I have five credit-card myths that everybody I'm hearing, so I hear so much on everybody, but I hear so much so I want to talk about it. Let's get right into the video. My name is Walter. This is the credit card Marshall channel.

We talk about travel credit, we do travel vlogs, I'm talking about the stimulus package and, most importantly, how to build. Maintain rebuild your credit for financial freedom. So, if that's something that you're interested in make sure you subscribe to the channel, if you are welcome back, if you aren't, welcome today, again five credit card myths, I want to debunk them. I want to talk about them.

Let's get into it. So number one is going to be, and I got my iPad right here to keep me with the notes. Number one is going to be cancelling card. You aren't using guys this one is big, because whenever you cancel a car, let's say you, let's say, for example: you've had credit for 10 years right and you've had just credit card.

This was your first credit card. You've had it for 10 years and you're, not using it anymore for a bunch of reasons, maybe the reason you're not using it is because you may not like it anymore. Maybe it doesn't give you what you're looking for 10 years in a line. Maybe it was just a stepping stone to get to where you were well, if you close that out you've closed all that history on that card for the last 10 years, that's going to dramatically hurt your score.

My suggestion you have cars that you don't use that you don't want to use, put something small on there. We are all quarantined right now: Netflix Hulu, sling, gym memberships when they come back, something like that to keep them active, but to not get them closed. You never you never want to close cards, especially cards that don't have annual fees. That would be the only exception if you're not really getting the benefit from the annual fee.

Credit cards that we mount only suggestin close those cards out. If you can't downgrade to a no annual fee card, but just to keep it simple, if you have a no annual fee credit card that you have for X amount of years, do not close it out, it's going to hurt your score dramatically. Number two is going to be too many credit cards or bad. I know people who have one credit card with maybe uh 700 credit score.

I know people who have 20 to 30 cars and an 800 s. It does not matter how many credit cards you have. It's all about how you are using your credit cards, it's always about how you're using the credit cards - and you know how your credit history looks. You have late payments.

Do you have you know things like that collections? Bankruptcies? You know all that stuff does not matter. How many credit cards you have? No, so that's the myth. You can have one card and have a great credit score. You're gon na have a thousand card to have a good credit score.

You can have a thousand cards and have a horrible credit score. You can have a you, know one card and have a horrible. It does not matter so having too many or not enough credit cards doesn't matter the more honestly you the better, because it helps your score, because it helps your credit utilization. You have more to spend, which is good, so you can actually spend more.

Your credit utilization is a lot higher than someone who only has one credit card so actually having more credit available to you. Could that should be a good thing. Number three carrying a balance is a good thing. It's a good thing, because the banks like it that's what I hear the banks, like it, they're, going to give you a better credit rating and all that stuff and no, I think, that's a myth.

100 with us. I don't think it is a myth me personally, pay it off in full. Every month, pay it off in full every month do not keep a balance. Keeping the balance is good for one reason, if you like, making the bank's money, if you don't make it the bank's money, go ahead and keep a balance on your card.

But if you don't and you're in the best interest of yourself, which you should be pay it off a fool, it's the best way to go. Your credit score is going to be better if you pay it off on the fool, as opposed to, if you care your balance and you're gon na be saving money, because you don't have any interest to pay for this. One is a big one, because you have the big guys, like Dave Ramsey, to say oh credit cards or you know a snake Cory I'll forget what he says but um whatever don't don't pay him the mind. Now I'm not going to sit here and say it's well educated guy, but when it comes to that, I disagree with respectfully disagree.

Credit cards are not a scam. Credit cards can bite you if you don't use them correctly, just like anything else on life, though, if you drive a car too fast, you can hurt yourself. If you eat too much of unhealthy foods, you can hurt yourself. If you you know it's everything in this world can bite you.

If you do too much of it or if you use it and properly it's the same thing with credit cards, that's the best example to put it at again. If you drive a car too rough on a rainy day, probably gon na hydroplane right, if you riding your bike too fast and you go over, you know some rocks. You probably gon na mess up your bike stuff like that. So just keep that in mind.

It's not necessarily bad. It's how you use it credit cards are not a scam. I've had a lot of success. I've done a lot of things with credit cards that I wouldn't have been able to do at that point in my life because of monetary reasons, and credit cards have taken me to that next level.

To giving me a YouTube channel credit cards are great things. We keep that in mind, is not a scam, just make sure you're using it properly. 5 maxing out a credit card is okay as long as you're panning and full wrong. A big thing you want to keep in mind.

Is you want to keep your utilization to about 30 %, so let's say total, you have a thousand dollars of credit right. Thirty percent of a thousand is $ 300. Now that's standard or what I like to call basic there's: nothing wrong with being standard or basic, but if there's anything I'm ever going to teach you on this channel, you want to be better than standard. You want to be better than basic right.

You don't want to be basic, let's just be it. We want to be better, so you want to try to get it closer to zero that lower to zero, the better the number closer to zero, the better. So ten percent utilization five percent utilization. So you want to bring it down.

So if you have a credit card for $ 1000, you don't want to max it up to $ 1,000 and that gets okay. You want to make sure you spend no more than about 200 to $ 100 again. You can be standard and do 300, but you always want to be better than standard because there's so many people that are standard you know standard is the standard you want to try to be above, as you could stand out all right, and that's just that's just Madness is how I am that was the video for today. If you guys found it helpful, make sure you give me a thumbs up, make sure you like share subscribe.

Let me know what your myths are. Let me never have any other credit card questions credit card myths that you want me to bunk or talked to you about. I don't want to happen to do so. If you found that video helpful give me a thumbs up, talks in another video take care.