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This is my first post on here. I am rebuilding my credit. And awesome info on this site so far, I have learned so much in the last few weeks reading.
Say my limit is $500 and I purchase something for $350 (70% of my limit). However, I pay the $350 within a few days my making a payment BEFORE my monthly statement comes and at the end of the month, my net balance comes out to be $50 (10% of my limit) as a result of making several payments within the month.
In this case, is the Utilization ratio a low 10% or something else?
I have tried to find answer to this strategy of keeping the ratio down, but have not found any valuable ones yet.
Or do I never max out my credit card, and only charge up to 30% of the card, because that will be shown on my credit report as the (High Balance)?
Welcome to the forums!
Typically a CC balance is reported once a month to the credit bureaus, and the utilization calculation for scoring purposes is based on that.
A typical scenario is that your balance on the statement date is reported shortly thereafter.
A variation is reporting the current balance at the end of the month.
Cool, thanks.