Y’all love making credit confusing af for no reason at all
@MsLady-sd6pz2 жыл бұрын
KZfaq life, everybody has a solution to every life situation. Or a follow me I’ll show you how to get rich.
@RubyGxoxo2 жыл бұрын
You’d be surprised at how ignorant people are when it comes to credit. Even people who have accounting degrees can get confused. One example: Our credit statement actually goes from the beginning to the end of each month, but the statement is dated for the 1st-4th of the next month. A lady thought we were supposed to account for those expenses for the statement month and not the month that they were incurred. Pretty simple, but she got it wrong.
@existing1962 жыл бұрын
The system gotta make it confusing to rip us offf out of our money if anything. I was trying not to have a credit card ever but apparently you need credit in order to buy certain things like an appartement, housing, cars, electronics (unless you buy those items in full which is v hard unless ur rich) so now I need to have credit which is stupid. Why can’t I use my own money to buy everything. It’s stupid
@01Wany2 жыл бұрын
It’s not confusing it’s all truth
@eprahs12 жыл бұрын
You ok?
@katme71192 жыл бұрын
I don’t care what is what. The bank sends me a reminder to make a payment by July 6. I pay off my balance by July 6. That’s all I need to know to keep my credit score from falling
@Sandraebenezer12 жыл бұрын
Me too girl, mine was also due July 6th
@DavidTorres-sf2nt2 жыл бұрын
Pay it in full when you receive the statement and you’ll get a higher score
@Ena481452 жыл бұрын
I finally get what she's saying. I was about to go off. She's saying you need to make a payment for the month before so you're not paying hundreds/thousands per year in interest
@doracampos20882 жыл бұрын
I made the same mistake you’re making when I started my adult life 🤦🏻♀️ I’m 40 now and trust me… that girl in the clip is saving you from all the headaches I went through. Thank God for internet! I wish there was a the info there is now, back then.
@ieatbread60882 жыл бұрын
I’m still confused
@Diverse0725 Жыл бұрын
Eli5: You never have to pay your entire current balance. When you go to pay your credit card bill online, the statement balance is the amount that you will be charged interest on if you don’t pay it in full. Always pay the statement balance in full, which is less than the current balance, and you’ll never have to pay interest. If you got your electricity bill today. It wouldn’t be for all the electricity that you used up until the letter came to your mailbox. It would be for the month of October. Pay your electricity bill for the month of October, and you won’t be charged a late fee.
@fleurmal7648 Жыл бұрын
-Buy stuff in January. -The statement is given February 1st, which shows the statement/list of what you bought in January. -The bank says the due date to pay for January's items is March 1st. Just pay your balance as soon as you get the statement. You will build credit that way and not get behind on payments, and also don't have to worry about interest. Don't buy things you cannot afford (unless there is an emergency).
@NoirRaven Жыл бұрын
Love how you think we can afford to pay off large, substantial amounts of cash within a month of a statements arrival 🤣
@JRush374 Жыл бұрын
Bad advice. Pay on the due date. You're giving the bank a free loan when you pay on the statement date. Make them give you the loan.
@fleurmal7648 Жыл бұрын
@@NoirRaven this was more a comment of how to start of with credit card and avoid going into debt (by only paying for stuff you know you can afford. I pretty much only bought groceries on my credit card for many years.) You are right this is not usually option for those tackling debts that have already built up.
@fleurmal7648 Жыл бұрын
@@JRush374 It's a good option if you don't wanna pay interest and may not be the best at keeping track of payments. I also get cash back on groceries, so paying immediately gets me free money since I don't pay interest. My parents were wracked with credit card debt cause they bought stuff they didn't need and got behind on payments, so I just do what I can to ever avoid starting that downward spiral.
@surveytestmoney2550 Жыл бұрын
Weird, bcus whatever I purchase in whatever month prior, my credit card shows a due date of the 2nd of the next month, not 2 months later. I used my card Aug 12-24th. They want their money by Sept 2nd and they shall have it... ALL of it..BEFORE Aug 31st!🤣
@shawng48862 ай бұрын
Making credit work for YOU. Maintain a balance of 10% of your limit and pay EVERYTHING else off few days BEFORE your statement date so the payment posts and the credit company sends that remaining 10% balance snapshot to the bureaus. Thus you “look” like you only have 10% usage(good) which builds and maintains good credit! You can keep a 10% balance because you’re always paying off the prior month FIRST. So you’re never incurring interest and your balance is always at 10% of your limit. Which is exactly what credit bureaus want to see!
