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Credit Shifu Wallets:
We look at what using 50% of the credit limit on ONE CARD did to my credit score, and its not pretty.
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28 comments
Im well below 1% on utilization. I make payments every 2 weeks, so I rarely carry a balance over $100. 806 credit score
This is concerning. If you pay off the due amount BEFORE the due date does it not get reported? My girlfriend got the Wyndham Rewards Business Earner card based on the recommendation here (it took her talking to literally 25 different people and being on hold 24 hours total) she finally got the card, but there is a $1000 limit on the card, which is typical for that card. She has to put 2 grand in three months on the card which will be tricky enough but will be using up half of that $1000 montlhy to take advatnage of the great cash back on gas and utilities. Would hate to tank her score just on that one card.
It’s annoying because the best point earning card I have for non category spend is the chase freedom unlimited, but we are high earners/ high spenders, so that card is always at 50-70% utilization even though I pay it off in full every month. Oh well, don’t need my credit score for a while.
Can you call in and pay your balance once it posts (2-4 business day)? I want to pay before it shows up online.
Went on a vacation around Thanksgiving then of course did some Black Friday shopping. Couldn't pay it down fast enough before it reported. Only 3 to 5 day window. LOL.. went from 6% utilization to 40% utilization and lost 22 points 🤦🏻♂️ we'll get it back next month though ✌🏻🤟🏻👊🏻
Before I max out all my credit 100% then after paying everything it jumped almost 200 points. From 559 to 754 never doing that again i keep everything 30% or lower.
I was given a baby $1000 limit on a card and I ran it up because of the sign up bonus. Score dropped more than 40 points for a month before paying it off.
Hello,Sifu! Thanks for the advice. After breaking the 739 wall, I able to hit 751 just limiting my CU around 5%.
I had the CFF & CFU, but wasn’t confident I’d hit the $4k spending requirements for the CSP to complete the trifecta. So I applied for a Citi Custom Cash and BILT. Citi gave me available credit higher than both of my Chase cards combined, and BILT just gave me credit couple hundred higher than my rent.
My recent Experian and Equifax report bumped me from 751-765 and 749-763 respectfully.
I’m currently at 5/24 right now until June because I have my CU credit card as my OG.
Will plan again if I could then finally finish my Chase Trifecta.
That sucks, I hate that we have to be extra extra extra extra careful all the time.
It should be noted that the majority of banks rely on FICO 8, but banks and other lenders will soon be adopting FICO 10 which tracks your utilization over time, so if you have a high balance right now, you should try to get it down before they begin relying on data from FICO 10.
This just goes to show how important credit utilization is! Luckily, that's really easy to fix… it's just important to be cognizant of it!! Thanks for your experiment Ben 😉
I had 4 cards maxed completely for about 4 years and my credit was in the low 500s, I paid them off all at once and my credit immediately jumped to about 750. I then paid off about 70k in student loans over a couple years and my credit score went up to about 780.
I paid all my cards off on accident because I returned something expensive that I already paid the bill on and it hit my credit score for 12 points. Crazy how things work. Pay your bills off and it hurts you.
This was a cool experiment. I guess in theory, this system would “help” us from getting into more debt by signaling to banks that they should maybe hold back on extending any loans or credit to a customer who’s getting into too much debt.
I lost about 30 points on my VantageScore, going from 700 to 670 by maxing out one card with a measly 580 limit. My portfolio has 37k in total limits, and somehow 500 bucks made that much of a difference 😑 The distribution of your utilization really matters.
Building my credit used 97% dropped 91 points
if you let a card report high utilization do it with a chase card the report again when you pay balance to 0
Opened up the CSR in November. It reported on the 5th of December. I have 10% utilization, and my scores took a 36 point drop. I get that it's a new card, compared to your 50% we took about the same score decrease. It does hurt to see my score this low again.
"If you want to achieve excellence, you can get there today. As of this second, quit doing less_than_excellent work." _Thomas J. Watson
I did this test just this month haha went from 1% to 31% dropped 36 points from 760 experian
Interesting experiment.
I recently paid about $24k in taxes with my bank of America unlimited cash rewards card to take advantage of their one day extra 2% cash back. The card has a 35k limit.
This transaction dropped my credit karma score from 833 to 771
I love your channel and can testify that I've learned almost all I know about credit cards, credit scores, point systems/redemption, etc from your channel (rest from Graham).
One little constructive criticism, please change your background lol. It's too bright
So can I use 15% to 20% weekly and pay the full amount as soon as it posts (takes 2 to 3 business days) each month? Is this habit bad or not?
What about when you pay off on 0% apr cards slowly? What happens to you credit score?
Lol! I can't believe you did that, TWICE!💵💲🤑
I paid down 98% of my entire balance on my credit cards the day before they were to report to the credit reporting agencies. I think my FICO went up by…10 points 🙃
Did I miss something in the video? Is the utilization based on total or just per card?! I was under the impression that it’s your total usage divided by the total available credit.
Credit karma and credit sesame " sir is not your fisco score " it has been researched ' please look into this " There not giving you the vantage score " not the Fisco " I use to be in love with karma credit – not no more ! There not real