📄 Common mistake made with Credit Utilization | FinTips 📽

Many people use credit cards for rewards and simply pay them off when the bill comes. While this is a way to be sure you pay no interest, it could be holding back your credit score. The reason? Credit Utilization and the end of a billing cycle. Today we will talk about how the due date on your credit card is probably not the day you want to pay it in full.

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30 Responses

  1. Blaq Byrd 281 says:

    A credit utilization of zero is not good either. It will look like you have a credit card and don't use it.

  2. B Mejia says:

    Only if you ask they will tell you, on my experience. I just ask "What is the statement reporting closing date?". Great explanation !

  3. Patrick Wilson says:

    My statement date with Cap.1
    Mines 25th…each month. That did told me…
    The man that's trying to build-up my credit score from Indianapolis…

  4. Michael Swaim says:

    You can easily find out the reporting date. Also, not every creditor reports on or shortly after the closing date. US Bank, a large issuer, does it at the end of the month, first of the following month, regardless of closing date. Finally, your due date is always a few weeks (21 or so days) after the closing date. It cannot be before the billing cycle date because the creditor has to know what balance to report.

  5. MyEGOtisticAURA says:

    Capitol One told me that they’re reporting date is 3 days after your statement date

  6. Jeff Hair says:

    So what if I have a $1000 dollar limit and I spend $250 thats 25% then pay it off and spend another $250 and pay it off all before the closing date. Will that be 50% utilization?

  7. Daniel Pichardo says:

    If I spent 1000 with a 1000 limit but I pay it off in full before it reports. Am I at 100% utilization or 0% utilization

  8. Rogan Richeart says:

    Capital One told me 4 days after the due date.

  9. Nathan Evans says:

    Check out beat the bush on credit utilization

  10. joniro jonironin says:

    I live in Japan and just got my credit card. It apparently works differently here. The credit card company sets the date at which they'll get payment and it's from a bank account. So it is nigh impossible to pay weekly or any date however I want. I can only pay on the date the credit card company decided. Does this mean I should be really wary of my credit utilization?

  11. Kakashi Hatake says:

    Lol so like when will discover report?

  12. HawksNest says:

    Okay so just to be clear.
    I just got my first card to begin building my credit score. It is solely for that purpose, I do not need it to pay bills.

    My dates are
    Due: 14th
    Closing: 17th

    Is the best strategy to spend like $10-$100 on different expenses. And pay them off immediately/before the 14th of every month and keep my balance at 0 up until the 18th? I literally only have the card for building my credit, so any feedback would mean a ton!

  13. Tremaine Francis says:

    Capitol 1 told me they report to the bureau 4 days after the statement close date

  14. Johnny Tekstar says:

    I have 2% utilization on both of my cards and my points dropped 3 pts anyway, explain that to me. And I never use my card between the due date and the closing date and the reporting date is on the same day as my closing date. This utilization game is bullshit no matter what you do they penalize you even when you're responsible.

  15. dekonfrost7 says:

    Total bullshit. They tell you the reporting date. Its usually 2-5 days after the closing date. But they will tell you.

  16. John Ward says:

    I dont trust this guy

  17. Dave HardHitterz says:

    Thanks this was very informative. My first bill is due on the 15th and the closing statement is on the 18th. I decided to pay the entire balance today (I only utilized 15%). My question is, does paying a few days early effect my utilization rate? Or will it be fine as long as I don’t use it until after the 18th?

  18. Jay Ricks says:

    Stupid question alert!!!!! But say you have a $300 credit limit and you spend $1000 in a month but you never max the card out and you always pay it completely after the purchase. Since your spending well over the 30% heck even 100% is this good or bad for your credit score? Being it stays paid off on time and such which balance is sent in? The total balance of the month or the balance left on the card?

  19. Marco Barajas says:

    With the utilization…is it best to spend let’s say 10-30% per purchase or per due date. Or what if you spend that and pay it off right when you get home can you spend that again since you don’t owe anything? New to credit and that is my last question before I fully start

  20. sunnysideup says:

    Credit karma will tell you when they report to the agencies. There is a utilization section. It gives you the date the bank reports. Both discover and chase report to the agencies on the 17th of each month.

  21. Jose Espinoza says:

    Really nice, I've been having troubles with this untilization stuff but you explained it so perfectly… I love it.

    Perfect video.

  22. Catt says:

    I pay most of my bill before the statement ends, about 90-95%. I want 5-10% to get reported to the credit agencies. It shows I use my card. Zero use? If I don't use my credit card why would a new bank approve me for a card? This is my thinking.

  23. roejieks says:

    I think you swapped the 35% and 15%

  24. M L says:

    im definitely a nerd about this stuff too, happy to hear you spreading the word on how to avoid unnecessary knocks to your credit.

  25. nishiki says:

    Interesting, great stuff Dustin. TU’d (as I often do here)

  26. Elliott Miller says:

    What's a credit score?


  27. Brok Enmold says:

    Luckily (sarcasm), although I pay off every month for the points and no interest (made 800 bucks off it last year), my utilization rate is extremely low because BOA ups my credit limit like you wouldn’t believe without telling me. I probably should do something about it.

  28. 2020tesla says:

    is there any value in having a FICO score over 780? I currently have an 853. what am I getting for it?

  29. Bruce Smith says:

    I hate the whole credit " Game " an try to stay as far from them as possible, an if I use one pay it with next paycheck regardless of due date.

  30. Andrew Nitzschke says:

    Great video. It took me a long time to figure this exact issue out. I kept checking in on my credit score and always saw my credit utilization wasn't zero even though I had always paid my balance in full days before the due date. Ive now adapted the practice of paying off any charge to my credit card the day that it clears and posts. Essentially when you pay your credit card off daily it is the same as a debit card with cash back perks.

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