MAX OUT A CREDIT CARD? Is it THAT bad? What happens if you hit your credit limit (but pay it off)?
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- Опубліковано 15 вер 2024
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Pay before the statement end date and it won't matter!
Pay all or leave a few dollars?
@@spanishtownrecordsall if you can
Thanks! I just paid off my discover card
When you say "max out your card", you are talking about carrying this maxed-out balance into the grace period, after the statement period has closed, right?
Because if you max-out your card within your statement period, and pay off all or most of that balance before the statement period closes, then how would the bureaus know that you had maxed-out your CL, as only the amount you carry into the grace period gets reported to the bureaus.
I max-out most of my cards a few times a year, yet I've never had more than a 1%-7% utilization reported to any of the bureaus because I pay it all of before the statement period ends.
Regardless of the credit limit, i try not use more than 30% of each credit line. Then pay the statement balance in full each month. Banks seem to love customers who demonstrate they have the income to pay.
@@CheekyBird790 - same here i use only 30%, but only let 5% or less report the bureau each mth
there's is an important point missed here. If you go over limit on a credit card then that tradeline will always show its highest reported balance as higher than the credit limit. Highest reported balance is also a score factor. only way to fix this is to get a credit limit increase so your highest reported balance is under the limit.
They even pay YOU to use their money (cash back), so long as you pay them back. Now THAT'S a sweet deal. Kinda wish more people understood this.
I'd rather not deal with them. Lol 😂. The devil makes good deals too. 👹
@Shaolin Soldier who's the devil, the person who lends out money with strings attached for not paying back, or the person who borrows money with no intention of paying back?
@@En4cer2K9 good point...if people was smart the best thing would be to build up they money first and put it in a savings account...let it compound for a few years while adding to it ...let the Bank pay your loan off for you every month
@@En4cer2K9 both 😂
As it turns out, apparently not a soul can do anything in the USA without a decent credit score
I maxed out my credit card for a 3% transfer fee for 2 years and then put it in a 5% account. Yeah that's how it's done. 😎
Okay, Adam...
But where can I purchase that tshirt?
After our time with covid I fell of a ladder when cleaning my windows. Couldn't walk for ten months. I'm just managing 3hrs max working per day due to my injury. Problems I have is obviously money. Credit cards are maxed . Over drawen at bank. I'm definitely in trouble. Don't drink smoke or any other vices just incase you all were wondering. Its just down to my accident
Now with the fico 10T it will look at your utilization for the last 24 months if lenders start to use this model a lot of people will be in trouble
This is true but there has been very little use of that score so far, not sure if lenders will end up using it much.
They've already been looking at your rolling 24 month ultilization as long as credit reports have existed.
I have small limits and max them out a lot but pay it off every week. I like the security of a credit card over a debt card. I make sure it’s 10% by the time the issue the monthly bill and report to the credit bureau.
Who are you trying to impress?
@@BlackJesus8463 the credit card company to increase me. Rebuilding credit. :-)
Best advice I’ve got just got off the phone with my bank told them my intentions and obligations and it went smoothly
Hey there - love your videos! Could you please do a video on the pros vs cons of closing a credit card account? Thanks!
Great content as always, thanks Adam!!!
It’s hard when u got 300 limit but I pay it off before my statement🙏 every month so all good
I just got a chase business card with $5500 limit, I’m up to $6400. I can pay it off but need to get $15000 in 3 months
thats a lot
Is it hard to get a chase bisness card?
I was using my credit card as a budget tool. I just keep telling them to not raise the limit and I run out of money at some point in the last week of the month and I just pay the whole thing and start over again at zero.
Maybe I need to stop
Actually you should ask the them to raise it that way it doesn't affect your utilization should you need to use more.
Hello from Oregon, I use my B of A cash back card only for gas, spend around $275 a month in fuel w/ a $400 limit. Then I pay it off a week or so before the due date. Is this fine for now? Thank you
If you pay the balance before the due date it doesn't matter.. The statement date is usually a cpl days after the due date..thats when banks report your transactions for the month. Try to not spend any money during those few days, that way your utilization will be 0%.. you will still build your credit don't worry..
