worry about them getting shut down for being inactive.

  • @velocitypromo3177
    @velocitypromo3177 4 місяці тому +4

    The one thing you didn’t discuss here is utilization ratio and how it’s affected by the reporting and payment processes

  • @keemtube4798
    @keemtube4798 24 дні тому +1

    This help alot thanks

  • @carlapopper
    @carlapopper Місяць тому +1

    Awesome video! I feel so much better when I pay my credit card in full. But ill take take your advice an only pay the new balance before the due date. Thank u!

  • @justln2966
    @justln2966 10 місяців тому +5

    I do this but usually every week or 2 weeks. But I think it hurt me in terms of applying for the capital one venture x. I think they saw my utilization at 0 and thought I wasn't a profitable customer

  • @jimjames6287
    @jimjames6287 10 місяців тому +5

    Good info, good video. But I'd pay some real money to see you button that shirt pocket. 😁

  • @randomguyonyt7
    @randomguyonyt7 10 місяців тому +4

    I noticed that on experian your debt level shows and changes at the end of each month. So what I do is keep my debt level around 10-20% of my cards max at the end of the month so that when experian receives my data I have a low credit usage. I'm 20 and have a 770 credit score (750 currently as I just applied for a new card) so this has been working well for me.
    Edit: After watching this video I learned that this debt change at the end of the month is just the end of my first cards billing cycle.

  • @katbax55
    @katbax55 10 місяців тому +4

    I carry a balance. Utilization across all is 7%. Scores are great.

  • @a3sully
    @a3sully 10 місяців тому +1

    I do azeo, all zero except one, each month I rotate a card to show a small balance, and after each 6 months, let a small balance report on the ones that weren't showing a balance. During the months I let more than one card show a balance, my score goes down a little bit, then goes back up when I go back to azeo. I like to keep my card balances in control, and easiest way is to keep track of the amounts on each card every week and it helps me to keep my spending goals. Easy to adjust if I spent more than I wanted. Every week, I have a couple cards that the statement closes on, so it makes sense to pay something on each card. Although, an option could be setting all cards to close on same day of the month and paying them all at same time.

  • @jameswilkerson2785
    @jameswilkerson2785 10 місяців тому +13

    I pay mine in full just before the due date. Credit score is 830

    • @remmid4678
      @remmid4678 6 місяців тому

      So say someone has a balance that they occurred in November no payment is due to January do you think it would be a bad idea to pay some of what's owed or whole balance before due date in January? Thanks any info helps😊

  • @stuckhere14
    @stuckhere14 10 місяців тому +4

    I just pay it as I make charges. It helps me keep better track of money coming in and out. I'm not worried about getting limit increases at this point, my score is great, just have to let things age at this point

  • @eric4453
    @eric4453 4 місяці тому +3

    I use it “like a debit card” and let some purchases accumulate then, after $300 ish of charges are made I’ll pay it off. Therefore a lot of times I’ll even make two payments within the statement period. My statements have a mix of negative balances, zero, and some balance. I’m just glad and thank you for making this video showing me that it isn’t harmful at all to do it that way. I have an 801 score which is slowly increasing after opening up a new card last year and my credit utilization is like less than 1%.

  • @juicesnap
    @juicesnap 2 місяці тому +3

    I just knew too many people when I was in college who had credit card debt before turning 21 and that freaked me out so I only use my card once a year and pay it off immediately and mainly use my debit card all the way through.

  • @tonycicarella876
    @tonycicarella876 10 місяців тому +3

    I pay my card off usually weekly and it seems to work OK for me. My Rating is anywhere between 790 and 830 depending it seems on my what my balance is when it’s reported. Seems that what matters more is what available credit or rather percentage of credit used matters mostly. So on the rare times I have to make a large purchase that maybe takes me 2 to 3 weeks to pay off impacts my credit score much more than my normal charges of 500 to 1000 a week. I pretty much use my CC for everything since I pay it off right away and get cash back. So the CC is paying me for using it which is nirvana in my opinion. :)

  • @pishposh4506
    @pishposh4506 10 місяців тому +5

    It's pretty silly to pay off every purchase immediately especially since that's just not possible. It takes 2-3 days for transactions to post just to be able to pay off a purchase, and then another 2-3 to process the payment. Just wait till your billing cycle and be one and done

    • @Mr8675309ful
      @Mr8675309ful 10 місяців тому

      Some financial institutions let you make the payment while the transaction is still pending. The largest bank in the US, JP Morgan Chase & the largest credit union in the world, Navy Federal Credit Union are two examples.

