yo real quick, i didn’t even notice you don’t have too many subscribers but i wanted to let you know the quality of your videos is A++++ and i love what you talk about! keep it up
Haha thank you so much for saying that! Yeah the subscriber number is something that I know will grow over time because I only started the channel back in January. Really glad to hear that you like the videos, I appreciate the support! 👍
One thing I did as a beginner was open up another checking account through your bank, 99% of the time you can open another one for free and often times get bonuses. Every time you pay for something with your credit card, transfer that money into the second account. This way you’ll never get a false sense of buying power 🤝
I am actually part of the 800 club for a long time now, but times change and I like new and relevant information. Thank you for an excellent explanation of credit card debt.
This video was incredibly helpful as someone who has just gotten a credit card and wants to be informed and educated on credit cards so I don’t make a mistake that could impact my life negatively in the future. I learned so much from this video so thank you and keep helping people to make the right decisions and be more educated on topics like this.
I've been using credit card and making payment but I didn't understand the breakdown as your explained in the video. This actually did help me understand how credit card works, because prior I get confused when I make the minimum amount payment but the I see an interest charge. But now it all make sense. I Just have to make sure I make my Statement Payment in full before the due date. Thanks again Daniel, I really appreciate you.
I think it's great that you do these videos. when I was young I got credit cards and just thought that something you do as an adult get credit cards, spend, pay. I ran into trouble spending too much and also not having steady income. ended up in debt. luckily it wasn't deep debt but still debt that was a pain in my butt. I would say young/ clueless people shouldn't get credit cards based off of my own experience but I know young and clueless people will still get credit cards. The internet to their great advantage has people like you explaining their bills and cycles etc. something I didn't have at 18 something I'm watching at 30!
Thank you so much for sharing your experience and saying all of that! Yeah credit cards are not always going to be a good option for people depending on the situation, but the most important thing is to learn about them which is definitely an advantage that many will have growing up now! I love making these videos and talking about this stuff, so thanks for watching!
@@Daniel_Braun just turned 18 and I have a secured credit card on the way so I can build credit. I have a fairly good paying job with consistent hours. I'm researching as much as I can so I can use my credit card to my advantage as much as possible. Thank you for the great video, I'm looking forward to using my card to pay for gas as well as some groceries.
This video really helped me out. I literally called my bank 3X today to ask the same questions and I was still confused. You cleared that all up. Thanks
I've also asked my bank to clarify some pretty simple points, like the ones mentioned in the video. But they usually just don't explain it well enough to not have me watching these videos instead. So you're not alone with that lol
This is an incredible video. i’m 19 and trying to get my head around credit cards and how to start building my credit score. this video has entirely helped me to understand how credit cards actually work, and not just what they do. haven’t seen your channel before but i’m definitely subscribing, you seem very knowledgeable. keep up the high quality videos 👏🏼👏🏼👏🏼
Been binge watching your videos for a week now. You and Sebby have been some of the most helpful when it comes to the credit card game. I am getting started late in life with understanding the basics; such as this video. Very thankful for your desire to educate others in this arena of life. You are hands down the top among many I have been watching recently; in your clarity, delivery, and transparency on this channel. Subscribed 👍👍
Your videos are very helpful. I just turned 18 and got the discover it card and was nervous about when I should pay it off and how much. Thank you for explaining it so well!!
Great video! I’ve always set my credit cards to auto pay the current balance on the due date. I’m going to have to look up the billing cycle on each of them and add that to my spreadsheet as well now!
Great explanation of the key dates to know. Every high school in America should make seniors watch your short video. It would increase financial literacy for everyone as they start their “adulting” journey.
A very simple video with some fantastic tips. The easiest tip of all...if you can't pay your balance in full, don't charge it. We've talked before, but your tip to pay items that are larger quickly is a great tip if you have the immediate cash flow to keep that utilization down. Good stuff Danny!
Thanks so much Scott! Yeah exactly, only pay with a card with an amount that you know you can pay back immediately if you have to. And yeah, if you have a larger purchases like that then its a good idea to pay it down to avoid utilization getting too high by the closing date
Great video! Some of them were already taught to me by my mom way back years ago when I was just starting to live independently. But still most of them are so informative. God bless you
I've been doing it backwards. I make my payment on time but add an additional monthly payment 1-2 days before my statement closing date. My credit has increased over 100 points in the last year by doing this.
Can anybody answer if I set automatic payment exactly on due payment day. Will it okay? Will bank receive money on that day or because of the pending will I get late payment and better will be pay at least 3 days before due payment day?