@adunnioАй бұрын
YES! That’s the twist few talk about to get the most points in score increases. My finance guru is telling me stay between 1-9% & that’s even according to the cc limit. I pay the bank 1st in full giving myself a couple days so it posts before or on due date, next day I buy something cheap staying between 1-9% before the statement/closing end date making sure it’s posted in time. Points galore‼️‼️‼️‼️‼️🎉 Wash-Rinse-Repeat 🎉
@RP-uu7oq27 күн бұрын
This applies to your total credit, btw, not each individual card, for those who don't know. I'm always under 10% because I simply don't spend that much. However, I've found that occasionally having a zero balance report seems to improve my score a little faster than a 10% or less utilization alone.
@jac72362 жыл бұрын
It’s a simple concept but also hard to grasp through just numbers on a screen. I’m guessing I speak for the majority of us
@samuelfahim63552 жыл бұрын
You do
@tomcat86622 жыл бұрын
Negative. Who cares if you’ve had purchases since the statement closing date? It’s better just to pay everything off.
@alienmatrix74022 жыл бұрын
And they make it complicated for a reason. It's all part of the game
@cneer17 Жыл бұрын
(Assuming you’re referring to her execution of the video) Yeah like it was a simple idea there wasn’t much to be explained but she made it worse just to look like she knows something we don’t bc she’s a former trader
@crcajo10 ай бұрын
Especially when it's on a line of credit you haven't used in a few years. I don't accrue any new charges. It's old debt with crazy high intetest.
@f.-j.j.57382 жыл бұрын
This is true, but if you can afford it, pay it all off, to zero, before your balance due date, every month. I only use my card for the perks. To me it's like a debit card. Usually immediately after I use it, I pay it off in the evening.
@phenitagomes12922 жыл бұрын
That's what I was thinking
@tomcat86622 жыл бұрын
Exactly
@Sandyyyyyyyyyy Жыл бұрын
I just have my card set to autopay the statement amount every month because same.
@JRush374 Жыл бұрын
You're giving the bank a free loan for about a month. Stop doing that. Just pay it off on the due date. Let your money make you money in the meantime.
@LovelyLady1111 Жыл бұрын
@@JRush374 yes you are so right!!
@ehukai20038 күн бұрын
This is true, but not the whole story. If you're concerned about your credit score/report, you need to be concerned with that statement closing date. If you pay off your balance by 2 days before the statement closing date and don't use the card for 7 days, then your credit card company will report a $0 credit utilization balance. Pay it down to 1%-6% for a small extra boost, but you don't need to because 0% is already great.
@MidnightSky80118 күн бұрын
I just pay off my cards to zero before the.due date. This video is very informative. Thanks.
@myaccountgotdeleted9999 Жыл бұрын
I used to work for a credit card company and could never explain to customers the difference even tho I was trained for it lmaooo glad I'm out of it
@mR-dc4oq2 жыл бұрын
Pay it all off before your closing date and your credit goes up.
@doncherf26102 жыл бұрын
Your credit goes up if you pay it off before the due date. If you're paying by the closing date, that is before the due date, so your credit score obviously goes up. However, be careful. Example: If you pay your balance off 4 days before the closing date, then use your card 2 days before the closing date or if you have a pending charge that completes after you paid off your card, then you will end up with a missed payment including a penalty fee and interest charged. Because either of those examples got added to that cycle you thought you paid off and they need to be paid by the due date which you will not notice until the next closing date which is too late. Stick to the due date, and ignore the closing date. If you pay on or before the due date every month, your credit score will go up.
@heavenlypickler2 жыл бұрын
@@doncherf2610 According to your example, is it better to pay by due date or closing date? I pay it off on due date and my credit score is going up. After watching this clip, I am confused??
@2.5chainz Жыл бұрын
@@doncherf2610 or just don’t pay off it 4 days before the closing date? The day before was obvious if you ask me
@AllAboutPurple Жыл бұрын
Just leave 1% of the CL to report & you can pay the rest afterwards…. Leaving some balance will show that you are using the card responsibly. Which is how you get credit limit increases & increased scores.
@stephenroberts2526 Жыл бұрын
Keeping the account open and active is the key. I have seen my score go up by paying off my card in full each month. So, I really don't see an advantage to paying interest on any balance.
@phenitagomes12922 жыл бұрын
Omg why do I feel overwhelmed by what your saying. I don't understand. Like a whole different language. I need answers to this issue. Because I'm just thinking if I was to explain something I always choose the simplest way to get through to people. Like explanations for dummies. 😫 I'll watch 20 more times.
