Established Member
nikkibabee
Posts: 17
Registered: ‎02-13-2009
Credit Card Balances

‎02-24-2009 08:33 AM

Hey all!

 

I had a question about using credit cards.  If I have a balance of $1000, would it be ok to use up more than half the available every month if I pay it down to less than 20% before the statement is available.  I get paid every 2 weeks, I like to charge on the card because it gives me points, I just wonder if they will report how much the highest balance during the month was on the card or do they only say how much it was when the statement generates.

 

Thanks!

Nikki 

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Frequent Contributor
PayingTheBills
Posts: 353
Registered: ‎01-29-2009
Re: Credit Card Balances

‎02-24-2009 08:36 AM

It will only show your balance on the statement date.  Most here would recommend PIF each month to avoid any interest charges, but a good rule of thumb is to be under 10% if you can manage it.
Starting Score: 540 EQ 517 TU on 11/17/08
Current Score: 668 EQ 715 TU
Goal Score: 760 EQ 760 TU

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Established Member
nikkibabee
Posts: 17
Registered: ‎02-13-2009
Re: Credit Card Balances

‎02-24-2009 08:38 AM

The card says I have till Aug at 0% apr...woohooo...yes, I plan on paying down to 10% because I heard that you should carry a low balance to raise the score...is that correct as well?

 

Thanks!

Nikki

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Frequent Contributor
PayingTheBills
Posts: 353
Registered: ‎01-29-2009
Re: Credit Card Balances

‎02-24-2009 08:45 AM

Yes, reducing your revolving utilization % is one of the best ways to raise your FICO score.  It shows that you can use your available credit responsibly.
Starting Score: 540 EQ 517 TU on 11/17/08
Current Score: 668 EQ 715 TU
Goal Score: 760 EQ 760 TU

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