When To Pay Your Credit Card Bill & How Much To Pay (INCREASE YOUR CREDIT SCORE)
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- Опубліковано 30 тра 2024
- Paying your credit card bill seems like a super simple thing - make sure you pay it off in full every single month and that's about all there is to it.
But if you're looking to improve your credit score, then what is the optimal time to pay your credit card and why?
How much should you actually spend on a credit card and how much should you then pay off in order to get the best possible impact to your credit profile?
I've noticed that there is a lot of very bad advice out there about this with people advocating not paying in full, paying the card off quickly and other things that are simply not correct and I wanted to put together a video where I explain this as clearly as possible.
At the end of the video I share 2 top tips for ensuring that the way you make your payments gets you the best possible impact to your credit profile.
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A little bit more science for those wondering when the best time to pay is and why! If you found it useful, please scroll back up and hit that Like button!
Done already
@UC8w6-eMtf42giBXeQwcC_sg It's different in the US because FICO rules everything and the calc is therefore more rigid than in the UK (I've worked in both countries).
In the US, you really do want to keep it around that 30% sweet spot if the score is what you're going for - that's definitely one important difference.
And with a small limit, it is relatively easy to make a couple of transactions after autopay comes out to add that $60 that pushes it back to 30%. 👍
Thanks 🙏
Dude your giving wrong info, in the US it doesn’t work like how you explained.
@@brickhunter9537 Which bit is wrong?
My limit is £400 and is emergency use only previously unemployed so I got a credit card, risky move because I thought I won’t get employed and spending what I can pay back, luckily enough I am now employed and refuse to spend no more than 50% of my limit currently on £160 spent and happily to be paying that off next week with my pay check, and once stable I will be only spending no more than £100 and that will be fuel needs and small shops. Amazing videos and helpful for someone who has no clue and was worried owing a credit card. Quality job mate thanks a lot.
Great video mate. Really appreciate someone in the UK making videos like this, your channel is exactly what we need, keep it up 🙌
Thank you - I appreciate it! 😀
Great video, i have heard so many different techniques e.g. paying in two separate payments or paying off straight away. It's good to hear from someone that actually knows what they are talking about.
Thanks Matthew!
Excellent video. I find it difficult to get accurate information about credit in the UK when UA-cam is just awash with videos about the US. Definitely answered so many questions I had. Thank you!
Glad it was useful! 👍
Great video and tips. I am in the process of rebuilding my credit and you’re video is very informative. It’s very hard to find videos that are focused on the UK market. I found one of you’re video accidentally. Thank you
Thank you Mohammed! Really appreciate your kind words!
i was lucky enough to find your content right after getting a credit account. appreciate the useful and reliable information explained in a very clear manner
Glad it's proving useful! 👍
Thank you for all those insights! Didn’t know most of it 😅 thanks!
Pleasure Natalia!
Hi Sasha,
Congrats for the channel! Your style of explaining finance in plain English is amazing.
If the due date is, let's say the 12th of each month, should I set the full repayment direct debit on the 12th or few days in advance?
Thank you and I hope you'll have enough time and energy to keep this channel growing.
Cheers!
If you are setting up a Direct Debit or Autopay, then you can set it up for the last day. But you really want to set it up through the credit card provider, NOT your bank - then it will always be paid on the correct date including things like weekends and bank holidays and the amount will be correct.
This is a really interesting video, thank you for sharing!
Thank you for sharing your insights. This was a very good explanation on how to build credit.
👍
Great video, and very useful, thanks Sasha.
This is so helpful, thank you!!!
Excellent Video!
Great in depth video thanks for sharing
Thank you Kevin!
Good job mate I have learned a lot from this video
👍
This video actually prompted me to call my bank and set up my (pay in full) direct debit. That deserves a smash of the like button! THANK YOU 🙏🏼
Good job! 👍😃
Did you notice any increase to your credit score after doing so or did you find a better alternative method of paying and increasing your score?
@@T.Q.it's hard to understand what you mean about better alternative methods of paying.
Great vid, would love to see some visuals, a calendar for example
Good point, I had to pause and rewind about ,20 times to try and follow the last two tips 😂
Brilliant advice, thank you
Thanks!
i liked your video, thanks for the explanation!! seen you from NYC 🗽
Thanks! I lived in NYC for a bit!
