10 Credit Card MISTAKES To Avoid As A Beginner

Рет қаралды 17,761

Күн бұрын

Learn how to use a credit card the RIGHT way by learning the Top 10 Mistakes to AVOID! Once you use credit cards responsibly, they can be a great financial tool to help you manage money. Click “Show More” to see Ad Disclosure, links, and additional information below.
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If you’ve ever wanted to travel the world for free (or close to it) or earn extra money to pay your monthly bills or invest into the stock market / other asset classes, then credit cards can be a really helpful financial tool. From the travel points and miles you can earn through some of the best credit card signup bonuses, to the ongoing cash back rewards from buying things you regularly buy, credit card rewards can be a fun way to supplement your income.
However, credit cards are neither good nor bad.
They’re simply a neutral financial tool that CAN be good or CAN be bad based on HOW you use them.
For that reason, once you’ve become a financially responsible individual by learning sound practices, then you’ll understand how credit cards can be used to your advantage.
In this video we’ll explore 10 HUGE MISTAKES that credit card beginners make so you can avoid them as you start your journey (and therefore increase your credit score faster, qualify for the best rates on a big purchase like a house or car, earn rewards, and more)!
Also, there are a lot of credit cards that are really popular (like the Amex Gold Card and the Chase Sapphire Preferred card). It’s true, they can be great for the right people, but that doesn’t mean they’re the right credit card for you.
That’s why it’s important to apply for the right credit cards based on where you are in your credit journey and also based on what you value / what your goals are.
Watch this video, educate yourself, and learn how to win with money and credit cards!
Here are my Top 10 Credit Card MISTAKES:
1. Using credit cards the wrong way
2. Applying for the wrong credit cards
3. Not understanding how credit cards work
4. Not understanding your credit card statement (i.e. your credit card bill)
5. Carrying a balance from month to month
6. Applying for credit cards too frequently
7. Not knowing when to pay your credit card bill (and paying interest)
8. Using a lot of your credit card limit (or maxing it out)
9. Missing a sign up bonus
10. Spending more than you’d normally spend
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Disclosure: This site is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. Mark Reese is not a financial advisor.
#creditcards101 #creditcardsforbeginners #creditcards

Пікірлер: 139

@MarkReese Жыл бұрын

⛔ *MISTAKE #11 (BONUS): Misunderstanding 0% APR Offers* // These "no interest for X months" offers can be a great way to pay down debt quickly since no interest is charged during the promotional period. *0% on balance transfers* means you can transfer a balance from another card (that may have a higher interest rate) to your card with the promo rate. You may also have the option to charge a balance to the card & get cash. In either case, a 1-time fee of 2% - 5% is charged. *0% on new purchases* means you can use the card to buy things and not pay any interest as long as the promotional offer lasts, even if you only make minimum payments and carry the remaining balance from month to month. That said, if you decide to take advantage of one of the offers, make sure you: (1) Pay off 100% of the balance _before_ the promo rate expires. If you don't, you could be charged interest retroactively for _all of the prior months_ since Day 1 (read the terms)😳 (2) If you do a 0% balance transfer, only use that credit card for that transfer. If you also add in regular purchases on top of the transferred balance, you'll likely be charged interest on those purchases. // *NOTE:* These 0% APR offers are meant to help you pay down debt faster, finance important purchases, etc. They're NOT meant for buying things you don't need or can't afford right now ✌

@adrianflores1748 Жыл бұрын

I have a credit of 801, I just got a credit card about a month ago, will it affect my credit too bad if I apply for another one right now?

@MarkReese Жыл бұрын

@@CheekyBird790 - Ouch, what a nasty way to play the game 😆

@Hail2th3k1n6 Жыл бұрын

I have two cards with a 0% intro APR right now.

@MarkReese Жыл бұрын

@@Hail2th3k1n6 - Nice!

@Hail2th3k1n6 Жыл бұрын

Another Mistake: Falling for offers from your issuer that cause you to spend money you won't normally spend. An example: Buying something you don't need or won't buy anyways just because your issuer offers you bonus points or extra cash back on that purchase. Always remember: Credit Card companies are out to make money, they do not care about your financial well being, that is on you 100%.

