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Use the card and pay it down to 0 by every due date, brought me from 542 to a 773

Listen folks, it’s simple. Pay your debts as you agreed to, any date before the due date. Pay all your bills on time every month and your score will be above 700. All the other factors such as credit utilization and age of credits are minor compared to on time payment history.

I autopay the entire balance on the due date and keep my utilization below 6%. My score is well above 800.

IT MAY BE MORE CLEAR IF YOU SHOWED A CALENDAR FOR 2 MONTHS & CIRCLE PAYMENT DATE/INTEREST AND REPORT DATE.

what he meant is that lets say you have a credit limit of $1,000 and u have a credit utilzation of 30% meaning $300 youre gonna want to pay $200 before the end of the billing cycle meaning before the 'statement due date' so now ur new balance after that statement due date will be $100 and since its a new billing cycle you can pay the $100 off before payment due date which is different! and its in most cases 3-4 days before the statement due date

I pay as soon as I get the check to do so. I ain't keeping that money in my account just chilling. That's s recepie for disaster lol

Credit companies make this more complex than it needs to be😂😂

Way too much explanation without explanation.... Gotta be Einstein to understand and follow all these rules

I have seen this first hand. I kept my cards at a zero balance for months . Then my score went down and they implied that they weren’t seeing usage . I let $10 on a card an my score bounced back to where I was and then some . Keep all zero but one . I rotate the cards that show a balance

Making multiple payments throughout the cycle is easiest for me. Do it all from my phone. I have an easy, 15 line, 2 column, Google sheets spreadsheet where I track charges and payments in real time, and also the couple of checks I write monthly, plus when payment clears. I try for 2% or less to post. Plus I pay all bills as soon as they post. I don’t wait for the due date. My scores range from 828 to 850 depending on which one is being used. This is based on the free scores my credit card apps give me.

Finally!!! Someone explained this point with precision!!!

Thank you. I'm trying to build my credit and this was the EASIEST, MOST CLEAR way that due date and statement dates were explained. Thank you for breaking it down at the end. It made things A LOT clearer to me.

I watched several videos on this subject and yours is the only one that left me with a sense of clarity. Thank you.

That was confusing. Or maybe I'm just not grasping it. I wish you could put up an example chart where you can explain it better for dummies like me.

This is phenomenal incite and break down. I actually use this same methodology about 2 years now. I under the first bill two days before the end date. And have my auto pay to pay off the balance by the due date. Thanks. I’ve seen my credit increase from 643 to 769.

Thanks for clearing that due date and closing statement date up!!! First time it ever made sense to me!!!!

Looking at the comments after watching the video. I do not get why it is so hard to understand? I learned about paying prior to the statement date several years ago. The only part that I was not aware was the 10% or below. I was always told was to be below the 30%.

I am so bothered by calling my credit card company and they tell me they have no idea what the reporting date is…. Why are you at work then?💁🏾

I pay the bill the day they send the bill. Pay off in full. Credit score is over 800.

Its ridiculous that anyone has to go threw this. Who gave the CRAs permission to keep a score on anybody?

2:41 Thank YOU!! I’ve been saying this for years on my channel.. ppl don’t believe me!! Let that 10a% report then pay in full the next day

I use to be in the 500s but now have an 843. 1 mortgage and 4 credit cards. I don't wait to pay my cards until the end of the cycle I pay them in full whenever there's a balance showing so i pay multiple times per month. Always keep a 0% credit utilization.

Multiple payments during the same billing cycle aren't too much of a benefit in most cases because no matter how many payments you make, the credit card company only make 1 report a month to the credit bureaus. The exception that applies to me on that is specific to one card issuer, that being "Chase". On my Chase card, in addition to the normal monthly report, any other payment that takes my balance down to $0 will also be reported. For that reason, I won't use my Chase card to leave to practice the AZEO principle with, but AZEO is a discussion for a different video.

This method only matters if your balance is MORE THAN 10% of your credit line on the card. Be sure you even have this issue to fix; you may not be broken🧐

One thing I really like about Chase is that when an account is paid off, they report mid-cycle updates to the credit bureaus.

