I Found The Best Day To Pay Your Credit Card (INCREASE CREDIT SCORE!)
This is how you need to pay your credit card so that you too can be a credit ninja increasing your score by over 100 points whenever you want to.
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How to be a credit ninja 0:00
Credit Card Statement Explained 1:10
Manipulate your Utilization 3:32
I Found The BEST Utilization 5:40
Perfect Payment System 7:39
If this doesn't work for you 8:04
By the end of the video you will understand exactly how to increase your credit score over 100 points just like I did, how this is even possible, and the BEST strategy for how to pay your credit card to trick the credit bureaus into giving you almost whatever score you want.
First we look at my Chase credit card statement, all statements are legally required to show the information we will be talking about but it might be organized differently on your statement.
First number is the new balance or the statement balance, this is the KEY to the entire strategy
Next, minimum payment, this is how much you would have to pay to avoid getting charged with late fees.
Payment due date this is when your payment, for this bill, totaling $2,593.48 is due. If you don’t pay this balance by this date you will owe interest.
Previous Balance, this is how much my last statement balance was.
Payments, credits, this is how much I paid off since my last statement.
I also made 12k in purchases which gives me a total of $2,593.48 for my NEW BALANCE, which again is also at the top of the statement.
Opening and closing dates, this is another important date you will need to find on your statement. This shows what date range this statement relates to. eThe last day here is called the statement closing date or just the “statement date”
The months are also important to pay attention to here.
I have seen a lot of people misunderstanding this strategy because their statement date was on the 3rd of the month, and their due date is on the 28th. The statement date has to come first, it’s just corresponding to the prior month.
Another important number here is the TOTAL available credit or credit access line. Here it shows mine is $34,400. This is what my limit is on this credit card.
And the last number which is most important but not listed anywhere on any statement is a ratio of your current balance to total available credit. Diving one by the other you get a percentage, in my example it’s 7.5% and this is called your credit utilization rate.
One of the main things the 3 major credit bureaus pay attention to is your credit utilization rate. It makes up 30% of your credit score. They will see a high utilization and drop your credit score.
The solution is to pay your credit card a certain amount twice per month, once before the statement date, and then pay the rest before the due date.
Since credit bureaus only see your statement balance when considering your utilization rate they are blind to what goes on the rest of the month. By paying down your credit card balance before that statement date you can create whatever utilization rate you want.
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None of this is meant to be construed as investment advice, it's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.
Пікірлер: 57
I am officially saying KZread is better than school. I have learned soooo much more than school ever taught me with KZread.
Whats important is "BEING RESPONSIBILE WITH OUR CREDIT, AND THAT GOES A LONG WAY."
Really liked this video. You don't know how many times I pause/play to understand and write notes. Thanks for the energy you put in it.
I love the video. Paying tice a month ins very important, and not just paying twice, you have to pay at a specific time and make sure you always try to pay MORE than your minumum.
@richardn.christensen2394
2 жыл бұрын
I had an EVICTION JUDGEMENT -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- and quite a number of other negative items on my report with a low 400's CREDIT SCORE. These prevented me from getting a mortgage until I starting looking for help. After he finished working on my REPORT in just 14 days, my CREDIT SCORE increased to 780, all the negative items on my REPORT were deleted permanently and he added good trade-lines to boost my credit mix (Mortgage trade-lines, Installment trade-lines, Revolving credit cards and Auto tradelines) on my report, I got the mortgage and that was phenomenal! ,thanks to Michael Gibbs ---[Gibbs@creditpatchup.com]--
@jarenspeck6448
Жыл бұрын
Paying twice? You only have to pay once. As long as you pay it down before they report to the credit bureaus. Paying more than once does nothing.
Thanks and i love you helping the people out with credit
Heyyyyy Daniel 👋🏽 !!! I appreciate the time and effort you take to create your content. Your videos are always informative and your teaching method is so simple that anyone can learn! Thankkkkk you 😃💛👏🏽
@DanielIles
2 жыл бұрын
Thank you so much!
