Maxing out. How damaging?

[Anonymous]

Do maxing out or 80-90% utilization on one of credit cards results in lasting damage to your credit?

Even if I pay off the card when the bill is due?

If it is very damaging and lasting, how permanent is the damage? I mean next month comes around, the entire bill is paid and the utilization is down to normal/0-5%.  Wouldn't that just reset any negative factors?

Or will the high utilization stay with me for the next 7 years, like a bankruptcy or delinquent payment? (Of which I have none)

Very curious because I have charged pretty close to my max on one of my credit cards for reward points. However, would like to wait till the actual due date to pay it off, as oppose to the date before statement generation.

The extra 25+ days the fund could sit in my checking/savings generating interest and give me some happy thoughts.

Thank you for your insight!

[GregB]

Your score is based upon the information at that time. If you pay in full when due, it will only hurt your score until the next statement posts.

[Booner72]

Also info that is good to know, FICO has no memory of past utilization, though your credit card company will have memory of that. 

[GregB]

Booner makes a good point.

Your CCC may be a bit concerned about a card being run up to its limit. If your credit is marginal I would be a bit concerned about possible AA for that. If your credit is decent and they are likely to be comfortable with you then you will look even better to them when you pay it on time.

I have one CC, where they opened it with a limit much lower than my others. For about a year, when I use it I charge enough so that during the next cycle before I pay the payment, I usually get it over $7,000. Right now it is $7,948 - $52 short of the limit. I always Pay in Full and never carry a balance. I keep expecting them to raise my limit. So far, nothing! I'm getting my utilization down and expect my FICO to come out of its hole soon. Hey Citi, I'm waiting!

[chasmith]

FICO scoring has no memory, and no record of transactions.  So if you run up over 90% of the CL, and PIF after the statement cuts, the scoring model can't distinguish that scenario from a customer who runs hugh util, pays the minimum each month, and charges a little each month to keep the balance hovering there.  What folks do to maximize score is to pay a few days before the statement cuts.

It's really hard to predict what a lender will do.  I personally would max my score as above and then ask for CLI.