Only half way through but really good explanations, I was really hesitant to use credit cards since the idea of debt kinda sucks. But if I only buy what I can pay then and their and pay it off the benefits do seem kinda dope. Thank you for hopefully helping me mess up less
Thanks so much for watching! Yeah that's exactly the idea with using credit cards the right way! Having an emergency fund of cash on the side and a budget to understand your spending is also really helpful and important
Hello, I'm very new to the credit game so I just need some questions answered. Question 1: Can you just set up an automatic plan so that the bank just automatically pay it off in full for you, or do you have to call them to pay it off? Question 2: How do you pay it off? Do you use the money in your checking account, or savings account? Question 3: Can you still hold a debit card, or should you just cancel it? Question 4: Does a debit card affect your credit score? Thank you so very much for making very informational videos for us young kids who are struggling in the adult world.
Thanks for watching, I'd be happy to answer those! 1: You can setup automatic payments with most credit card issuers so that you just automatically pay off your statement balance in full by the time it's due each month. Definitely a good strategy so that you don't accidentally miss a payment. 2: You can pay it off with any linked bank account. Typically I like to use my checking account to pay bills like this and I use my Savings account just to keep savings in. 3: Yeah you should still have a debit card too. If you open a checking account, a debit card will come with that which you can then use to go to ATMs or to pay for things instead of a credit card. Debit cards don't offer much rewards or benefits, but they are a lot safer than credit cards - so only use credit cards if you do a lot of research first to fully understand how to use them responsibly 4: No a debit card does not affect your score. It's basically just a card that's links to the money in your checking account Hope that helps and feel free to check out some other videos on my channel that should explain this stuff a bit more!
thanks! only recommendation would be if you talked a little slower when verbally explaining calculations. maybe you have this video already but if you could (little more slowly) walk us through like a monthly billing cycle to show how you end up with last month's previous balance on your statement. That's the part I'm having a hard time understanding, since I pay off my credit card ever month and am not charged interest. otherwise great video, best credit card statement explanation ive found!
I’ve been binge watching your videos for the last 2 days. This is day 3… these videos are necessary what I wish I knew then. I would have been less hesitant on opening a credit card. So helpful, thank you. Can you please make a video on closing/ cancelling cards how to go about it based on credit history, without it affecting credit score too much ?
If you can, don’t close the credit card, but look to downgrade to a credit card with no Annual Fee. If your credit card already has no annual fee, you’re better off not to cancel it. Just keep it and occasionally make a small purchase on it to keep it active. This will be much better for your credit score.
That's so awesome to hear, thank you so much for watching my videos and I'm glad that they are helpful! Yeah I'd love to make a video about that. I completely agree with what @Cubbies34 said in their comment, very smart to think about closing cards / downgrading cards like that! I always keep no annual fee cards open
You are so awesome bro. And i really appreciate you do not assume that everybody can afford to pay their entire balance like so many other UA-camrs do. Keep up the great work.
I could be wrong but at the 3:55 spot it shows on the statement you payed the $62.25 on 9/10 BUT at the 7:53 spot you say you started with a 0 balance for the billing cycle starting 9/7. How could you have started with zero when you paid it after the cycle started on 9/10 please ??? I'm just confused and trying to learn. Thanks
Great presentation! Simple and straight to the point. Question: once the ending cycle is reported to the bureaus, when do the bureaus update the credit report? For example the ending date was the 11th (not the due date just the reporting date). Is it okay for me to start using the card on the 12th or wait a few days?
What he isn't saying, but referring too, is pay not on the due date but as close to the closing date as possible. Thus, after a month or several, depending on your balance due, your credit score will raise, your interest rate will go down, as your monthly payments decrease.
This video made me feel like I could breathe😂. Thank you for your help. I’m a 20 year old girl never had a credit card or a credit score. I want to build my credit score as high as I possibly can. But I know I will need the proper knowledge first. Thanks for making it sound way easier that what I thought.
Thanks Nathan, really glad to hear you liked it! Haha yeah I found this Henley that I haven’t worn as much lately. I definitely gotta go shopping for some more to switch it up lol
Great Video. I am new to credit cards, as I’ve been a cash payer for everything for so long just working crazy hours. I didn’t understand it, and when it didn’t work when I tried to I wanted to avoid it more. So if I understand you correctly… We want to leave a “ utilization balance of 1% to show responsibility” to the Credit bureaus at the statement closing date, and then pay off the remaining amount before the bill due date to have a zero balance and avoid interest charges? Thanks again for doing this.
Yeah that's pretty much it! If you're balance is low relative to your credit limit on the statement closing date, then a lower utilization will be reported which shows responsible use of credit and helps your score. Then you'll have about a 3 week period between the statement closing date and payment due date to pay off that statement balance in full to avoid interest. Thanks for watching and glad it was helpful!
