No problem! Yeah I felt like it had to be said because I always want people to do their own research 👍

Yeah definitely more of a "credit cards for beginners" type of video, so I wanted to try to help with some basics here! Thanks as always!

Thanks so much for sharing my videos with your sister! Glad to hear that the information has been helpful - I really appreciate your support!

Absolutely! Always good for each person to evaluate based on their own situation 👍

Love to see that! Such a quick way to have a better impact on your score by keeping a low utilization like that!

Problem is too many people hear "watch YT videos" when you say "do your own research"

Thank you so much Lisa! I try to provide as much value as I can! I'm sure I'll eventually have some newsletter or other things people can sign up for, but I'm gonna give all value for free here on my channel 👍

Opening that many cards that quickly and maxing them out will definitely drop your score - I would pay work to pay those off immediately and then stop using credit cards because the debt and interest is not worth it!

@@Daniel_Braun That's exactly what I'm doing. Thank you for the reply.

I 100% agree with that!

Hi there! I'm doing amazing and hope you are too - thanks for watching!

I remember doing research for credit cards a while back and I ended up on including these 2 in my future path! The 5% on the custom cash is extremely flexible, and the SavorOne is such a nice card with tons of benefits and the option to pair with the VentureX. Even if you don't get the VentureX it's still a solid card!

I know I can't believe how fast time flies from when I was around 2K subs! Thank you for the encouragement to get me to where the channel is today - I can't wait to keep growing!

Thanks so much Kinnie! Glad to hear you liked it!

Thank you so much for subscribing Coleman!

Thanks so much, I appreciate that!

The 1-2% utilization is just wild. It appears counterintuitive to have a credit card if the usage is too low. Perhaps for someone who has many credit cards like Danile, he can live with that miniscule utilization but it's a stretch for many.

Hard inquiries will drop your score by maybe 5-10 points or so in the short term, but the effect quickly wears off over the next few months after opening a next credit card. The hard inquiry then falls off your credit report after 24 months. And typically business credit card applications will also come with a hard inquiry on your personal credit. It depends on the issuer though. This can also have that same small drop in your score in the short term which quickly recovers - so hard inquiries are nothing to be worried about over the long run 👍

Thank you so much for watching James! Glad you liked it 👍

@@Daniel_Braunyw and anytime

Thank you!

@@Daniel_Braun you're welcome

I made another video about that right here going over the best bank accounts! kzfaq.info/get/bejne/aKyPd5eXmJjWnn0.html

Not exactly - so what you can do is you can pay down your balance early. Essentially you could only spend up to $1,000 with that as your credit limit, but you could spend up to that then pay it down, then spend up to it again, and so on. That is what I was pointing out in that example if that makes sense!

The late payments will stay on your record for a while, regardless if the account is closed or not. Is that card eligible for a downgrade? Perhaps downgrade it to a no-fee card?

⁠​⁠@@RandyMichigan I’m not sure if there is a downgrade option but I will definitely ask. It’s a “Credit One” card.

Thanks for watching so early after this got uploaded!

You should do whatever works best for you to be able to make sure the cards are paid off in full! I like to wait until the end of the billing cycle while having a low utilization like I mentioned

I have done this...I still do it. As soon as my card is swiped, I pay the pending charge immediately. I have not had a negative impact on my score for doing this.

You’re being overly cautious. Lenders like seeing that you spend. If you let it post to your statement they may increase your credit limit which will help you out. It won’t negatively impact you but you may see more positives coming from letting some money post to your statement balance. However, if you can’t trust yourself with credit cards then it’d be best you continue that practice rather than have a late payment.

@@addictedtoflying5451 Thank you. Will give it a try.

@@ohhail Interesting. Thank you.

@@junboo8730 Also adding to that, utilization holds no memory so if you have high utilization this month and your score drops then simply have it low next month to pick it back up. It’s not that big a deal. Unless of course you plan on using your credit score soon for a loan or another card. So utilization will negatively impact your score but only temporary so don’t worry as you can easily manipulate your credit score. The only real rule of the credit card game is to always pay your balance off in full by the payment due date, in order to never pay a cent of interest.

