Credit Card Utilization: How to Build a Strong Credit Profile
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- Опубліковано 10 січ 2024
- In this episode, credit expert Shonda Martin breaks down the intricacies of credit card utilization and how it impacts your credit score. Shonda delivers valuable insights on how to strategically use credit cards to build and maintain a healthy credit profile.
Shonda starts by dispelling the common misconception that credit card utilization depends on usage, emphasizing that it is determined by the balance carried over to the statement date, not the total usage. She highlights the significance of identifying your statement date, which is pivotal in ensuring that your credit utilization is reported correctly to the credit bureaus.
Moreover, Shonda outlines the essential steps for building a strong credit profile, emphasizing the importance of maintaining a low credit card utilization, acquiring at least two credit cards, and strategically managing short-term and long-term installments. She provides a comprehensive strategy for achieving a favorable credit score, shedding light on the significance of account diversity and responsible financial management to lenders.
Furthermore, Shonda addresses the impact of "buy now, pay later" companies on credit reports, cautioning against frequent utilization of low-level loans, as it may not positively impact credit scores. She stresses the multifaceted evaluation carried out by lenders beyond credit scores, underscoring the importance of sound financial practices and account management.
Additionally, Shonda shares her expert tips on utilizing credit cards to improve credit scores, emphasizing the immediate impact of credit card usage on credit scores, unlike loans where the benefits are not immediately visible. She provides detailed guidance on managing due dates and statement dates, as well as the optimal balance to carry over for optimal credit score impact.
Moreover, Shonda delves into the intricacies of seeking credit limit increases, providing actionable advice on optimizing the chances of approval, including automated payments and strategic usage patterns. She emphasizes the importance of consistent account activity and utilization to secure credit limit increases.
To avoid pitfalls with credit cards, Shonda advocates for responsible usage, emphasizing that a credit card should not be viewed as an extension of one's finances but rather a strategic financial tool. She emphasizes the importance of only spending what one can comfortably pay back and underscores prudent financial management as the cornerstone of successful credit card utilization.
Join EYL and expert Shonda Martin for an in-depth exploration of credit card utilization and strategic credit management tailored to help you build a robust credit profile.
#EYL #CreditScore #CreditUtilization #FinancialEducation #CreditBuilding #PersonalFinance #CreditCards #CreditManagement #FinancialWellness #CreditTips
My favorite Finance channels: Earn Your Leisure, Stock Brotha, & Wallstreet Trapper. Make my week complete! 🔥 🔥 🔥
Great info. The full video is shock full of good tips.
Awesome video full of practical advice! Thanks for sharing! See y'all next video! Toodles!
Thank you EYL always dropping gems 😎
I’m so glad that there are people out there like this. There have been way too many people online trying to teach people tricks to raise the credit score and not how to build a strong credit report. I’m not saying that having a good credit score isn’t important… It’s just not as important as a strong credit report. You can’t use cheap tricks to get that. This is what I try to teach a lot of young people
This was very informative.
Most definitely learned alot from your videos 💯✅
Fire content!!!!
Beware of those credit cards that does a hard pull for a increase
Who
Great content.Echo is crazy.
Thank you for the information
Fantastic!
exceptional advice
Thank you for the wisdom. I’ve been doing it all wrong! I won’t be getting any more affirm accounts 🧐And I’m going to be staying put on applying for anything for 6 months
If you can use a card 6 to 15 times, if not a burden for you, and not on wasteful purchases, while keeping to about 5% utilization, that should hit more favorable factors. Remember, a card issuer makes money from the vendor when you use the card as well.
Shonda is one of the original and one of the best in the credit game
❤❤❤❤OUTSTANDING THANK
You brothers wisdom is great, speak into the mic so we can hear ya
Thank you so so much black king and black queen for sharing this vital knowledge. Much appreciated!
due to privacy reasons and basically because of UA-cam’s new policy, fwd “credit repair” to my, e - mail right away.
I remember a Major in the Army teaching me this in 2001, while we were stationed in Germany. We're still good friends and now business partners.