Your video is such a blessing for those like me starting to build credit score. I just want to ask if this is a right approach to build credit score because someone advise me that the best way to pay your credit card balances is to pay it right after you made a purchase using the credit card to make sure that you dont accrue interest and you dont go beyong your 10% utilization. Hoping for your insight about this. Thanks. 😊
Your videos are very helpful. I have the CFU and Cap One Quicksilver. Every video I’ve seen says the Chase FU is better as far as cash back but I have a higher limit on the Quicksilver! I got a dilemma!
So I have a Chase freedom flex card and I love the benefits what I do is pay my Current balance In full every time after I use it so I've maintain a $0 account balance. My limit is a $1000 And I lost 15 points on my score because my Is balance increased But only $43 I didn't miss a payment. So if my utilization rate is so low why didn't drop my score so much bc of this? And how do I prevent this from happening again?
I am new to credit cards with 4 months of credit history and I had always wondered if I should pay off my current balance before the due date, or my statement balance. Last month, I had a statement balance of $121 and I made a 50$ purchase right after the statement closing date, but I thought I had to pay the whole $171 before the due date. This video has been really helpful for me, the explanations were very clear. Thank you!
Thanks so much for saying that Vishnu, I'm so glad to hear that the video was helpful! Yeah that example you just gave is a perfect example of what I talked about in the video, only that statement balance of $121 would be due on the payment due date. I really appreciate the support! 👍
What if you make purchases with the credit card one day before the closing day and those transactions might take up to 5 days to be processed, will they affect your credit utilization? Or pending transactions won’t affect your credit utilization report?
I have a couple of questions! 1. Is it ok to utilize as much of the balance as one wants, as long as on the closing date its at an ideal utilization rate? Lets say on a card with $500 limit, you make a puchase of $400 and pay it off immediately, before the close date (or maybe $395 to stay above 0%). 2. Is the balance paid off once you submit payment or after the payment is processed (if you're paying through another institution, for example). 3. Is it advisable to close secured credit cards, so you can get your deposit back, once you've opened another credit card? I know you said the age of the account factors into your scores. Thanks!!!
The Best Time to Pay all bills for the following month due dates I pay on the 30th of the month before and I got 830 credit score regardless of Due Date!
Strive to pay the entire balance or at least a little above the minimum payment due, a day ot two after the current months statement closing date. That gives you almost 60 days before another payment is due on a rolling basis. Then make a second payment, as much as you can afford, a few days before the statement closing date each month to ensure the lowest balance you can afford to carry is what's reported. This method allows you to efficiently take advantage of 0% apr offers which can save you a ton in interest. But high utilization on that one card may slightly impact your scores. Your call.
A very interesting strategy, but was glad to see you say that this is for 0% apr offers because otherwise it would cost interest. Definitely something for people to consider if they want to plan it out like this to take advantage of the timing of cash payments. I personally don't like using 0% offers, I just prefer to pay in full every month, but I understand that some people may need to take advantage of these things like this so definitely could be something to carefully look into! Thanks for watching and commenting 👍
Way I've always done it is I look at the date each account reports to my credit and be sure to make the payment at least two days prior (give it time to post) and in those few days I be sure not to use that card. I pay each account down to at least 9% or lower utilization rate. ....my way is probably the hard way; but as long as you got a system down you can consitently follow
Yeah that's a good way to do it Alex! As long as the card's statement balance is paid off in full by the payment due date then that's what's most important. Glad to hear you put some thought into how you pay it back 👍
Very Informative! Just to clarify, if my credit limit is $10,000 and I spend $5,000 but pay off $4,900 before the closing date so that my remaining balance becomes $100 then pay the remaining $100 before the due date, my credit utilization will be 1% instead of 50%?
In regard to making purchases after the Statement Closing Date, just to make sure, that added purchase outside of the Statement Closing Date will be added to your Current Statement Balance, but the payment won't be due until the Pay Due Date following the NEXT Statement Closing Date. Am I understanding this correct?
From my research we don't get our Credit Score raised if the reports to the bureau don't indicate that we have utilized credit, like in the scenario of just having the card at $0 balance and simply not using it. If we use the card then pay it back in full to a $0 balance prior to the Due Date, and the reports to the Credit Bureau month after month just indicate a $0 balance, will the report to the Credit Bureau secondarily indicate that we utilized the credit after zeroing out the balance to still get our Credit Score raised?
Since I am more likely than not to use a credit card over the weekend, I call my credit card customer service line every Monday night and get a status report of what my balances are. Then I make a payment of some sort to cover the costs of what I charged. That way it seems I never have a mandatory amount owed and payable in any billing cycle, no interest accrues, and I stay well below my limits.
