Question. On my account it's showing a statement balance AND a remaining balance. Ex: statement balance is $500 BUT remaining balance is $0. Does that mean I already paid off my statement balance?
but the nasty game they play is they confuse you by not saying clearly what you owe and when you owe it to avoid interest . They play gotcha games to trick you into the interest. Then suddenly you have interest tacked on and you dont know why
1:50 when you said after the billing cycle you can still use your card when they reported how much your using bc I was scared to use my card after the statement date bc I didn’t want that going to the next billing cycle but I understand now.
Hey, I just want to make sure that I understand correctly, is it a good idea to make sure that your balance is paid in full by the close of the billing cycle, so that when it gets reported to the credit bureaus it looks like you’re not utilizing so much of your credit and your score doesn’t go down?
Yes that's true. I pay my credit card twice each month. Once before the due date and again, right before the billing cycle closes to keep the usage low. I've tested it and you can actually see the results if there's a big enough swing
Am I also correct If they put 1K on my Credit Card 💳 and I use the full amount each month that is not good even if I pay of the full amount on time And also if I don’t use it at all that is also not good But if I spend 1/2K (50%) of it and pay it off on time that is good
So do you pay the statement date balance or just wait to the due date? Honestly I just pay my due date and credit jumped up 60 points in one month. Example I have a credit card for 7months with a 200$ limit. My first fico score was 550 that's bc I haven't completely paid off my balance the last four months of 6month fico takes to give you score. I always just paid the minimum 25$ a couple days ahead. When I got my taxes in February I paid my remaining balance in full. Then I only spent 18$ until my due date. I paid it and by mid March my fico score jump from 550 to 611. I have a capital one card. I never really paid any attention to my statements my app tells when payment is due. So should pay that statement due our just use less then 30%(60$) of credit and pay in full when it's due?
Yes you have to pay in full so the opening date which is 30-31 days till your closing billing date is called a statement grace period so within those 30 days that balance will be screen shot and that will be the statement balance so you’ll pay that on your due date but make sure your using 5% of your card.
If my utilization rate is at 5% and I use my credit card on the statement date or day before will those pending transaction get reported and affect my rate even if they aren’t posted yet?
Mate do not worry about credit utilisation use a card however you want max out your card pay it in full each month and only worry about credit utilisation when you're looking to apply for more credit. And if you use card before the statement date is generated, yes those charges will show up on the statement
I don’t have a credit card as of yet but so I understand Lets say my Billing Cycle is From 1st August To 30th August Let’s say my payment due date is 25th September So if I spent money on my credit card on 5th August and paid it off on 25th August then I’ve paid it too early If I pay it off on 10th October then I have paid it off too late But if I pay it off on 10th September that is perfect
It’s for the last months period it may seem confusing but you have to look at your past statements and always know that you have to use your card for 31-30 days then there’s a statement date that reports to the credit bureaus. So basically you have 1 month to use your card then after that month you have to show them you used 5% and not maxing out your card. Then you’ll have a grace period to pay off the 5% balance you used during the 30 day period which is a month.
You are confusing people by talking about the minimal payment you should be telling people to pay the full amount so that way they don't have to be paying interest on a credit card
ONLY accept pre-approved credit cards. This will not ding your score. Applying for a credit card dings your score by 10 points and remains on your record for 7 years.
Enjoy the video! Comment below if you've got any questions, thanks :)
Question. On my account it's showing a statement balance AND a remaining balance. Ex: statement balance is $500 BUT remaining balance is $0. Does that mean I already paid off my statement balance?
Man this guy is so informative without over doing it! Great video and info!
but the nasty game they play is they confuse you by not saying clearly what you owe and when you owe it to avoid interest . They play gotcha games to trick you into the interest. Then suddenly you have interest tacked on and you dont know why
I been going from video to video looking for this explanation you couldn’t have explained it better without going off topic thanks
You’re welcome. Glad it helped
1:50 when you said after the billing cycle you can still use your card when they reported how much your using bc I was scared to use my card after the statement date bc I didn’t want that going to the next billing cycle but I understand now.
