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Credit Card Utilization: How to Build a Strong Credit Profile · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will.
• 0:57
  Speaker 2: Be protected sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: So when it comes to using your credit card. When
• 1:04
  Speaker 3: it comes to using your credit card, most people think
• 1:05
  Speaker 3: that utilization depends on your usage, and it doesn't. It
• 1:09
  Speaker 3: just depends on what you carry over and I'll explain it.
• 1:12
  Speaker 3: Utilization is only reported one day a month, so it's
• 1:15
  Speaker 3: on your statement day, which is the last day of
• 1:17
  Speaker 3: your billing cycle. Matter of fact, everybody who has a
• 1:21
  Speaker 3: credit card needs to look at their credit card statement
• 1:23
  Speaker 3: and find their statement date.
• 1:25
  Speaker 4: It's the last day of the billing cycle.
• 1:26
  Speaker 3: That date is so important because whatever balance that you
• 1:29
  Speaker 3: have on a credit card, that is what's going to
• 1:31
  Speaker 3: be reported to the credit bureaus and also used as
• 1:34
  Speaker 3: your utilization. Your statement date is different from your due date,
• 1:37
  Speaker 3: so most people get confused because your due date is
• 1:39
  Speaker 3: going to be before your statement date, probably like a week
• 1:42
  Speaker 3: or two prior. So even if you page your credit
• 1:45
  Speaker 3: card bill down to zero by your due date, if
• 1:47
  Speaker 3: that balance is not still under ten percent by your
• 1:50
  Speaker 3: statement date, then it's not going to be counted as
• 1:53
  Speaker 3: your utilization.
• 1:54
  Speaker 4: It's not going to be reported to the credit bureaus.
• 1:56
  Speaker 3: So knowing identifying when your statement date is, and making
• 2:00
  Speaker 3: sure that you pay your balance pay off at least
• 2:02
  Speaker 3: ninety percent of whatever you spent during the month pay
• 2:05
  Speaker 3: off that balance, then you'll be good because, like if
• 2:08
  Speaker 3: you have a five hundred dollars credit card, you can
• 2:10
  Speaker 3: use the entire five hundred dollars. You don't have to
• 2:12
  Speaker 3: stay below thirty percent or ten percent. You just have
• 2:14
  Speaker 3: to make sure you pay it back within that same
• 2:16
  Speaker 3: billing cycle, which is which is key.
• 2:19
  Speaker 5: Okay, So what are the first steps to building good
• 2:22
  Speaker 5: good credit history?
• 2:24
  Speaker 4: Okay?
• 2:24
  Speaker 3: So the first steps I would say is, so I
• 2:27
  Speaker 3: have a basic base level credit profile recommendation for everyone. Right,
• 2:32
  Speaker 3: I say that if you are wanting to build credit,
• 2:35
  Speaker 3: but like build a healthy credit profile that will continue
• 2:40
  Speaker 3: to grow and kind of set you up to get
• 2:44
  Speaker 3: high credit offers and low interest rates and all of that.
• 2:47
  Speaker 3: The base level credit profile, everyone needs at least two
• 2:51
  Speaker 3: credit cards. It needs to be at least two revolving
• 2:53
  Speaker 3: credit cards, right, doesn't matter, the limit doesn't matter. If
• 2:57
  Speaker 3: it's subprime, it doesn't matter. If it's secured. You can
• 2:59
  Speaker 3: literally get two hundred dollars credit cards, right, make sure
• 3:03
  Speaker 3: that you keep that utilization every single month, you keep
• 3:07
  Speaker 3: that utilization below ten percent. Right. And then because we
• 3:11
  Speaker 3: have to hit a limit of we have to hit
• 3:14
  Speaker 3: at least four accounts. Two of them will be credit cards.
• 3:17
  Speaker 3: The third account needs to be a short term installment.
• 3:20
  Speaker 3: A short term astabtment is just any installment under thirty
• 3:22
  Speaker 3: six months self kickoff.
• 3:25
  Speaker 4: They're every bank.