Them hard gems she dropped 💎💎💎
Do any of these people degrees in accounting or Finance or financial planning?
I love her, she is so intelligent and beautiful, might I add. 💙
5:28 is what I’ve been doing since I started building credit 💯✅
It will take a good year to master it my fico score is 730 to 750 under one year I have 5 credit cards now I’m good with just 5 😊💳💳💳💳💳
on the statement, is the statement date titled "statement closing date?"
Yes!
@@RoadTo750 Thank you 🙏🏿
Pay off 100% ahead of the date three cards max the best ones
But how do you turn the credit to cash? So for example if I got a 785 score is there a way to leverage that credit to make me money back??
1. get a LLC.
2. Get a Loan
3. Buy or start a business
I came to the comments to see bros talking about the thumbnail 😂
Like why put that picture of her there if she wasn’t even wearing that , I guess sex sales lol🤦🏾♂️😂
Yeah that thumbnail
Where did you get saying 10 transaction in the month? Why not 7 or 12?
The card companies actually offeres me more money the more I spend. So when i get a new card i switch my bills to there. Or who giving the most cashback
If you pay your card by the due date you will be charged interest. Interest is realized on the statement date, that is how the bank ensures they get interest.
Thumbnail is t die for
On my credit report it gave me a medium risk for not having a card limit of over 1000 are you aware of this?
Stay blessed! due to privacy reasons and basically because of UA-cam’s new policy, fwd this comment to my, e - mail right away.
There↑.
Just watching this video my credit score went up 25 pts
Please Note!!! Self credit card reports the end of month balance, NOT the statement date (for me on the 8th!) I was surprised the first time it reported.
Most bank do report utilization under 10% I have the credit reports to prove it. iBank and Bureau's wil report 1% even . So the Sista saying they don't report under 10% utilization is CAPP. THE Bureau will report individual card utilization as well as total card utilization. So utilization has alway been reported as the balance carried over on a statement date.
She said as long as it’s not Zero dawg
If you are paying off 90% of your credit card by the statement date and 100% by the due date every month, then what's the point of even having one?
rewards and points. A lot of CCs have tons of benefits
@@joshuawilliams6153 Like flight miles and grocery discounts?
Because you want it to report to the credit bureaus showing low usage… after your statement date, you pay the balance in full so you don’t get charged the interest
First Thank You and Your guest.Second Masterpiece Master class down loaded watch repeat until you understand what she is talking about 🎉😂❤😢
Man how do we get some money right now!!
I pay my Capitol One by my due date with a zero balance and they still charged me interest after my statement. Why?😢
They charged you because the prior month you had already rolled over a balance that was subject to interest. New charges are subject to 23-25 day grace periods but if you miss the statement date and don’t pay off your entire older balance they have you trapped and you’ll be clawing out from them high interest charges. Get the balance at zero and don’t use the card for a cycle to get it reset. 🙌🏾
@johnwilson6211. How much did they charge you?
I'm the thinker, planner, budgeter, organized one in my relationship. I really wished my girlfriend was remotely this sharp. Still love her though.
I use credit cards to pay for most things. Because I have large credit lines, I use well under 3-5% and I pay my bill in full before the due date. My credit score is 800. She suggested to carry over at least 1-3% of your balance. I don’t understand this concept.
I think that’s what she said though… carry over the balance or purchases made for the statement date 1-3%… and pay the remaining balance in full before the due date…
Here because of a thumbnail!
Same
Guilty
4
😂me 2
I tried resisting but she got me too
All You Need To Know About Credit. Unbreakable Laws Of Credit By Corey P. Smith. Get this Book. An All His Books. I Wonder Why This Show Hasn’t Had Corey P. Smith On It?
I once paid my Fidelity credit card balance in full and my credit score dropped by 20 points 😡 I was so confused….
The cc companies like to see that you use the card…so carry a balance 10% or less and you should see your score improve.
I had the same issue lol.
Unless you are making a major purchase such as a house or a car, you don't need to track any of these dates. Pay your bills on time and keep it pushing.