@MarkReese Жыл бұрын

Excellent point, Mat! 👊

@Daniel_Braun Жыл бұрын

Going over mistakes like these and fully understanding them should be one the top priority for anyone getting started with credit cards! Great video that really helps to setup the right mindset to be a successful credit card user!

@MarkReese Жыл бұрын

Yep! Crazy how rewarding credit cards can be when you use them responsibly without paying interest 💯

@jenniferchan3687 Жыл бұрын

These videos are great for college students. You have filled a gap that I have seen for so many years…lack of education on personal finances. I’m glad to see all your advice is exactly what I have taught my kids since they were in HS!

@MarkReese Жыл бұрын

Agreed, more financial education is needed in the high school years 🎓

@myfavorites1016 Жыл бұрын

I really wish that in high school they would teach this to students about credit cards , or even half semester, or just make a point to talk about this in general. That would be awesome.

@MarkReese Жыл бұрын

Totally agree with you on that 💯🎓

@michaeldowning7094 Жыл бұрын

1 year ago I had 1 secured card from Cap1 with a $200 limit. Now I have cards with Chase, Discover, & Amex with over $16K in credit.

@MarkReese Жыл бұрын

Incredible progress, well done Michael!

@MarkReese Жыл бұрын

Who's starting their credit card journey for the first time? 😃💳📈

@drdarkpk2430 Жыл бұрын

I’m 17 so I guess learning before I turn 18 and i feel like I have a really good edge up and one thing I learned is to keep this points and miles game to myself because people would get the wrong Image

@MarkReese Жыл бұрын

@@drdarkpk2430 - Great that you're learning in advance! Also good to be aware of who you're talking to. Clearly in the Credit Card Community, there's no need to keep it a secret 😃👍

@derspieler11 Жыл бұрын

Me! Problem is, I live in Germany and a lot of the stuff (mostly related to credit and credit score) people talk about in these videos just isn't applicable for me. Which is sad, because your videos are very well made and always have helpful (if not always 100% applicable for me) information

@HaLo_Zz Жыл бұрын

I am! Always paid cash, but I needed to get one just because I need to improve credit score. Fortunately, I got approved for Amex gold thinking I will not get it. I am actually happy with it. I have the card for a week now and made payment to it. 😅

@luisw3406 Жыл бұрын

Great video wish I had this info back 20 years ago. But I learned a valuable lesson the first time about credit usage now I treat it with the most respect.

@MarkReese Жыл бұрын

Thanks Luis! Glad you found the video helpful, and even better that you learned about credit usage to approach it in a smart way 🏆

@CesarJoel Жыл бұрын

Great information 💪💪💪

@MarkReese Жыл бұрын

Thanks Cesar!

@mattfrias2007 Жыл бұрын

Super informative video, Mark. I shared with two fam members, who are getting into the credit card game. Thanks as always.

@MarkReese Жыл бұрын

Awesome! Glad you found value in the video, Matt. Thanks for sharing the video, too!

@jimmyjames6492 Жыл бұрын

Great video! I experienced #5 a lot when I was younger. 😭 Then #2 as I got older. 😢 Your video has some great info on how to use CCs the right way. Thanks for all the info + tips!

@MarkReese Жыл бұрын

Great that you've learned about No. 2 and No. 5 to make the appropriate changes over time 😃👊

@juanbautistapepiche9276 Жыл бұрын

Duuuude!!!! I was very surprised since the moment I realized this video didn´t have at least 500 thousand views. You´re outstandingly warm and clear when you explain the concepts, it´s like meeting with an old friend to share a coffee talk about life and get some financial tips. The best wishes for u amigo, hugs from Buenos Aires, hope to see you grow n grow.

@MarkReese Жыл бұрын

Thank you very much, Juan! 🇦🇷

@nae415 Жыл бұрын

So glad I found your channel before I started my journey. I’m a junior in college and looking into credit cards :)

@MarkReese Жыл бұрын

Awesome! Keep up with the self-education & you'll get off to a great start 🌟

@CarlozN Жыл бұрын

Excellent and informative video. I just send this video to a friend too.