@kaitlinjohn3625 Жыл бұрын
What you spend in January will be what makes up your bill in mid February. What you spent in February will come through on a bill in March and so forth. So if you go to Starbucks December 20th, January 5th, then get a bill January 15th for a Starbucks order, it's not the January 5th order, it's the December 20th. This can mess people off because if they aren't paying attention they might think they are caught up on paying things off but actually they still have another month to go.
@2718aj Жыл бұрын
I might actually be stupid because this left me even more confused and I wasn’t confused before watching this Edit: I know how it works it’s pretty straight forward and simple but she made sound so confusing like it’s rocket science
@ChannieChauni Жыл бұрын
Me too
@lolitzshelly7229 Жыл бұрын
And her tone… I guess I might be sensitive too :(
@trichey1712 Жыл бұрын
You are paying for the amount you spent in month a in month c
@clarkroath926 Жыл бұрын
From April 22 to May 21 you can buy whatever you want. By June 18 you have to have paid for all of that or else you pay interest aswell
@martha_aj4386 Жыл бұрын
The statement balance is the amount you charged in the previous period. This is what you pay by the due date. If you pay the statement balance, you will not pay interest. Purchases in the current time period( between the last statement date and current) are added to the statement balance after the statement closing date.
@ninchemarie2 жыл бұрын
just looking at the credit limit 👁👄👁
@neoloanderson66762 жыл бұрын
Me too😂
@FRESNOSTATE15592 жыл бұрын
Y’all have $500 limit lol 😝
@jones2277 Жыл бұрын
for an adult that's nothing special.
@jones2277 Жыл бұрын
@April G ok, my bad. an adult job.
@lizpark9854 Жыл бұрын
@@jones2277 what you’re saying can come off as insensitive 😊
@teresamadison29288 ай бұрын
I make it simple. I pay the entire balance every Sunday. I always know what I have spent and never incur fees.
@AztkSmooth2 жыл бұрын
Just pay off your balance weekly. Make it easy. Or how I use to do it, daily. Now I track it weekly. You can also pay it off according to your pay schedule. Just make sure your balance at the end of every billing cycle is $0
@JRush374 Жыл бұрын
You're giving the bank a free loan. Stop doing that. Just pay on the due date.
@princessmorebucks6 ай бұрын
@JRush374 that's why you should have a cash back and/or rewards card. A card with no benefits would be an interest-free loan. I spend on my credit card and pay it regularly to reap cash back rewards and to estabilsh a spending history with my bank
@BNJA5M1N33 ай бұрын
That's what I do
@rowdywizard2071 Жыл бұрын
My parents told me when I get my billing statement, don't pay until the absolute last minute. With Capital One, you can set when you automatically pay, so I have it set to pay in full on the due date. Super easy, don't gotta touch anything. Don't complicate things
@hopeausbyn17343 күн бұрын
Thank you, Bestie.
@mariemika8929 Жыл бұрын
Thank you for this break down it was the best I have seen
@sinned962 жыл бұрын
HOW TO CORRECTLY PAY A CREDIT CARD! 1) Find your due date on your statement. Now that you have it, FORGET IT. NEVER worry about it again, wipe it fron the calendar, it never existed. Due dates are for calculating interest charges on the card only, not for utilization. So it does not matter what the interest rate is on a card since you never pay any as long as you pay your previous statement balance in full. 2) Now find the statement date, also called closing date or cycle end date. Put that date in big red letters on everything in the house. The kids forehead, calendars, front door glass, bathroom mirror, you get the idea. 3) Now two days BEFORE that date, pay down your card balance to 1-4% of the card limit. So if you have a $300 limit you need to pay down the balance so there is $3 to $12 left on the card. Leave it with a balance. The credit card will report to the credit bureau that you have 1-4% utilization for that card. This is the BEST percentage for FICO score boost. 4) Now this step is an important part to remember. Soon as your statement closes and reports, your due date will show the min due in 20 or so days away. This is the date you have to pay by to avoid any interest, but we dont care!. Now 2 days after the statement date, you know the one wrote in big red letters all over the house? Pay the card balance off back to Zero. Now you have already made the min payment due by the due date and avoided any interest charges. 5) You have eliminated your due date, reported the best utilization, and avoided any interest payments all with in 4 days. Now your card has a zero balance and you can use it as much as you want. You can MAX the card, pay it down again, MAX again, do what ever you like. BUT, look for your next cycle end date and start all over again. Go back to step 2 for that date. Repeat every month. You will never pay interest, can maximize your rewards if it is a rewards card and still get a great FICO boost. IF YOU ARE IN MID-CYCLE READ HERE Your due date is NEVER before the cycle date. You are seeing the due date from the last cycle date period. You need to pay down to 1-3% or pay down to zero BEFORE your upcoming due date and start the process from the beginning at the next cycle date. If you follow the steps above with a 1-4% balance at your cycle date you will never have to worry about a due date again as you will have a zero balance due on the due date. Follow this above it works extremely well. You want to make sure your previous statement balance is paid in full before the due date that way you don't get charged interest. The best time to pay your credit card bill is 2 days after getting your statement that way you have satisfied your credit card bill for the month way before your due date. Then you can go ahead and charge your card up whatever you want and then two days before the statement date bring your current balance down to 1 to 4% of your credit limit. Let that report your new statement balance will be that 1 to 4% that you left. Pay that 2 days after getting your statement. And repeat the same process next month. Oh and you need to be consistent with doing this keep it the about same amount every month.
