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Every Friday, I spend about 10 minutes doing something that has helped me keep my credit score above 800 for years now
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Hey, what's going on? My name is Michael from Michael saves.com. And in this video, three reasons why I pay my credit card bills every single week, and I think you should too
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The first reason coming up right now. The number one reason why I pay my credit card bills every week is because I never miss a payment
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Of course, to avoid late payment fees, you have to pay it. least the minimums on your credit card accounts every single month. But by paying those credit
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card balances off in full every week, I never have to worry about that. There's no issues with
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late payment fees. Payment history is the number one factor in determining your credit score. It
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makes up 35% of that score, so you want to avoid those late payment fees at all costs
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If you can't pay your credit card bills every week like I do, at least try to pay them every
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month Otherwise you going to have a negative impact on your credit score The second reason why I pay my credit card bills every week is because it helps me stay on budget By logging into my credit card accounts every week it gives me just
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one more opportunity to review my transactions and identify any problem spending. For example
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one week I noticed that I had gone to the grocery store four times when I looked over my credit
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card transactions and I realized, hey, I'm spending way too much money on groceries. By having
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that reality check, I was able to implement changes as soon as the next week. If you only
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log into your credit card accounts once a month, you may miss that opportunity. Now, typically
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there aren't too many surprises for me because I also have a very simple budgeting method
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that I use with Google Sheets. And here's what I do. At the beginning of the month, I set my
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spending limits for my categories. The second step is that while I'm on the go, before I spend
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any money, I open up the Google Sheets app on my phone and check to see how much money I have left to spend in that category
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And immediately after making a purchase I log the transaction and then it update to see how much I have for the rest of the month If you want to learn more about my budgeting strategy I link to it in the description below
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But right now, we have to get on to the third reason why I pay my credit card bills every week
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And that third reason why I pay my credit card bills every week is because it gives my credit score a boost
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As I mentioned at the top, I've had an 800 credit score for years. And in addition to making on-time payments every time, I have
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I also have low credit utilization. Payment history, the number one factor in determining your credit
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utilization, that's right behind at number two. So ideally, you want to have very low balances
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on your credit cards, but a higher amount of total available credit. If that's the case
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you're going to be viewed as less risky to lenders. What's benefiting me here is paying off
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those bills every week as opposed to every month, because every time the credit bureaus are checking
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they're seeing a very low credit utilization rate. Now if you can make these in full payments every single week like I do at least try to do it every month You just don want to have your balances rolling over from month to month because then you going to have a higher credit utilization rate Now that I explained why I pay my credit card bills every week
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here's a quick action plan so you can get started with this method. Step one is to set a day of the
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week when you're going to pay your credit card bills. For me, it is Fridays. And step two is to make a
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list of your credit card accounts. You can write them down on a sheet of paper or use
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an app like personal capital. And step three, go through that list every week and pay off those
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credit card bills in full if you can. One more thing. When I get regular bills in the mail, you
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could say a mortgage or a rent payment, set those aside until your bill payment day, pay them
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along with your credit cards. That way you'll only spend about 10 minutes or less with bill
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payments every single week. And if you're looking for credit cards, if you need a new credit card
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in your life, I have a roundup on my website of the best rewards credit cards. I'll link to that
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in the description below. You can also find more money saving content right here on my YouTube
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channel or my blog, MichaelSaves.com. Thank you for watching
