Credit Card Utilization Explained | How To Increase Your Credit Score

My verify report has me at 98% utilization, should I pay everything off?

if i use 5% of my credit week one and pay it off the second week, does it reset so i can use another 5% on the third week while keeping the utilization at 5%?
edit: another question, do i pay off the utilization before the due date or do i let the statement go as 5% used then pay it off after they took a look at it?

I signed up for an app called Kikoff. They gave you a credit limit of $700 and they automatically charge you 60 and then each month you pay five dollars so that way the credit utilization is around 5% at all times

I paid off 90% of my credit cards and kepping that utilization to 10%. Also added a credit line of $2500 to help me along the way with utilization. Definitely aiming for 3% -7% utilization to gain more leverage.

Love the info thank you

thankyou I will do it

Amazing!

So... common miss conception here.. in your 30% rule, you can go over that 30% all day long wihout issues with your credit.. it depends on your statment date. If you use 600 dollars, pay it to 300 before your statment date, then when your statment date gets posted, immediately pay it to 0 so you don't get hit by the interest.

Your a great guy
A great video
Thank you 🎉👍🏻💯

Makes a lot of sense to me brother. I have credit cards total. I make sure all of them are about 3% to 0% paid off. So my overall utilization is almost under 5% every month…I get about 6 points to 12 points monthly and now have a 774 score. It works.

Great stuff 💯

Awesome concise explanation! Thanks man!

Thank you I'm a beginner with credit cards. This helped a lot! Most people just say keep it at 2%-10% but dont explain how much money that is in their example. I know its self explanatory but I'm not the best in math, so I just want to make sure I got it right with the actual dollar amount at the end.

Very good job

So if I got a secured credit card with a $200 deposit/credit limit, do I still keep that 10% credit utilization? That’s $20. Can’t put gas or pay any small bill with that. Do you still have to keep it under 10%.
So buying a bottle of water every month even increases your score?

You are the only who explained it correctly and very clearly, thanks bro🎉

You should explain more about the difference between statement close date and the due date. You can max the card out within the billing cycle, as long as you can pay it down to 5 - 10% a few days before the statement close date. They you pay the rest off during the grace period before the due date. That way you can still get your CLI while not hurting your credit score or pay ridiculously high CC interest rates.

Wow! your explanation is great. You broke it down and made it easy to understand. Thank you so much.

You’re the man, bro. I hope your channel blows up. Thanks for the valuable information.

You say to NOT spend more than $300[based on your '1000/30' ratio] on "any given credit card." I'll make this short...Spend the F*** out of a $1000 limit...just don't get billed for it! Every credit card has a due date for a minimum payment. Pay your 30% A FEW DAYS BEFORE that date(sometimes a payment via a bank or 'whatever' doesn't process for 2-3 days), and your golden. I, personally, can help you raise your score 100+ in 12 months. I have done it multiple times(cuz I don't really care, it's just a game; an easy game to play). NOTE: I'm not here to solicit information. I just don't like it when people do not give proper information. Maybe you don't...didn't...know this, but now you do. I'll reiterate, If your limit is $1000, then you only need to be BILLED for $300, if you want to make your 30%. I personally think this is lazy. However, I say 20% is key if you want to go all-around. jus sayin...

So if I use only 5% of what my credit card has my score has a much better chance to increase?

Nice breakdown..... The one thing additional thing I would've liked to hear you say is that people need to know that utilization is BOTH aggregate (all of the cards that we have) as well as EACH individual card. I can have 6 cards great, but if I screw that 7th card up, I can get with a score decrease despite the fact that my overall utilization is great.

This is the best explanation about credit utilization that I've come across. It is explained with simplicity.
I know God sent me here.
Thank U.

❤🎉❤🎉 wow I understand 👍 how you explained it. Thanks so much King

I just started velocity banking using my lines of credit with my credit cards. I'm mind blown by the concept.