My strategy is put down the minimum payment a day after statement day manually. Then you are immune from late payment etc. build the remaining balance or as much as possible and pay off on time closer to due date
Very informative video. Thank you very much for sharing.
Thank you! Glad it was useful!
Great tips 👌
Thank you!
Great video, thanks!
Cheers Evie!
Thanks Buddy, great info
Thank you!
Hi Sasha I really luv u channel best content creator ithink u knowledge is home grown organic knowledge
Thank you so much! Really appreciate it!
Never worked for a cc company but I recommend people to spend limit then repay. I started on a £500 limit on my first cc but was spending 3k a month on it via repays. They upped my limit twice within 3months which got up to 5k and my credit score skyrocketed too
Thanks for the information...it works
👍
Great video.
Thank you!
Great info.
One thing I learned is that not to pay off my CC right away. I had a $500 limit one. I would always pay if off after spending which never generated spending on my statement. Therefore, my score would only go up by a point or so.
Can Google literally read my mind too now? I was pondering optimal payment timing just last night to myself only in my own head, and this morning this is one of the first vids I see, lol.
Glad it was useful and you found it at the right time! :) Google knows way too much!
lol i was just thinking about it this morning and bam it pops up as a recomended video lol theyre watching us..
Why were you thinking about it? Because you had opened a new credit card account recently,?
I’m 82 today and keeping from getting confused about all the various things happening with my finances, I need this sort of advice and help on a regular basis.
At 82, you should be retired and own your house outright. Don't worry about your credit score old timer. Lol
You only need a good credit score if you are planning on taking a loan, or a mortgage, or a credit card.
Hi
Great video
Thanks man, I sub😁👌🏿
Oh well, 20 years of doing it wrong with any type of debt! All due to a lack of financial education at school. Sasha Thank you.... life looks much brighter now!
Quality video
Nice vid Sasha. What's your outro music?
Thank you! It's Distant by AGST. 👍
Thanks for such a great video Sasha. I still have a question in my mind and I would like to clarify with you. What would happen if the credit card payment due date is falling on a weekend or public holiday? I believe the direct debit will not be processed during holidays. Will my payment counted as late payment?
Epic 👍🏼🙏🏽❤️🙌🏼💳
All of the three credit agencies have my score in the 800's, I make a bill and I pay a bill on time. It's simple...
Good! :)
Tell me who are your 3 credit agencies?
@@christianhernannnnnExperian is the main/biggest. Equifax is the second, and TransUnion is the newest.
Brilliant video Sasha! Just got my credit builder card and will apply what I have learned from your videos and my own knowledge to build up my credit profile! A quick question: My statement date is on 3rd of each month, when would be the optimal time for my DD to come out? (I have made the DD in full and is currently set at the default 0th of each month.)
It's unusual to give the option of a DD date when you're setting it to pay in full. It doesn't really matter too much - the later it is the more time you have before the money departs your current account so there's that I guess.
Some people find it useful to have these kinds of DDs leave immediately after getting paid so that the money doesn't sit around in the current account waiting to be spent.
@@SashaYanshin Cheers Sasha!
Fantastic video! Random question: where is that lovely yellow mug from?
It's more orange than yellow - just the way it looked on camera! I actually tried to buy another after it met its demise after a short trip to the floor, but I think they have been discontinued so can't get one.
@@SashaYanshin thanks!
I have a DD with credit card provider. So it just comes out on the day it’s due.
That's the way to do it! 👍
Great vid. Do you consider I pay my credit card bill after my statement date but couple days before my due date ?
Yes but just let the direct debit do it
Very good information and great tips. One point to note tho': Here in US, I pay off my cc balance as soon as I charge on it, usually. I make many payments throughout the period, keeping my balance at zero. My FICO is 841 out of 850 so no, showing zero balances from the onset does not necessarily negatively affect credit rating.
I wish it was the same here in the UK. Pay the full statement on the day of issue or a few days before.
Thank you 🙏
Great video! Just a quick question: My credit card limit is £800, I have spent £400 on the card in the past month, but my statement balance is £280. Do you recommend i pay off the statement balance then wait to pay the rest off, or pay off the entire £400 at once? I hope that is clear haha
The statement balance is the bit that counts to ensure you pay in full. I'd just make sure that is cleared every month (as long as you don't need to pay more to clear enough of your credit limit to be able to continue using the card).