• 3:26
  Speaker 3: Pretty much offers a credit builder loan and then if
• 3:30
  Speaker 3: you can get a long term instopment, So if you
• 3:33
  Speaker 3: have a student loan, if you have a car loan,
• 3:35
  Speaker 3: if you have a mortgage, those are considered long term installments.
• 3:38
  Speaker 3: So if you already have those, you don't need to
• 3:40
  Speaker 3: apply for another one. Just focus on the other three
• 3:43
  Speaker 3: accounts and having those four accounts to being credit cards
• 3:46
  Speaker 3: to being installments short term and long term. It's going
• 3:49
  Speaker 3: to and not applying for anything else. I want to
• 3:52
  Speaker 3: be clear, do not apply for anything else after you
• 3:54
  Speaker 3: get that those credit those accounts. Don't apply for anything
• 3:58
  Speaker 3: else for six to nine months, and you should be
• 4:01
  Speaker 3: able to get pretty much any credit card that you
• 4:03
  Speaker 3: want consider if you pay it on time and you know,
• 4:06
  Speaker 3: of course, make sure you're not getting collections and other things.
• 4:09
  Speaker 3: But yeah, that's the perfect credit profile that speaks to
• 4:13
  Speaker 3: the credit scoring algorithm and will allow your credit score
• 4:16
  Speaker 3: to grow at the at the most rapid pace.
• 4:18
  Speaker 6: Would you put the buy now, pay later companies into
• 4:22
  Speaker 6: that short term right like the affirms of the world.
• 4:25
  Speaker 3: So it depends because I see a lot of those
• 4:28
  Speaker 3: on credit reports and I'm glad you.
• 4:29
  Speaker 4: Brought that up.
• 4:30
  Speaker 3: A lot of those people are getting them too often,
• 4:33
  Speaker 3: like they'll they'll finance a two hundred dollars purchase.
• 4:36
  Speaker 4: Any loan under two hundred dollars just looks like a
• 4:39
  Speaker 4: low level loan. It's not.
• 4:40
  Speaker 3: It doesn't feed the algorithm of the credit scores. They
• 4:43
  Speaker 3: pretty much kind of look down on that, right. Like
• 4:46
  Speaker 3: so if you're applying for crediting and your lender sees
• 4:49
  Speaker 3: a lot of those by now pay later accounts and
• 4:53
  Speaker 3: low level is what they call low level accounts, that
• 4:56
  Speaker 3: almost regardless of what your score is, that that's almost
• 4:58
  Speaker 3: to your detriment because it looks like this person is
• 5:01
  Speaker 3: not financially stable.
• 5:04
  Speaker 4: A lot of people don't realize that.
• 5:05
  Speaker 3: Their score doesn't tell like their score is just for
• 5:09
  Speaker 3: a consumer. Really, when it comes to your lenders, they're
• 5:12
  Speaker 3: looking at so much more than your score, Like there
• 5:14
  Speaker 3: are so many other determinant factors of if you're going
• 5:17
  Speaker 3: to get approved for a car to a car over
• 5:20
  Speaker 3: your score, Like your score tells them nothing because you
• 5:23
  Speaker 3: can fossly inflate your score. People by trade lines all
• 5:26
  Speaker 3: the time and things of that nature. When it comes
• 5:28
  Speaker 3: to your credit profile, doing things like that. I would
• 5:31
  Speaker 3: not recommend, not in the beginning. Not unless you have
• 5:33
  Speaker 3: an established credit profile with years of credit history, then
• 5:37
  Speaker 3: you can kind of afford to have those accounts.
• 5:40
  Speaker 5: So okay, So what's the best ways to use credit
• 5:44
  Speaker 5: cards to improve your credit score?
• 5:46
  Speaker 3: Yeah, credit cards are my favorite because, like I said,
• 5:48
  Speaker 3: they're like the only accounts that have in I media impact.
