Tips for better credit card usage and habits | HOUSTON LIFE | KPRC 2

caption when it pertains to shopping often it'' s simply so difficult to say no to a bargain however utilizing your charge card method excessive can have a negative impact on your credit rating here to inform us a bit more about high utilization rates and avoid us from harming our credit is Private Wealth Advisor with the me reprise monetary trevor shaquita fantastic to see you great to see y'' all alright let ' s jump right into it just what is credit card utilization yeah I got ta confess I found out something entirely brand-new here and I got to give credit to our outstanding producers Carlos in particular Aaron who sent me this article from the compare cards dot-com blog cuz I actually wasn'' t familiar so the very first thing is what is an utilization rate and so it ' s the contrast of your balance to your real credit line so if you have three thousand dollars in charge card financial obligation and your limit is ten thousand you would have an utilization rate of thirty percent and undoubtedly the lower the much better and when you say the lower the much better I indicate the basic general rule is that once you overcome that thirty percent mark Trevor that'' s where individuals truly start to see their credit history being impacted simply how just how much does this rely on a credit score it'' s substantial it'' s the second greatest consider impacting your credit ranking first is undoubtedly your payment history that makes good sense however when I when I checked out this I didn'' t recognize how much it can impact it and how quickly therefore Houston unfortunately has the fifth greatest charge card utilization rate and we have approximately $5,500 typically per charge card in Houston so we'' re not the worst however we have great deals of chance to improve alright and there you go how do we enhance it so the very first thing is obviously you desire to get that rate down and the most convenient way to do that is to pay down your balances goes without saying right so they do they do desire you to keep it under 30% that'' s what the specialists say I suggest attempting to keep it at no undoubtedly right but do anything and whatever to get those charge card to zero because remember what we'' re constantly talking about here is constructing wealth accomplishing your financial objectives like retirement education preparing the greatest to building wealth is high interest debt in specific charge card financial obligation yeah and now I indicate it appears like with many credit card companies there are these online tools you can see and click if you just pay the minimum a balance rather of taking a year to pay off it can take like 30 years to pay yeah right so pay more than the minimum every month pay more than the minimum and believe outside package I imply I'' ve seen individuals that have actually offered things that you put on'' t requirement every dollar counts to actually pay down those balances all right so another point is which is type of fascinating just looking at it says increase your credit line yeah initially when I check out that I thought do I really want to say this however look it boils down to math and so it makes sense so in my example formerly if you had a 10 thousand dollar charge card limit or financial obligation limitation if you increase that to twelve then your utilization rate went down to quarter what I discovered fascinating is that sixty five sixty 4 percent of card holders that asked in fact received an increase in the average increase was more than 2 thousand however here'' s the point if you do that don ' t just increase your debt that limitation if you follow that ideal yeah and you'' re you ' re increasing it to work those numbers precisely and Trevor your last point is that sometimes including another car to your wallet yeah well this one really had the bells and the alarms going off since I put on'' t desire to say this at all however again it simply comes down to mathematics so if you get another card and you'' ve got lower balances overall on all of those cards then naturally your rate boils down the other fascinating thing here that you could benefit from is the 0% initial offers so you'' re playing a little game but again if you'' re trying to get your rating up that'' s a truly easy thing to do those 2 but of course 0.3 is the most crucial paying those cards down right truly try to pay for that financial obligation and then put it put that money to work somewhere else pay down the debt and stop investing Trevor it'' s constantly great to see you and as constantly if you all would like more information on financial preparation or if you'' d like to arrange your own complimentary preliminary consultation with trevor and they should keep a group you can call to 8 one 7 two four nine one 7 or visit them online at the chicago group commAs discovered on YouTube – Creative Commons License

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