Hey, I just want to make sure that I understand correctly, is it a good idea to make sure that your balance is paid in full by the close of the billing cycle, so that when it gets reported to the credit bureaus it looks like you’re not utilizing so much of your credit and your score doesn’t go down?
Yes that's true. I pay my credit card twice each month. Once before the due date and again, right before the billing cycle closes to keep the usage low. I've tested it and you can actually see the results if there's a big enough swing
Great question!!
@@HonestFinance amazing and thanks for responding🙌🏾
I think I’ll do a video on why I pay twice per month :)
@@HonestFinance you definitely should!
Thanks for this informative video about credit cards, good job!
Thanks for watching!
What is the "cash access line" on your statement?
My Statement date Varys. Some months it falls on the 12th or 10th. The bank report randomly. It confuses me to keep up with it.
Yeah just look at the months bc some months don’t have 31 days it’s usually 30 days in a month and the next one my be 31 days keep in mind about that.
Is a statement date & due date on same sheet of paper sent to you by post ✉️ or are they on 2 different letters
Am I also correct
If they put 1K on my Credit Card 💳 and I use the full amount each month that is not good even if I pay of the full amount on time
And also if I don’t use it at all that is also not good
But if I spend 1/2K (50%) of it and pay it off on time that is good
*For chase bank freedom credit card, not using the card for a month/so decreases score?*
is statement dates the same billing cycle ?
So do you pay the statement date balance or just wait to the due date? Honestly I just pay my due date and credit jumped up 60 points in one month. Example I have a credit card for 7months with a 200$ limit. My first fico score was 550 that's bc I haven't completely paid off my balance the last four months of 6month fico takes to give you score. I always just paid the minimum 25$ a couple days ahead. When I got my taxes in February I paid my remaining balance in full. Then I only spent 18$ until my due date. I paid it and by mid March my fico score jump from 550 to 611. I have a capital one card. I never really paid any attention to my statements my app tells when payment is due. So should pay that statement due our just use less then 30%(60$) of credit and pay in full when it's due?
Yes you have to pay in full so the opening date which is 30-31 days till your closing billing date is called a statement grace period so within those 30 days that balance will be screen shot and that will be the statement balance so you’ll pay that on your due date but make sure your using 5% of your card.
Does this apply to an auto loan as well?
Not really.
If my utilization rate is at 5% and I use my credit card on the statement date or day before will those pending transaction get reported and affect my rate even if they aren’t posted yet?
Mate do not worry about credit utilisation use a card however you want max out your card pay it in full each month and only worry about credit utilisation when you're looking to apply for more credit. And if you use card before the statement date is generated, yes those charges will show up on the statement
Thanks buddy!
I don’t have a credit card as of yet but so I understand
Lets say my Billing Cycle is From
1st August To 30th August
Let’s say my payment due date is 25th September
So if I spent money on my credit card on 5th August and paid it off on 25th August then I’ve paid it too early
If I pay it off on 10th October then I have paid it off too late
But if I pay it off on 10th September that is perfect
why is my due date before my statement date?
Eva use it’s always a month behind
@@HonestFinance thank you!
It’s for the last months period it may seem confusing but you have to look at your past statements and always know that you have to use your card for 31-30 days then there’s a statement date that reports to the credit bureaus. So basically you have 1 month to use your card then after that month you have to show them you used 5% and not maxing out your card. Then you’ll have a grace period to pay off the 5% balance you used during the 30 day period which is a month.
You are confusing people by talking about the minimal payment you should be telling people to pay the full amount so that way they don't have to be paying interest on a credit card
So many people max out their credit cards and cant afford paying it in full therefore they pay the minimum
Sometimes people use credit to pay it back in 12 equal monthly payments hence paying interest in a controlled way
3:05 he just told you💀
ONLY accept pre-approved credit cards. This will not ding your score. Applying for a credit card dings your score by 10 points and remains on your record for 7 years.
Never apply for a credit card. It dings you in your credit score. Funny how no one talks about this.