@MrJearley6Ай бұрын
Thank you for this topic. I never heard of this. By watching your videos, I am dead free and I don’t have any credit cards, but I will share this video with people that probably do have credit cards. Thank you for this video your subscriber listening over here on the big island of Hawaii.🤙🏽🤙🏽🤙🏽🤙🏽🤙🏽🤙🏽
@OutSidrQQn2 жыл бұрын
I needed this. I’m 44, and now I have a cool bff! But, all I can return are comments of appreciation. So, thank you.
@Mrs.Mortician4 күн бұрын
Your earrings are EVERYTHING 🤤 ❤❤❤
@deborahwax21006 ай бұрын
Thank you so much. Of all the great advice you give, this one hack has helped me the most. For yrs, i thought i was doing good slways paying cc bills in full on the “due”! Date. But doing as you said has raised my credit scores 3 fold, Amazing!!!
@pink86342 жыл бұрын
Basically, pay your min pmt by due date to avoid past due fee. Pay full statement balance by due date to avoid accrued interest.
@veronicar.60002 жыл бұрын
I used to find this so confusing until I worked at a credit bank. Once I learned exactly how credit works and all the bank jargon, it was easy. My advice to you all, if you get a credit card offer in the mail, don't get distracted by the bold font and pretty metallic color! Please, reach in that envelope and pull out the terms & conditions slip that comes with every card offer and read it in its entirety. That is all the information you'll need to know if you choose to sign that contract.
@sublayerX2 жыл бұрын
This is kind of similar to when you find out you don’t get paid for the first week until the end of the second week of working..”hold a check”
@Nicolas_13116 ай бұрын
Had a hard time at first, but now I totally get it. Thank you! Keeping utilization at 1% on my cards now :)
@ItsTimeMichael7 күн бұрын
Grace period folks. Avoid the hassle altogether with maintaining a very low credit utilization & never carry over a balance month to month, especially on credit cards...never.
@shinytomoon Жыл бұрын
it’s easier for me to spend money in november and also pay it off in november, etc. my score is around 800 so that must do the job just fine 😂
@stargazeronesixseven Жыл бұрын
🙏 Thank You So Much for reminding us , that we still have Credit Card bills to pay next month for this month's purchases! ☠
@timekabolden53092 ай бұрын
😂😂😂😂
@luvlyluz2 ай бұрын
Loving the earrings ❤
@greeneyedredhead61 Жыл бұрын
It's good there are people like you to help people out..... I've only seen a couple of your shorts...nice job. It doesn't seem to matter how often I explain this toy ex, he still doesn't get it.....and he is in his 60's. He should already know this...but I kinda understand. My parents never taught me about money. I had to learn it all on my own. Also I am teaching my kids about money.... I wish it was taught in school.
@yolondawyatt49224 күн бұрын
Love the earrings 🥰
@marilynflores764910 күн бұрын
Omg. ❤ I just love your earrings. Had to watch the videos 3 times because I was so captivated by them..
@Bailemos888Күн бұрын
I'm doing it right after learning from you❤
@I_can_and_will7 ай бұрын
Thank you ... Flagstaff az
@LynRuiz2 жыл бұрын
I’m not sure what the closing date of a credit card versus the due date has to do with avoiding interest. Interest is avoiding by paying the balance in full by the due date. That is it. There is no other way to avoid interest other than just PIF when it’s due. The only reason that you would look at your closing cycle date is to avoid having a bill cut with a balance on it. I do this often to pay off current balances before the bill closes so that when it is reported to the bureaus it is at $0.
@STMARTIN0092 жыл бұрын
The closing is the dates in your billing cycle so if you make a purchase on the card the day after the closing date you won't have to make a payment the next month but the month after.