@MarkReese Жыл бұрын

Glad you found it informative and thanks for sharing it with your friend!

@DubZer0 Жыл бұрын

I’m definitely referring your videos to my younger cousin who is just not being responsible at all with her credit card. You’ve been a big help for me since I started my journey about 1 year ago today 🙏🏿👍🏿 I appreciate you and the great advice

@MarkReese Жыл бұрын

Great to hear that, DubZer0! Thanks for sharing the video 😃🎬

@blakinsideandout Жыл бұрын

I really appreciate how carefully you avoid giving out definitive advice. Alot of other channels say things like "if you value [x], you need to have this card". Even in your card comparison videos, you usually shy away from saying one card is definitely better. Thank you sir

@MarkReese Жыл бұрын

You're welcome 👍

@evieparada 5 ай бұрын

Great video 👍🏼

@MarkReese 5 ай бұрын

Thanks!

@chhinchhem3816 Жыл бұрын

Great video Mark! I don’t understand how a a lot of schools don’t make it a focal point to teach this type of financial education to their students. Especially when the credit card what to do’s and don’ts has been around for decades and is detrimental to their adult life. I know parent/parents should teach their kids here and there about finances but most parents also don’t know anything about required subjects their kids need to graduate in other subjects. The school system needs to do better. Thank you for the videos and thank you for your experience and insight. Keep them coming. 👏🏾👍🏾🤙🏾

@MarkReese Жыл бұрын

Teaching credit card basics needs to be taught in schools along with broader financial topics 😃🎓

@TheCreditFrog Жыл бұрын

I dunno Mark. If you’re not getting denied, you’re not applying for credit cards fast enough 😂

@MarkReese Жыл бұрын

#LateGameProblems 😂👊

@erniefigueroa20 Жыл бұрын

Great video and very informative. You deserve 6M followers!

@MarkReese Жыл бұрын

Thanks Mr. Maka Fu! Working on it! 📈

@Mrnotnice24 Жыл бұрын

I love the organic growth of this channel. Mark keeps dropping gems.

@MarkReese Жыл бұрын

Thanks Kemar! Will do 🎬

@lianalonge1984 Жыл бұрын

What a fantastic video! I just shared this with my younger cousins. They should show this video in high schools and should start teaching a MANDATORY Personal Finance course with an entire chapter on ‘Credit Card Savviness. Thank you Mark!

@MarkReese Жыл бұрын

Glad to be of service! Thanks for sharing the video, Liana!

@myfavorites1016 Жыл бұрын

Thats exactly what i think to 👍

@sjg6158 Жыл бұрын

Sometimes a product change (as I just did with the Southwest Plus Card to the Priority Card and last year with the BoA Travel Card to the Unlimited Cash Back card) can still bring good value long-term, even if there's no signup bonus and especially if your credit limit remains the same.

@MarkReese Жыл бұрын

Totally agreed on that! 💯

@Leoprieto74 Жыл бұрын

My son is 11 years old and I already started his card journey as an authorized user on three of my premium travel credit cards. My goal is to build his credit history early in his life. Waiting for his 13th birthday to add him as A.U. in four of my Amex premium travel cards.

@MarkReese Жыл бұрын

Fantastic! 🏆

@MarioRioMcBride Жыл бұрын

Thannnnk you Mark. You just gave confirmation that I am doing this credit game correctly. For long time I thought I was doing it all wrong. I was not sending the money that in my account instead I was just using the credit card. Right before the due date I would take money from my main account to pay the full amount of my credit cards. The only problem I find at first my utilization was 3% now it's 6% and of course it drop my score some. But for the last four years my trans haven't move not one bit everything's else did I don't understand that. But thank you for this video

@MarkReese Жыл бұрын

Glad this video helped, Mario! To figure out why your score isn't increasing, look at the individual factors that make up your score. Identify which ones need some work.

@MannyCovington Жыл бұрын

All beginners with credit cards should watch this video!