When I got my first real unsecured credit card, I didnt realize that my balance only gets reported on the statement closing date, once per month. So with a $300 limit I was only making one small purchase per week, under $60. Then would wait until the purchase posted to my account so that I could pay it off immediately so that i could use the card for one more small purchase the next week or so after the balance cleared. Oh how naive I was 😂 if i knew what I know now i wouldnt have so obsessive about keeping my balance below 30% at all times throughout the month.

This is the absolute best explanation of this strategy that I have read or heard so far. Thanks for posting this video.

GREAT Explanation, I see that my intentions were there by paying OFF my balances as soon as it was visible, but I wasn't really helping myself, because there was nothing to report to the 3 agencies. Darn, well it's not too late to start anew. I am desperately trying to up my credit score and this information is definitely going to help. Thank you.

I always keep a few lines of credit that have at least 1-2% utilization and then pay off the next month by the due date. I then keep 1-2% utilization on another line and then pay off the next month. I also always make sure I use my oldest lines of credit at least for two billing cycles to ensure that they are being used and not closed! I learned the hard way when I didn’t use my line of credit through PayPal credit for almost a year and they lowered my credit limit by almost 90%! That damaged my credit score, but I made a purchase and paid it off over three months and I plan on doing that at least twice a year to keep the account active. It’s a game, but once you figure it out, you’re good to go! 😅

Credit card payment due dates come before the close of the billing cycle (Statement end date). So if my credit card is due on 24th, my statement cycle typically ends on the 28th or 29th of month. So this advice doesn't make much sense at all. unless you are racking up a bill beyond 10% of your limit between the due date and the statement end date.

You said a lot… fast💨 I had to keep rewinding when you were explaining the “due date vs the closing date.” I followed you closely, but for someone looking for a quick answer? They may get lost in the sauce.😂😂 Thank you for the useful info.

It's really not that hard. But explanation makes it hard. Just pay in full leaving zero balance before the end of the billing cycle every time. Ignore the due date because if you leave zero dollars for your next statement, you won't have to pay the minimum. Credit score 840, thank me later.

Depending on how much I spend on my cards depends on if I let the balance report on my statement or if I pay them down a few days before the statement date then pay the balance a few days after. I keep my utilization at 3-6% and this practice has worked very well for me since I started rebuilding 6 yrs ago. Thanks for all the great information and I'm sure it's helped a lot of people. This is one of my favorite channels.

This was the best explanation I’ve seen. Thank you!!

So what your saying is to stay under 10% on each card. I think the best thing is to increase your credit. That tends to bring increase my credit score.

Great content! You know your stuff! I learned a lot! Thanks

So to summarize what is said, pay right before your due date and right before billing cycle ends?

Thank you ADAM!! It was so simple but the due date and closing date always threw me off and I over thought it. All the due date is, is just the last cycles due date not current cycle. Thank you….I’m gonna go to bed now 😂

Wow !! I didn't know this at all I always paid my credit card bill on the due date I thought that's the right thing to do to build my credit But now I know that I am gonna start paying my credit card bill just as you said Thanks for the tips

The best day for me to pay my credit cards is the day that I get paid for the month

I don't know if it was mentioned, but you should only do this for 1 card. The optimal strategy for maxing your credit score is to have a small balance on one card and have all the rest paid off. For example, if you have 10 credit cards, your credit report should show 0 balance on 9 of them, and then a small balance (9% or under) on the 10th card.

Wish this stuff were around when younger. Online scores etc....to think you requested a copy of your credit report and mailed in payments

you are doing an amazing job. keep it up I understand you clearly

Brother: Thank you for this video 📹! I appreciate it 🙏 Never ever get tired of re explaining especially things as this one because Good teachers Alwats re explain things 😀

This is the video I’ve been looking for. Straight to the point, where I understand. Thanks

I think you need to say this: Your monthly zero interest charged "grace period" is a privilege that must be earned each month by making a payment at least equal to the last statement balance. If in any month your total payments are less than the last statement balance, on most credit cards you will lose your zero interest grace period for a full TWO MONTHS. And it can only be earned again by having TWO CONSECUTIVE MONTHS where you pay at least the full statement balance. That's the statement balance, not the current running balance that you must pay to keep that zero interest privilege.