• 5:51
  Speaker 3: Like when you get a loan, you're not really going
• 5:53
  Speaker 3: to see you don't really see the positive benefits of
• 5:57
  Speaker 3: a loan until you're at least ninety percent. So most
• 6:01
  Speaker 3: people will get a car long and they're like, I've
• 6:02
  Speaker 3: been being my card on time.
• 6:03
  Speaker 4: Why is my.
• 6:04
  Speaker 3: Score not increasing? Is because you're very early into that loan.
• 6:07
  Speaker 3: Right when it comes to credit cards, you can see
• 6:11
  Speaker 3: a change in your credit score within like sixty days,
• 6:13
  Speaker 3: as long as you know how to use it. And
• 6:16
  Speaker 3: I would say how I use If we're we can
• 6:19
  Speaker 3: just use a two hundred dollars credit card for instance, Right,
• 6:22
  Speaker 3: if you have a two hundred dollar credit card, the
• 6:24
  Speaker 3: first thing you're going to do is identify your due
• 6:27
  Speaker 3: date and your statement day. Right your due date, you
• 6:29
  Speaker 3: want to make sure that you zero I zero out.
• 6:32
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• 7:02
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• 8:24
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 8:27
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 8:32
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 8:36
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 8:40
  Speaker 1: some of the heinous migrant criminals caught because of President
• 8:44
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 8:47
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 8:52
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 8:56
  Speaker 1: one hundred thousand illegal aliens.
• 8:57
  Speaker 2: Have been arrested.
• 8:58
  Speaker 1: If you were here, I legally your next you will
• 9:02
  Speaker 1: be fine nearly one thousand dollars a day. Imprisoned and deported,
• 9:06
  Speaker 1: you will never return. But if you register using our
• 9:10
  Speaker 1: CPP home app and leave now, you could be allowed
• 9:13
  Speaker 1: to return legally do what's right, leave now. Under President
• 9:18
  Speaker 1: Trump America's laws, border and families will be protected.
• 9:22
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 9:24
  Speaker 3: Balance on my DU date because any balance that you
• 9:27
  Speaker 3: carry over pass your due date, your bank can charge
• 9:30
  Speaker 3: you intereses on or will charge you interess on. So
• 9:34
  Speaker 3: after my DU date passes, I wait until my statement
• 9:38
  Speaker 3: date and I make sure that my balance is whatever
• 9:42
  Speaker 3: the credit card limit is. If I have a two
• 9:43
  Speaker 3: hundred dollars credit card, I make sure my balance is
• 9:45
  Speaker 3: will twenty dollars going into that next cycle. After your
• 9:49
  Speaker 3: statement day passes, rent and recycle. You can spend it
• 9:52
  Speaker 3: or do whatever you please. But identifying those two dates,
• 9:56
  Speaker 3: understanding when you need to pay your credit card, understanding
• 9:59
  Speaker 3: how much you need to carry over or not will
• 10:03
  Speaker 3: will be the saving grace for credit limit increases.
• 10:06
  Speaker 5: And that's up is it. You're supposed to pay off
• 10:09
  Speaker 5: the full balance or leave a little bit on because
• 10:11
  Speaker 5: some people say you're supposed to leave a little bit
• 10:13
  Speaker 5: on their credit card.
• 10:14
  Speaker 4: So that's a great question, and I'm glad you asked
• 10:16
  Speaker 4: that you.
• 10:17
  Speaker 3: I pay my full balance off by my due date,
• 10:18
  Speaker 3: so I'm not charged interest. However, I do carry over
• 10:21
  Speaker 3: one to three percent on my statement date. Why if
• 10:25
  Speaker 3: you report a zero zero percent utilization sometimes the algorithm
• 10:28
  Speaker 3: career that is you don't have a credit card one
• 10:31
  Speaker 3: or contrary to popular belief, lenders don't like when you.
• 10:34
  Speaker 6: Don't use your credit cards.
• 10:36
  Speaker 3: Yeah, like they want to see usage because that doesn't
• 10:38
  Speaker 3: if you don't if you're not using your credit card,
• 10:40
  Speaker 3: that doesn't really speak to to your your money management
• 10:43
  Speaker 3: or financial management skills.