@MarkReese Жыл бұрын

Indeed 😁

@sjg6158 Жыл бұрын

Mark - great advice around making multiple payments during the cycle. I do this all the time. Of course it gets a bit tricky with autopay as you can end up with credit balances at the end of each cycle and/or $0 balance. I actually wonder how a utilization of 0% looks if you payoff early. For my cards, I try to have at least "something" to pay off each round and try to charge something to the sock drawer cards every now and then to keep from the account getting closed involuntarily or having your credit limit decreased.

@MarkReese Жыл бұрын

Great that you manage your utilization! Reporting a $0 balance is still fine; it counts as an on-time payment. However, if a card has a $0 balance consistently over many months, the account may become dormant and stop providing much benefit to your score.

@todd7148 Жыл бұрын

I keep mine at 1-3% on purpose. One month I decided to pay them all in full and it dropped my score 17 points on Experian. Basically it is better to carry a tiny balance.

@StrongEnough78 Жыл бұрын

@@todd7148 This happened to me 3 days ago! I contacted Experian to find out why and they couldn't tell me a thing. However a day later when another card reported a $60 balance I had, my score went right back up to where it was. Seems pretty backwards that way.

@deborahanderson4211 Жыл бұрын

Hello there, I use the credit cards that have the end of the month dates on them and they save me a whole lot when I’m using them for a big purchase

@MarkReese Жыл бұрын

Great to hear!

@mh9413 Жыл бұрын

Can you do a little video about the financing options through credit cards like the Amex plan it feature? Does it have an effect on your credit score?

@MarkReese Жыл бұрын

Perhaps at some point!

@tareqalahmed Жыл бұрын

Hii mark can you make a video about housing loans and if having too much credit cards would have bad effect to the loan

@MarkReese Жыл бұрын

I'll consider it, thanks Tareq!

@StrongEnough78 Жыл бұрын

I wish I had seen this video sooner. I totally pulled a number 6 and got a bit too application happy since I kept getting approved. But over all I've been using my credit cards in place of my debit card for my regular purchases. Have yet to carry over a balance and I don't plan to. I've also paid them up before the statement even cuts so theres less utilization reported to the bureaus.

@MarkReese Жыл бұрын

Great that you're using your cards responsibly!

@malikontwo7812 Жыл бұрын

I’m 21 my mom got me a discover card for my first card with 500$ when I turned 18, now I have Discover, Chase Freedom/Marriot Bonvoy, Apple, Amex Platinum, and a credit card with my credit union I been with since I was 15, I’m 21 with 30k credit line 4 years history no negative marks on my history

@MarkReese Жыл бұрын

Really impressive, well done! 💯

@Bubbaxmonster Жыл бұрын

I got 6 cards with 1-3k limits as a beginner at 18 now 19

@MarkReese Жыл бұрын

Congrats! Well done on that early progress!

@23majesticblue Жыл бұрын

I am starting my credit card journey, is am almost done with my the cashback cards I want. At some point I do want to travel to different countries. I will figure out when the right time is to apply for travel cards, airlines, hotels etc that is within my budget.

@MarkReese Жыл бұрын

Well done, Kristen!

@carlosgomezvaliente9775 Жыл бұрын

Hi Mark, what rate can you cash out at the amex gold MR points to the amex checking account ?

@MarkReese Жыл бұрын

As I understand it, 0.8¢ per point.

@comprehensive_official Жыл бұрын

When making that partial payment before the closing date to lower your utilization, how many days before the closing date, and does it matter whether the day of partial payment falls on a weekend? Thanks.

@MarkReese Жыл бұрын

1. I'd personally submit the partial payment ~ 3 days prior to the statement closing date to allow some time for it to post. 2. I doesn't matter if you submit the payment on a weekend. Just be aware that some weekend days (e.g. Sundays, holidays) may increase the time for the payment to post. For that reason, I'd submit several days early rather than waiting until the last minute. You can also submit as many early payments as you like throughout the month if you'd prefer to have more control over it.

@Naz.Man. Жыл бұрын

When I started my credit journey to rebuild my credit, i started with mission lane. A year later I have amex gold..amex blue cash preferred...amex hilton ...citi custom and discover if all thanks to your great advice...thnx!! And keep it coming!!

