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New Visitor
odbbza
Posts: 5
Registered: ‎01-26-2014

Maxing a card out question

[ Edited ]

So I've been on google and the forums looking for an answer and I can't seem to find the exact one I'm looking for... 

 

So here is the scenario:

 

I pay bill a,b, and c on CC #1 on the 1st of the month, on the 3rd of the month I pay CC in full. Bill a,b, and c = 95% of CC #1's limit. Is this a bad thing (negatively affect my score due to at one point during the billing cycle the card was maxed out)? 

 

I will never roll it over to the next month and this is basically to utilitze rewards and activity on the card. I'm new to the whole credit industry and just looking for a little guidance.

Valued Contributor
-Wade-
Posts: 10,971
Registered: ‎08-13-2013

Re: Maxing a card out question

[ Edited ]

odbbza wrote:

So I've been on google and the forums looking for an answer and I can't seem to find the exact one I'm looking for... 

 

So here is the scenario:

 

I pay bill a,b, and c on CC #1 on the 1st of the month, on the 3rd of the month I pay CC in full. Bill a,b, and c = 95% of CC #1's limit. Is this a bad thing? 

 

I will never roll it over to the next month and this is basically to utilitze rewards and activity on the card. I'm new to the whole credit industry and just looking for a little guidance.


A card that is maxed out is always a bad thing! You need to pay it down as quick as you can! It really hurts your credit score a lot 

*** Old user name newportguy*** Current Score: myFico EQ - 806 (04/04/2014) Discover TU Fico - 808 (07/03/2014) myFico EX - 804 ( 07/08/2014 ) myFico TU - XXX ( xx/xx/xx ) Amex - BCP 10 K * Discover - IT 10.5 K * U.S. Bank Cash + Visa Signature 8.8 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ****** FICO 800 Club Member ******* EQ 806 *** TU 808 *** EX 804 ***
****** ****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores
New Visitor
odbbza
Posts: 5
Registered: ‎01-26-2014

Re: Maxing a card out question

That's my point, is that it stays maxed for a day or two and never should be reported as maxed out at the end of the month or when the billing cycle ends. 

Community Leader
Valued Contributor
user5387
Posts: 1,794
Registered: ‎07-01-2010

Re: Maxing a card out question

A lot of the answer depends on whether the 95% balance reports to the credit bureaus before you pay it.

 

Also, you might not wish to do this with a new CC.

 

Valued Contributor
-Wade-
Posts: 10,971
Registered: ‎08-13-2013

Re: Maxing a card out question


odbbza wrote:

That's my point, is that it stays maxed for a day or two and never should be reported as maxed out at the end of the month or when the billing cycle ends. 


As long as you pay it down before it reports! Then no it's not bad. Just don't let it report

*** Old user name newportguy*** Current Score: myFico EQ - 806 (04/04/2014) Discover TU Fico - 808 (07/03/2014) myFico EX - 804 ( 07/08/2014 ) myFico TU - XXX ( xx/xx/xx ) Amex - BCP 10 K * Discover - IT 10.5 K * U.S. Bank Cash + Visa Signature 8.8 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ****** FICO 800 Club Member ******* EQ 806 *** TU 808 *** EX 804 ***
****** ****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores
New Visitor
odbbza
Posts: 5
Registered: ‎01-26-2014

Re: Maxing a card out question

[ Edited ]

Ok I appreciate the quick responses... I'm trying to set up a auto pay of a new CC actually and I'm deciding what bills I want the CC to pay for (then pay the CC off right away).

 

edit: Do I just ask the company when they report or how will I find that out?

Valued Contributor
-Wade-
Posts: 10,971
Registered: ‎08-13-2013

Re: Maxing a card out question


odbbza wrote:

Ok I appreciate the quick responses... I'm trying to set up a auto pay of a new CC actually and I'm deciding what bills I want the CC to pay for (then pay the CC off right away).

 

edit: Do I just ask the company when they report or how will I find that out?


Most report right after the statements cut! It shows on reports a few days later

*** Old user name newportguy*** Current Score: myFico EQ - 806 (04/04/2014) Discover TU Fico - 808 (07/03/2014) myFico EX - 804 ( 07/08/2014 ) myFico TU - XXX ( xx/xx/xx ) Amex - BCP 10 K * Discover - IT 10.5 K * U.S. Bank Cash + Visa Signature 8.8 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ****** FICO 800 Club Member ******* EQ 806 *** TU 808 *** EX 804 ***
****** ****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores
New Visitor
odbbza
Posts: 5
Registered: ‎01-26-2014

Re: Maxing a card out question

thank you wade

Valued Contributor
-Wade-
Posts: 10,971
Registered: ‎08-13-2013

Re: Maxing a card out question


odbbza wrote:

thank you wade


Your welcome! That's why we are on the forums for to help each other :smileyhappy:

*** Old user name newportguy*** Current Score: myFico EQ - 806 (04/04/2014) Discover TU Fico - 808 (07/03/2014) myFico EX - 804 ( 07/08/2014 ) myFico TU - XXX ( xx/xx/xx ) Amex - BCP 10 K * Discover - IT 10.5 K * U.S. Bank Cash + Visa Signature 8.8 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ****** FICO 800 Club Member ******* EQ 806 *** TU 808 *** EX 804 ***
****** ****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores
Senior Contributor
longtimelurker
Posts: 5,267
Registered: ‎04-22-2013

Re: Maxing a card out question


Wade64 wrote:

odbbza wrote:

Ok I appreciate the quick responses... I'm trying to set up a auto pay of a new CC actually and I'm deciding what bills I want the CC to pay for (then pay the CC off right away).

 

edit: Do I just ask the company when they report or how will I find that out?


Most report right after the statements cut! It shows on reports a few days later


Note the "Most".  US Bank reports at the end of the month, regardless of statement date.   I don't know other exceptions but tell us what the card is in case others know.

 

Most active cards: Amex BC ($50K), Cap One QS ($33K) Fidelity Amex ($20K)
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Scores May 14: EQ 848, EX 833, TU 841 (Jul)

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