Boost your credit score within 30 days by just paying off your credit card before the statement date. Your credit card reports information to the credit bureaus on the statement date. If you intercept this report by first paying everything off, they will report you as carrying a zero balance while being active.
Everybody this is beat the bush today i’m going to show you how to boost your credit score within 30 days the method to do this is to pay your credit card before the statement date and i’ll show you in this video why that helps doing this is kind of temporary because you actually have to do this every single month in order to maintain the benefit if you stop doing
It your credit score will drop back down now you’re on your credit card account it usually closes around the same day to every single month so let’s just pretend this is the 24 on your closing date your credit card company will report to the credit bureaus if you’ve been active in this month and how much you owe in this month so the effort here is to go in there
Before the reporting date and change your balance in your credit card by paying it all up normally your credit card will have a closing date and then they’ll send out the bill a few days later and then after you get the bill it will be due a few weeks later after that and then normally you would pay maybe sometime right on the due date maybe couple weeks later right
Here even if you pay your bills in full and on time every single month you can still benefit from this method because you’re going to have a certain amount of utilization in your credit card and if you can get that to zero you’ll actually boost your credit score so here’s a hypothetical model of what i think it’s going on with the credit utilization the point here
Is that the more you utilize your credit card the more balanced you carry the more it’s going to negatively affect your credit score so i put a number of about a hundred here because i think that’s how much it affects your credit score if you happen to use up all your credit so if you use up your total balance of your total credit in other words you use up all
Your credit cards to the max you knew max them out but maybe you pay them all off every month anyway right it’s still going to negatively affect your credit score by about 100 points i estimate let’s look at a typical case so let’s say you have three credit cards with a thousand dollar credit limit in each card and you just do like you know normal spending three
Hundred three hundred four hundred here if you add this up it’s one thousand over three thousand which is one third one third of a hundred it’s about 33 points deduction in your credit score so you can see from here that if you happen to be able to set these to zero you’re going to be able to increase your credit score by a little bit every single month the thing
Is in order to set these to zero you have to kind of monitor your credit card and just go in there manually every single time before the statement date and pay it this is really time-consuming and i actually don’t like doing this myself i already have a good credit score so i don’t do this but if you have a mediocre credit score and you’re about to buy a car or if
You’re about to get a mortgage or something this might be a good way to go in order to give yourself a temporary boost you might want to try this maybe a month or two before you actually use your credit card to actually see that there’s a difference you might say hey why don’t i just pay everything off and not use the credit card at all and then i’ll set those to
Zero right without all this hassle but the thing is if you set all those to zero and not use a credit card your credit card will actually show up as idle which means you’re not using a credit card which will actually not help your credit score at all so instead of zero maybe you can just spend one dollar in each card and then pay everything else we cash but that’s
Not very good either because if you have cars that have cash back you’re forfeiting all that cash back in using a card and the convenience of using cards so if you’re thinking of using your credit score in the near future its viable to just go in your credit card and check out what the statement end date is for each card make a note of that and make sure you go
In there one day before the statement date and pay off the whole card this will give you a temporary boost in your credit score and you need to repeat this every month in order to keep the same benefit so i hope this helps everybody get a higher credit score and maybe even a lower interest rate on your car or house loan don’t forget to give me a like comment down
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Transcribed from video
How to Boost Your Credit Score Within 30 Days | BeatTheBush By BeatTheBush
