Hey dan... Thanks a lot for the advice. I actually have a doubt. I am applying for a secured credit card which grants 80% of fd balance as limit. How much should I spend to have a good credit score. Assuming 25k fd and limit of 20k.

It’s a nightmare. At 18 you get credit cards ect thrown at you then spend your 20s paying them back with shit interest ratings.

Where do you live?

It isn't where I was from, but I like the system. It helps people be responsible. Giving everyone a blanket interest rate or charging interest rate due to a random algorithm that banks randomly decide is way worse than an open source score that everyone can improve by being responsible with credit.

@@sanskarneupane9702 this system is flawed in so many ways. E.g. never having a credit card at all, and just paying for all your stuff directly (arguably a very responsible thing to do) has a negative impact on it. Just looking at your finances, your debts, income and savings should give all the information needed.

@@Gladius-NL not living in the US but we still have a credit bureau and score but pretty much no one knows about it, I got some credit cards only to have a vetter credit history/score. If used well these can help you save a lot of money and even if in your country you don't have a credit score be careful because most likely if you want to buy a house/apartment etc. on credit the bank will look at the credit history

Majority of apartments don't care about credit as long as you can provide proof of employment or on time bills. I study was done where 20+ apartment complexes were called and only 2 wanted credit report.

Weird that u have no late payments and pay all on time and u still get low score..m

It makes plenty of sense you just don't understand how it works. Your score went down because paying off those debts closed out those accounts, which lowered your average credit history length which is high impact on your score

@@greasycheese8095 but he closed them in positive

@@EduardoDasher doesn't matter, the length of time that you have had the account is also a factor. It shows creditors how long you've had a credit history, and if you close out old accounts (even by paying them off) it lowers the age of your credit history, because an old record is now closed out

Wait until you see the China Credit score. 😏 They are more better than any credit source in the whole world

Gekoloniseerd

@@blackfirestory 🧀

@@backlawa7527 kaas

@@blackfirestory nee 😡

When is the statement date usually, sorry if it's a dumb question. I don't use credit cards.

@@YoloLollipops it's different on every card. On my Amex cards it's around the middle of the month (15 or 16). Visa cards are usually beginning of the month

@@andiciccio8413 oh got it, but shouldn't we have a good enough utilisation rate too.. not too high but not too low either? Like somewhere around a 30% is the sweet spot I hear

@@YoloLollipops No one here can tell you that. You will have to look at your statement for your statement date. Paying on the due date is not the way to go. I wish I had known this years ago!

@@sarahkleimeyer3792 I see, thanks a lot!

He said pay your card down to 9% / less before the statement date. This way it shows utilization with a low debt to credit limit score.

Max your credit card. Pay off 90-91% 25-47 hours before statement date. This tricks the bank into thinking you're only using 9-10%, but you get all the rewardsof someone who maxes their card. $$$ Cha-ching $$$

@@sirdevtheeloper2587 can you give an example

@@sirdevtheeloper2587 Sorry for bothering but I was wondering if You pay off the remaining on the statement date ? I'd greatly appreciate your response.

You pay most of it off before the statement date.

Who’s we

​@@ballsdeep9400 USian

march of 2020 I had a balance of 200 dollars, right now I have up to 8,350 in credit limit. I only had 40 bucks of a credit bill back when my limit was 200 and ive been in 740+ since.

​@Victor Vidana Neat, im trying to rebuild mine, starting off with a CC. I have little to no income, so no way I'd agree to upping the limit. How did you do that? I didn't k ow about low utilization and was just going to do what the questioning guy did- pay before due date. But I was going to use the card for just gas, and I have an SUV so I'll definitely use the $200 limit.

Statement date is different than due date. You can call to ask what date is the statement date- or set it to the middle of the month. Pay the balance off a few days before statement date. Once its reported, it will show low utilization. Statement date is not necessarily at the end of the month. Actually just found this out yesterday.

Technically you should keep the utilization rate lower than 30% however keeping it 10% or lower will boost it even more

The reason why it’s like this is because it shows that you can be trusted if you have a credit card limit of $5000 and you only use 30% ($1,500) or less of it it shows that you could be trusted with money and people are gonna be more willing to give you loans because they know you’re not going to go crazy with the amount of money they give you. It’s like having a car that could go 200 miles an hour, but you have enough self control and discipline to drive the speed limit Oh, you’re having a party at your house and your parents say you could invite 10 people and you only invite three it shows that you have enough self-control and discipline to not go over or too close to the amount that they give you It’s all about having a Discipline self control the less you use the better because it shows it could be trusted.