Discover posts fico credit score and states credit score as of …”. Should payment be made before THAT date if it’s different than my statement closing date?
Please help me😔 I don't get it. My example- due date on the 5th. billing cycle if from Feb 9th -March 11th. When should payments be made ? Im confused and i don't get it 🤦🏻♀
Also, don't wait to make a pymt near the end of your grace period b/c that can still adversely affect your fico score during that immediate month. Pay w/i the wk after that closing day for good measure.
This is my new credit account. So when should I pay and should I have it on auto pay. I will pay the statement as I go so that by the time it closes it is a smaller utilization. It says my auto pay is set for the 5th of every month
Grace period for a credit card means what? Like this grace period allows me time to spend for it to be on my next billing cycle or time to pay before the payment is due.
Really appreciate this video, I’m just starting out and it been really helpful in planning out my credit card journey before I apply! I do have a question tho: is it bad to have a 0% credit utilization by paying everything off early? I’ve been noticing that you don’t pay off the full balance before the snapshot by the payment due date, and I was wondering if that was intentional.
yo real quick, i didn’t even notice you don’t have too many subscribers but i wanted to let you know the quality of your videos is A++++ and i love what you talk about! keep it up
Haha thank you so much for saying that! Yeah the subscriber number is something that I know will grow over time because I only started the channel back in January. Really glad to hear that you like the videos, I appreciate the support! 👍
@@Daniel_Braun You're truly doing a fabulous job. Thank you so much.
Omg I've been watching his videos for so long but I never realized he doesn't have much subs, he deserves way more
Thank you! Haha yeah I’m still only about a year and a half into my channel so hopefully the subscriber count will keep growing over time!
😅🎉🎉
One thing I did as a beginner was open up another checking account through your bank, 99% of the time you can open another one for free and often times get bonuses. Every time you pay for something with your credit card, transfer that money into the second account. This way you’ll never get a false sense of buying power 🤝
That's a good idea! Thanks for sharing!
I am actually part of the 800 club for a long time now, but times change and I like new and relevant information. Thank you for an excellent explanation of credit card debt.
This video was incredibly helpful as someone who has just gotten a credit card and wants to be informed and educated on credit cards so I don’t make a mistake that could impact my life negatively in the future. I learned so much from this video so thank you and keep helping people to make the right decisions and be more educated on topics like this.
why you sound like a bot
@@michealmclaughlin429 bro tryna sound professional 💀
Me too. This guy is the messiah ❤
Wish they taught this in school. Haven’t got a credit card yet but I’m glad I’m learning this now before I do get one. Thank you🙏🏽
I've been using credit card and making payment but I didn't understand the breakdown as your explained in the video. This actually did help me understand how credit card works, because prior I get confused when I make the minimum amount payment but the I see an interest charge. But now it all make sense. I Just have to make sure I make my Statement Payment in full before the due date. Thanks again Daniel, I really appreciate you.
I think it's great that you do these videos. when I was young I got credit cards and just thought that something you do as an adult get credit cards, spend, pay. I ran into trouble spending too much and also not having steady income. ended up in debt. luckily it wasn't deep debt but still debt that was a pain in my butt. I would say young/ clueless people shouldn't get credit cards based off of my own experience but I know young and clueless people will still get credit cards. The internet to their great advantage has people like you explaining their bills and cycles etc. something I didn't have at 18 something I'm watching at 30!
Thank you so much for sharing your experience and saying all of that! Yeah credit cards are not always going to be a good option for people depending on the situation, but the most important thing is to learn about them which is definitely an advantage that many will have growing up now! I love making these videos and talking about this stuff, so thanks for watching!
@@Daniel_Braun just turned 18 and I have a secured credit card on the way so I can build credit. I have a fairly good paying job with consistent hours. I'm researching as much as I can so I can use my credit card to my advantage as much as possible. Thank you for the great video, I'm looking forward to using my card to pay for gas as well as some groceries.