@stennar21412 күн бұрын
I learned how to pay my credit card correctly and haven't paid any interest on it in over 7 years, best lesson i learned
@matt08442 жыл бұрын
1. Payment due on the 4th next month 2. I pay off everything two day prior the end of current month 3. And I start using credit after the 1st of next month My credit score have stay around 785 I don’t really care about the score I just use the credit card because For cash back for the thing that I will use anyway on my debit card.
@lililululalabooboo9 ай бұрын
I never understood the difference... I just always paid everything off ASAP. I use credit cards for signup bonuses and cash back rewards. I have a huge aversion to any debt though so I always keep that balance at zero no matter where I'm at in the pay cycle. I have extremely good credit as a result. I encourage this method. BUT if for some reason one can't afford to pay it all off at once... the info in this vid is good to know.
@missteej3154 Жыл бұрын
I get what she's saying and all but the system that my family uses is for example if your credit card statement is due on the 5th of every month, count 6-8 days from the due date and start using your CC after you get your statement in the mail. Charge up to the amount that you can pay off in full within your budget. On the 3rd of the month or two days before your CC payment is due pay off the balance in full. Count 6-8 days after the payment due date which would be your statement date. (The date they sent you a paper or e-statement) Look at your statement and the recorded balance sent to the credit bureau should be $0.00. Your credit score will increase due to you utilizing less than 3% of your available credit, which shows more income to debt ratio. So simply don't charge anything within the statement balance date and the statement processing date. Pay in full before your due date and Charge after you get your CC statement. If that makes sense 🤷♀️
@PauloNavarro2 жыл бұрын
Me: This sounds like good information. I should pay attention. Me 10 seconds later: Wait... I completely stopped playing attention.
@impactfully57142 күн бұрын
Not me, I use my cc to get the rebate and pay it off immediately after use or within 2 weeks of use max.
@DtlaDaisy Жыл бұрын
The knife earrings tho!🔪🔪🔪🔪
@TY-yj2en2 жыл бұрын
Who cares!!!! Instead of buying gas with the money from your check, use your credit card and pay it off right away! Utilize credit, raise credit, don’t pay for shit you can’t afford and don’t give your money to credit card companies! Simple as that!
@lillauren212 жыл бұрын
That’s what my dad and I do. We pay off whatever we use the next day and our credit went up quickly.
@SO-ug5ns Жыл бұрын
Thank you for the tip I know will subscribe to you faithfully and listen to follow you full time
@manicdisciple388416 сағат бұрын
Also a note from this: you can keep cc utilization low (around 10%) knowing this by paying your partial balance before a statement is generated for the past month. So if your balance accrued is over 10% pay down to 10% before your statement gets generated to keep utilization at ideal amount which helps build credit
@everlastingobstoppa17 ай бұрын
I see the thing is any kind of balance bothers the shit out me and just be bugging me in the back of my head so for my own peace and mind i pay it all off. I’m sorry finance people I know it’s not right.
@honeybuns58082 жыл бұрын
Why she makes a so confusing and long explanation for something so simple 🤦🏻♀️
@jtyree02262 жыл бұрын
I didn’t know KZfaq shorts were that long
@FRESNOSTATE15592 жыл бұрын
She’s trying to lokey show you her limit
@diva70smusic2 жыл бұрын
If you pay your credit card off monthly, you don't have to worry about the closing date. A better use of knowing what the closing date is when you are using the card for large purchases. If you make large purchases AFTER the closing date, you have a month to pay it off. The bank generates your current bill after the closing date. Purchases made after the closing date are not included in your current bill. There are exceptions. Some department stores, e.g., Macy's, charge a $2 fee any time you carry a balance month to month even if you pay your current balance off when the bill is due. Although confusing, it pays to read the fine print on your credit cards. You can use this information to your benefit. This will help you avoid unnecessary charges or fees. Also, know what bank that owns your credit card. Some card issuers have different credit score requirements in order to get a card. The interest rates may be higher but at least you can start establishing good credit. Ideally, you should be above 740 to have good credit.