Yeah the 30% utilization is kind of a lie. Ive seen it drop to under 700 with 30% utilization. Under 10% is a much better target. Under 5% got it up to a 770. Aveage age of 1.5 years, 15 accounts.
very helpful for a teen like me to understand about money
Editing is insaneeeee
Awesome content!!
@richardn.christensen2394
2 жыл бұрын
I had an EVICTION JUDGEMENT -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- and quite a number of other negative items on my report with a low 400's CREDIT SCORE. These prevented me from getting a mortgage until I starting looking for help. After he finished working on my REPORT in just 14 days, my CREDIT SCORE increased to 780, all the negative items on my REPORT were deleted permanently and he added good trade-lines to boost my credit mix (Mortgage trade-lines, Installment trade-lines, Revolving credit cards and Auto tradelines) on my report, I got the mortgage and that was phenomenal! ,thanks to Michael Gibbs ---[Gibbs@creditpatchup.com]--
really great
Hey Daniel how do you feel about the Discover it card as a first credit card to start building your credit?
@DanielIles
2 жыл бұрын
I think it is one of the best first credit cards out there! The secured version is almost guaranteed to approve you and it turns into a regular credit card (and gives your deposit back) after a few months of good use!
@dariovictor6409
7 ай бұрын
I started with a Discover secure $300 credit card. Every month before six months. They kept reminding me to use it properly and after 6 months I would be eligible for a non secure card and refund. Sure enough after 6 month got my $300 back and graduated to a $1800 regular card. Now is were all strategies come into play. They will no longer guarantee a credit increase every 6 months. They may do it periodically but you have to ask for increase. Definitely keep it way below 30% utilization ✌️.
I’m not sure if you made a video about this, but are credit cards good for buying houses/house hacking something I don’t know much about
0.6% utilization rounds up to 1%.
Nice
So if you paid almost the money you used before the closing statement and leave let’s say $100 bucks and paying it before the due date to keep it under 7% and start a new statement cycle and then you use your credit card again would be adding that amount on the due date or for the statement cycle?
Not very clear that this only helps people that can afford to pay the majority of their balance off every month. Also, you can call the cc company and just ask what day they report to the credit bureaus and pay it before that day.
Hey daniel what do you do when youre past the statment date do u just pay the whole thing on the payment due date
My my due date is 23 and statement date is 25/26. I’ve been paying the current balance in full few days before due date and try not to use the card until the closing day passes. So my balance statement always stays at $0. Have I been doing correctly? My credit score has always been around 720-750. But it never increases to 800! Is it better to have a little more in balance like +2% -9%?
So my due date is 11th and closing is 14th month prior…. How would this work?
@GoInGcRz
Жыл бұрын
I know this is a month old, but from my understanding, the Opening/Closing Statement covers the previous month's history, because most credit card issuers offer a "Grace Period" on their cards (There are some that don't, so make sure to ask about it with your credit card issuer). Basically, it has nothing to do with your due date, which only covers the current month. This is why the Closing statement is always first, because it covers a specific time period (In this case, its always the previous months worth of transactions). Lets say I have a Discover card, which has a Grace period of 25 days. My Opening/Closing statement on my bill is from Apr 28 - May 27, and my next payment due is on Jun 22. I will be paying for my cards usage during May 28 - Jun 21. *MY TRUE OBJECTIVE* however, is to have my balance in that sweet spot of 9% or so *BEFORE* The closing statement arrives again on Jun 27. This is why Daniel Iles recommends you pay before the closing statement, and then before your due date, because it is the best strategy to avoid Interest charges/missing a payment, AND it keeps you in that 9% threshold for the Credit Bureaus. Of course I am just learning like you are, so I could be mistaken, but this seems to make the most sense to me after looking through my history.
@monkeybingo373
Жыл бұрын
@@GoInGcRz I still don't understand, say if my due date is Nov 25, my Closing Date is 28, my statement balance is 40, and current balance is 90, I would pay 40 bucks before the due date so Nov 24, then I would pay around 45 bucks before the closing date nov 28?