A zero balance can hurt your score as well you have to carry over something
That is not true
Absolutely wrong. This is easily googleable
No it doesn’t because you paid off your balance before the statement date but carrying a balance over causes you to pay interest.
A zero balance doesn’t hurt your credit profile but it doesn’t help it either. If your credit card company reports a zero balance each month, it doesn’t show that you’ve used it. If you are trying to build credit, the key is to find out when your statement date is. That balance is what is reported to the credit bureaus. If you want to pay it in full after that, you can do it then. That way it shows the credit bureaus that you use your card and when it is at zero the next month, it shows that you are responsible in paying it back.
@@Sandiego2019thank you so correct.
Don’t get credit limit increases just get another credit card get those sign up bonuses guys!
I always say do both if you can. I’ve done both with great success in helping me surpass an 800 score. Increasing your limit gives you more cushion that helps your utilization look better (as long as your spending habits remain relatively the same). Most credit card companies don’t pull your credit for an increase request because they use your payment history with them.
- there are advantages to doing both
This beautiful, black sister offers an abundance of financial literacy to her audience. For me, the thumbnail is unnecessary… Your mind is enough Sweetheart!
#blessings
I believe she meant the statement date is before the due date. The due date comes after statement date & not before.
😋
Financial atmosphere is constantly evolving. The average person working 40hrs a week. Their credit score is not that important anymore. HYPER Inflation plus high interest rates along with most Americans having a high debt to income ratio will equate to people barely surviving and living pay check to paycheck with ridiculous debt. People must learn to earn multiple income streams or a professional skill or they don't have a chance at real Financial freedom. Now add all the vices most people have it gets worse. With no significant liquid capital buying appreciating assets debt free is impossible. Living week to week off of credit cards and paying ridiculous interest is a ticking time bomb for disaster. Problems will arise its life.
First step: Have money, Second Step: Have familial Wealth, Third Step: Don’t suffer from the Black Tax.
She says she pays it all the way off and then she says she carries over 1 to 3 percent to her next billing cycle…. I don’t understand that….
Thank you for commenting! due to privacy reasons and basically because of UA-cam’s new policy, fwd your concerns to my, e - mail right away.
There↑.
Thanks for keeping us financially Educated! Regardless of how bad it gets on the economy, I still made over $35k this month
how?? please tell me what you did! i'm a single mother.. really struggling!
Investment is far better than money saved when you invest your money it works for you and I'll help you earn more money honestly
I believe the benefits of a successful trade comes from a good Mentor and guidance
U wrong for having those fun bags for the thumbnail lawda mercy
she is beautiful
Looking at this thumbnail it should be called bra utilization 😂
Such basic information that anyone can easily google
Having a zero utilization rate does not hurt your score. That is a myth, y’all need to stop listening to these fools.
I’m
Just here so I won’t get fined 😮💨😊
Most people use the credit cards because they can’t afford to pay it off like that
Capitol ONE
I'm favoured financially, Thank you Jesus $32,000 weekly profit regardless of how bad it gets on the economy
Same here, with my current portfolio made from my investments with my personal financial advisor 1 totally agree with you
Wow! Kind of in shock you mentioned expert,elizabeth ann graney. What a coincidence!!
YES!!! That's exactly her name (Elizabeth Ann Graney) so many people have recommended highly about her and am just starting with her 😊 from Brisbane Australia🇦🇺
I have heard a lot of wonderful things about Elizabeth Ann on the news but didn't believe it until now. I'm definitely trying her out
Such a genuine personality!!, Sincerely speaking. I will continue to trade and stick to Elizabeth Ann daily signals and guides as long as it works well for me.
One thing ive learn is dont do business with low budget credit lenders period
Cleavage thumbnail…good trick. Click bait
Whodis?
Got milk? 😋🥴🥴 The click Bait! Where is the blazer she was wearing in the thumbnail!? 🤬👺
Is she single ?
Chill homie those belong to me
What the F is she talking about? Please stop how can she make good decisions with money when she probably spends more than than anything
She use to date me in the 5th grade. notice I said date me, not me date her 😎
I zero out my cards and have multiple 3k limits. And I can’t get approved for 5k or more