I'm just too afraid of myself to keep spending on the card and only pay it off at month end. Sounds like a surefire way for me to think I've got way more money than I do and end up racking a bill I can't really afford to pay in full.
What I've been doing so far has been allowing my balance to grow up to £35-50, then paying 90% of it as soon as it clears, and doing so a couple of times during the month, and then once the statement is generated, I pay off all the outstanding amount in full.
Maybe not optimal but does give me peace of mind.
I understand that! I use my primary credit card like a debit card and pay it down each week. That way, the balance never feels out of control.
Why don't you use the credit card and then put the amount you use into a easy access high interest savings account immediately after using the credit card. Use that high interest account just for that purpose. Then when the bill is due, you take the money out the easy access account and pay of the credit card in full. And enjoy the interest it generated the month its been sitting there.
Thank you for the video Sasha. So, how do I set up the auto pay function? Also, is it good to get £1500 credit limit card even if I don't really spend much money? From what you have said, I feel like I need to get a lower credit limit one to reach that 30% to 50% credit utilization. I could have misunderstood?
The idea of spending 30-50% every month (to improve credit) is only applicable to low credit limits.
Once you are getting up past £1000 the % figures can come down to 20% or 10%.
Noone is expected to put £thousands on their card every month in order to have a good credit score 👌👍😎
Do you recommend cancelling credit cards that you don't use? I have a few that I don't ever use . Very informative video thanks 👍
Depends on a few factors including what else you got and how you use the others, but if you have a bunch lying in a drawer that you have no use to, might be a good idea.
Be careful though - in countries like the US, keeping the oldest one around (or the oldest couple) can be good for your credit as account age is a factor while in the UK/Asia/other places it is either irrelevant or doesn't have a meaningful impact.
@@SashaYanshin Cheers 👍
Hey Sasha, thank you for the video. I had a question. I have an Amex and I am going to pay off the first payment. It said on the app that the minimum payment should be made by a certain date. Should I be paying the full amount on the date given or make the minimum payment. For example, I have a balance of lets say £400, and they are asking for a minimum payment of £250 by 14th May 2021. What should I do in this situation?
That really depends on what you're trying to achieve.
If you DON'T make the full payment, then you will have to start paying interest and you presumably don't want that. Also your credit report will show that you are revolving a balance.
If you DO have the money to repay it in full and happy to do that, then that is always a good thing. Stops you getting into actual debt and bad habits. There are no benefits to not repaying it in full.
If I’m intending to apply for a mortgage in a few months time, should I stop using my credit card before that? Or continue using it as normal? Just conscious that the bank might see a few hundred pounds of debt for that month that might impact my ability to get a mortgage or have a negative impact on the rate
Good question. Obviously can't provide you financial advice so treat this as just a random opinion of some guy on the internet.
If I was applying for a mortgage in a few months' time, I would do something slightly different in the run up. The key thing here is that things like your average utilisation of the card and payment history are things that matter over time, things like your level of debt are largely only important at the point when they are looked at. A caveat here is that some companies now look more at the trend in debt, but that's still not a huge factor in scorecards.
So what I would do is a full 2 calendar months before applying, I would bring my utilisation on the card right down. Technically, if you have a credit card and can stipulate that this card is a transacting rather than a revolving credit card, many mortgage lenders do take that into account, but some do not because... the mortgage industry is not the fastest to change.
So I would bring it right down to maybe a few hundred pounds and continue the repaying in full gig so that at worst my total debt on the card in the model will come through as £200 or £400 or whatnot.
This will not impact anything material score-wise, but it will max your affordability calculation which is always done separately - so they will not have to account for you having to make repayments on that credit card in assessing how much you can pay per month (or bake in the £25 per month minimum payment) so that should help a lot with eligibility.
Again - just my opinion. :)
thank you for the indepth information. i have DD set up for my payments on my credit card. my limit is currently £450, and i only use around £55-£60 per month. would you say this amount is too little or a good amount?
It's on the low side, but it's perfectly alright - you might see a slight benefit if you put another transaction or two on there like a weekly shop but it's not a huge deal in reality unless you are right at 0 or fully maxed out.
@@SashaYanshin Okay thanks for that. 👍👍
Hello Sasha when you say set up direct debit for the full amount is this the same as bringing the card to £0. ??? Please let me know. Thank you.