Getting a credit card is definitely important to start building credit. It's just good to have someone that helps explain how to use it correctly
This video really helped me out. I literally called my bank 3X today to ask the same questions and I was still confused. You cleared that all up. Thanks
I've also asked my bank to clarify some pretty simple points, like the ones mentioned in the video. But they usually just don't explain it well enough to not have me watching these videos instead. So you're not alone with that lol
This is an incredible video. i’m 19 and trying to get my head around credit cards and how to start building my credit score. this video has entirely helped me to understand how credit cards actually work, and not just what they do. haven’t seen your channel before but i’m definitely subscribing, you seem very knowledgeable. keep up the high quality videos 👏🏼👏🏼👏🏼
Been binge watching your videos for a week now. You and Sebby have been some of the most helpful when it comes to the credit card game. I am getting started late in life with understanding the basics; such as this video. Very thankful for your desire to educate others in this arena of life. You are hands down the top among many I have been watching recently; in your clarity, delivery, and transparency on this channel. Subscribed 👍👍
Budget ahead monthly. I usually pay a few times a week. If I see a balance I pay it. Every dollar is accounted for. Cool video. Great Info
Thanks so much for watching and commenting! Yeah that's a good strategy, budgeting is so key! And paying down a balance is always a good thing too
Your videos are very helpful. I just turned 18 and got the discover it card and was nervous about when I should pay it off and how much. Thank you for explaining it so well!!
Same haha
@@Lucas-nf9xc same
Great video! I’ve always set my credit cards to auto pay the current balance on the due date. I’m going to have to look up the billing cycle on each of them and add that to my spreadsheet as well now!
Thanks Cooper, appreciate it man! Great to hear that you're organized like that and have a spreadsheet!
Would you be willing to share your spreadsheet I’m 19 years old trying to build my credit and I’m very new to this
Great explanation of the key dates to know. Every high school in America should make seniors watch your short video. It would increase financial literacy for everyone as they start their “adulting” journey.
Thank you so much! I really hope that students can watch my video to learn! I really wish that I was taught this in high school
This channel is very underrated! Great info for somebody like me who just got their first credit card.
Thanks so much Evan! Glad that the info was useful to you after just getting your first card! 👍
A very simple video with some fantastic tips. The easiest tip of all...if you can't pay your balance in full, don't charge it. We've talked before, but your tip to pay items that are larger quickly is a great tip if you have the immediate cash flow to keep that utilization down. Good stuff Danny!
Thanks so much Scott! Yeah exactly, only pay with a card with an amount that you know you can pay back immediately if you have to. And yeah, if you have a larger purchases like that then its a good idea to pay it down to avoid utilization getting too high by the closing date
Great video! Some of them were already taught to me by my mom way back years ago when I was just starting to live independently. But still most of them are so informative. God bless you
Your video finally gave me clarity on how to pay my credit card I’ve been struggling with this for years. Thank you! New sub 🙌
I love to hear that! Thanks so much for watching and subscribing!
I'm way to old to not have known all of this. Thank you so much.
This video is what I have been looking for !!! Thank you so much for being very specific and showing images to help better understand !
Great video! Definitely one of the first things anyone getting in credit cards needs to learn!
Absolutely! It seems so much more complicated than it actually is! Thanks so much Jacob 👍
I love your videos ! As a beginner credit card user, the tips you give are super helpful ! Subscribed 🙌🏾
Best youtuber on credit card management.
Thank you so much for saying that, I really appreciate it! Lots of great channels out there talking about credit cards so that means a lot to hear!
@@Daniel_Braun you have the personality and energy I simply don’t see in the others. Keep it up. Also, WE ARE!
Thank you again! - and PENN STATE! Love to see the PSU support haha 👍
Great visual flow chart of billing cycle and statement opening & closing tree...
Maynnn thanks so much for giving clarity!! I was transfering on the spot after a transaction 🤣🤣
No one should graduate from high school without this knowledge.
Great video! The graphs/numbers are really helpful, and I feel prepared to get my first credit card
The diagrams and statement pictures helped me so much great visualization bro 👏💪
Learned so much about credit cards in 1 hour from your videos Thanks 🙏🏾
That’s awesome, I love to hear that! Thank you so much for watching my videos, I’m glad they were helpful!
Thanks!
Just seeing this now - thank you so much for the super thanks!! I really appreciate the support!
I've been doing it backwards. I make my payment on time but add an additional monthly payment 1-2 days before my statement closing date. My credit has increased over 100 points in the last year by doing this.
Bro I got my first credit card watching your chase video , got a 1500 limit too
Thanks Brotha🙏🏽
Love to hear that! Thanks so much for watching!
Can anybody answer if I set automatic payment exactly on due payment day. Will it okay? Will bank receive money on that day or because of the pending will I get late payment and better will be pay at least 3 days before due payment day?
Only half way through but really good explanations, I was really hesitant to use credit cards since the idea of debt kinda sucks. But if I only buy what I can pay then and their and pay it off the benefits do seem kinda dope. Thank you for hopefully helping me mess up less
Thanks so much for watching! Yeah that's exactly the idea with using credit cards the right way! Having an emergency fund of cash on the side and a budget to understand your spending is also really helpful and important
Great explanations of the terms, ramifications and strategies of credit card usage.