@MarkReese Жыл бұрын

Well done on getting back on the right path & having some big wins with those approvals! 🌟

@mitchell.9632 Жыл бұрын

Number ten I believe there is merit to.

@MarkReese Жыл бұрын

💯👍

@myfavorites1016 Жыл бұрын

But talking about paying off credit cards and never being late , i never see my apr interest rates go down ever , the lowest apr on one card is like 11.50 % rest are at 18 to 20 % , i feel like calling wells fargo and saying hay , ive been a excellent customer with great credit and payment history since april 1997 , can you see about changing my apr a little 🙄

@MarkReese Жыл бұрын

Give WF a call & see what they say!

@chrisbrown8748 Жыл бұрын

I’ll just save this video because I’m so sick of explaining this to the same people over and over so I’ll just leave it up to you from now on😂

@MarkReese Жыл бұрын

Haha good use of repurposing this video 😁👊

@bjmdj Жыл бұрын

Could Someone explain to me why the AmEx Business Checking account give strong cash back values you like the Schwab Platinum?

@MarkReese Жыл бұрын

Hi Tony - Having an Amex Business Checking account allows you to redeem Membership Rewards points at 0.8¢ per point with many Amex credit cards, and 1.0¢ per point if you also have the Business Platinum Card. Here's a link to a blog post by Miles to Memories about it: milestomemories.com/american-express-business-checking-account/

@bjmdj Жыл бұрын

Thanks Mark!

@alanneri3867 Жыл бұрын

Hey Mark I had a quick question for you. I've been looking to get a amex annual fee card and was thinking about the gold card. I spend a lot in food and I want a card that will get me points so I can travel. Would the gold card be a good choice or is there a better card for me.

@marlonarancibia3247 Жыл бұрын

I think if I were in your situation that is what I would use.

@MarkReese Жыл бұрын

Hi Alan - are you also able to use the monthly dining credit + the monthly Uber Cash benefit?

@alanneri3867 Жыл бұрын

@@MarkReese yes I would

@MarkReese Жыл бұрын

@@alanneri3867 - Great! If you can use the credits, spend at restaurants & U.S. supermarkets, and want points that are good for travel, then the Amex Gold Card sounds like it could be a great fit for you!

@sydney2462 Жыл бұрын

Mark, not a beginner but I have a question, I'd like to close some accounts that are low limit and do not offer cash back or rewards. Considering they aren't my oldest cards, how much of a hit will my score take? I'm in the 800's credit wise.

@MarkReese Жыл бұрын

Hi Sydney - I don't have a way to predict credit score impact. However, if I had some solid credit history w/ older cards, I wouldn't have an issue with closing accounts that I no longer wanted to manage.

@MarkReese Жыл бұрын

Also, you may see some credit models (like the VantageScore 3.0 used by Credit Karma & others) show a drop in score due to account closures. However, your official credit report (i.e. FICO-based report) will still show those closed accounts for up to another 10 years.

@myfavorites1016 Жыл бұрын

Can i tell you what irritates me the most , just say you have excellent credit score, and you have a medical bill that will be turned over to collections if not paid off in a few days, how can anyone pay off a medical bill fast enough to avoid collections, im saying as long as you are making every effort in making payments on a medical bill, there should be no reason to turn any bills to collections, its totally unfair i think. A person trys as hard as possible to get credit, then are slapped by collections with a medical bill that you were paying on , even tho the clinic or hospital business office may say the account is aging and will be forwarded to collections , its just unfair

@MarkReese Жыл бұрын

Totally understand that, it's really frustrating ✌️ Did you hear about the new legislation about medical debt? Here's a link to a CNBC article about it: www.cnbc.com/select/medical-debt-credit-report/

@PWDoolan Жыл бұрын

I am currently paying my credit card companies as soon as my charges post, which I can see by checking my credit card apps daily. I have been using my cards for the cash back, especially for the companies that have agreements with my cards. It doesn't look like I'm penalized for making multiple payments, or am I missing something?

@MarkReese Жыл бұрын

Zero penalties for making multiple payments throughout the month! if that's working for you, then that's great 🏆

@riosafado Жыл бұрын

Is venture worth getting ?