This is unrelated ish to the video but I had multiple hard searches and it drastically impacted my score. Should I wait it out and let it run its course or will using my CC under 30% improve what the CRA has
The two are indeed unrelated. In most cases, the number of hard recent searches will be in the Policy Rules and not in the scorecard - so the credit card companies will have a hard cut off of a max number and that's it. You can have the best possible utilisation and it won't matter because you will fail on that policy rule.
Having said that the rules on recent searches are most frequently applied for the last month or the last 3 months with some credit cards opting to use 6 months. It's pretty rare to use this variable for longer than that so if you don't apply for anything for 3 months, you should get a bump in your eligibility if your other parameters are good and in 6, this should not impact most credit cards at all.
At the same time, there's nothing stopping you getting all your other parts of the credit profile in shape while you wait for the recent searches to drop off.
^^ All of this is just my personal opinion of course.
Hi Sasha great video. I am just wondering if I should put my bills onto the credit card such as my phone bill, car payments, car insurance to help increase my spend amount on it to hit the 30/50% of the limit? if so how do I change my current direct Cebit to them onto my credit card?
Thanks
That answer is complex, Robert - let me have a quick go.
You can't set up Direct Debits on a credit card so if you put a recurring payment onto it, it will be set up as a Continuous Payment Authority. These are very similar, BUT unlike DDs you cannot cancel them - only the company that you set it up with can.
So in cases where I have a very high degree of certainty that this won't be an issue, I don't mind that setup, but with cases where there is any chance that I may run into difficulty cancelling this CPA in the future, I really wouldn't want to risk it.
Also - if the credit limit is pretty high (say £10k for example), you really don't need to be hitting 30-50% utilisation for the numbers to stack up. That sort of thinking really applies to lower limits and as I mentioned, there isn't an exact science here - every provider will have their own ways of assessing it.
@@SashaYanshin Amazing. Thanks for the fast reply
@@SashaYanshin Also another quick one I'm currently not working but I'm self employed so grants only. for the section 'monthly earnings' would prior to lockdown be okay?
Interesting stuff. I have no real reason to want to manipulate my credit score, I guess it is good enough, but I'm probably doing all variants of what is possible. I have one CC which I use monthly and pay off in full when paid, I have another with about £3000 on it on a no interest for another year and then a third which has a massive limit of about £25,000 which I don't use, in fact it has £70 credit on it. I suppose I should do a bit of financial tidying up.
I am guessing based on your numbers that your credit profile is pretty decent as it is!
For those who are brand new to the game, e.g. young people, or those with credit issues in the past every little bit matters and these kinds of things can make a noticeable difference so hopefully it'll be of help to someone!
@@SashaYanshin - Definitely, yes. It's a big help to know what you need to do to get that score up.
Hi Sasha, I have my current account with Starling and a CC with Santander I have just called Santander to setup a DD in full every month.
However for the first month I have to make a faster payment to my CC from Starling account etc, due to the time it takes to setup a DD etc. My CC payment is due 29th Dec what date should I pay it off using my Starling account?
I'm not sure about paying the day before as my Current Account is with Starling and not Santander so thinking it might take longer. What do you suggest?
I am not 100% sure on the timings with Santander, but I am presuming that you've just had your latest statement if your payment is due on the 29th or you are about to get it.
If it was me, I would make the payment well in advance and probably before Christmas in this case as it's a one-off and I wouldn't want to get carried away with things happening at Christmas and miss the date. In any case, I would always leave a clear 2 business days and pay on the 3rd last available business day at the latest to make sure + I'd then have a chance at doing a follow up faster payment if needed.
Doing a Faster Payment from your bank account is the fastest way if you don't have a DD set up so that's what I would do if it were me.
@@SashaYanshin thanks for the quick response and great channel :)
If you don't want to watch the video, I'll tell you how it works. Charge less than 10% to your card every month. When the payment is due. Pay it off. I went from 555 credit score with a credit card with only a $300 limit to $1500 in about a year. And my credit score is sitting nicely at 742.
Great advice!
😂😂😂 that's exactly how it's works....in the U.S. but not over here in the U.K.
Over here we get more points for using 10-50%
My Aqua takes DD on the due date.
However Amex play a little different. My due date is typically 21st. When I had the DD set to in full they took it on the 9th. I have compromised and gone for a fixed amount that is in excess of my credit limit so that’ll it effectively is paid in full on the 14th automatically.