Hello, I'm very new to the credit game so I just need some questions answered.
Question 1: Can you just set up an automatic plan so that the bank just automatically pay it off in full for you, or do you have to call them to pay it off?
Question 2: How do you pay it off? Do you use the money in your checking account, or savings account?
Question 3: Can you still hold a debit card, or should you just cancel it?
Question 4: Does a debit card affect your credit score?
Thank you so very much for making very informational videos for us young kids who are struggling in the adult world.
Thanks for watching, I'd be happy to answer those!
1: You can setup automatic payments with most credit card issuers so that you just automatically pay off your statement balance in full by the time it's due each month. Definitely a good strategy so that you don't accidentally miss a payment.
2: You can pay it off with any linked bank account. Typically I like to use my checking account to pay bills like this and I use my Savings account just to keep savings in.
3: Yeah you should still have a debit card too. If you open a checking account, a debit card will come with that which you can then use to go to ATMs or to pay for things instead of a credit card. Debit cards don't offer much rewards or benefits, but they are a lot safer than credit cards - so only use credit cards if you do a lot of research first to fully understand how to use them responsibly
4: No a debit card does not affect your score. It's basically just a card that's links to the money in your checking account
Hope that helps and feel free to check out some other videos on my channel that should explain this stuff a bit more!
@@Daniel_Braun Thank you so much. 🙏
thanks! only recommendation would be if you talked a little slower when verbally explaining calculations. maybe you have this video already but if you could (little more slowly) walk us through like a monthly billing cycle to show how you end up with last month's previous balance on your statement. That's the part I'm having a hard time understanding, since I pay off my credit card ever month and am not charged interest. otherwise great video, best credit card statement explanation ive found!
I’ve been binge watching your videos for the last 2 days. This is day 3… these videos are necessary what I wish I knew then. I would have been less hesitant on opening a credit card. So helpful, thank you. Can you please make a video on closing/ cancelling cards how to go about it based on credit history, without it affecting credit score too much ?
If you can, don’t close the credit card, but look to downgrade to a credit card with no Annual Fee. If your credit card already has no annual fee, you’re better off not to cancel it. Just keep it and occasionally make a small purchase on it to keep it active. This will be much better for your credit score.
@@7gators7fan7 Thank you for replying, very helpful 😊
That's so awesome to hear, thank you so much for watching my videos and I'm glad that they are helpful! Yeah I'd love to make a video about that. I completely agree with what @Cubbies34 said in their comment, very smart to think about closing cards / downgrading cards like that! I always keep no annual fee cards open
You are so awesome bro. And i really appreciate you do not assume that everybody can afford to pay their entire balance like so many other UA-camrs do. Keep up the great work.
This video helped so much as a first time credit card holder. Thank you, just subscribed!
@Daniel Braun keep going with your channel man. Your content is always on point. Simple and easy to understand. 💯🙏🏼
Thanks so much for saying that Eli, I'm always trying to keep things as simple as possible to hopefully help anyone learn! Appreciate the support 👍
I could be wrong but at the 3:55 spot it shows on the statement you payed the $62.25 on 9/10 BUT at the 7:53 spot you say you started with a 0 balance for the billing cycle starting 9/7. How could you have started with zero when you paid it after the cycle started on 9/10 please ??? I'm just confused and trying to learn. Thanks
Great presentation! Simple and straight to the point. Question: once the ending cycle is reported to the bureaus, when do the bureaus update the credit report? For example the ending date was the 11th (not the due date just the reporting date). Is it okay for me to start using the card on the 12th or wait a few days?
You can use it right away , as it will be reflected on the following cycle
i love the constant upload!! Can't wait for the next video. I've seen your channel grow since you were at 1k!
That's so awesome, thanks for being around from so early on Ryan! I can't wait to keep uploading more and more this year!
I must be really slow because I clearly didn’t understand
Don’t feel bad I don’t get it either. I don’t see why it has to be this convoluted. It seems intentionally nefarious.
@@ivancliff2514thats the scam of the credit business. The whole point is to confuse you and hopefully you will rack up interest.
What he isn't saying, but referring too, is pay not on the due date but as close to the closing date as possible. Thus, after a month or several, depending on your balance due, your credit score will raise, your interest rate will go down, as your monthly payments decrease.
just pay 4 days before your bill and try and below 30%
This video made me feel like I could breathe😂. Thank you for your help. I’m a 20 year old girl never had a credit card or a credit score. I want to build my credit score as high as I possibly can. But I know I will need the proper knowledge first. Thanks for making it sound way easier that what I thought.
