Does it count as using credit if carrying a balance each month without new transaction?

[kchui1028]

basically just what the subject asked.

If i make a big purchase, say $800, and my limit is 3k

i paid 300 each month to the card next few months without new transaction. Am i still using credit? or is it bad for credit?

Does it still count as using credit if you have no new transaction but carrying the balance each month and pay it off over several months?

[vish1]

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@kchui1028 wrote:

basically just what the subject asked.

If i make a big purchase, say $800, and my limit is 3k

i paid 300 each month to the card next few months without new transaction. Am i still using credit? or is it bad for credit?

Does it still count as using credit if you have no new transaction but carrying the balance each month and pay it off over several months?

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Yes it does. CRs have no way to know that the balance is new transactions or old balance.

It may hit you by a few points on your score in the beginning as your Util may go high, but you will recover those points back as you pay the balance down. This hit will depend on your total util (total util on all cards / total CL on all cards), as well as on the util on this particular card.

Please try to stay under 40% of your CL if you can (you can consider splitting the charges over 2 cards unless you are buying something which has additional warranty using the card or a promotional offer on that card)