Even though the 14th is still somewhat earlier IMO.
Thoughts on this?
Thanks for the video btw :)
Yep - Amex do have a habit of running DDs 11/12 days early - probably should have mentioned this as it’s unusual and partly down to their historic differences.
As I mentioned in the video - although it is technically less optimal, repaying in full via DD is still going to get you 90% of the way there and the timing is just fine tuning. I wouldn’t switch to manual payments to try and time it as I wouldn’t want to miss that 1 payment that screws it all up.
@@SashaYanshin Thank you for that info :)
Always pay your statement balance in full every month that’s pretty much it but pay 2 twice pay it down to 5% then pay it in full🔥
Does it matter if I mainly do online transactions? Or must I make chip purchases? Also do they look at what you’re spending on?
In terms of how much to pay and when to pay? Doesn’t really affect this in any way. 👍
@@SashaYanshin in terms of spending sorry. So is shopping online valued the same as shopping/ spending instore
@@zaaamgotjaaam7546 neither is better or worse. The key to a good credit score is to be doing some borrowing and being impeccable at paying it back each month.
Hey Sasha. Just to confirm, if my statement balance is around 30% and then, once my statement has been generated, I spend another 30% of credit limit - would this count as 60% utilisation until my statement balance is paid? And if so, would this potentially hurt my credit score?
I wish Sasha would do a video clarifying exactly this.
That is exactly one of his two recommended methods that he talks about in this video.
He says 60% won't hurt your score.
Personally I'm rebuilding my credit just now and I'm going to start off with around 20-25%, them ANOTHER 20-25% the next month, so that I don't go over 50%.
@@claralexandrahe HAS done a video clarifying exactly that. And it's THIS video. The one you commented on.
Hey there! Thanks for the advice! I have a quick question. Let's say that I have charged £500 on my CC, with a balance of 4k. I would like instead of paying £500 right away at the end of the month to split the payment in £150 and cover the amount in 3-4 months. How much will that affect a credit score if it does?
It wouldn't effect it much, but the fact you are t paying it off in full means you might be paying interest.
I paid off 2 student loans in full, my credit score dropped 40 points.
Is this in the US? FICO can do weird and wonderful things sometimes.
@@SashaYanshin Yes, US.
Brilliant to hear this information as i personally find it a very confusing mine field . I got credit building credit cards after experiencing difficulties however I would like to close them after final statement of zero interest trailing , basically to move up as my credit score is now 8oo plus , my hesitancy is that if i close it might do more damage than good , could you please advise ? kind Regards
Things like closing and opening accounts on drop you by 10-20 points, so it's not a huge consideration, unless you are desperate for every last long in the short term because you are going for a mortgage soon.
All the advice I've seen says it's six and half a dozen because closing accounts loses a small amount of points, but so does accounts sitting unused.
The main questions is, are you still going to be utilising and paying off other credit cards?. If you are doing that then the decision to keep these cards if close them won't make much difference, be abuse at worse it's a small short term dent that's recovered wiping a few months.
Personally I wouldn't bother closing them. No point.
Sasha, please, answer my question:
I do have a credit card with limit of $500. I pay it off every month before the due day in full. So it shows on Experian credit report that my credit utilization is 0%. My credit doesn't really go up. Now it says that my next due date is March 3d and closing date March 6th. Should I pay major of debt before due date and leave about 2-5% unpaid? So then I can pay it off after closing date and my credit utilization should be 2-5%? Is this better for boosting a credit score?
My wife has the same card and she just simply forgot to pay off between $10-50 and her credit dropped by 20 points and she got message that credit usage or utilization increased that s why your credit score dropped.
How we can manage it right and keep growing our credit score ?
Your plan is good but Sasha in this video is saying to try and keep 30-50% used/utilised.
The tricky bit is how to keep 30-50% utilised for as many days as possible, but ALSO tell the Direct debit to pay it off in full every month!
The video is suggesting that you spend 30% every month between the statement and the direct debit. And so, that direct debit will always pay off the previous months 30%.
So every month you will be around 30% on statement day, then use 30% more by direct debit day, let the direct debit bring it down by 30%, and spend nothing till statement day.
It's confusing for the first couple months, but just try and you will gradually understand it after 2 months.
Simple summary: setup the direct debit to pay in full, then always start spending 30% once you see the statement.
