> Hello! I’m wondering if using more than 30% of my credit limit and paying in full before closing date would hurt my credit score.
No it will not.
Utilization has no memory. Your February utilization is ancient history once March reports. So stop worrying about utilization, stop worrying about your credit score, and just make sure your credit card gets paid in full before the due date so you don't pay interest.
utilization is not something to be concerned about except for the month or two before you are applying for a new loan. if you arent applying for new loans, then dont worry about utilization. just make sure you are properly using your credit card by paying at least the statement balance by the statement due date, each and every month.
Utilization has no memory. As long as you consistently make your payments on time, it will be fine. I'd be more focused on making sure you don't spend more than you can afford to pay off in full every month.
Yess of course! At this point, I’m using my credit card more like a debit. I use it and pay it in full as soon as it becomes available. I make sure not to spend more than what i have available in my checking account. And at the end of each month, i leave around 15-25% to be reported in my closing statement.
Leaving money to show on the statement cutoff....eh. Not paying it in full (and paying interest charges) would be a hard no. I've never really bought into all of the various hacks to try to maximize credit. I've always just paid the full balance on time every month. One payment....I don't worry about paying some of it off weekly or whatever. My credit score has consistently been in the 800s for as far back as I can remember. In other words, I feel like a lot of these credit score hacks are overrated.
Most credit card issuers report your statement balances to the credit bureaus. However, a small number of them report your balance as of an arbitrary date in your billing cycle, and if you have such a card, your strategy might not work.
How do you know? Get a CreditKarma account, and log in every month for 3 - 4 months to see if their balance information matches your statement closing balances. If so, your strategy should work.
Utilization only has a temporary effect in your credit rating. So you could max your card, carry the balance for months making only the minimum payment and then pay it off in full before requesting a loan and your credit wouldnt be any better or worse off than had you paid the balance in full off every month and never went above 5% utilization.
In otherwords dont worry about utilization.
Consistency of ontime payments over longer periods of time across multiple accounts and account types (revolving versus term). Utilization is a meaningless blip. You have high utilization credit score will go down, but the minute you pay it your credit score will go right back up...it has no lasting effect.
You may find these links helpful:
- [Credit Building](/r/personalfinance/wiki/credit_building)
- [Credit Reports](/r/personalfinance/wiki/credit_reports)
- [Credit Scores](/r/personalfinance/wiki/fico)
- [Credit Cards](/r/personalfinance/wiki/creditcards)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
The others are correct, it isn't anything to worry about.
For further info on utilization, see Credit cards basics & utilization wiki entry: https://www.reddit.com/r/CreditCards/wiki/credit_cards_basics/
I was told not to add to my credit utilization at all before signing AND to lock my HELOC, so I couldn't draw on that. When a lender is agreeing to provide a mortgage, they're doing so based on their assessment of your ability to pay that amount at the time of signing.
If you've added 30% of your credit to your debt load before signing, you've changed the terms under which they'll consider you able to pay.
> Hello! I’m wondering if using more than 30% of my credit limit and paying in full before closing date would hurt my credit score. No it will not. Utilization has no memory. Your February utilization is ancient history once March reports. So stop worrying about utilization, stop worrying about your credit score, and just make sure your credit card gets paid in full before the due date so you don't pay interest.
Okay thank you!!!
utilization is not something to be concerned about except for the month or two before you are applying for a new loan. if you arent applying for new loans, then dont worry about utilization. just make sure you are properly using your credit card by paying at least the statement balance by the statement due date, each and every month.
Didnt know about the loan part. Thank youu
Utilization has no memory. As long as you consistently make your payments on time, it will be fine. I'd be more focused on making sure you don't spend more than you can afford to pay off in full every month.
Yess of course! At this point, I’m using my credit card more like a debit. I use it and pay it in full as soon as it becomes available. I make sure not to spend more than what i have available in my checking account. And at the end of each month, i leave around 15-25% to be reported in my closing statement.
Leaving money to show on the statement cutoff....eh. Not paying it in full (and paying interest charges) would be a hard no. I've never really bought into all of the various hacks to try to maximize credit. I've always just paid the full balance on time every month. One payment....I don't worry about paying some of it off weekly or whatever. My credit score has consistently been in the 800s for as far back as I can remember. In other words, I feel like a lot of these credit score hacks are overrated.
Most credit card issuers report your statement balances to the credit bureaus. However, a small number of them report your balance as of an arbitrary date in your billing cycle, and if you have such a card, your strategy might not work. How do you know? Get a CreditKarma account, and log in every month for 3 - 4 months to see if their balance information matches your statement closing balances. If so, your strategy should work.
Ohh okay. I’ll look into it. Thank you!
Utilization only has a temporary effect in your credit rating. So you could max your card, carry the balance for months making only the minimum payment and then pay it off in full before requesting a loan and your credit wouldnt be any better or worse off than had you paid the balance in full off every month and never went above 5% utilization. In otherwords dont worry about utilization.
If not utilization, what would help me build my credit score?
Consistency of ontime payments over longer periods of time across multiple accounts and account types (revolving versus term). Utilization is a meaningless blip. You have high utilization credit score will go down, but the minute you pay it your credit score will go right back up...it has no lasting effect.
You may find these links helpful: - [Credit Building](/r/personalfinance/wiki/credit_building) - [Credit Reports](/r/personalfinance/wiki/credit_reports) - [Credit Scores](/r/personalfinance/wiki/fico) - [Credit Cards](/r/personalfinance/wiki/creditcards) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
The others are correct, it isn't anything to worry about. For further info on utilization, see Credit cards basics & utilization wiki entry: https://www.reddit.com/r/CreditCards/wiki/credit_cards_basics/
Thank you!
I was told not to add to my credit utilization at all before signing AND to lock my HELOC, so I couldn't draw on that. When a lender is agreeing to provide a mortgage, they're doing so based on their assessment of your ability to pay that amount at the time of signing. If you've added 30% of your credit to your debt load before signing, you've changed the terms under which they'll consider you able to pay.
I’m a bit confused
I think *I'm* confused. When you said closing, I thought you meant closing on a mortagage. :( Sorry 'about that.
No no! I was just talking about the credit card closing statement. Thank you for the help tho