I’m only here to support the channel considering I have nothing I’m going to apply for until August and still my utilization is 1% overall (using $245 of $33,500 limit). What I tell all my buddies and family members is to drill the statement close date for all your cards and treat the day prior to that as the due date to pay 99% of whatever your total balance is and than pay the final 1% the day you get your actual statement and just keep doing that over and over.

I'm going for 90 days with 0% utilization (paid off before statement date) to use as a benchmark. Then I'll just exercise each card, let a low balance post, and pay it off the day it posts.

I pay my credit cards off weekly and it's automated. I can adjust the payment up or down depending,... but it's set to go every week.

Best video I've seen explaining when and how to pay. It's not super complicated like every other video makes it seem. Thank you!

One interesting thing to consider is how some cards handle no or low interest payment plans. For example, Amex has the "Plan It" feature, which lets you split up a large purchase into several payments at a (much lower) fixed fee, instead of carrying that purchase as a normal balance. The trick is that you have to wait until after your statement closing date to pay your card, otherwise your payment will go towards your "Plan It" balance before being applied to new charges. Chase had a similar thing with their Amazon Visa. 6, 12, or 18 month no interesting payment plans can't be managed separately. So payments need to be made after your statement posts.

I thought this was a great explanation, but I can see why it may be confusing if someone doesn't have a lot of background knowledge on how credit cards work. Your video lines up with all of the other reputable resources I've been learning from. You showing your billing statement has helped me understand even more. Thank you!

On Reddit I heard that the max score comes from "All but one" where you can keep a zero balance on all cards except for one. However, I think this video is for beginners and not people who have 5+ cards already. I also think it's ridiculous to put your cards in the freezer! You're supposed to bury them in your back yard. It's called Gardening.

Really found this video helpful. I have seen wild variations of the closing and due dates on different cards and it can be confusing. I do have auto pay set up for one day prior to the payment due dates which helps.

This was as clear as mud.

THANK YOU PROUD MONEY!! Have been looking for this exact info but couldn't find what i was looking for until i saw this video. Thank you for helping me build stronger financial literacy. Statement closing date and due date, in addition to under 10% utilization -is what i couldn't wrap my mind around until your video here. Thanks again!!

I pay down to low utilization of 3% one due date. You don’t have to make two or three or four payments a month just one payment. They report the balance on the close of statement you can look at your statements and look at the end date of the bill that date is your close date. Due date and close of statement dates are different. Close date is when they start to report it to the cras

The best day to pay your credit cards is the soonest day you get paid 👍

Sir, great video. I appreciate the breakdown of when to pay and at what balance to have when closing happens. I've been making a purchase and then paying it off immediately. Always having a 0 balance at closing. I'll now leave 9ish% on the card. Cheers!

Very interesting, I have 4 credit cards and I was always told by other channels that it didn’t matter if showed 6-10% utilization on your credit report. I would always pay off my cards, and show 0% utilization. I will try this and see how it will impact my score. Thanks for the info!!!!

Thank you for the video. I understand how to manage my credit better now. I have been paying down all my cards multiple times a month so my wife doesn't think we have too much money, but my balanced usually went to zero. Now I'm going to check the statement dates so I have a balance, which of course, will get paid well before the due date.

I hope college kids watch this

I do multiple payments on 6 credit cards I keep it at 5% utilization

Thank you, I understood it perfectly. I guess people confuse the billing cycle with the Statement Closing Date.

1% utilization gang!

These videos are appreciated greatly. I indeed follow your tips. Tremendous help. Can you please do a similar video on when to pay charge cards? I just received an Amex Gold card and am new to payment timing on charge cards.

Directly to the point. Thanks

This is exactly what Ive done in the past few years. Im currently in the 800's climbing to the 900's. You can always call the credit bureaus and they give you the date each account reports.

I always paid 2 or 3 days before the due date. Is that good? Please let me know. Thank you.

so there should always be less than %10 credit utilization that is being reported to the credit card bureaus but pay in full before the due day?

Credit is nithing short of a joke. You can have a credit card but if you use it they doc your credit. Not everyone can pay on there cards at specific days and the credit reporting companies know it.