@PandaHead6024 ай бұрын
Proud of u
@sweetascandyxoxo2 жыл бұрын
I don’t use credit cards 💳 I did once when I was 19 and I paid off that couple I thousand I owed. I hated the way it felt to be in debt. Just knowing I was in debt felt wrong and sincerely bothered me. As well, coming from a privileged background, it was instilled in me that you should have 0 debt. No credit cards. You should fully pay off your vacation way before you go on it. You should buy used cars and when they are not good anymore, get rid of it and buy another in cash of course. You should live within your means or even below. It’s fine to have luxurious things but don’t try to live up to other people. Personally, I believe we should strive to have zero debt and to not buy things unless we have the cash. It’s the best way to live. If you don’t have the money to buy something, you don’t buy it. If you do have the money then why are you being a sheep? And literally paying interest on money you don’t have to borrrow. Like think about that. Even if you receive rewards or perks, it’s not actually free. Your still paying for it because you are paying interest, fees, whatever. Another thing, visa debit can fully replace a visa ok. The whole idea about credit score blah blah, like no. That’s all bullshit. You can go your entire life without ever having to have a credit card. You can own a home etc. It is what it is. Most people will uh, do what they will. INTJ - for anyone who care’s I’m 29 years old and my family own a yacht. We own properties etc. Neither of my parents went to college. I haven’t been to college. My dad does not use credit cards. He has one for travelling that’s it and he’s never used it. And we are not extremely wealthy, my dad makes a comfortable 120k a year. Dropped out high school grade 10. I wish people could learn the simple principles I was taught by my dad. Thanks dad! ❤️ From 🇨🇦
@tonyawood29112 жыл бұрын
I love everything you said.
@sweetascandyxoxo7 ай бұрын
@@tonyawood2911 thank you ❤️
@sweetascandyxoxo7 ай бұрын
@@carollynt Yeah, because I’m an entrepreneur and a founder 😂 💰no college needed 🤣 still no debt. Jesus saves ❤️
@chakrakhan8624 Жыл бұрын
Wow I need more of these kinds of videos cause I’m not ready to start investing just yet. I would really like to have like 10 solid credit habits or whatever that will raise my credit score to 700 range and above
@JRush374 Жыл бұрын
Watch Brian Jung's credit card guides on KZfaq. They're great.
@kito1san11 күн бұрын
In some way, you do want some balance it reports to your credit bureau. Obviously, pay the whole amount that is due on the statement before your due date. Letting the credit card report some balance is good for your credit score. There is a difference of what is reported and being delinquent, just to be clear.
@roxineus2 жыл бұрын
Thank you
@ashleylongstreet47556 ай бұрын
I pay off my credit card balance once a week and have around an 800 credit score so I think I’m doing okay. There’s no “correct way” to pay off your credit card balance. The only way you’re incorrectly paying off your cards is if you incur any interest
@bwoodbury54852 жыл бұрын
And this is why the credit companies are a billion dollars industry
@EvanSimon5 ай бұрын
Thank you, that's exactly what I was trying to understand since I'm new to credit cards!
@RiverAndBrooke Жыл бұрын
Great tip! Thank you so much
@Courtneywb Жыл бұрын
Umm you for got something…TLDR: the higher your statement balance the lower your credit score. Pay off you cards BEFORE the statement close date, or at least more than 90% of your credit limit. IE: if your credit card limit is $1000, pay off whatever amount you need to to get the balance to less than $100 by the statement close date. There’s a reason why her balance is $186 on a $13,000 credit limit card! She either isn’t using the card or is paying it off BY THE STATEMENT CLOSE DATE so she doesn’t have a high balance. In reality you should be paying your credit card twice a month. In her example: 90% of the credit limit by the statement date on 5/21, and then the remaining 10% on the 19th of the following month to avoid interest on that 10% balance she Carried Long version: You forgot to mention that people should actually pay off the majority of not the FULL current balance before their statement close date to prevent that card from reporting a high balance which will affect their credit utilization percentage and their credit score.
@ChrisCaledon6 ай бұрын
If only these dates were as simple as that in Canada... nope, they're always due at a different date monthly. One month, it's due on the 15th, and another month it is due on the 18th, etc... so, 1st paycheque or 2nd pay.
@tiffanyhunter60356 ай бұрын
This was so very needed!!! Ty!
@ioledelarosa94913 ай бұрын
This is what I need it to hear 😊thank you
@turboimport958 күн бұрын
I always pay multiple payments every month to keep it paid off and i have no issues and 800 credit score..
@fireeye332 жыл бұрын
I really don't care about these dates as I always pay off my credit card each time I get pay, that means every other week. Hence, I don't pay the interest.
@xxsam0917xx2 жыл бұрын
Yeah... I'm paying the consequences now. I had $2k remaining on my cc, but went to school full-time for 2 years, next thing you know I owe almost $20k 😬 It is what it is lol
@Starlight_162 жыл бұрын
Not always true, but whatever makes you feel good.
