Is charging to limit a bad thing?

[Sassy_Taurus]

I have a Orchard card with a $300 limit and a Capital One card with a $200 limit. Every month I pay the Cap 1 card to a zero balance and Orchard to a $20 balance before the statement closes. My question is by maxing my cards out monthly even though I pay them down is that hurting my fico?

[jamesdwi]

shouldn't effect your fico score, but your creditors may not like it, and you can get burned if they have an fee for going over the limit. If you ever let it report it will effect your high balance field that may effect you.  May want to app for another card possibly GE backed card they may take a chance they are quite good at giving CLI's every 4 months and the walmart card comes with monthly TU08 scores if you go paperless statements. 

[Sassy_Taurus]

Thanks. I'll look into a GE card

[Revelate]

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@Sassy_Taurus wrote:

I have a Orchard card with a $300 limit and a Capital One card with a $200 limit. Every month I pay the Cap 1 card to a zero balance and Orchard to a $20 balance before the statement closes. My question is by maxing my cards out monthly even though I pay them down is that hurting my fico?

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No, and it will likely be viewed as a positive both by your current lenders (ok, maybe not C1) but certainly others when it comes to manual review.

Lenders like people who are using their cards, that's unarguable, and you've already established the pattern.  You'll be fine.

[jordanmedical]

EX and TU reports your highest balance (ever) on your credit report, not sure if EQ does it