Alphabet d.b.a Google does not care about accessibility. There is closed caption on this video but they do not have a transcript box available any longer which is better for the print disabled (such as the blind).
You think blind people read the captions?
@@BlackJesus8463 They can go back to the video but to find out what place say you can search in this insistence "How long is your credit history" in the transcript it would find 2:19 on this video and you go back to that part of the video and re-listen while the vision abled just look at the scroll "thumbnails" to go back and find a particular part of the video again. So on the question of "You think blind people read the captions?" Yes would be the answer.
First credit card from BOA, I started with $1500 limit under a 1 year promotion. Within 1 year they increased my limit to $4500, and I spent $4212 within the promotion. The promotion ends late July 2023. Anyone has advice on what to do and what to expect with my credit card?
I have a BoA CC as well (The Spirit Airlines Card) always pay it on time and they’ll keep increasing your limit
Wouldn't when the balance is reported to the CB be of significance?
If you max out and pay off before the balance is reported - the bank will report what the balance is as of "X" date. Alternatively if you're paying it off AFTER it's reported they'll be reporting a consistently maxed out card.
No. It reports the balance on whatever specific day the statement closes....it only reports that specific balance of that specific day
@@Shaolin91z ah ha - so that's my point, depending on when you pay (before of after the closing) you could have a perpetual maxed out report or not.
@@Yaw_Jr no
So my credit card put on my credit report that i went over my limit but im never late on credit card payments how long in terms of years does it stay on credit report for ?
Is it a rookie move tot honk being “pre approved” means when I finish the application I’ll be approved?!?! Cuz it said “pre approved” and showed the cards im “pre approved” for so I finished application and now they asked for additional docs, and they’ll email be after review, WHAT THE HELL?!?!? 😂😂
Thank you.
What do you think about using bill pay to "pre-pay" a credit card so it has a negative amount of used credit before making a large purchase?
A lot of credit card companies won't let you do this, but if you have the money to prepay then u would also have the money to immediately pay down your balance right after the purchase which is almost the same thing.
I maxed out my ink cash card as I was trying to hit the SUB and it has 0% APR with minimum payment. I have the funds to pay it off but that would earn interest in my savings account. I wonder if I will be fine for just keeping it high until the 0% offer expires... And if I would still be eligible for another ink card given the high utilization on the existing one
Discover got me for a little bit but will pay it off. 🤷♀️
What ?😂
Love the video! I have a question though, I maxed out my credit card which had a $200 credit limit by accidentally spending $210. How much will I get charged or will I get charged at all?
Call me crazy. I like having my utilization report at 2% every month. This requires paying multiple times a month.
Np enjoy life
is it bad to get a secured credit card if I already have a maxed out card should I pay it down before getting a new card?
Don’t get more credit if you can’t even afford what you have.
Hahaha. Are you being for real ?
its easier to ask forgiveness than permission. 😈😏😂
I use 3% every mth
Your credit score will drop but rebound once it shows paid of. Maxing out is 100 percent utilization. That’s extremely bad.
It's only bad if that's your only card. If you have multiple cards paid off and only 1 card is maxed out it won't be a big deal💯
@@iamtired9350 I have 9 credit cards and only max out the ones with 0% apr. These are also the cards getting me the best bonuses at the time. My score keeps going up as i'm still under 30% utl
hey I use my credit as cash, an my checking account as way yo pay card off. however bank take their sweet clearing payments so I can use the card again. if they did want me hit a limit of 500 should made CL 750. 850. 950, 1000. pay my internet , phone and food bill always hit the limit. have use card for cashback . an use cash back to pay my stupid annual fee 39
This is American logic.
why would one want max out credit card?❓
if can’t pay it back within 21-28 dayssss
will just need be an experience
him/her needs ta learn
Sometimes things come up like repairs or a broken appliance. Those are emergencies where you have to max a card out especially if it has a low credit limit.
everything you mentioned
wants not one need
no offense
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