    • @pishposh4506
      @pishposh4506 10 місяців тому +1

      @@Mr8675309ful I have chase cards and I have never seen the option to be able to make a payment on a still pending transaction

    • @bionicwoman9884
      @bionicwoman9884 10 місяців тому

      ​@@pishposh4506you would have to push the payment from your bank to do this not use the credit cards payment

  • @danmorgan940
    @danmorgan940 10 місяців тому +4

    I pay off my balance off the day before the statement date. I usually have a zero balance on my statement.

  • @jakeizlove
    @jakeizlove 10 місяців тому +4

    I don’t need any new credit and let go of the internal validation that comes with a good score. It’s a pleasant reminder of how much things have been turned around through changed habits, but kind of hollow when no longer seeking approvals.
    I’d like a lower car loan interest rate. I’m going to allow 1% utilization to post in August (at the same time the only inquiry ages to one year) and then request an improved rate. If they say no, I’ll likely refinance with a credit union. I’m damn-near allergic to inquiries (despite the fact that they don’t cost any money 😂), but this is a case where burning one would save money.

  • @leelaural
    @leelaural 10 місяців тому +5

    at age 69 I could care less about my credit score although mine if over 800....I use cc exclusively and get several hundred dollars back the next year.....I was ocd with paying off cc every single month for most of my life except the last 10 yrs that I became lax....now working on finishing up with my bills and going back to being strict on not paying interest....almost there.

  • @ugetsu2093
    @ugetsu2093 17 днів тому +1

    The most important issue for me is to pay off the card about ten days before the due date. You never know when there may be a delay in the sum being credited & posted to your account. Things like public holidays in different states may overlap and result in a longer delay. So you can suddenly trigger interest if you are not extra careful. Also a purchase reversal from an old purchase (think airfare cancellations) can lower the card debt but not may count as a payment for that month, but the following month. You have to watch out for these sneaky things that banks sometimes do.

  • @flowerboybri
    @flowerboybri 9 місяців тому +1

    i was just wondering this

  • @Pianoman999
    @Pianoman999 10 місяців тому +2

    Your sensible, comfortable, pastel dad shirts draw people in. They stay for the content. 👍

    • @ProudMoney
      @ProudMoney  10 місяців тому +2

      Did you mean cutting edge, radical shirts? 😀

  • @techistek1341
    @techistek1341 10 місяців тому +5

    Remember when it was 30% Util, now it's 10%? Remember when the only method of paying a CC every month was to mail in a check? As credit has evolved including the ability to instantly pay, so has the usage method. I am Team "Immediately" because I used that method to rebuild my own. It's not from fear or being lackadaisical with payment due dates-- it's just simply knowing that CC companies pay more attention to "processing fees" now more than ever. So the debit method signals higher frequency usage, and the CC company knows that they are the #1 Card out of someone's wallet- so limit increases come faster, secured cards get unsecured faster, etc. The most interesting thing I think one should consider is their individual stage in their credit journey. The debit method maybe great for re-builders and high frequency-high FICO users, but the older decades-built credit would not benefit from this.

    • @darianbarber3763
      @darianbarber3763 6 місяців тому

      Under 30% util is still good, 10% is just better.

  • @JMoroccoMisterBoy
    @JMoroccoMisterBoy Місяць тому

    Tks. much.