• 10:44
  Speaker 4: It just shows you don't use it.
• 10:46
  Speaker 3: Right, So if you're if you leave a small balance,
• 10:48
  Speaker 3: it shows that you use it, but also shows that
• 10:50
  Speaker 3: you pay it back.
• 10:52
  Speaker 6: I think that was that's a very common misconception, and
• 10:54
  Speaker 6: I have to realize that like I would use the card,
• 10:57
  Speaker 6: or even for the company, I would use a card
• 10:59
  Speaker 6: pay it on a personal level. When I did it,
• 11:02
  Speaker 6: I watched my credit card drop because it shows that
• 11:05
  Speaker 6: I had zero I'm like, wait, I thought I'm doing
• 11:07
  Speaker 6: the right thing, because I have nothing, but it shows
• 11:09
  Speaker 6: that there's zero utilization there. But let's stay on utilization.
• 11:12
  Speaker 6: When is it a good time to now ask for
• 11:14
  Speaker 6: a credit increase?
• 11:15
  Speaker 3: Ooh, my favorite, depending on the bank, I ask for
• 11:18
  Speaker 3: a credit limit increase every ninety one to like one
• 11:21
  Speaker 3: hundred and twenty days, like I'm getting on all of
• 11:23
  Speaker 3: my credit cards. I'm getting multiple credit limit increases a year.
• 11:27
  Speaker 3: But you have like so my sort of trick or
• 11:31
  Speaker 3: not trick. But what I advise of people is if
• 11:34
  Speaker 3: you know you have a card that can obviously grow
• 11:37
  Speaker 3: because you have some cars that they just won't give
• 11:39
  Speaker 3: you capital. They won't give you an increase, they'll they'll
• 11:42
  Speaker 3: give you an increase, or they may not give you increase,
• 11:44
  Speaker 3: or it'll be like very minimal. Right, So, if you're
• 11:47
  Speaker 3: dealing with like am I able to say companies names,
• 11:50
  Speaker 3: If you're dealing with what's considered the top three, which
• 11:52
  Speaker 3: is AMAX Chase in city, they're going to give you
• 11:56
  Speaker 3: a credit limit increase.
• 11:57
  Speaker 4: However, you have.
• 11:58
  Speaker 3: To make sure that's the sixty days prior to you.
• 12:03
  Speaker 3: Until you're asking for that increase, you are feeding the algorithm.
• 12:07
  Speaker 3: Number one, make sure you have automated payment on. Right,
• 12:10
  Speaker 3: it could be for at least your minimum payment, Like,
• 12:13
  Speaker 3: it doesn't have to be your full balance. Just have
• 12:15
  Speaker 3: auto pay on because the system loves that.
• 12:18
  Speaker 4: Right.
• 12:19
  Speaker 3: Make sure that you have at least two reoccurring charges
• 12:21
  Speaker 3: on your credit card. By the way, any subscription that
• 12:25
  Speaker 3: people have this this is one thing that draws me crazy.
• 12:27
  Speaker 3: If you have Netflix, Hulu, Apple Music, in a list
• 12:32
  Speaker 3: of a host of other subscriptions that we have, make
• 12:35
  Speaker 3: sure those are on a credit card. Like, there's no
• 12:37
  Speaker 3: reason why an auto any subscription should be from a
• 12:40
  Speaker 3: debit card, because that's a wasted opportunity to have reoccurring
• 12:44
  Speaker 3: charges on your credit card. Having at least two reoccurring charges,
• 12:48
  Speaker 3: having auto pay set up, making sure you do at
• 12:50
  Speaker 3: least ten transactions within that month, and also, like I said,
• 12:54
  Speaker 3: making sure you pay on time. Do that for at
• 12:56
  Speaker 3: least sixty days, so two billing cycles. And then you
• 12:59
  Speaker 3: apply for an increase. But if you have a card
• 13:02
  Speaker 3: and you're not using it, you're not going to get
• 13:04
  Speaker 3: a credit limit increase, no matter regardless of how high
• 13:07
  Speaker 3: your credit card is, a lot of banks will not
• 13:10
  Speaker 3: give you the increase simply because you just don't use
• 13:12
  Speaker 3: the card enough because that's actually the number one reason
• 13:15
  Speaker 3: for a credit limit increased denials is low usage on
• 13:19
  Speaker 3: the card.
