Is 0% Utilization Bad For Your Credit Score?
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- Опубліковано 2 лип 2024
- Welcome to my MissBeHelpful channel!
In this video I address 2 important things to consider when thinking about utilization, and specifically 0% utilization. Watch to find out if you're helping or hurting your score when you have a zero balance on your credit card!
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’Til next time… PEACE!
2nd time I was looking for credit card Info and found one of your videos. Very helpful 🙏🏾
I wondered about this question. Thank you!
this video was really helpful answered everything I was thinking about
Finally got the answer to my question answered about using or not using a credit card. Thank you!
Another wonderful video from you. Keep shining on your light to this world sweetie
Thanks so much! :)
You are great at explaining things
Great info! Thank you.
Great videos. New subscriber here. Utilization is real. My score has jumped up 50 points in 2 months because of keeping utilization low before statements ended. I have had $0 balance recorded in the past and haven’t noticed much change. Thank you for your videos. I’m into finance too, just haven’t touched on credit cards much.
I think credit cards are the most incorrectly used tool in personal finance! It hurts my heart! Thanks for watching and commenting!
So what did you do exactly?
Okay this answered my question, thanks!
Makes complete sense
Helped me a lot to understand
Great information… thanks
I paid off all my bills and my score went to 752 but then i didn’t use any of my cards with a limit of 16k and it drop 60 points. So recently I’ve been using my card and it went back up to 779 currently. The algorithm for credit card is tricky, it’s good that you use your card and pay off bills but you have to constantly do it and use a good amount of your limit. Basically you have to a good amount of side money to keep your score up
Great video thanks I learned from this!!!
I keep my utilization at 2%. I believe in the U.S. the top tier credit individuals stay between 2% and 7% utilization
Yes they do! That's a great strategy!
I always stay between 20%-30%. I'll give that range a try next month.
@@Zhello79 do you mean total utilization or on a single card?
@@KaliforniaKurupted total utilization. Even if you have a single card, it still applies.
But having just one or two cards, it is easy to manage.
Zhello So what happened? Did your score go up after using 2% utilization?
Knowledgable and Gorgeous. Thank you for explaining the 0% Utilization. Subscribed
Shes mine ....well i like her she pretty and smart huh
Thanks awesome video.
Thanks for watching and commenting!
Love your videos thank you
You're welcome! Thanks for watching!
I just got my first credit card to build my credit so I can buy a sick car I want. I thought using the card almost to the max then paying it off would be the most beneficial to building my credit score. Glad I went online to check out what to do. Was at about 420 of the 500 limit before my first statement. Made a payment on it to leave 40 bucks on it to say below that 9% utilization. Thanks!
Pay it down or off before the statement date before it is reported to the credit bureau
you have taught me so much in half an hour than i have learnt in my life lol thank you so much. really appreciate it
Glad to hear that! You're welcome!
MissBeHelpful more like MissBeautiful wow!!! Thanks for the info
Thank you it help my credit score plus r beautiful thank you 🙏🏿
YOU ARE SO COOL . I LEARN ALOT FROM YOU I THINK YOUR SO ALLSOME....TOTALLY.
Thanks for watching and commenting!
That was very helpful
Glad it helped
I like this video, you are smart. I try to pay my credit card bills on time.
Yep! Good move!
@@missbehelpful are u saying to have 0 percent utilization is better for credit than to have like 2 percent? I heard the credit bureaus have to see ur utilizing some credit for score to go up.
Such a lovely credit card lesson lady.
Jabba The Plutocrat Thanks!
Are you a financial advisor or just a web babe?
Love your accent...thnx for info
THANK YOU!!! You explain things soooo well. I knew there was something I was not doing right. I will try this. Thank you, again!
Nice video 👌
Thank you so much 😀
Another important point people miss. If you have a bad payment history, in order to get to 💯% good history. You need monthly, positive information, as well as more credit cards to increase your positive payment info.