  • @BillyBlakeington
    @BillyBlakeington 10 місяців тому +2

    I have basically 750 from only paying before the first close date. So honestly maybe I can go about it better, but if my credit isn't building as fast Its still going up cause I was at 500 2 years ago

  • @deborahanderson4211
    @deborahanderson4211 10 місяців тому +1

    Hi Adam, that's what I've been doing for a while, and it makes no sense because they keep raising the darn interest rate!

    • @ProudMoney
      @ProudMoney  10 місяців тому +1

      Yep interest rates are crazy right now, another reason to always pay back in full!

  • @boogeymanw9643
    @boogeymanw9643 10 місяців тому +4

    i just pay it off every 2 week, i know exactly how much i can spend until my paycheck arrives so doesnt matter for me since i know how much i can spend.

  • @CreasyEQ
    @CreasyEQ 10 місяців тому +1

    Experian, opened my 👀 to this. Paying the statement balance from boa. They reported a higher balance afterwards to the credit bureau's. I have a high credit limit on this credit 💳 from boa. So purchases that makes sense to use it will be charged on it from now on ✅

  • @dennishamilton1065
    @dennishamilton1065 10 місяців тому +8

    I pay all my cards every week but only whole numbers. If I charged $323.98 in a week then I pay $323.00 this way I always show using the card, my utilization is very low and I never pay interest. Idk if right or wrong but it’s how I do it.

  • @turnerstransport2ify
    @turnerstransport2ify 2 місяці тому +2

    What if I used credit cards for everything but paid off every other Friday on pay day will that work

  • @FrankSilverado
    @FrankSilverado 10 місяців тому +3

    I like that strategy because it works for me .. and that's all I care about haha.

  • @JackFreeze-yz4ny
    @JackFreeze-yz4ny 2 місяці тому +1

    I really don’t the claim of having a balance will make a credit score go up. Where can I double check this?

  • @xseraphjg
    @xseraphjg 10 місяців тому +3

    Re: Credit Card Payment History. Major Credit Card vs Store Credit Card Payment History Are They The Same As My Total Credit Card History Or Here A Difference?

  • @OneGrumpyBastard
    @OneGrumpyBastard 10 місяців тому +7

    Set your cc account to auto-pay; leave the money in your savings account; when you receive your statement schedule an automatic transfer from savings to checking on the payment date. Not only do you not pay interest, but you earn interest while you wait.

    • @so.many.obstacles
      @so.many.obstacles 10 місяців тому

      I was about to pay $220 on my car today. My closing date is on the 16th, however, my HYSA interest is paid in the 10th. I’m going to put that $220 in my savings and pay my CC on the 11th. Thanks!

  • @artdogg50
    @artdogg50 10 місяців тому +5

    I've paid them off at times and let them sit for a while others. Can't say I've seen the needle move much either way over the years.

    • @MH_6160
      @MH_6160 10 місяців тому

      Same here..

  • @ResilientBeauty22
    @ResilientBeauty22 10 місяців тому +6

    I only immediately pay off a transaction before the statement generates because I just want the points. I am on a debt free journey no more revolving credit for me to interest rates are to high.

    • @deveng7766
      @deveng7766 10 місяців тому

      Lol I do the same thing I be wanting my points asap

  • @darrensmith9564
    @darrensmith9564 10 місяців тому +4

    Quite shocked to hear people paying their card off after every charge vs end of billing cycle

  • @kevinmartindempsey209
    @kevinmartindempsey209 2 місяці тому +1

    I’m new to the Credit Card Game so I need advice please
    I owed $20
    I got Billed on 11th March
    It said pay Minimum of $5 or pay full balance of $20 before due date (5th April)
    I paid it on 12th March so 1 day after my billing date but long before my due date
    This is what I need help with
    On 19th March I spent $20 again now do I need to pay of this $20 before 5th April or is the $20 that I spent on 19th March going to be added to a different billing due date?

  • @TheBeagle1956
    @TheBeagle1956 10 місяців тому +12

    I pay my credit cards off as soon as I can. I hate owing anybody anything. Couldn’t care less about the credit score. Credit cards are for convenience and rewards only. Will never need another car loan or mortgage.