If that $1,000 card is your daily driver, spending only $50 is unrealistic. If you pay it off or down before the reporting date, the banks see that you actually use your card and make payments way above the minimum, this is when you see credit limit increases. How many times have you seen credit limit increase denials because of not using the current limit? But I get what this Bruh is saying.

Awesome video, I have a question though.
If my limit is 1,000 can I spend $300 (or more) pay it down to $50 before end of cycle, and then pay that $50 on time and still get 5% utilization?
I ask because I want to maximize my cash back and also get the best credit utilization, my first card ever comes in at the end of the week!

Definitely not the most informative video on this topic.

What percent do you recommend

So this is were it gets confusing for me, whether I should pay the balance off in full or carry a balance under 10% ?

Why is maxing out the card a negative? The reason i ask is that one of my cc said I wasn't utilizing the card enough so they wouldn't give me a limit increase. As long as you pay off or within 1-4% before closing date it shouldn't affect your score. Why do lenders frown on this?

Ok if 5% is elite what's 1%? $ 4000 dollar limit and $40 dollar used,

Hello from Oregon, looks like I'm on the right track. Thank you for the review, new sub!

Say for example, I had 5 credit cards and I go over 30% credit utilization on one card but under 10% on each of the rest of my cards. Do credit reporting agencies just take the average of all of my credit cards’ credit utilizations? In this case, my score would actually go up?

Hey man great video and very interesting example as my first credit card has a limit of actually 800$ 😅 I want to buy a new phone but according to your advice I should postpone that once my limit is increased, or should I call the bank up and blatantly ask for a higher limit? Thanks

Can I increase my balance weekly $100s but still pay within my utilization %?

Big dog I just got my first credit card 3 months ago, I was swiping the hell out of it not knowing nothing with a 500 credit limit, but I stayed on top of paying it off in the 30 days .... What's ya thoughts or any advice, I prolly went up 30 points in 3 months

Going just a bit deeper....I am curious if there is any difference in credit scores if, for example, I maintain my utilization at, for example 5% over the course of many months, or if I mix it up and then go to 4% or say 6%? I'm assuming 🤔 I'm doing a bit of overkill here, but there's so much time in a month, and since I treat my cards as if they were debit cards, never charging more than I have in the bank already, I am wondering if there's anything else utilization wise that I can tailor like a well fit suit such as 5 4 3 2 1 percent over consecutive months or if it just simply doesn't matter 5 or less hmmm. I've only had cards for about 8 months now trying to establish the best credit score I can and so nobody had ever really discussed exact utilization if it even matters.

Very good info sir 👍! The thing I've always been unsure of is... I keep my utilization at 1% religiously on all 4 of my cards (for snapshot day on each card), and then I immediately pay them all in full down to 0 after the statement has been released and repeat for the new cycle. I went from 530 up to 742 in just 7 months, however I want to be as greedy as I possibly can about my best possible utilization for the purpose of best possible credit scores and so I am wondering 🤔...It is the same impact on my scores at 5% as 4% or 3%? Is 1% truly the best since something small is being reported, or is it actually better to be at 5%? I'm looking for the ultimate sweet spot. I keep each card mathematically exactly at 1% each for each credit limit, and if I ever go over, I pay it after each purchase long before snapshot day as to keep everything religiously at 1%. Is this any better or worse than 5%? Since I have the convenience of apps for each card it is so easy to keep my balances at exact percentage levels, but I'm wondering if 5% is gonna be better than 1% or if it just doesn't matter? I always like to make multiple payments per cycle for each card, and since I can easily keep them all at a very specific percentage, what's the difference between 1% or up to 5%? Is there even any difference at all? I'm very curious.

Great information brother 🦋🌞💪🙏🪷🧘🏽‍♂️🛸♾️🌍

Hello, I came across this video and I shared cause I feel like it can help my friends. They don't understand and unfortunately didn't listen to me years ago. I'm at a 740 and omw too 800. How can I get no doc loans to start a business ? Thanks