Yes, credit cards are only reported monthly and compound interest monthly. You can do whatever you like as long as you're back in your bunk for bedcheck.

Fortunately for us I believe only USA system is this broken and useless.

What about india

He said that you should leave at least 9% of the value of the bills so that this 9% are reported on the statement date , so it shows that you dont use too much credit, but still use it

Payments are recorded separately. It will still show even if you never carry a balance.

In what country do you live?

No

No. Rewards should be applied after each purchase you make.

In this video the guy is using his CC so much so he can gain rewards points. He’s intentionally spending knowing he can pay off the whole thing to gain from it. I do this too. And also, using a CC is safer than a debit in case someone gets your card info. But yes, I agree CCs can be a trap.

I’m glad someone agrees with me lol

Credit cards should always be the main payment everywhere. The only problem is the population isn’t educated at Al Lon Finanace and how credit works etc. if you can use a rewards credit card and have the money to pay of all your purchase in the credit card. You should always use the credit card

Credit cards are so much better than debit cards. Easier to fight fraud, no direct line to your checking, cash back, benefits, and lets you build credit so you can get lower interests on mortgage and vehicles. The credit card game is easy: 1. Treat it like a debit card 2. Do exactly what this guy in the video said and keep your utilization low Credit cards are not hard, you just need to know how it works. It's an easy and simple game to play that's better than debit or cash.

@@cmxpotato when your like me and save for 7 years without a mortgage I actually end up saving more…

Or would it only be the purchases paid off between the statement closing date and balance due date?

No he is saying to use the card, but pay it off before the credit utilization date so it looks like you didn’t max the card

The last day of the billing cycle. Basically, the last day to pay.

The date your monthly statement is generated(everything you bought that month) Last billing date is generally 15 days after the statment has been generated.

From what my bank told me, at least use 7%, but no more than 30%

Yes.

Yes. 10% and below will keep your credit score higher. Preferably at 0-1% is best

Pay off the 4000 until 9% before the statement date. After the statement date, you need to pay the remaining 9% before the due date to avoid paying interest

Across all cards.

It's both. Having one maxed card when everything else is 0 is also bad. It is two separate variables in the same category of the algorithm.

0-1% is always best for higher credit score

Yeah but it’s really overrated on how “necessary” it is I have a credit score that would be “deemed” Excellent and I can’t really think of one time it’s actually helped me or done anything for me good credit scores are for poor people trying to live above their means

@@romeothompson9389 that’s just not true.

@@vhavoc6164 it actually really is go into a car dealership with cash to pay for any car you want and see if your credit score matters pay cash for your house and see if your credit score matters a credit score is for poor people it’s a way for banks to manipulate poor people into getting stuff they obviously can’t afford a poor person with good credit is going to get that 30k car because oh they got a good deal at 1% APR so why not ? When in reality your poor you should have a paid off car for under 5k

@@vhavoc6164 and before you even bother saying you can use your good credit to have cash back card and miles rewards and rack that up ok again that’s something only a rich person benefits from what poor person is spending 20 or 30k each billing cycle to actually get rewards that matter ? I use my cards for my business and I spend 40 or 50k on my card each month and I barely notice my reward dollars so how much will someone who’s poor notice it ? And then if your rich you don’t even really need those rewards it’s pointless credit is such a overrated thing

Yes, if you have had your card for a long time, ask for an increase. This will raise the utilization threshold.

It is true. Credit utilization is a significant factor in a credit score. Paying it off completely is the most important factor, but if you want the score to grow faster, keeping it below 30%, or even better below 10%, will grow it quicker.

Lol no not at all. They will control your movement if you get a lot rate over there.

In my country we use mostly cash... Anyway, I saw some landlords in the USA say that they will not accept applications for renting apartments if renters have less than a certain score... Apparently, some jobs require a hi score too. Isnt this another form of passive controlling on individual freedom? Epsiecily when considering the fact that CBDC s are almost a reality with a new form of programmable money

Having 2 cards would make that process 2x quicker. Giving you a 70 point increase. Credit limit is also a way to increase your points and history is another one

You gotta start somewhere though. Just pay off before the statement date: it's a marathon, not a sprint!