@fireeye332 жыл бұрын
@@xxsam0917xx always treat your credit card like debit card. I don't use it for spending if I don't have the money to pay for it
@xxsam0917xx2 жыл бұрын
@@fireeye33 True. I will be after I finish my master's and pay everything off 😌
@STMARTIN0092 жыл бұрын
Just pay it off on or before the due date and try not to go over 30% on the credit utilization
@JoeEnos Жыл бұрын
Worth mentioning that in a zero interest rate savings world it doesn’t really matter, but now that rates are high it could be huge. Having an extra 30-60 days to keep your cash in a 5% savings account can get you a decent chunk of change that you wouldn’t have gotten if you paid your purchases off right away.
@VNSredrose2 жыл бұрын
Yes U can pay before the statement date to lower ur cc utilisation rate and increase ur credit score. If u don't care abt this then just focus of the payment due date only. The former allows u to benefit in 2 ways.
@STMARTIN0092 жыл бұрын
It's not that hard to have an 800 fico score. You just have to keep the utilization low at 30% or less and pay on or before the due date. Set a budget also.
@WhatWouldChuckNorrisDo Жыл бұрын
This might've been more helpful to visual learners if you had a total balance higher than your statement balance so you could explain that the remaining balance is what would incur interest charges. i.e. you have a total balance of $200, and your statement balance is $185, if you pay the statement balance you will incur interest on the $15 remaining, which will be seen on the next bill. You will continue to accrue interest on the remaining balance until it is paid in full. This is why paying the minimum due, which is an amount to keep your account current, causes you to pay the most interest (and why creditors allow it so they can make the most money off of you). TLDR: if you can, always pay the statement balance or total balance in full to keep interest low, or at least always pay more than the minimum
@kittenfloof Жыл бұрын
I actually learned this the hard way when I was charged interest for the very first time. I noticed that I was only being charged for a fraction of the overall statement. Interest was only charged on $100 when my balance was $200. I realized that it was leftover $100 from the previous month. I didn't miss a payment, I just didn't pay it off in full and forgot. But man. That was an interesting thing to learn
@joelmartinez2278Ай бұрын
Don't confuse yourself....just pay as much as you can to get your balance to 0, but if anything, pay more than the minimum.
@MK-._.-10 күн бұрын
Does your financial advice apply to people oversees? Im from South Africa so im curious if these things apply to me as well or if its just how things in the US work. Thank you ❤
@txmade43712 жыл бұрын
Straight cash homie.
@blkechn.69602 жыл бұрын
She was no help at all the way she explained it. Probably confused people even more. On another note I’ve never paid interest on a credit card in all the years I’ve had them. My Chase minimum payment has always said $0.00. It’s funny b/c her statement looked strange to me because I saw $40 there. I have my mom and uncle to thank because I’m a pro with credit cards.
@BetterMe981 Жыл бұрын
"Waaaaaahhh... she was no help at all... " said a person who didn't need help 🙄
@JRush374 Жыл бұрын
Don't pay before the due date. You're giving the bank a free loan.
@thegriffinnews7 ай бұрын
Unless you're like me and pay it off every single week. I had zero interest or fees last year bc of that. Zero debt on me and last I checked my credit score was mid 700s. Like, I can see what I'm paying for when I check my cc account online weekly. If I spend $50 on yarn last week that's what I'm paying off. Not no "last month" balance. 😂
@Allthingsarepossibl32 ай бұрын
Just pay off your credit card in full.before the bank statement goes out. For example if you bank statement goes out on the 21st of every month pay off your credit card on June 18th. Make sure you call the bank to make the payment over the phone. Takes 2 business days for it to get paid
@fattysgarage1754 Жыл бұрын
Pay before the closing date to avoid the balance showing on your credit report. I pay the same day or within a day or 2 when the charge posts and enjoy free money with the cash back/
@lonzeo2 ай бұрын
Paid my stuff off way before the statement date and my score dropped hard now I’m just waiting to see if it’s a fluke or what because I paid before the due date and shit. I’m an on time person.
@timekabolden53092 ай бұрын
Prolly TOO early. U still need an active card.
@adunnioАй бұрын
@Shawng4886 explains very clear & precise on how to get the most of your points. Scroll up a couple comments before yours. And check out Shonda Martin about smart credit/road to 750. Either one is helpful.
@PezTita2 ай бұрын
Awesome earrings ❤❤❤❤
@paillette20106 күн бұрын
When I was a banker I always was explaining that to people.