• 13:20
  Speaker 5: So, okay, how can you avoid pitfalls with credit cards?
• 13:25
  Speaker 5: Because obviously a lot of people fall in the issues
• 13:28
  Speaker 5: don't spend too much. But yeah, you know what, in
• 13:31
  Speaker 5: some ways, it's like best practices as far as using
• 13:34
  Speaker 5: credit cards the right way.
• 13:35
  Speaker 4: Yes, that's a big one.
• 13:37
  Speaker 3: And to be completely honest, like I tell people, credit
• 13:41
  Speaker 3: card is not an extension of your money. It should
• 13:44
  Speaker 3: replace the money like your bank account. Right. So, I
• 13:48
  Speaker 3: am a person that lives off my credit card. And
• 13:49
  Speaker 3: when I say live off my credit card, I mean
• 13:51
  Speaker 3: all of my daily expenses are.
• 13:53
  Speaker 4: Anything that could be on a credit card.
• 13:55
  Speaker 3: I use my credit card for because I want the points,
• 13:58
  Speaker 3: I want the usage and all of that.
• 13:59
  Speaker 4: However, I make sure that I pay it back. That's
• 14:02
  Speaker 4: the thing.
• 14:03
  Speaker 3: Do not spend if you don't have it in your
• 14:05
  Speaker 3: bank account or no, you're not getting get in your
• 14:07
  Speaker 3: bank account within the next two weeks. You don't have
• 14:09
  Speaker 3: it to spend, regardless of if it's a credit card
• 14:11
  Speaker 3: or or what. The only exception is if it's like
• 14:15
  Speaker 3: an emergency, you know, like if you just can't help it.
• 14:18
  Speaker 3: You have a true emergency, not shopping or anything like that.
• 14:22
  Speaker 3: Then it's really easy to manage your credit card as
• 14:25
  Speaker 3: long as you're not looking at it as if it's an.
• 14:27
  Speaker 4: Extension of your money.
• 14:28
  Speaker 5: It's not.
• 14:28
  Speaker 3: You have to pay it back, and it's just like
• 14:31
  Speaker 3: that's where checking your financial habits will come into play.
• 14:36
  Speaker 3: A lot of times people will improve their credit, get
• 14:38
  Speaker 3: access to these high limit cards, and then they find
• 14:41
  Speaker 3: themselves in the hole deep because they're just they can't
• 14:44
  Speaker 3: they can't manage their money properly. They go out and spend, spend, spend,
• 14:48
  Speaker 3: and I realize and like, you gotta pay that back.
• 14:50
  Speaker 3: So yeah, you just got to make sure that you're
• 14:52
  Speaker 3: not looking at your credit card limit as your money,
• 14:56
  Speaker 3: because it's not.
• 14:56
  Speaker 1: An illegal Alam from Guatemala charged with raping a child
• 15:00
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 15:04
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 15:08
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 15:12
  Speaker 1: some of the heinous migrant criminals caught because of President
• 15:16
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States
• 15:20
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 15:25
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 15:28
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 15:31
  Speaker 1: are here illegally, your next you will be fined nearly
• 15:35
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 15:39
  Speaker 1: never return. But if you register using our CBP home
• 15:43
  Speaker 1: app and leave now, you could be allowed to return legally.
• 15:47
  Speaker 1: Do what's right, leave now. Under President Trump, America's laws,
• 15:52
  Speaker 1: border and families.
• 15:53
  Speaker 4: Will be protected.
• 15:54
  Speaker 2: Sponsored by the United States Department of Homeland Security,