I understand i lile your videos advice is use more viuals like charts and white board with outline and details as well as
Great advice !!! As always , thank you for the knowledge
Thanks for watching!
I have 2 cards from capital one. I only use them to purchase stuff under $5 like a 1 gallon water or a energy drink lol.
Never carry a balance with them if you still have them, it shows bad behavior thru the algorithm they use
I had a 738 and had a 0% and didn’t use it for ONE month, I found it ridiculous how my score dropped 23 scores down!
This is it folks!! Below 6% the credit bureau let you know how fantastic you are. Also 1% is the ideal secret sauce.
Hi Missbehelpful, enjoy your videos! Question, I was paying all my low bal cards off then was going to tackle the larger card balances. Then i saw your video bout them closing inactive accts (ouch) how long is too long not to use a card? If i charge something every six months will i be safe from them closing my acct? or should i just make a small purchase every 3 months and then pay it off after it shows on the report?
Should you pay your credit cards weekly vs monthly? Thanks
How little do you have to use your credit card to not be considered an inactive/ closed account?
Love you hair cut
How does it affect your score when you upgrade your oldest card to a different card with a new number? Like going from a Chase Freedom to a Chase Sapphire preferred.
There are some misunderstandings here. If you wait until you get your bill and pay by your due date you won't pay any interest but you will have credit utilization. The only way to have 0% credit utilization if you use your card is to pay it off before the statement closing date. Once you get your bill it's too late to have 0 utilization. I have 19 credit cards. Use them all, always pay before the statement closing date, always have 0 utilization and always get credit for using my cards. If you can, that is the perfect way to use credit cards. Many people debate is it better to have 0% utilization or 1% and the difference isn't much but 0% is better as long as you are using your cards.
Hi Steven Miller: Thank you for your explanation of utilization. I am sorting through the information and some are contradictory as far as utilization. I share your position to go 100% and pay it off before the statement due date. However, it is good to know that it works because I am just getting started with only a few cards.
Now, what is the best way to apply for new credit without it impacting your score due to inquiries? Thanks again!
Steven Miller I
DL Lieberman get an AMEX card, if you already have one that's great!!!!! Little known secret, if you have an AMEX card and have a good history with AMEX they will almost never do a hard inquiry again. Between charge cards and credit cards I have 6 AMEX cards that I have acquired over a 4 year period and they only did one hard pull, on my first AMEX card. Only company that does this. Perfect for getting new cards without getting more inquiries on your credit report.
Steven Miller, thank you so much for your sage advice. I will definitely get an AMEX card; I did not know the little-known secret they hold. Right now I am sitting out on acquisition because of my inquiries, which are too high.
what about using your card and paying it completely every month to have a 0 on your statement? Will it hurt or improve your credit score as oppose to having a few dollars on there?
I could watch her talk about firewood
nsmcgirt 😂😂😂
True lol she is pretty :)
She is very easy on the eyes.
She is fine
All thanks to *@Darkvictor* on *telegram* he help with bit coin flips and fresh cc with high balance and it work I don't no what I will do without you ....you are the real deal 💯
Is it good or bad for my credit score to have a negative credit balance? I paid more money to the credit card than I spent before my closing date.
Good thing I found this. I'm going to leave my country next year and I never use credit so I guess I better stay away from them.
I pay the card balance in full once i get my paycheck. I do not care about the utilization but every fortnight i pay the balance in full. Does that affect my score?
It's always good to show at least $1 on the card n show utilization
Odins War do you have to carry a balance to have a utilization rate over 0%? Cause I only use $45 on a $300 limit but I paid the balance in full before the closing date. Is my utilization 0% or 15%?
@@davehardhitterz1146 it's 0 if you pay it off
Dave HardHitterz if you pay it after the statement closing date it’s 15%. If you pay before it’s 0%. Because if you have a balance after the statement closing date it gets reported to the credit bureau. If you pay it before, the credit bureau sees a 0% utilization
Dave HardHitterz oh my bad I reread your comment. Yeah it is 0% because you paid before the closing date.