It wold be nice if you show this on statement,it would be easier to understand when is open and close date and due date when you need to pay off your bill
All the statements look different. Check your statement date - that's the date on which the statement is generated. The due date is the one that will be 20-25 days later and the next statement will then be generated a few days after that on the same date next month (or almost the same date because of weekends)
Hi Sasha
I have just been approved for a credit card, first time, with a 3k limit. I have the cash to purchase a PC I need, but should I use the card to make the purchase, or just use my debit card as usual?
Obviously I would pay off the full amount if I choose the credit card.
Thanks,
James
Credit card then put the money aside for when your statement is produced. Stay between 30-50% limit and pay your statement in full once you have the letter before the bill date
James Finn:
How much is the computer?
OH MY GOD… I’ve been used my credit card for years mainly cos of getting safer factor buy something in a shop or whatever and same day or even few day(s) later pay it back via my bank 🤦🏻♂️ and I have a £1,500 limit don’t think I’ve gone over £250 omg 😳 great learning video(s)
Dear Sasha, what will my credit card company report as credit utilisation? I keep a standard 25% credit utilisation every month out of my 1k limit on AMEX. BUT. I pay that bill IN FULL a week before the payment due day via DD. However: until that bill gets paid, I keep on spending on the card. So, between the statement date and the payment due date, there is the period inbetween where my available balance reads as 75% (and it drops as I keep spending) till the balance gets paid in full and then it's back at 100% availability. What will be reported as credit utilisation? 25% (as per my statement and the amount due for payment) or let's say 50% (the difference between 25% and 50%, the spend between the date the statement was issued and the date the payment took place). Many thanks. It is so hard to find an answer on this topic.
It's a secret date, which is a different secret date for each credit card company.
(But it's often the day of the statement, or 1 working day prior)
You can look up your credit file and should be able to see what your utilisation has been on that card. Might give you a clue as to when they reported
Great video. What about if I have a 24 month 0% interest card, can I still boost my credit score by applying the same method?
Yeah. I presume you are planning to carry a large balance on that card so it’ll negate the positive impact but a DD on one of those is a must! 👍 You don’t want to miss a payment when the card is fully loaded - the interest will cost a lot.
@@SashaYanshin not for a balance transfer no. I plan to use it to make a large purchase so that I can pay it off gradually throughout the interest-free period but at my own pace.
@@TySoloMusic1 Make sure you stick to the repayment plan!
So it’s best to pay the entire card balance or the statement balance ? Thanks 👍
Statement balance. 👍
@@SashaYanshin Thank you !
Hey Sasha, I just started to build my credit and got this crap 250 limit credit card, I dont wanna hurt my score by using too much credit, but I also wanna use more towards the limit to show them that 250 is really not enough to use. The problem is if I use too much it’s gonna hurt my score, but if I only use 10% the credit card company may think 250 is enough for me so they won’t increase it. Do you have any recommendations here? Thank you so much in advance 😊
Well over time as they see you using the card correctly, you'll get limit increases so I'd say be patient 8n that regard. As for actually using the small limit, use as much as you want just make sure to pay off your balance and leave 10% utalization during your billing cycle so the credit bureau will see the 10% balance while you still get to fully use the card. Then pay off the remaining 10% before the due date and you're golden.
@@nzungupumu1350 thanks Nzungu, but I just realized that the credit card I use report the month end balance to credit agency, I thought they report the bill balance… now I have a credit utilization of 88% and it really hurt my score this month😭 how long will it take to recover 😔 with the 250 limit, it’s basically asking me to not use it at all😩
@@frederic1513the video says to use 30-50%, not 88%.
Some people say they get their limits increased fast, by spending the 60% (and paying it off) two or three times every month.
Amazing videos. A bit long. Some infographics would be helpful.
Doing my best buddy - don't have the time to spend days and days on each video so hopefully still useful enough as it is!
what would be the best credit card for a first timer
my very first video that I made at the end of March talks about exactly this question - the situation has actually not changed all that much so that video is probably still reasonably accurate - Amazon do a card on top of the ones I mention in that video as well.
There's a few different options so check it out. Apologies for the video quality - it was my first effort! ua-cam.com/video/KOCgPDFMQ6s/v-deo.html
Also - check out my Tiers video (a bit more recent) - ua-cam.com/video/ie9zw981uAM/v-deo.html I go through some of the same options in less detail but I also mention that depending on your situation you may be able to qualify for slightly better cards - might be useful!