If my statement Is AUG 3 when do I have to pay it off by? Time too?
Extremely helpful. Very well explained!
Great info I haven’t seen on the UA-cam before good going! Baseball type henley with two-tone 吧.
Thanks Nathan, really glad to hear you liked it! Haha yeah I found this Henley that I haven’t worn as much lately. I definitely gotta go shopping for some more to switch it up lol
Great Video. I am new to credit cards, as I’ve been a cash payer for everything for so long just working crazy hours. I didn’t understand it, and when it didn’t work when I tried to I wanted to avoid it more.
So if I understand you correctly… We want to leave a “ utilization balance of 1% to show responsibility” to the Credit bureaus at the statement closing date, and then pay off the remaining amount before the bill due date to have a zero balance and avoid interest charges? Thanks again for doing this.
Yeah that's pretty much it! If you're balance is low relative to your credit limit on the statement closing date, then a lower utilization will be reported which shows responsible use of credit and helps your score. Then you'll have about a 3 week period between the statement closing date and payment due date to pay off that statement balance in full to avoid interest. Thanks for watching and glad it was helpful!
This is a super good video. Good job.
Your video is such a blessing for those like me starting to build credit score. I just want to ask if this is a right approach to build credit score because someone advise me that the best way to pay your credit card balances is to pay it right after you made a purchase using the credit card to make sure that you dont accrue interest and you dont go beyong your 10% utilization. Hoping for your insight about this. Thanks. 😊
You are absolutely wonderful! I am so glad I found your channel.
Thank you so much Margaret - glad the information is useful!
Thank you so much for your helpful videos, it’s made a big difference when rebuilding my credit!
can i pay my loan before billing day
You can always pay off your balance at any time! It's best practice to pay off your statement balance on time and in full before your payment due date
Credit utilization, gold, thank you for sharing!
Your videos are very helpful. I have the CFU and Cap One Quicksilver. Every video I’ve seen says the Chase FU is better as far as cash back but I have a higher limit on the Quicksilver! I got a dilemma!
So I have a Chase freedom flex card and I love the benefits what I do is pay my Current balance In full every time after I use it so I've maintain a $0 account balance. My limit is a $1000 And I lost 15 points on my score because my Is balance increased But only $43 I didn't miss a payment. So if my utilization rate is so low why didn't drop my score so much bc of this? And how do I prevent this from happening again?
Did you figure out what the problem was ?
I am new to credit cards with 4 months of credit history and I had always wondered if I should pay off my current balance before the due date, or my statement balance. Last month, I had a statement balance of $121 and I made a 50$ purchase right after the statement closing date, but I thought I had to pay the whole $171 before the due date. This video has been really helpful for me, the explanations were very clear. Thank you!
Thanks so much for saying that Vishnu, I'm so glad to hear that the video was helpful! Yeah that example you just gave is a perfect example of what I talked about in the video, only that statement balance of $121 would be due on the payment due date. I really appreciate the support! 👍
This is awesome video!! Thanks so much! I am completely illiterate when it comes to finances !
I keep it simple. I setup auto pay to pay off statement balance on due date but that is just in case. I pay balance off weekly.
What if you make purchases with the credit card one day before the closing day and those transactions might take up to 5 days to be processed, will they affect your credit utilization? Or pending transactions won’t affect your credit utilization report?
Awesome video Daniel🙌
Thanks Max, appreciate it!
I have a couple of questions!
1. Is it ok to utilize as much of the balance as one wants, as long as on the closing date its at an ideal utilization rate? Lets say on a card with $500 limit, you make a puchase of $400 and pay it off immediately, before the close date (or maybe $395 to stay above 0%).
2. Is the balance paid off once you submit payment or after the payment is processed (if you're paying through another institution, for example).
3. Is it advisable to close secured credit cards, so you can get your deposit back, once you've opened another credit card? I know you said the age of the account factors into your scores.
Thanks!!!
The Best Time to Pay all bills for the following month due dates I pay on the 30th of the month before and I got 830 credit score regardless of Due Date!
great video I finally understand now. no cap!!!
Awesome video Daniel! Your video cleared up every question I had.
Great vid, thanks for going through on how it is done
Strive to pay the entire balance or at least a little above the minimum payment due, a day ot two after the current months statement closing date. That gives you almost 60 days before another payment is due on a rolling basis. Then make a second payment, as much as you can afford, a few days before the statement closing date each month to ensure the lowest balance you can afford to carry is what's reported. This method allows you to efficiently take advantage of 0% apr offers which can save you a ton in interest. But high utilization on that one card may slightly impact your scores. Your call.