  • @Likeiverson
    @Likeiverson 4 місяці тому +5

    You keep contradicting yourself by saying you can beef up the credit score by paying off each purchase faster and then you say it will take longer ?

  • @scottokeefe
    @scottokeefe 10 місяців тому

    QUESTION I own my own home I usually finance only about 10 % ( or what ever they will let me )of a car purchase and put it on AUTOPAY . I do this for as long as I can to promote my good credit score.
    Is this a good tactic?
    I don’t use credit cards . I have no debt other than the small car loan. I keep my liquid assets in three separate banks and credit unions for safety.
    Thank you.

    • @MrAustanian
      @MrAustanian 10 місяців тому +1

      The minimum credit rate required to get the best of everything is almost always 750. No need to pay interest to get to 800+ when you don't benefit.

  • @samuraikatana1
    @samuraikatana1 10 місяців тому +5

    I pay off my Amex every night. Just built it as a habit. That way this never get into a situation where pending charges build up.

    • @rcinematic
      @rcinematic 10 місяців тому

      What’s your credit score now?

    • @samuraikatana1
      @samuraikatana1 10 місяців тому +1

      @@rcinematic 802

  • @griffinreitz7041
    @griffinreitz7041 10 місяців тому +2

    I put everything on 4 cards. Fuel, food, personal, and rentals. Get 3 to 4 percent rebates on gas , food, and one percent on everything else. They auto pay every month. Been doing this for decades. No idea why I'd make it more complicated ? 817 to 850, when I look. I don't really care. LOL

  • @dianasthings729
    @dianasthings729 3 місяці тому +4

    I pay off my cards and my score is dropping !

  • @nahumdaniel177
    @nahumdaniel177 Місяць тому

    So if i payed off my 6k statemnt would the irs notify me? I think i got a spam frm a scammer but idk

  • @OroborusFMA
    @OroborusFMA 10 місяців тому +7

    I have several credit cards with about $117,000 in total credit. I have about 18% of that used at any one point. I never pay interest. My credit score is usually over 800 (presently 796). I never pay until just before a bill is due. I'm investing that money in dividend stocks why would I be giving it to a credit card company until I absolutely have to?

  • @jarviswilliams2465
    @jarviswilliams2465 10 місяців тому +9

    Credit score? Payoff immediately to avoid interest charges

    • @XxChuyoxX
      @XxChuyoxX 9 місяців тому +2

      Lol you don't need to pay immediately in order to avoid interest

  • @randomanonymousperson3603
    @randomanonymousperson3603 10 місяців тому +6

    I did hear about how credit scores are done a few years back. How it was explained kinda clicked to me. Credit scores are not there to show you are financially responsible. It's there to show how much money they can profit off of you through interests and overdue fees. Paying on time is just one aspect of it, because they do want to get your money after building up interests. Of course you won't have a good score if you just rack up debt and not pay any of it.
    For me, I pay off everything immediately because I personally feel it's the responsible thing to do. Screw credit scores. I am not going to get loans I can't pay off anyway.

  • @rghong
    @rghong 10 місяців тому +1

    High Credit profile (Fico) > Credit Score

  • @definitionXrp
    @definitionXrp 9 місяців тому +3

    I just put a new bed on my credit card, love barrowing from myself. I dont really care about the score....im fine with just increasing my credit line eventually credit score will go with utilization going down...im at 50% utilization dont care will be prolly 37% next month old people focus on the score too much...its the quality of life ur living. Your able to cover a 2k purchase then pay off in 3months

    • @carryeveryday910
      @carryeveryday910 4 місяці тому +1

      Poor person way of thinking. You aren’t supposed to pay for stuff you couldn’t pay for in cash. It isn’t “old people” that care about the score it’s intelligent people lmao. We like getting the best rates on things and never having debt. No financial expert on the planet would agree with you. Only poor people and idiots have a credit utilization over 10%

  • @dantezima8011
    @dantezima8011 2 місяці тому +1

    I have a question someone please reply as quickly as possible. Do i have to spend a certain amount on my credit card or will they remove it

    • @GhostTacos1975
      @GhostTacos1975 2 місяці тому

      They don't remove it and closing a credit card can hurt your credit.