@MarkReese Жыл бұрын

For some people, yes. For others, no. It depends on what you want to achieve.

@kazi1 Жыл бұрын

@MarkReese Жыл бұрын

Hey Kazi! 👋

@slimier3000 Жыл бұрын

how do you find the statement close date?

@MarkReese Жыл бұрын

Typically found on the statement itself. Which card do you have?

@slimier3000 Жыл бұрын

@@MarkReese i have several cards from different issuers like chase and citi.

@MarkReese Жыл бұрын

@@slimier3000 - You'll be able to see your statement closing date on both statements issued by Chase and Citi. They'll show the billing cycle dates like this: Billing Period: 07/09/22 - 08/08/22 The first date is the open date & the second date is the close date.

@ammooth1592 Жыл бұрын

But I should have known either way 🤔. Making a 1rst payment, to a 2nd remainder payment would have solved my issue. What I did was transfer the debt to my boa account. Because that is my biggest credit 💳 limit. And then again if I just would have made those charges all on my boa cash rewards credit 💳. I would have saved myself, all that UN necessary drama to begin with 🧐🤨

@MarkReese Жыл бұрын

It was still a good thought to move the debt to a card w/ a larger limit to keep the utilization down a bit 👍 Is 100% of the debt paid off now?

@ammooth1592 Жыл бұрын

@@MarkReese It is with capital one 💯. I have a 0% APR till 2024 on balance transfers 🤝😊

@MarkReese Жыл бұрын

@@ammooth1592 - Well done with C1 👊 Stay focused on the next round & win!

@mannymac82 Жыл бұрын

You should also put under #1 that credit cards are not an emergency fund.

@MarkReese Жыл бұрын

Good point, emergency funds should be cash 😃👍💵

@SpencerJohnsonOfficial Жыл бұрын

Mistake 8 is a HUGE one that a lot of beginners don’t know they’re making. To reiterate what was said in the video, when you get approved for your first couple of credit cards, your credit limit on those cards may be so small that you max them out every month. However, to avoid that being reported to your credit report, you can make an early payment to your card to bring the utilization down to a reasonable number (under 10%) before the STATEMENT CLOSE DATE, which falls before the payment due date. It’s something that takes some getting used to, but it’ll help your credit score rise pretty rapidly if you get a handle on it! Loved this video Mark!

@SpencerJohnsonOfficial Жыл бұрын

@@CheekyBird790 That's the perfect strategy! I do the exact same thing with my cards. Everytime a paycheck comes in, I make early payments to my cards to bring them down to 1-2% utilization and my credit score increases every month because of that! Thanks for sharing that personal story. I love hearing everyone's experiences!