Thanks, and ik its not a financial advise😂
Hi Just a quick question I am a first time Credit card owner ( Aqua card ) my wages goes into my debit card (Nationwide card) but if I use the Credit card 30% max limit , I would have to transfer my money from my debit card to my credit card how the best way to transfer my money to pay my bill or can I use my credit card to put my wages in and pay my Credit balance ? Many thanks!!!!
simone bye:
Yes, put your wages in the debit card (or checking account) then use the funds on the debit card to pay your credit card.
The key is to NOT use the debit card to buy things - its just a place to receive funds and pay credit cards.
Use the credit card to buy things instead, then pay the card off. Repeat.
...and please, don't spend 30% of your card. Keep your utilization between 5% to 18% ESPECIALLY since this is your first credit card.
Hi Sasha how do I find the due date for my card
Will be printed on the statement - take a look.
So just to be clear, is better to spend around 30% for a low limit and to pay after statement is released?
Andrei:
It's best to spend between 5% to 18% on the card. Then pay the statement payment amount that was received to you.
30% is definitely too high - no matter what anyone says.
Personally, I make a full payment within a week of a purchase(s) and I only buy things or pay a bill at a certain time of the month.
One thing I'm a little confused about is, if you set up a direct debit, does it have to be for a fixed amount each month? And if so, does that mean you can only spend that amount on your credit card without having to make a manual repayment?
No the dire tvdenit is actually just tell your bank that you trust the credit card company to take what they are supposed to.
and in reality , each statement tells you what amount they will take in a few weeks, and it will vary in each statement.
Hi Sasha, How can a credit card provider make money if card holder use credit card for decade without paying interest? Thanks
They earn money through interchange - every time you buy something, a small amount is paid by the retailer. In the EU this is called to 0.3% - that means (very roughly speaking) that the car provider will get maybe 0.2% and the scheme (e.g. Mastercard) gets their 0.1%. Outside the EU, it can be higher at 1.5-2% or even higher at 3.5% in some cases for some schemes (this is why American Express cards are not accepted in many places).
@@SashaYanshin You're star. Very interesting fact I never thought. Thank you very much indeed Sasha for your reply.
Capital one sends balance on your account to credit bureau's on the 1st of each month!. That is what is seen, so having been stung by this, ie utilisation, you need to be careful what's on your card when the card companies send the info to the credit bureau.
?!?!?!!
Any help with this? As i have the same problem where i have been stung by utilisation.
I have notice capital one takes a snapshot of balance on last day of month and reports it to cras(ocean finance card ) zopa reports on the 6th for me. Hope this helps someone
Have a combined limit of £1500 on 2 cards. Struggling to spend money on them as I am frugal. To improve credit score how much should I try spending? 30% on both feels too high to me and I pay my cards off.
11:30 he says stay above 5% for blokes in the UK.
Yankees stay below 30% no matter what, and below 10% if possible. Best to have an amount between 10% and 0.01 USD on US cards when the balance is reported via a monthly statement, then pay off that statement balance before the due date so as to not incur interest.
Apparently in the UK they want you to actually use that credit allotted to you and pay it off monthly to prove that you know what you're doing, but here, I think it's more a case of showing that you can show restraint in the face of temptation.
How come when I pay my credit card bills in full every month on the due date my credit score only goes up 5 points but recently I've carries a small balance for 2 months making theinimum payment on the due date and sometimes paying a little during the the middle, my credit score went up 12 points each month.
Because paying it off in full is the best thing FOR US to avoid paying interest. But keeping some debt on there and paying the minimum amount of what the credit agencies, and credit card companies want you to do because it's good for THEM.
They want you to borrow, pay back a bit, get charged interest. Always pay on time, but don't clear the balance in full, but never miss a payment. So they reward your behaviour when you do what they want.
So let’s say I have a credit limit of 1000, I’ve used about 400. My due date is in 1-2 days, I have to make sure I pay it off, so the statement comes out as 0. Then the closing date is 3 days after my due date, and I spend about 10% of the credit limit I have restored. So now on the closing date it says I have used only 10% of my credit and the bureau now sees that I’ve only spent 10% instead of 30%, will that help my credit score increase over time?
I think Sasha is saying in this video, that 30-50% is better than 10%.