  • @MichaelB-od3xh
    @MichaelB-od3xh 6 місяців тому +6

    This is bad advice telling people if they want to pay off the balance after each purchase. I tried to do that and Cap 1 restricted my credit card. When I called to find out what happened I was told I was making too many payments(you can't make this up smh) in a short amount of time and they were worried about potential fraud. So now I don't do it.

    • @mikeyoung7640
      @mikeyoung7640 3 місяці тому +1

      That makes no sense. Why would they do that?

    • @Mr.Mister96
      @Mr.Mister96 3 місяці тому +1

      I have the capital one savor one card and that's exactly what I do,pay the full balance then cash out on my cashback, you end with a negative balance and the bank technically owing you money

  • @velvetmidnight9535
    @velvetmidnight9535 4 місяці тому +2

    I treat all $ like cash just cuz it’s virtual doesn’t make it any different just more benifits.
    You can pay late fees on anything and each up a high total.
    Think it’s fine people pay it right away I do it often, or every few days. Pay it off full and lock my card if I know that’s the last purchase I’ll make for. While on that card

  • @newbeginnings9457
    @newbeginnings9457 10 місяців тому +1

    If you want to do something for no reason! Only thing where I see it hurting you is if your bill is at $0. It’s like flushing the toilet 20 times when going to the bathroom! Waste of time

  • @coldfirebeats1
    @coldfirebeats1 29 днів тому

    I think it should be every 4 days

  • @elbori4365
    @elbori4365 10 місяців тому +3

    I have always paid off my balance before the statement date closes and for some reason my score has been stuck at 793. Any advice thst works?

    • @richardmenz3257
      @richardmenz3257 10 місяців тому +1

      Idk if it was on purpose or just random chance but my credit score only went up over 800 after letting a balance show on card by paying the minimum one month having to have interest. My score jumped 15 points after doing that. It’s hard to say if it was that or PMI aging off home loan or the fact I got a job making six figures. But something of the combination of the 3 caused it to jump up.

    • @ProudMoney
      @ProudMoney  10 місяців тому +9

      793 is really very good, not sure you need more!

  • @sjg6158
    @sjg6158 10 місяців тому +4

    Best thing to do...have a balance of $0.01 at the end of each period. $0.00 isn't good and a credit balance isn't good either. $0.01 is the best.

    • @chrisbrown8748
      @chrisbrown8748 10 місяців тому +1

      Agreed

    • @chrisbrown8748
      @chrisbrown8748 10 місяців тому +1

      I just make two payments in a billing cycle like you mentioned. I just leave a balance equivalent to 1% of the cards credit limit and then pay it in full on the I get the statement.

    • @henralilly3793
      @henralilly3793 10 місяців тому

      @@chrisbrown8748so you charge your card and leave a low amount around the statement time to show that your utilization is very low, and then pay the full balance on your due date?? Sorry if this sounds a little off I’m new to credit cards

  • @kingzing555
    @kingzing555 2 місяці тому +1

    I added 150 $ on my credit card everything is paid, pay after every purchases and have good credit!
    Last time i couldn't make an other purchase after buyin a lot online so i thought this had to do with my debjt limit so i added monney for my chequing account into my credit card what does it do?

  • @user-hh1ru1lh9h
    @user-hh1ru1lh9h 4 місяці тому +3

    I’m trying to get to 700+ post bankruptcy. I didn’t file because I wasn’t financially responsible. I went through one because of a divorce and family court battle for a year or so. Lawyered fees added up and destroyed me financially. My score went to 450 and now a year later I have a 650ish. I have 6000 credit limit between two cards. I use them often but pay them off every month. What do you recommend to get to 700? I want to get a VA home loan within the next couple of years. I have no debts anymore.