All thanks to *@Darkvictor* on *telegram* he help with bit coin flips and fresh cc with high balance and it work I don't no what I will do without you ....you are the real deal 💯
My utilization is always 0 on my statement date but I use it
For someone with only 1-2 credit cards trying to create/ build credit with no loans how much utilization should I use combined and for each card?
Are you sure you’re not tired? You’ve been running through my mind all day.
Franklin Martin lol
My credit card got 1800 n i only use it for Netflix . Pay it off every month I only use 2%
Look anything below 30% you’re safe . Once i m within those lines I’m good. Because even if u keep it at 10% it’s not like they are going to give u 50 points off the bat.
I have no problem with using my cards but honestly I dont want to have a bill amount of 9% of my spending limit. That would be a high bill to pay.
I have a question for the community. I have a 2% cash back card with a limit of only $500 I'm rebuilding. If I use it and pay it every week. Can I use more than the 30% rule if I have it below it every month when it reports or could I still hurt my credit that way. I want to keep building but I would like to get that 2% back on more purchases
how many years will it have damage on your credit score?? After it gets closed by accident
7 to 10 years
I lost 18pts paying off my cc to 0% it went down on experian because it stating that I haven't used my cc
Can I not just pay my credit card after every purchase? Does that hurt my credit?
I am totally confused! First, without knowing any better, I utilized more than 30% of my available limit (but I've never gone over the limit or was late making payments), and my score went down, as a result. So I was like ok, I will pay my balance completely off. So I did that, and then my score plummeted dramatically. It's not like I kept my card at zero without using it for a long period of time. This was just for one month that I had a zero balance, and then my score went way down. I don't get it! So now I'm trying the option of keeping my utilization under 30%, but over a zero balance, to see if this changes anything, positively. Is this a good idea?
@ Thank you for breaking that down for me. I appreciate it.
@ now that was aswome review! Better than her review, but I still give her points because she is beautiful!
Can so someone tell me why I paid down my loan to 23% and my credit card down to 0%, but NOT closed, and I lost 24 points on my credit. No other changes nor negative impacts occurred. Nothing else at all. Can't find an answer to that.
So? It would be a bad idea to cancel my credit card that I’ve had for 5yrs cause I’d ruin the relationship/credit I’ve built with my bank?
would having a negative balance on my credit card help my credit score? if I pay more than my balance
Mine went down
I use my cards once a month and pay them off right away or a couple days later. I can't keep up with the closing date etc. it's just too nuanced for me getting it to 1% by the closing date which one of my credit card co's won't even give me.
Just keep you running balance under 10% and you'll be fine. Won't have to track anything.
Kreate Space no you’re just lazy as hell lol the closing date is the same date every month.
Yo Yo I've looked into this. It's 3 different closing dates (3 cards)-- and one of my cards won't tell me that date. And I have a brain injury-- so you can actually go fuck yourself.
Kreate Space oh it must be hard to write them down. Obviously it closes the day or day before you get your statement. You can also make all your due dates the same so your statements close at the same time. 🙂
Yea - I get that - That's why I always say divide by 10 then spend ;P Thanks for commenting hon!
By the way how many credit score can get best buy visa card ? Thx
I pay off my entire balance and only 6 points up ? that's mess up
Let your account age
Hi, I have a credit card that was bought by another card. And they closed out the first one it looks like I closed it . What can I do about that? Thanks Gilda
0% utilization is great,Bonita!
I keep mine at 1% 825 fico 9 scores.
Can closing all your credit cards and having none hurt your credit history and can you lose all years and if you apply later will they start your years over
Hey I’m not sure if this is on the same subject .I have a care credit that I used at one point at the dentist . And for the last two months I haven’t use it since I paid it off and I don’t use it and it’s 2500$ What should I do with his card?