@chrisvega34332 жыл бұрын
I just pay mine weekly on my Amex
@caleb67716 ай бұрын
I didn't realize this,great video
@user-gu3ib9vw2qАй бұрын
thank you for this information 🙏 😊
@saranga1618 Жыл бұрын
Moral of the story- 1. Pay your CC bill before the DUE DATE. 2. Remember the bill is not for last month but instead it is for last to last month. So just note the Statement Closing date while budgeting for stuff. (Eg. If it's March and statement closing date is March 15th. Whatever you spent between January 15th to February 14th will be the included in the bill. The bill is not for purchases made post 15th of February till March. So basically, remember to keep that in mind while budgeting, that's it.)
@TyReckless117 Жыл бұрын
May. ? They would be over 60 days delinquent if they went several months without paying between February and may . They would need to pay off their statement balance from that time period in MARCH to avoid interest
@saranga1618 Жыл бұрын
@@TyReckless117 Damn. I wrote May instead of March. Thanks a lot, I'll change it. I hope I didn't mess up someone's understanding.
@monicacooper53787 ай бұрын
❤❤: She said pay off your previous month of charges to avoid interest fees that would apply to those charges. Simple pay as if you just purchased with cash. ❤❤❤❤😂😂
@larissacolon33712 жыл бұрын
I pay my credit as I spend for the most part. To keep the credit usage percent low and more security when buying things. Also helps me keep better track of what I spend since I'm not using my debit card as much
@Kneel21 Жыл бұрын
Thank you for this video
@doracampos20882 жыл бұрын
This is a class High Schools should be giving. This is real life situations. We don’t need so much history or algebra 🙄.
@BAWSMAN2 жыл бұрын
It all depends on the field you get into , algebra is definitely important . History not so much as most of us history is fabricated. If you study history independently it’s really interesting. Especially studying your own countries history and learning where you come from
@ZoruaZorroark7 күн бұрын
16% apr, dang, wish my credit score was good enough to even get anything better then 28%
@athena6089 ай бұрын
Take it from my experience - ive never missed a payment on a card, but dont make the mistake i did as a young'in and carry over a high balance month to month and think "oh, as long as I'm paying off my statements in full by the due date I'm fine". When you carry a high balance, it still hurts your credit score if the balance is a large % of your credit limit. Plus, you are walking a high tightrope by doing that because if you do make one slip up and miss a payment or dont pay in full, they charge you interest based on your daily balance or the average daily balance, not just on the amount you're overdue on.
@SpookyBibi243 күн бұрын
Ok so I never had taquitos. I'm debt-free, can I/should I try some? Cause all this taquitos talk is giving me a craving!😂
@mjp2palmtree Жыл бұрын
I've actually wondered about this, thanks for clarifying.
@seanthomas24424 ай бұрын
Genius love her ❤❤❤❤❤❤❤❤❤❤
@julia_69242 жыл бұрын
In short, she’s saying the amount reflected on your bill for this month is for last month’s purchases and you should pay it off in full by the due date stated on this month’s bill… which is what most people do so idk why she has to make it sound more complicated than it actually is.
@alisong71202 жыл бұрын
I get to explain this about 5 times a day. Especially that the due date doesn't change, people confusing their billing cycle days that can change month to month depending on how many days a month has. Also the fun part of explaining that last bit of interest when they pay off a balance when they are out of grace.
@LUNUSt Жыл бұрын
Unless your bank charges interest on the closing date, aka non-interest saving cards. Bank of America cards work like this. They also charge residual interest, so if you make $10,000 in purchases in your statement period and pay $9999.99 leaving a $0.01 balance on closing, they'll charge interest on all of that $10k as if you paid nothing. Chase cards are interest saving btw, as are PNC cards. As far as aware neither charges residual interest either.
@MsLady-sd6pz2 жыл бұрын
Keep you credit with your payment means. Pay it off (entirely) on time. Your availability of funds will be raised usually every 12 months. Usually close to the Xmas holidays. With hopes of you using all you funds. Interest is how credit cards stay afloat
@STMARTIN0092 жыл бұрын
Exactly. They need to teach this lesson in high school
@surveytestmoney2550 Жыл бұрын
Ok. I had a *0* ball after I used my card Aug 12th thru Aug 25th. My due date is Sept 2nd and I spent 1k. This will be paid off *in full* either today Aug 28th or tomorrow but BEFORE Sept 2nd. It will soon show that it's due to be paid for what *I JUST SPENT* in Aug. Not requesting Aug spediture payment in October!
@LovelyLady1111 Жыл бұрын
I figured this out like a year ago and unnecessarily would be paying my entire balance off 😭 but now only pay for what I have to, AKA the statement balance!!