Fantastic!

This is great! I have a question for you guys. Is credit card utilization updated each month? Let’s say I owed 25% of my credit one month. But the next I only owed 5%. Would my overall credit score improve based off of 5% utilization moving forward?

According to Equafax Canada if your utilization is above 50% any day of the month, it affects your credit score.​@@OurRichJourney

Was that during the course of 3 month spand?

Never has it been so clear. They should teach this to 10-12 graders

RIGHT ON! Congrats on taking charge of your finances and starting your journey!

Aw, thank you Nora! You are way too sweet! :)

minnette anne Hamtig - So glad you found the video useful!!! Thanks so much for sharing your comment!!!

Lovely! So glad you stumbled upon our videos and that you like them. Here's to 2019: Raising your credit score and getting as much debt-free as possible!!! :)

Wow! Thank you for the compliment!!!

mainengv I agree!

@@OurRichJourney What if my due date is before my statement closing date???

Wow! Thanks so much Liyah!

Thank you so much. You just made our day. So glad you are enjoying our videos. And let us know if you want us to explore a topic for you in a future video.

WOW! Thats amazing! As my Mom would say, "knowledge is power"

Really??? I thought it took longer.

yeah that's the pitfall i've gotten into, I spent 0% and my score dropped 16 points and when I raised it to 8%, i'm trying to find the sweet spot of where it can be maxed out.

Smart suggestion,if it really works

What if my due date is before my statement closing date???

@@Jasmine-rw2xu this is my question too. I think if you just pay it off by your due date that's before the statement closing date. The statement closing date versus due date thing is confusing. But I think it's just always that the due date is before the statement closing date.

Should we use below 30 on each individual Card if we can afford 2? Or a total of 30 from our credit?

Pay subscriptions with debit card, and keep the other purchases on your credit card 10-30%. If you wanna use Experian boost or a credit booster in the future, it checks your debit accounts and subscriptions which can definitely raise your score 20-50 points easily

Thats okay :-) You'll turn it around now that you're armed with knowledge ;-)

shhit, IDK mine. I just got my card last week, my due date is the 19th of sept.

Yeah same here I’ve been stuck at 700 I definitely paying off my balance on my credit cards in full before the due date and keep it at zero balance Until the report date which is two days after due date But I definitely was spending more than 40% 🤦‍♂️

Thank you!

Thank you so much! Its absolutely our pleasure :-)

The closing date of my card is the 4th of every month and my due date is the 1st of every month. When would be the best date to pay my bill? between the 1st and 4th, correct? I appreciate this video. It's very helpful but my dates just seem a bit off.

16-18

That is great! Thank you for sharing!

Our pleasure and congrats on taking action!

Yes

Thank you! So glad you like it! :)

So I think what they are saying is this. You have to actually pay your new charges off before you even get your new bill for those charges. Look at the video again starting at the 4:00 minute mark. The closing date they are talking about is the closing date BEFORE you get the bill. For example, your closing date is on the 4th each month. Let's say you had new purchases starting July 5th for a total of $500. Those new purchases will not even be billed to you until August 4th(that is your next closing date). But on August 4th, the credit card company looks to see how much you spent out of your total line of credit up to that point and determines your credit utilization rate. It doesn't matter that you haven't received the bill yet for those $500 new charges. If you spent $500 before August 4th(even though they are new charges and you haven't received the bill), they are using that to calculate your credit utilization rate on August 4th. It doesn't really seem fair because you haven't been given the opportunity to pay it off yet, and you haven't even received the bill yet for those charges. So it sounds like to me you have to know what you spent up to the closing date and pay those charges off before the closing date, before they even send you the bill. It doesn't matter that you eventually paid it off in full by the September 1st. Paying by the due date is just the credit card company not charging you interest since you paid it in full. But let's say you did pay that $500 off by September 1st, and you did not make any new charges from August 5th to September 4th. Then on September 4th the credit card company looks and see that you are utilizing 0% of your line of credit. So they will report 0% on September 4th.

Thank you! We'll keep it coming!

0%. Because the what you spend never registers with the credit agencies as utilization.

Yes In theory you could max out your card and then pay it off before your statement date and then your utilization would be 0 not 100%. Credit bureaus only look at what your balance is on the closing date in relation to your total line of credit across all your credit card accounts.

Yes listen to what @JayStayHip said but carry a balance, say ur limit is 2grand like you stated. Pay it all the way down under 10% and carry that 10% and under balance for perfect utilization.

@@katiemadison7978 so it's bad to keep a 0% utilization?

Yeah what they stated was some what wrong, you can “I don’t recommend “ but can use 100% of your credit limit and as long as you pay it all off before the due date then 0% will be reported to the credit bureaus. I recommend only using 30% percent of your credit limit and paying it off.

Yes! The key is not only paying it on time, but ALSO paying it before the statement due date. If you pay your credit card balance in full before the payment due date, you reduce your credit card utilization rate. By reducing your credit card utilization rate, you will drastically increase your credit score! :)

Thanks David! So glad it helps!

Thank you! We are so glad you found the info useful :-)

It not about how much credit its about how of your credit is being used. So if you just had one card but paid it in full before the closing date your utilization would show zero percent(0%), which would be awesome. We don't recommend getting more cards because if you don't use them that is "inactivity" and the card company will close the card if you are inactive for too long.