@GoInGcRz
Жыл бұрын
@@monkeybingo373 If paying off that amount leaves your Utilization rate at 9% or slightly below, then that is correct. Paying your "due balance" is just to cover the amount owed so you don't get charged interests, but ensuring your Utilization rate is 9% or so is your main priority. Lets say my credit is $2000, the balance $1000, and my monthly payment $50. My $50 dollar payment is only relevant to what i'm supposed to pay every month. After paying, my balance remaining is $950. Since my Credit Line is $2000, I want to ensure that I pay off the remaining balance so that it shows I only used 9% of the Credit Line before my closing statement date. I already know that 10% of $2000 is $200, so that means that my remaining balance needs to be at around $180 so it shows 9% Utilization rate, and 150 so its the 7.5% Iles recommends.
@monkeybingo373
Жыл бұрын
@@GoInGcRzok thanks for the response
How many days before the statement date and due date?
Question ❓⁉️ How Do we look @ Our Points & Scores Every time we purchase like U do!!!!! Each Month!!!!
I ran my credit card to 90% the limit on two cards and I payed them in full before the due date and it dropped my credit 120points 😢
@mikeeverett1282
Ай бұрын
Did you payment before the statement close date? The statement due date is what is sent to the credit bureau
What service allows you to see these changes like you have with dates and changes over time listed as you have🤔
@DanielIles
2 жыл бұрын
That was my Chase banking app.
wow thank you! but my statement date 3/10 and my due date is 3/4. so i’m confused
Does having multiple credit cards affect credit score?
@DanielIles
2 жыл бұрын
Yes! Often more credit cards and more available credit will improve your score. You may see temporary drop in credit score after applying for a credit card due to the average age of account being 0 months and likely a hard pull on your credit. However, after six months the benefits outweigh the short term drop. I have plenty of videos explaining this and way to get around the temporary drops on my channel!
I normally keep my utilization at perfect 0%….. is that a problem? I purchase things normally but pay it off almost immediately… I have not seen my score go up for a good long time now. I did apply for a new card and got approved, after the approval my score did bumped up a tad bit but not much… idk what’s holding back my score. Everything is paid off and I use a few of my cards regularly… I just don’t get what I’m doing wrong? Is too perfect bad? 😑
@justinrivera4193
2 жыл бұрын
you have to give it some time before paying, if you pay it instantly the credit bureau might not even see you made a transaction and payed it, thus not raising your credit
@trev5434
5 ай бұрын
Yes that’s a big problem
So my Statement closing date is 23/24 but my due date is 18! So I need to pay before 18th once and then literally within 3 days I need to pay again? 🧐
@DanielIles
2 жыл бұрын
They correspond to different months. Statement date 23/24 due next month on the 18th
After I make my payment before my ending date and then pay off the rest b4 my due date then when do I charge something again??
Just to make sure. All I need to worry about is the new balance total correct?
@DanielIles
2 жыл бұрын
Total balance on the statement date, yes
I have a question lol 😂 it’s about credit
SO If my Due date is the 28th of every Month, I should Pay it off or pay it down as much as possible AND if my Statement CLOSING date is the 3rd of the following month, I should Pay it OFF or down as much as possible on the 1st of every month because on the 3rd it reports to the (3) credit bureaus and on the 4th starts the NEW period ? Is that correct?
What's the minimum payment if you leave a credit card balance of a penny?
@1230james
Жыл бұрын
Probably just the literal 1 cent, then.
Okay so I’m really confused my statement was on sept 25 -oct 25 and due date nov 19 meaning My next statement shud come out nov 25 and I have to pay X amount of money before the 25 enough for it to be 9% and then on dec 19 I would just pay the rest of my balance off?
I took the most roundabout way of learning this possible 😂 The first credit card I opened was the Amex Gold, which doesn't have a credit limit & I thought "wow that's sweet!" only to learn that because of that it doesn't help improve my credit score. So then I opened a Chase Freedom Unlimited with a $500 credit limit (lol), used the 30% trick and that did absolutely nothing for me. The next statement I was like "OK I'm going to keep utilization under 10%" and after that my credit score jumped 50 points. So ya, the 30% thing is a lie.
@usercreated
2 жыл бұрын
Try 9% and under
The Great Credit Card Scam. Debt is the new slavery. Coming soon, your Social Score.