    • @Fiandrea9
      @Fiandrea9 3 місяці тому

      Same. I file bankruptcy chapter 7 on Oct 28 2022 and discharged 01/ 19/2022 and my credit is almost 700. However that bankruptcy is still affecting my score. And unfortunately some lenders denied me because of bankruptcy. But I have an auto loan, 4 credit cards .

  • @matthewhamblin9585
    @matthewhamblin9585 10 місяців тому +3

    So we want to pay off the credit card in full each month so that we don’t accumulate interest but at the same we want some balance to show so that it looks good that we are using the card, but doesn’t that in turn have us accumulating interest? Can someone please dumb it down 😭

    • @ProudMoney
      @ProudMoney  10 місяців тому +3

      As long as you pay the statement balance in full by the due date you don't pay interest. In truth that is the only rule that you should absolutely follow. The statement balance sometimes has other names like New Balance, but it is always whatever amount the card company tells you that you owe by the Due Date.

    • @sanauj15
      @sanauj15 10 місяців тому +2

      You only accumulate interest if you carry your balance over the next billing cycle.
      It’s okay to carry a balance within the month as long as you pay everything in full before the due date.

    • @henralilly3793
      @henralilly3793 10 місяців тому +1

      @@MrBankRelations could you give an example of someone carrying a balance? Does that mean like say if I charged $60 from my CC and let that balance sit until my due date

  • @famicomnintendo
    @famicomnintendo 10 місяців тому +5

    You should pay it off quickly, but wait till the transaction is processed and showing on your balance and not just pending. If you pay it off 5 minutes after, it won't show on your credit report

    • @gravesidepoet5405
      @gravesidepoet5405 5 місяців тому

      So basically wait a few days?

    • @famicomnintendo
      @famicomnintendo 5 місяців тому

      This is only useful to maximise your credit score; you can pay it off right away it won't hurt you but you won't get extra points if you pay off too soon@@gravesidepoet5405

    • @famicomnintendo
      @famicomnintendo 5 місяців тому

      ​it usually takes between 1-5 days for a transaction to show up so yes, my personal rule is to pay the thursday after next from the date of the transaction so anything between 6-13 days. If your credit is aleready perfect, it doesn't matter. Besides, this score that you see is a consumer grade score, not used by lenders. Lenders will use an R score, wich goes from 1(best) to 9(worst).@@gravesidepoet5405

  • @rthilson
    @rthilson 10 місяців тому +3

    Banks will close your accounts

  • @george4u1960
    @george4u1960 10 місяців тому +6

    It gives you more liquid cash flow. Back in the day in the seventies we could charge charge. Because the interest rate was 3%. Now they want 29 to 30% interest rate on these cards. Now because of the greed. They increase the interest rate without your knowledge of it. You'd be better off going to the casino. You'd be better off buying the money from a pimp.

  • @jeffreywilliams9220
    @jeffreywilliams9220 10 місяців тому +2

    It’s better to carry some type of balance And just pay over time to build up the payment history

  • @jaywalk6628
    @jaywalk6628 10 місяців тому +9

    A high credit shows how good you are at owing other people money and paying interest charges. No thanks.

    • @GenTankman
      @GenTankman 10 місяців тому +11

      I have 30 credit cards and close to an 800 score and have never paid a penny in interest. Just because you don't know how to manage credit cards doesn't mean others don't.

    • @jaywalk6628
      @jaywalk6628 10 місяців тому +1

      @@GenTankman Haaa. must keep you busy.

    • @darianbarber3763
      @darianbarber3763 6 місяців тому

      Have 740 and legit haven't paid a cent in interest. Ty community college (btw made more money going to college then my loans totaled to) and am just going to set an auto pay subscription to set and forget. It's not that hard

  • @RyanG-ij8xq
    @RyanG-ij8xq 7 місяців тому +3

    My credit score is literally going down Drastically over this stupid credit card I got to help my credit. Wtf help. I pay

    • @jeromehenry4484
      @jeromehenry4484 7 місяців тому

      Have you only had 1 credit card in your life? have you ever had any type of loan (like car, student, mortgage)?