So let me get this straight, I don’t use credit cards and therefore don’t have cc debt, and I am treated as a credit risk. If I have zero debt, why in the world would a bank not want to lend me money. I am far more likely to be able to pay off a loan if I’m not strapped down with other debt than if I have a bunch of payments because i love using credit cards. Makes no sense to me.
True, but think of it this way. There is no proof that you have paid people off on time in the past. So that makes you a big question mark to them. They'd rather see proof of you making payments on time over time. Thanks for watching and commenting!
It’s a catch 22.
Your free of debt. And free of credit.
But you’re not likely to get credit - because you’re free of credit.
No history = unknown risk (to them.)
It’s terrible for you.
Lenders want activity, because it makes them money.
Lenders want activity because it shows them that you are active & responsible with the dough they promise you.
I tried to leave at least $10 to $20..each month I never paid it off to 0…
Okay I’m 18 and I got my credit card about a month ago and I’m still a little bit confused. So my credit score was at 752 or something like that before I even started because my brother did something with his credit cards that he put me under and I was getting credit for it. So when I opened mines up it went down a little to 742. So I have a credit limit of 1500 with BofA and the payment date is December 25 and my closing date is December 28 if I already used 1200 in credit and have the cash for it should I pay it before December 25 to have 0% utilization? Or just wait and pay it on January 25 when it’s supposed to be due ?
This is confusing to me because my due date comes first. Due date 25th closing 28th. I tried: paid minimum+ before 25th and and full balance before 28th, and credit don’t change a point. And tired leaving a small balance below 10% and my score goes down🤷♂️ I’m so confused what to do now
Any outstanding amount that you carry past the due date will accrue interest. Any amount past the closing date will be reported to the credit bureau as a balance and will count towards utilization.
That’s because the due date is for the previous billing cycle not for the cycle you’re currently in.
Cycle 1: October 29th-November 28th
(Statement Close date: November 28th)
Pay date for this cycle: December 25th
Cycle 2: November 29th-December 28th
(Statement Close date: December 28th)
Pay date for this cycle: January 25th
So, it will look like the payment is due before the close date, but it is with respect to the previous billing cycle.
The pay date for a billing cycle is roughly 25-30 days after the close date of the statement.
What if you never activated a card
Would ithurt my credit if i pay off the current balance in full instead of the statement balance every due date? I do this so that my utilization ratio is low. Would having my utilization at 0 hurt my credit also even tho i use my credit card but pay off the whole balance?
What? How can the credit card company close your account when they can clearly see you are using the account but just paying it all off before the end statement to send to the credit bureau
No she's stating not using it at all
also, is the utilization per card or is it looked at as all cards combined or both?
Both....collectively and individually
I use my credit card like a debit card and pay it in full before the due date
Will a utilization between 0%-9% increase the amount of points you'll get? Like will a 0% utilization give you more points than say a 5% or 9% utilization.
Points are based on how much you spend, usually. Check how the points are calculated you know. Just don't go over 30 percent utilization and you're good. That's how they will trick you into spending more if you are not careful
My credit score went down 18 points because of 0% credit utilization
Hi I’m trying to rebuild credit and get as much points added to my credit score as possible, my due date is on the 17th of every month and the closing date is on the 20th of every month, so should I pay my balance in full before the 17th or after the 20th?
They should teach this in school
Do you have any recent videos?
I have a couple credit cards that I opened four months ago I haven’t used it yet and the reason I haven’t used it yet is because I’m trying to purchase a house so I can’t use any of my cards do you think that they will close it down because I haven’t used it yet?
You can use your credit cards (keeps them active) and pay them off during the month. That way you don’t hurt your score and you don’t lose the cards which, ironically, would hurt your score by shortening your age of credit, potentially.
So I kniw ur suppose to use only 29 percent of ur limit or 9 percent for better credit score. Wat if my limit is 500 can I spend more than that percent if I pay it off before closing date? or will it lower my credit score?
