I'm going to show you how to properly pay off your credit card so that your credit score skyrockets.

@onechartaday

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Debt Driverseen in 12 videos →https://debtdriver.com/tiktok ↗

Why it worked

The video provides high-value, actionable financial advice that addresses a common pain point (credit score management) while positioning the creator as an expert, leading viewers to his bio link.

Summary

The creator explains the difference between a credit card's payment due date and closing date to help viewers optimize their credit utilization. He advises paying off the balance before the due date and waiting until the closing date to make new purchases to ensure a zero utilization report.

Structure

1Identify the two critical credit card dates
2Explain the risk of high credit utilization
3Provide the strategy for zero utilization reporting
4Summarize the benefit for credit scores

Product placement

The creator is promoting his own service, Debt Driver, which is linked in his bio and provides personalized debt payoff plans.

On-screen text

Payment due date Sep 18, 2024 Next closing date Sep 21, 2024

Original caption

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Transcript

I'm going to show you how to properly pay off your credit card so that your credit score skyrockets. You have two very important dates. We have the payment due date, which is obviously when it's due. And then you have this close date. This is when the bank reports to the credit bureau. If you pay off your credit card on the 18th, and you spend $5,000 before the 21st, that's what would get reported to the credit bureau. This is bad because that would be high credit utilization, and that's going to absolutely kill your credit. That's almost as bad as a late payment. So what you want to do is pay off your credit card one day before the due date, let that process, and then wait until the closing date so your utilization report is zero. Then you can start spending. You make your payment on time, and you have a $0 in credit utilization, your credit score will skyrocket.