What's up everybody welcome back to my channel? If you have it make sure you hit that subscribe button, I'm doing an Amazon gift card giveaway. As soon as we hit 2000 subscribers. Four of you will get $ 25, an Amazon gift cards. I know the background is different.

I know it, I get it so I'll. Tell you why I'm shortly, but today's topic credit utilization right. Why is this so important? How do we lower our credit utilization? What's the factor as far as percentage, what kind of what's the percentage of your credit utilization based on your score? I got you that's what today's video is gon na be about. This can be personal matter who's just starting off.

This can be customized who's, trying to build or even maintain our credit. This is very important and once we get credit utilization down pack scores always increase drastic drastically. Alright. So let's get into this video all right.

So the first thing again, I know that the surrounding is different: it's not a white wall. It has some decoration that got a nice little green pillow, a nice couch. So I am right now in DC, took a quick weekend trip. I actually got to room to room, so I'm actually going to show them to you right now.

So the first room I mean - I'm sure you know this - is where I'm sitting at right now that couch over there has the nice little bar a little like set up. So that's pretty simple and then the couch the nice table, where actually I'm gon na have my little of my video Senate right now. So that's where I'm at currently and then you can see the French doors which I think are always beautiful. Okay, so that's the room I'm standing in now.

It was a few of us here. So I got two rooms and what I did was I used my American Express Platinum Card on go to LEED status, which again thanks so much for that. If you don't have American Express Platinum, I'm a big and big supporter, I'm not sponsored, but hopefully hopefully, hopefully one day, that's the goal. It gives you a met, go to LEED status.

So here's the second room. I got now guys again go at elite status and gives you so many perks. So let me show you this one. So again we got the basic room, that's what we paid for, but, as you can see, this room is pretty nice as soon as you walk and you got the the bathroom, I'm not going to show you too much of a bathroom, because I mean who cares Too much of a bathroom again, the nice setup, you could see me in the video you got.

I love their hands so by the way their body wash and our hand wash. I love it in that body lotion. Oh man, it smells good, I'm actually wearing it right now, so getting to more important things, we're going to get right into the closet. The closet is okay, got a mirror on there and never want to get into the actual room, which I thought was pretty cool.

So this is the roll I'm not staying in, but I'm jealous my friends actually in this room, the nice king sized bed, or is that queen size, king or queen size bed. I believe it's king, but the most important thing is you're going to see in a minute here is the nice couch is kind of just laid out room keys on the floor. Here is the best part about this room, though besides the TV, you walk up these steps. I did not know they upgraded us because it was under my name.

A balcony Marvin doesn't had his balcony, but this one was actually on the 15th floor. It has a balcony, I struggled a little bit. It was kind of windy up there, it's not the best day in DC, but the balcony is amazing. No, we only paid for three nights for this room.

They only paid about two hundred and fifty dollars. I believe not bad at all. This room is a lot more than that, so this was a really good steal of a room. Credit utilization.

Let's get into this topic now, since we forgot pretty much figured out where I'm gon na be at credit utilization is the second most important factor of your score. So 35 % of your credit score is your payment history, which is most important underneath that 30 % credit utilization credit utilization is all of your balances together versus how much debt you have so pretty much your debt. How much you have available so, let's say total. You have $ 10,000 in all of your credit cards.

Let's say that. Okay and let's say you have $ 3,000 - that you have. This is kind of the basic model $ 3,000. Do you have in debt? That is 30 %? Your credit utilization right now is 30 %, okay, 30 % of so you pretty much are 30 %, and that's and that's okay.

30 % is not the the baddest. It's not the worst. It's okay, but I like to tell everybody to be under 20 %. Maybe even 10 % they'll lower your utilization, the better! So me I like to pay.

My balance is off in full every time there are a couple ways you can do so so you can pay multiple times each month before this statement is reported to the credit bureaus once your statement has been reported to the credit bureaus. Your credit utilization is kind of what it is at that point in time. So if you can make multiple payments in the month before your statement cycle is over, that's helpful make sure you are also paying your you know payments at full every time. It's really really important the higher utilization, the lower your score is going to be.

You don't want to be somebody who's, maxed out on their credit card forever. If you are somebody, that's like that. That's okay, we're here to work around that. We were here to fix that pay off those balances as quick as you can, even if you need to kind of consolidate with a personal loan to kind of get your balance until one definitely do so.

Some of the effects of having a high credit utilization rate is a lower credit score. It's also been times. You know you can get a credit increase which helps your credit lose eight, your credit utilization, which you should be trying to do, try to get an increase to lower utilization. Again, the more money you have available versus the money you have outstanding.

The higher utilization is, but if your utilization is too high or you go too much debt on one or all of your cards, your other credit card companies may lower your credit limit, because now you are a risk to them and that's going to affect your score. Even more, not only do you have so much debt, that's already affecting you, but now you have other credit card companies. Lowering your credit score. Sorry, your credit, your credit amount or your credit limit that they gave to you originally because you have too much debt.

Okay and that's just some of the bad things: okay, so again take out a loan if you consolidate make monthly payments more than one trying to pay your balances and fool. These are the few things that you can really do and also try to get a limit increase if you can try to get a limit increase, and hopefully your credit card company gives you a soft pool like American Express, does know companies like Chase and don't do That yet, unfortunately, but it's really crucial, I'm gon na try to lower your utilization because the lower it is the better doctor. I think, honestly, there's nothing wrong when I kind of cure that myth. A lot of people say when I'm doing credit keep something on your balance, no we're not in the business of paying credit card companies interest.

There are so many other people that pay interest all the time. I don't want you guys, that'd be one of them. They're going to be fine, they're going to be good, you I need you to fear, you don't focus on keeping your balances at a zero. I never have my balance when I got my secure credit card.

That is a myth. In my opinion, people say you have to have something on your even with a dollar, so they can report it. No, I don't believe in that I'm not in the interest of making them richer, I'm in the interest of making my life better and having financial freedom. Okay, so that is a myth.

I'm killing it right here. Um, don't keep something in your credit card to build credit pay it off. They see you have a credit line. They see.

Is that a zero? Your credit utilization is at a zero. That is perfectly fine. In my opinion, so again guys, those are my tips and then also the causes and effects that you know that can come with it and your utilization is too high. You don't want to have anybody, lowering your credit limit, which I've seen happen personally, there's some people that I dunno I mean it's not a good feeling, and you know now you're trying to do things another one too.

Before we go. If you have too much debt outstanding, when you try to get something else, you're, either gon na get a lower amount from that company who you may get nothing at all, because you owe to much money okay, so you definitely just want to make sure and again It's the most second, it's the second most important thing, your credit score, so it's gon na have the most you know the biggest hole you can have so many increase in your credit score, but if your credit utilization is very very high over 30 %, that's a Big issue all right, guys so again subscribe to the channel. I hope you like this video, give me a thumbs up if you found it helpful. Please share this video again that calming myth of keeping something on your credit report to Bill credit.

It is a myth, if you can keep it at a zero, keep it at a zero thanks. So much for tuning in have a go.