Never leaving 0 percent utilization my scores dropped 60 points & thats BS
Credit history is frm tht one card wch u started using fr the first time, do whatever u want but never to close tht particular card, even wn u have to pay the joining fess.
Close wch ever u want but not tht one card...
She is bulls eye :- right (frm India wit lots of respect fr u)
*please help me on this question* if i have a $1000 credit limit and say i spend $900 and if i pay $890 (BEFORE THE STATEMENT DATE) and leave a $10.00 balance would that count as a total of 1% Utilization or a 90% utilization.
As long as the payment gets posted before your billing cycle ends itll count as 1% so you have to time it right. Some banks take longer to process payments so I'd say make the payment at least 3 business days before. Doing this ive had a few statements come out as saying my balance is $0-4
Also how can i raise my credit utilization? Is it by getting closer to the credit limit for example 1500? Or using ur card more frequently?
I can’t fathom why you would want to increase it, as that is 30% of your credit score. Higher utilization bad, lower utilization good. If you want a limit increase, running a balance and paying it off every month should still help.
So the best thing to do is use your credit card but pay it off before the statement closing date. So your account is still considered active but your utilization is 0% when it closes.
They do not close it I have 15 cards and most I don’t use and have had for years maybe it depends on the credit card company
I payed my accounts in full by the due date and my score dropped by 20 points.
Mad af right now.
Same😑
That happened to me and I was mad. I even called trans union, Experian and FICO I was mad!!!
What utilization percentage were you at on the report date? If it was higher than 30% then that could be the reason why you dropped 20 points.
AEZO look that up! Don’t make your utilization reach 0%. You should always have revolving balances, don’t pay the full amount before the due date
You can drop 20 points for no reason. Credit score is a scam. They make you think this way to spend money thinking you “did something wrong”
Very good points
Hey miss be helpful can you make a video about how to get a home loan please
I haven't done that yet but I can research a little bit!
Would.
Normal comment passing through the spammy ones lolol
Hey I have a 614 credit score I want my score to go up and I am getting frustrated because I pay my credit card on time and bills on time I am never late I’m just frustrated because my credit score is not going up what should I do so my credit score can go up???
Hold on pump the breaks!!! You said in the other video to pay the balance in full.
Paying the balance in full by the due date is key
What if you’re due date is before you’re statement date do you pay it off for 0 on you’re due date then spend a few bucks to keep that 10% lower utilization few days before you’re statement. Like example due date is the 5th and statement date is 10th
Lot of ppl get confused about this. That would never happen. You must be looking at the due date from the previous billing cycle. The closing date always comes before the due date.
I checked my credit report and saw that Capital One was reporting OK for months but I didn't know I had this card. I got in touch with them and I told them to send me the card I never received. Should I dispute the months I never used the card or just leave it and just use 0-9%?
I would just leave it - that doesn't hurt your score so much unless it piles up for years at a time.
MissBeHelpful I started using my card and in one month it went up 18 points by only using 1-9%. I appreciate your videos.
IF MY BILLING CYCLE IS 11/10/19-12/19/19 if I paid everything off before that cycle but my BILL IS DUE JAN - 06 would the CREDIT-BEAU count it, or should I just pay in full by the due date??? Is it good to pay your balance in FULL every month will this help my credit score go up, is what I'm asking. I know it helps with avoiding interest rates) >> can I pay a month advance? Is it also good to make multiple payments in one month?
Your bill due date is just the minimum you'll have to pay by the date provided in your bill in order for the creditor to report your account as paying on time to the credit bureaus. You can pay your entire balance the moment you receive your bill or make multiple payments. Any remaining balance left in the account by the following month's closing date (in this case it most likely is Jan 19th) will be reported to the credit bureaus and will be part of your next month's billing statement
Hello if I have a $300.00 credit limit what is the limitbI should spendbto keep it down to1-5 percent