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If you are looking to increase your credit score fast, then you need to reduce your credit utilization. This is one of the biggest factors of your credit score and has a big part to improve your credit score. Here are some tips on how to reduce credit utilization and see your credit score increase.
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13 comments
This is great advice, you are very helpful and informative. Thanks
Great video.
You don’t want 0%. You need to have anywhere between 7 to 10% max that reports on 1 to 2 cards per month. 0% utilization looks like you never use your credit at all and you don’t get any kind of score increases based on this. I have two cards I use pretty regularly and the rest of them are always kept at zero. (Out of a total of 7 cards). I let those two cards post at around 7 to 8% each month and then PIF after the statement cuts. I keep the other cards active with small purchase every few months— but I pay those in full before the statement cuts to keep them at zero.
Very useful video! Another thing to keep in mind is that if you reduce your credit limit on a card, you’ll increase your utilization rate.
Would you still recommend applying for various cards in one day to save on Hard Pulls? (This is assuming you abide by each credit lender's application quirks)
I ask because the AAoA will definitely hurt short term, but at least you can maximize the gardening time after approval.
5:04 End Card for Balance Transfer Option video is missing???
5:12 EXCELLENT ADVICE Biz credit card balances don't show on personal credit histories, except for Capital One Spark Business, TD Bank Business, and Discover Business. I don't know of any biz cards that offer 0% txfr fees off-hand though. Anyone know???
On the personal card side, Bank of America offers BankAmericard and Chase offers Chase Slate which off 0% Txfr Fee AND 0% APR. But again, those are personal cards which show on personal credit histories.
On the biz side, Chase does offer the Ink Cash and Ink Unlimited which come with 0% APR for 12 months AND an awesome 50K Ultimate Rewards bonus for each. No 0% Bal Txfr Fee option though. Wells Fargo offers a biz card with 0% APR too, but not 0% Bal Txfr Fee. You could front-load your personal spend onto the biz cards to reduce your personal utilization and HIDE the balances from appearing on your personal credit report, for 12 months at least. I've done this several times and padded some checking and savings accounts with that 12 months float-time to score some hefty bank bonuses for opening checking and savings accounts. $500 from Wells for Biz Checking, $400 from Wells for Personal Checking, $300 from Chase for Personal Chking, $300 from BofA Personal Checking just to name a few. It adds up, but is taxable at year end. Still free money though.
Go to wallerswallet website and click the Best Credit Cards link in the upper right of the homepage. Scroll down a couple pages to find both Chase Biz Cards and SHOW YOUR APPRECIATION BY APPLYING THROUGH WALLERSWALLET LINKS if interested in reducing your personal credit utilization by shielding it with business cards.
Excellent job Dus!
~Cap
I guess im old school and pay all my bills in one sitting once a month. I got 23 cards all with 0% utilization. My cs is 838. I rarely pay for a cc bill more than once a month. But, I still feel like I'm doing something wrong.
That 0% balance transfer from a personal to business cc sounds like a great idea if you're in a bind.
Great video. Very useful advice.
Great Video!! I’m new to all of this and I actually understood what you were explaining! 👍🏾
When I need to drop my utilization before i apply for credit, I start to put my daily charges on my Amex platinum card
My wife is from New Zealand 🇳🇿 so when she cAme here she has no credit score…after getting some credit cards…here credit score when up a lot higher!! Good info about utilization
If I have a credit card that’s over the limit…would it be beneficial for me to close the card? I know I will still have to pay the balance but wouldn’t this card no longer be factored into my utilization?
Need some clarification, So I have a discover it card, I have a limit of $200, so my closing date is the 18th. So if I use $100 dollars and pay off $98 dollars 2 days before the closing date I’ll be left with $2 dollars on my statement making it utilization of 1% usage on my credit card statement correct?