so as soon as i get the bill pay it and leave a balance of $5. at what point do i pay the $5 then?
Thank you so much for this video it was so helpful! I can't wait to build credit the right way now with my secured card. And see improvements.
So I just got a secured credit card for $200 and I plan to use about 17 bucks a month on it. So do I only pay say 90% of the "Minimum Payment Due"? – I hope i made sense…
Does keep a small balance mean, to pay all of it plus $5-10 extra? Or pay most of it with $5-10 owed and carried over to the next month? Confusing, I was under the impression that you use 150 and under for a 500$ credit card, and pay all of it back to get your credit score up.. please elaborate. Thanks for the great video!
i need help my credit is too low now n i b paying all my payment 2 to 3 months ahead why is still super low
I do uber full time and I use the uber gas card that they gave me it's only a debit card and it's not building my credit . And I spend about $100 a week on gas so if I apply for secured credit card from Capital one how should I use the card if I'm spending around $400 a month on gas ?
The system is BS. I have paid off all my cards, own my home outright, cars are paid for and I have ZERO debt which is more responsible than people that have cards. It's a BS system. I have a 0 credit rating. I don't need loans etc, but I shouldn't be penalized because of it.
so I am tryng to raise my score I have a fingerhut accont and is getting a secured card with a 2oo dollar limit am I moving in th right direction
So if I get a card of $200 then I spend $50 (25%) a month . Then I pay $45 the day I receive the bill. Do I just leave that $5 and not pay it at all ? I'm not understanding. What should I do with the remaining balance?
OK So help me understand what i should do… I recently applied and got approved for a $200 secured open sky card. My credit score rose 30 points in a week. I Recieved the card this past weekend but didn't use it and i logged into my account and it shows my statement balance of $35 (18% utilization) then the minimum payment of $35 due by Oct 28… So should i pay it down to $34 or $33 bucks by the payment due date and leave 1-5% to report then pay it off by the closing date or should i just make the full minimum payment? All Answers Welcomed
I've worked at a financial institution for 8 years and I tell every member to pay off their balance in full each month. As long as you stay under 25% of your limit and make your payments on time, I promise your score will increase. Will it increase faster if you leave a small balance? I can't say. But what I can say is that I've never paid a penny in interest and I've gotten hundreds of dollars in cash back and free plane tickets and the credit score is A+. https://youtu.be/A47e1oxBYlU
Thank you so much for taking your time to make this video. It helps a lot!
Added an update to this video see it here https://www.youtube.com/watch?v=fUnHSlKJhK8
Get a Secured card and buy something for 20 bucks every month. When you get your bill then just pay it so it shows your using it. Also if you have collection accounts on your report that have been paid I would dispute the accounts. I have found out that on debts that have been paid they get removed rather easily because the collection agency have got paid and they don't bother with it and don't care if it gets removed. If you have debts you haven't paid do a pay for delete with the collections agency. It doesn't help much if you pay a collection account that is like 3 years old if they wont delete it from your report. I got 22 items removed from my credit report in 6 months by writing dispute letters. Lastly when your credit gets build up try to have a nice mix of credit such as 2 credit cards, car loan, mortgage loan. keep your oldest accounts on file and pay everything on time and your credit score will be perfect in no time.
Quick question.. Just started using credit. I have a capital one secured credit card with a limit of 200 dollars. Here is my question.. On average I use about 100-200 dollars a week on gas and I been using my card for all those payments. But I do pay off 80%-95% every week. Is making several payments a month a bad idea??
Yes my teacher told us to always pay more and on time!!
This method works. If you have bad credit, just do it. After your credit is above 700 then question the method. I know this works. I did it and my score improved dramatically in just 1 year.
Hello Michael. Can you help with a question, if you do not yet need a credit card because your not really buying anything, should you still get a secured credit card? Or just leave the credit as is at zero, and completely un touched?
Thank you for you advice and sharing your expertise. Here is where I think no one has mentioned yet with the small balance left unpaid. Your card has an APR Annual Percentage Rate. You are going to leave a balance so you pay something to the bank, even if it is nominal. Sounds like that's a trade-off. They make a bit of profit with you verses the paying your bills with the grace period option. In that case, your proactive payments make them no money. Ok lets use $500 as our limit. You suggest use 30% of the limit then pay of most of it. This balance for sake of discussion is $5. So I paid $145 on my billing statement. The $5 left is now subject to the APR and lets just say that it is 20% so then your bill is $1 more and now the balance is $6. Now use 30% next month and pay all but $5 again. The bank is actually making $1 on your use of the card, Is this sound logic? Thoughts?
omg this information was amazing and also true!!! thanks
Hi, I recently applied for a secured credit card and I have been using it properly but last weekend I used 289 dlls out of the 300 dlls limit but as soon as the balance reflected the 289 dlls on my online statement I paid 200 dlls and brought it down to 90 dlls. Would that specific move affect my credit in a good or bad way based on your experience and expertise? Thank you.
I seem to get the same question over and over, and because of this I will do a new video before the end of this month, but here is my short answer. I am not certain why the scoring mechanism treats a zero balance as neutral (meaning you get no positive or negative points added) all I can tell you, after hundreds of my clients have employed this tactic of leaving 10-20% of the limit on the card when the creditor reports the balances to the bureaus, these clients get a significant boost in their scores. When a client comes to me and needs to get a bump in their scores and has a zero balance, I encourage them to use the card to get gas, or take spouse to dinner, put something, a small balance on the card. When they make the payment, leave a balance, the results have been consistent and positive.
Great Video!You're a Great Man Mike!Great American!God bless you!
thank you thank you!
Hey michel so i got a secure cc for about 3months now and its 300$ i been uising the whole 300$ every month and paying it off to 0$ so i should only spend 30% of the 300$ and then leave it at a balance of like 10$? So after i do that do i still keep using the card or do i wait till the next month to pay off the 10$ im lost at this wich im kinda new to the credit score stuff hope u can help thanks
It's a great question, I am not sure why the zero balance doesn't help, but time after time, when I see this, it appears that the low balance is neutral regarding the scores, it doesn't help, nor does it hurt. At 10% of the limit, it definitely has a substantial positive affect. The sinical side of me wants to say that the credit providers do not want to reward zero balances, but I have no proof that is the case
Why doesn't paying your credit card bill to zero does not increase your credit score? I've read elsewhere that it is good because it shows that you can borrow and pay back on time, thus improving your credit score.
Nice tips to boost score. Will look forward to more videos from you Michael!
secured credit cards are indeed a great card to rebuild credit.
Thanks for the Video upload!