Thank you! You have given me the best explanation about this subject. I will implement this information right away.

i wish Adam had discussed examples of people with multiple cards being reported with a small balance in a given month and what to do in that scenario. For example, 1 card only with a $500 CL is easy. But let's say you are using 4 cards and the total CL for all of them is $3000. Is it okay to be showing balances of 2% on each card? Will that help or hurt your score if all 4 cards are reported showing a small balance to the credit bureaus? I mean, utilization would still be total under 10% let's say but every card reports a small balance. Or how about 2 of the 4 report a small balance and 2 report a $0 balance. What happens to your credit score then? I wish Adam had discussed this because I'm sure myself and lots of others would like to know the answer to this.

well if iam trying to raise my credit why would you pay it off, that will show you did not use it 0balance, you guys have to explain that if the people want to raise the score the will have to pay interest, now if you dont want to pay interest you need to pay it off in full but you will get no points,

Thanks for the advice and the insight into other credit card payment questions! Time to make at least a small charge on a card that I paid off.

Best explanation ever👍🏼

Idk but my cards never report the statement balance . All my cards report 25days before the due date . For example, I have a card that has the due date on the 28th of the month & every month it reports to the CBs on the 3rd . Statement ends on the 30th . With another card , it’s due on the 10th , so they report either on the 15th or 16th depending on the month . It’s like that with all my cards so I just subtract 25 days from the due date to find out when it’s going to report .

This was really helpful. thank you!

Good explanation. Can't wait to try it in April and see if it works!

I needed this explanation. Thanks a lot.

Thank you so very much, your explanations is a masterpiece wow it is clear and very simple to understand. Thank you 🙏

Nice simple explanation

I actually believe and understand everything you said in your video about paying part of the balance to bring it below the 10% mark and then pay the rest off after the new billing cycle starts. But that would be a hassle for me because I have so many credit cards including Discover to American Express a host of Mastercard and Visa‘s Home Depot Lowe’s Sam’s Club and some department stores and a shell Mastercard. Lol it would just be too confusing for me to do that for these cards so I just pay the balance off in full With a few strokes from my cell phone after the charges post to the cards. It’s simpler for me that way. And it doesn’t seem to be hurting my score since it’s 801 now.

I’m new to credit but my score is above 700 I studied a lot of video before actually getting a card the best way to pay your card it to pay it off in full before the due date and the day after just make a small payment $5 or less.

The way that I do it is I always pay my card down as soon as it goes over 10%, not the entire balance but enough so is around 5% let it run again to 10% and repeat on till the billing psyche ends and that day I pay it all if full, then I repeat the proses. Doing it this way I always report around 8 and 10% utilisation.

Umm a majority of Americans will not be able to afford a $1000 payment .

Thank you so much; this is very helpful.

Soooooo... Why don't you just say how you would pay this particular bill so your credit gets its best point increase. Like , I pay my card on the 14th but leave a 10% balance until just before the closing date I pay it off.

I make two payments already to pay down my Quicksilver card, but will look to time it better. 🥃

How about just pay before due date so your not late payment

One other thing not to overlook is this: Many credit cards will credit your account as soon as you make an online payment, even though it hasn't officially posted because it hasn't cleared the bank the payment is coming from. HOWEVER, some banks won't give you credit for the payment until it actually posts by clearing your payment bank.

It’s definitely difficult to know when to pay it as the statement isn’t always available until it’s almost due

This is a great strategy for some extra CR score points! I didn't know it was 1o% of your total balance was the "good" zone. I only did this strategy for large purchases before, to bring my balance down ASAP, so it doesn't ping my CR score.

Should include an example with specific day to pay the bill

That is good explanation thanks for sharing keep it up good work as always.

Hey Adam. I appreciate your videos. Thank you!

- Is it really under 10% or under 1% for a better score? I have heard of some stating 1% for maximum credit scores. - Credit reports sometimes have "highest balance" posted so, if almost maxing out a card and paying it down to under 10% prior to the closing date, is this still bad in the eyes of the issuing Bank or to other possible credit card banks if they see a past "high balance?"

These are awesome tips. Great, Keep it up

Thanks! I have a way better understanding of it now. Especially since my due date is the 2nd of every month for 1 of my cc and the statement closes on the 8th.