So to clarify, the mistake is "Having High Credit Utilization" and the examples I give are just to point out the high utilization decreases your score and low utilization helps your score. There's plenty of times where I get a slightly higher utilization reported one month that has dropped my score maybe 10-20 points, and then I pay it down to a much lower utilization the next month and it goes right back up. So getting to a low utilization is something that can be quickly corrected on a month to month basis 👍

Negative. You are getting the statement end date and balance due date confused. In your example, paying off the $4,000 BEFORE the statement end date will result in your issuer reporting that you have a 0% utilization which is also not good. You want to show that you are using your card, albeit responsibly. Like Daniel was saying, there is a grace period following the statement close date, which is usually another billing cycle that you can find on your issuers credit card statement. I also keep my reporting utilization in the single digits and have a 800+ credit score. It took me awhile for me to understand that concept but once I did it is really easy to understand. Hope this helped!

No

Not if you pay it off before your statement close date. Like Daniel was saying, you still want to show some utilization on your card tho so keep that in mind.

@@davidwilliam9451 that’s true, but if you can qualify for the sofi plus then i think most members are using their savings acc as a checking since it auto withdraws without penalty

Totally fair points about credit utilization not having memory! Typically I see this happen even with my own credit score where I’ve had higher utilization one month and my score drops a few points, but then the next month I have around a 1% utilization and it goes back up. The only thing I do want to point out with that is that there are newer credit scoring models that have come out that track a “trend” of utilization over the past 24 months. Those scoring models don’t seem to be used as much as others that have “no memory” like you said, but still could become used more in the future. For the first mistake, just to clarify, I said it was just “Having High Credit Utilization” because the fact is that a lot of people don’t know how that works. At the end of the day a 100% utilization will drop your score while a below 10% utilization will have a more positive impact. So my example of maxing out a credit card is to illustrate how a 100% utilization can easily be paid down to a 10% utilization before the statement closing date. I could go on and on about many other details, but this video would be way too long if I did! Haha But in general, even though utilization can change from month to month and scores can quickly adjust, I still think it’s best to manage utilization to be under 10% consistently. It all varies person to person though! If you’re truly not applying for any new cards or loans in the near future and your credit score is not a concern, then feel free to have higher utilizations (as long as balances are paid off in full and/or you’re not paying interest depending on APR)! But for most people, I think it’s a good habit to keep utilization lower. Again it’s all about education and awareness though which is the point with the first mistake. I’ll make a more in depth video on credit utilization in the future 👍

And also thanks for such an in-depth comment! I think it’s always good to add details and discuss things that I can’t cover in full with every video 👍

@@Daniel_Braun I feel since you have lots of beginners watching, your information is valuable since they don’t truly understand if they’re responsible with cards just yet. However I felt it was important to note since I see so many people be overly dependent on that >30%/10% rule and get scared the second they see their score drop. People should be aware that its truly okay and it can come back up next month. Thank you for the thoughtful response and adding on to the conversation :)

You're always in the running for it CJ! You did win "Top Commenter" after all in Chad's video lol

@@Daniel_Braunhaha thanks! I’m still claiming first though 👀

Appreciate you watching Spencer, thanks man!

You're still totally fine and able to qualify for the best rates and best credit cards with a score like that no matter what! Plus if you pay that down to lower than 5% for your next statement balance then the score should go right back up 👍

The difference between 795 and 805 is purely for ego purposes. Both will qualify you for the exact same rates and cards. Don’t worry about it, if you drop under maybe 750 then maybe care about boosting it back up.

Yo! Thanks for watching!

Great to hear that! I really have loved using SoFi as well. And yes, direct deposit is needed for that so thanks for the comment

Thanks as always for watching and supporting!

First comment! You win 🥇

@@Daniel_Braun thank you! I hope this video helps a lot of people out!

@@sungjeh Me too! Feel free to share it around with anyone that it might be helpful to 👍