    • @naderbeydoun6258
      @naderbeydoun6258 5 місяців тому +1

      Is your credit utilization rate below 10

    • @DSGB91270
      @DSGB91270 2 дні тому

      ​@@jeromehenry4484I have. What were you going to say?

  • @RyanG-ij8xq
    @RyanG-ij8xq 7 місяців тому +4

    I pay my credit card every month and my score keeps dropping WHY??

    • @phresh6199
      @phresh6199 7 місяців тому +2

      How much are you using it?

    • @drone1028
      @drone1028 7 місяців тому +5

      Are you paying it off completely, or are you making monthly payments? If your balance is more than 30% of card, your score will drop.

  • @1SAM007
    @1SAM007 10 місяців тому +7

    Do not carry a balance…….that easy.

    • @johngill2853
      @johngill2853 10 місяців тому +5

      You didn't get the videos meaning
      It's not about carrying a balance but paying off before the Billing date(credit utilization)
      Credit utilization is part of your credit score

    • @1SAM007
      @1SAM007 10 місяців тому

      @@johngill2853 824……by my method

  • @MENSA.lady2
    @MENSA.lady2 10 місяців тому +11

    .Better idea. Pay off the balance then destroy the card. Living debt free is wonderful and credit scores become irrelevant.

    • @keithsnider1958
      @keithsnider1958 10 місяців тому +4

      Your not getting it. There are a lot of benefits to having credit cards. With responsibility.

    • @MENSA.lady2
      @MENSA.lady2 10 місяців тому +7

      @@keithsnider1958 Credit cards exist for the sole purpose of making profits for whoever issued the card. usually a bank. Banks are NOT your friend.

    • @keithsnider1958
      @keithsnider1958 10 місяців тому +4

      @@MENSA.lady2 my banks pay me to use their money. Don’t spend what you can’t pay back in full.

    • @robertc.6441
      @robertc.6441 10 місяців тому +2

      That's true if you can afford to pay cash or write a check for everything you need like a home or a vehicle! However if you're like most people it's crucial to maintain credit and a high credit score. One of the quickest and best ways to raise and maintain a high score is using and paying off credit cards on a regular basis. Just remember not to get free and loose with them because you have to pay that credit card money back!

    • @MENSA.lady2
      @MENSA.lady2 10 місяців тому

      @@robertc.6441 No, I can't pay cash for a home or a car, but I would never put either on a credit card, even if my credit limit allowed it which is unlikely.

  • @davidcarp5935
    @davidcarp5935 Місяць тому +2

    Who has time to constantly pay it off, sheesh. I'll take the free 0% loan for a month and earn 4.5% on it

  • @Fr1ti4e88
    @Fr1ti4e88 10 місяців тому +6

    You shouldn’t even have a credit card to pay off, usury is a sin

  • @massoudafg4875
    @massoudafg4875 Місяць тому

    So we need to keep a balance so the credit card company make money out of us 😂😂😂😂 u r bad

    • @ProudMoney
      @ProudMoney  Місяць тому +3

      you obviously did not listen very closely

    • @76ers
      @76ers 9 днів тому

      You clearly did not understand

  • @joebragg7539
    @joebragg7539 4 місяці тому +2

    Silly advice,,you,sir,are lame !

  • @berryzedzero
    @berryzedzero 10 місяців тому +3

    Best strategy is to pay everything off, cancel all cards, and then leave the game behind.

    • @ProudMoney
      @ProudMoney  10 місяців тому +1

      That is one idea.

    • @Adiscretefirm
      @Adiscretefirm 10 місяців тому +4

      Why would I pay 100% of the price when I can pay 95% to 98% instead?

    • @berryzedzero
      @berryzedzero 10 місяців тому

      @@Adiscretefirm the GAME doesn’t want you to be free

    • @Adiscretefirm
      @Adiscretefirm 10 місяців тому +6

      @@berryzedzero paying more for the same thing doesn't make you free

    • @berryzedzero
      @berryzedzero 10 місяців тому

      @@Adiscretefirm the game dont make you free