@MarkReese Жыл бұрын

Exactly right! 💯

@bradleymikon1435 Жыл бұрын

@MarkReese Жыл бұрын

SOLID 💥

@SOXGATORS Жыл бұрын

@MarkReese Жыл бұрын

BOOM!💥

@OrchidCatherine Жыл бұрын

Hi, Mark! Thank you for such useful videos! I think I miss something about utilization. I'm a beginner without a credit history and I'm going to get my 1st credit card with a $100 limit. But I want to use this credit card every day to be able to use chargeback and be protected against fraud but have 1% utilization for an excellent credit score. I'm going to use strategy 3 for this. Will this strategy help me to increase my credit limit, and open new credit cards? Also, there are 2 more strategies to clarify what utilization is. I'm going to open 3 secured credit cards once (is it lower my credit score more if I open 3 cards in one day than only 1 credit card?) and a checking account in Chase. After Chase approves a credit card I'm going to open new credit cards every 3-4 months for the first 1-2 years to increase the average age for the long term. Is it OK? Please, answer the questions and correct me if I'm wrong to avoid mistakes. Thank you very much! Strategy 1 Credit limit $100,00 Date Operation Amount, USD / Current balance, USD 10/01 Purchases $10,00 / $10,00 10/05 Purchases $50,00 / $60,00 10/08 Purchases $10,00 / $70,00 10/10 Purchases $10,00 / $80,00 10/20 Purchases $10,00 / $90,00 10/28 Payment (2 days before statement day) -$89,00 / $1,00 10/31 Statement day $0,00 / $1,00 11/05 Payment (pay in full) -$1,00 / $0,00 Utilization is the amount of all 'purchases' for a statement period = $90,00 90,00% or Utilization is the current balance in a statement day = $1,00 1,00% Strategy 2 Credit limit $100,00 Date Operation Amount, USD / Current balance, USD 11/01 Purchases $10,00 / $10,00 11/04 Payment (every Friday pay in full) -$10,00 / $0,00 11/08 Purchases $80,00 / $80,00 11/11 Payment (every Friday pay in full) -$80,00 / $0,00 11/20 Purchases $50,00 / $50,00 10/25 Payment (last Friday before statement day) -$49,00 / $1,00 11/30 Statement day $0,00 / $1,00 12/02 Payment (pay in full) -$1,00 / $0,00 Utilization is the amount of all 'Purchases' for a statement period = $140,00 140,00% or Utilization is the current balance in a statement day = $1,00 1,00% Is it OK to pay in full every week? Strategy 3 Credit limit $100,00 Date Operation Amount, USD / Current balance, USD 11/01 Purchases $10,00 / $10,00 11/04 Deposite (every Friday pay in full + deposit to cover the Purchases over credit limit) -$120,00 / -$110,00 11/08 Purchases $110,00 / $0,00 11/11 Deposite (every Friday pay in full + deposit to cover the Purchases over credit limit) -$500,00 / -$500,00 11/20 Purchases $50,00 / -$450,00 11/21 Purchases $340,00 -$110,00 11/22 Purchases $150,00 $40,00 10/25 Deposite (last Friday before statement day) -$39,00 / $1,00 11/30 Statement day $0,00 / $1,00 12/02 Deposite (pay in full) -$1,00 / $0,00 Utilization is the amount of all 'Purchases' for a statement period = $660,00 660,00% or Utilization is the current balance in a statement day = $1,00 1,00% Is it OK to pay in full and deposit in advance, even every week?

@MarkReese Жыл бұрын

Hi Orchid - great that you're starting your credit journey! Sounds like you're overthinking this. Watch this video for some clarification: kzfaq.info/get/bejne/eNp5qqqdydidoo0.html

@OrchidCatherine Жыл бұрын

@@MarkReese thank you! This video is great! But I have a little bit more questions. 1. May I payment deposit (payment before the closing day and over the sum of purchases)? 2. May I spend over credit limit but less deposit (of cause I pay almost in full before closing day)? Thank you!

@MarkReese Жыл бұрын

@@OrchidCatherine - Yes, you can do both. If you have a card balance of $100 and you pay $150, then you'll have a 'credit balance' (i.e. a negative $50 balance).

@MarkReese Жыл бұрын

@@OrchidCatherine - Make sure to avoid 'credit cycling.' Here's a link to an article about it: thepointsguy.com/news/should-you-cycle-your-credit-limit-as-a-way-to-get-more-points/

@OrchidCatherine Жыл бұрын

@@MarkReese Thank you so much!

@FreakyShakuras Жыл бұрын

Mistake 1 is a common lie amongst finance youtubers. All of you have standing balances on 0% APR CCs, so why bother taking that paternalist tone in explaining CCs are to be treated like debit cards. A tiny bit of humility would help to make yourselves more relatable to the majority.

@MarkReese Жыл бұрын

Are you taking a literal stance in that credit card charges would need to be paid off immediately after each transaction in order to comply with Mistake #1?

@ammooth1592 Жыл бұрын

I just experienced, # 8. Because I was in debt with 3 credit 💳 💳 💳. I figured utilization, wouldn't be a factor. I was dead wrong‼️ I went over 58% on my capital one credit card 💯. I lost -15 points with Experian, -9 points with TransUnion, -7 points with Equifax 😭💔. I won't do this again 💯🤝

@MarkReese Жыл бұрын

Great that you understood the significance of it & are committed to not repeating the past! 💯

@ammooth1592 Жыл бұрын

🤝🤝🤝🤝😃