CC Balance Question/Credit Score Impact

[auron]

Hi all,

I have been wondering this and keep forgetting to actually post about it so here it goes. Is staying below the 30% balance on CC limit applied to instantaneous balance or carry over to the next payment period?

I pay my CC off in full usually withing 2-3 days of making a purchase and have never carried a balance to the next payment period. I ask because I only have 1 CC and it's at a $500 limit and am wondering if I am hurting myself when I make a $150+ purchase even when I pay it off before payment is due.

Thanks in advance.

[jpg7n16]

Given the amount of credit in play here, there won't be much difference either way. If you were in charge, how much would you adjust someone's credit score if their balance was $120 vs $160? Not really that big of a deal. The percentages are there to indicate larger issues. Think over 30% of $50k total available credit. That could be a problem.

I believe they check periodically in the middle of the month.


As far as advice, I'd recommend not focusing on the percentage as much as focusing on paying off any credit card whenever you use it. Do that over a long period of time and you'll be fine.

[auron]

Given the amount of credit in play here, there won't be much difference either way. If you were in charge, how much would you adjust someone's credit score if their balance was $120 vs $160? Not really that big of a deal. The percentages are there to indicate larger issues. Think over 30% of $50k total available credit. That could be a problem.

I believe they check periodically in the middle of the month.


As far as advice, I'd recommend not focusing on the percentage as much as focusing on paying off any credit card whenever you use it. Do that over a long period of time and you'll be fine.

That makes sense. Looks like I will be keeping the status quo for me then. Thank you!

[JoshuaHeckathorn]

Credit issuers report balances once a month, and they generally do it right around when your statement closes. If you already have a $0 balance when your statement closes because you pay the balance off early, then your credit utilization ratio will always be 0%.