But this is all fine tuning/optimising. The main things is, you are using the credit card and not making late payments, so you are 90% optimised already.
When I set a DD does it automatically take the correct amount? Let's say I own 100 one month and 120 the next ?
If you set it for the full payment, it will automatically take the full statement balance. If you set it for the minimum, it will automatically take whatever the minimum is.
I have been paying off my card very fast sometimes 2 days after I've used it but my credit score is not improving? So does this mean I need to wait a month to recieve a statement and then pay?
Yuppppp
You want the statement to show that you are using the card, (utilization) so when you pay something off leave about 5-10% (some people say 30% is fine to, it's all about your situation) of the total still on the card, so only pay off 90-95% (some say 70%), so that there is something on your statement but it isn't too much money that it seems like you are depending on the credit card
Then pay dat shit off before your due date so you don't have to pay interest
Learn when your statement opening/statement closing date, & due date is
@@PassMeDatShugga appreciate it. I knew I was doing something wrong.. Martin lewis never clarified his in full slogan
Is it not best to pay as soon as you spent it? Let's say after 1 or 2 days long before your statement?
Depends on what your objective is. If you just want to not have debt for whatever reason, you can always do that, but if you want to optimise your credit then it's actually on average not better to pay off ASAP.
If I've set a crdit card dd to be the statement balance, why am I still being charged interest?
You shouldn't be, and I doubt you are
"I have been advising credit card companies for many years professionally".... then next he says "I am not a financial advisor" ???
A financial advisor is a specific term for retail customers. Advising companies as a consultant/advisor is an entirely different thing.
On my account it says have used only 13% out of 1 account and 6% from one account and also I have mobile to pay every month my goal is to by mortgage in 2 years. Fingers cross 🤞.
Hi man, can closing a credit card affect your credit score?
It can - I have some in-depth content on credit and this will be very different depending on which country you live in. 👍
Im sorry im getting lost ... my due date is the 2nd. So what day should I pay off my credit card to improve my credit score
Well I try to explain it in a lot of detail in the video - you ned to make sure your payment clears before the 2nd - so depending on which country you are in and which payment method you use, you need to give it enough days to go through.
However setting up a Direct Debit/Autopay is usually the best option with most providers as it'll do that automatically although some (e.g. Amex) have recently started running Automatic Payments earlier in the cycle - probably helps with ensuring people don't miss a payment even if the auto payment bounces.
A slightly tangential question if you don’t mind? Is that hoofing big piece of furniture in the background a sofa or a bed?!!
It's a sofa! It's one of those L-shaped ones and it's the sticking out bit of the L that you can see.
Aha! I’m watching you explain credit cards at the moment. I thought it may have been some exotic Russian day bed 🤔
@@SashaYanshin Ps. You're an excellent communicator! Fantastic vids :)
Great
Thank you!
Seriously good video, I have always used my credit card like a debit card, and just paid it off at the end of each week, definitely something I will change now! something I wanted to ask and see if you could do a video on. My housemate has had his credit score ruined due to his ex wife and some credit card debt she got them into as an authorised user on his cards, he has no defaults and has been working on paying them back, so all good there, but something that's mentioned on a lot of American videos is becoming an authorised user on someone else's account to increase his score, would this help? I have no issue adding him as an authorised user and then either not using the card or monitoring it. But I wanted to check if this would help him before doing it.
It would do absolutely nothing for his credit history. The credit card, debt and the repayment of that debt are yours exclusively and whoever you add to the account has nothing to do with it and their credit profile will not benefit.
Although most have actually improved this recently, you could literally get an additional card for your dog with many credit card providers not too long ago. As the other person is not actually liable for debt, no credit checks are run although recently more identity verification has been implemented.
when is the best date to set things like netflix to come out ?
I don't think you can setup regular automatic payments on credit cards
Great info just think your video could have more impact if they was shorter
I don't stretch them out - always just say what I have to say and the video is as long as it happens to be. 👍
whats the difference between minimum and full installment ?
Imagine you spend £200 on your credit card during a month.
The credit card company say "you don't need to pay it all off at once petal, just give us £4 a month for 20 years my friend". That's called a minimum payment, and they will start charging interest etc, so it's a bad plan.
But instead you decide to just pay back what you borrowed, that's called "paying in full" or "paying the statement in full"
my credit score is 835, should i be concerned about raising it?