A very interesting strategy, but was glad to see you say that this is for 0% apr offers because otherwise it would cost interest. Definitely something for people to consider if they want to plan it out like this to take advantage of the timing of cash payments. I personally don't like using 0% offers, I just prefer to pay in full every month, but I understand that some people may need to take advantage of these things like this so definitely could be something to carefully look into! Thanks for watching and commenting 👍
Way I've always done it is I look at the date each account reports to my credit and be sure to make the payment at least two days prior (give it time to post) and in those few days I be sure not to use that card. I pay each account down to at least 9% or lower utilization rate. ....my way is probably the hard way; but as long as you got a system down you can consitently follow
Yeah that's a good way to do it Alex! As long as the card's statement balance is paid off in full by the payment due date then that's what's most important. Glad to hear you put some thought into how you pay it back 👍
Very Informative!
Just to clarify, if my credit limit is $10,000 and I spend $5,000 but pay off $4,900 before the closing date so that my remaining balance becomes $100 then pay the remaining $100 before the due date, my credit utilization will be 1% instead of 50%?
No
Thanks I understand now. Now I can boost my credit score by a lot now.
In regard to making purchases after the Statement Closing Date, just to make sure, that added purchase outside of the Statement Closing Date will be added to your Current Statement Balance, but the payment won't be due until the Pay Due Date following the NEXT Statement Closing Date. Am I understanding this correct?
so the best time to pay the bill is 3 days before the due payment?
2 yrs later this info is very useful 😊
From my research we don't get our Credit Score raised if the reports to the bureau don't indicate that we have utilized credit, like in the scenario of just having the card at $0 balance and simply not using it.
If we use the card then pay it back in full to a $0 balance prior to the Due Date, and the reports to the Credit Bureau month after month just indicate a $0 balance, will the report to the Credit Bureau secondarily indicate that we utilized the credit after zeroing out the balance to still get our Credit Score raised?
what is the utilization if you have a card with no spending limit? My Amex Plat doesnt have one
Great Video. Thank u Sir. ❤️ from the U 🇬🇧
Thank you! Appreciate the support!
Since I am more likely than not to use a credit card over the weekend, I call my credit card customer service line every Monday night and get a status report of what my balances are. Then I make a payment of some sort to cover the costs of what I charged. That way it seems I never have a mandatory amount owed and payable in any billing cycle, no interest accrues, and I stay well below my limits.
Discover posts fico credit score and states credit score as of …”. Should payment be made before THAT date if it’s different than my statement closing date?
Please help me😔 I don't get it. My example- due date on the 5th. billing cycle if from Feb 9th -March 11th. When should payments be made ? Im confused and i don't get it 🤦🏻♀
do they typically list these opening and closing dates on your online account management or just the printed bills/statements?
^
How do I know my credit limit for my Amex platinum charge card I’m figuring my utilization as it doesn’t have any set limit.
Thanks I advance.
So there's no preset limit on the Amex charge cards like the Platinum. It doesn't have a credit utilization reported to your credit report
Thanks for your videos. Amazing content 😎🤓
As late as possible. Unless your utilization is high - before due date obviously.
Yep, a good strategy! Always good to keep that utilization low 👍
Also, don't wait to make a pymt near the end of your grace period b/c that can still adversely affect your fico score during that immediate month.
Pay w/i the wk after that closing day for good measure.
Ok. I wanna wait for that gray period of the 18th (after the due & report date pass) thru the 3rd of the next month to both buy then pay off in full..
Grateful for your explanation
Thanks for watching, glad it was helpful!
Great job explaining 👏😎
how do I know how much to pay in advance? As the monthly statement only comes out after the billing cycle ended?
This is my new credit account. So when should I pay and should I have it on auto pay. I will pay the statement as I go so that by the time it closes it is a smaller utilization. It says my auto pay is set for the 5th of every month
Not me paying my credit card before the statement closing date ever since I got my credit card 😭 thanks for the eye opener!
Great info. Love the content!! thanks!
Thanks for sharing this valuable information, Danny. Good stuff!
Thanks so much as always for watching! Glad you liked it! 👍
Grace period for a credit card means what? Like this grace period allows me time to spend for it to be on my next billing cycle or time to pay before the payment is due.
Thank you, this video has been very helpful!
Very helpful video, thanks brody
watch so many videos on this topic finally find a youtuber who can simple explain it😂
Really appreciate this video, I’m just starting out and it been really helpful in planning out my credit card journey before I apply!
I do have a question tho: is it bad to have a 0% credit utilization by paying everything off early? I’ve been noticing that you don’t pay off the full balance before the snapshot by the payment due date, and I was wondering if that was intentional.
Beginning this journey today