CC balance pre-payment

[Anonymous]

I just recently got my first credit card, and am wanting to get into the habit of using credit cards more, learning the sytem, and eventually obtaining the prestigious cards with crazy point values for free travel and high-status upgrades on hotels, lounges, etc. 

ANYWAY

My card has a 2,000 limit, and I've been putting about 10-20 percent on the card each month and paying it off in full. However, as of now, I am still living month-to-month on a server job and so it would be much easier to pay as I go just in case I get sick, business is slow, or I don't get scheduled as much as normal. I want to prepay most of my balance over the course of the month and then just leave about $50 leftover whenever the statement date arrives. Is having that low of a utilization score hurting my score (or just not letting it grow as fast as the 10-20 percent that I have been showing), or am I fine to do it this way? 

[Anonymous]

That sounds like a fine plan. 

I've been told it's advisable to not let the CC report balances above 8.9% -- $178 of $2000 in your case -- so your plan should work just fine while leaving you some wiggle room for error or unforseen events. Good luck.

[Anonymous]

Multiple payments are fine if that's something that will help you budget/manage your account better.  CCCs ultimately care about your swipes/spend and overall payment (PIF is best). 

James is correct above in part regarding the reporting of balances at 8.9% or less.  This is optimal for scoring if that's what you're after.  In terms of CLI potential on your card, there's no harm at all in allowing a balance in the 9%-28.9% range to report and in some cases such a balance has been known to help stimulate favorable CLI results.  Of course this varies by lender.  Remember the reported balance has absolutely nothing to do with your ability to PIF.  There are months that I've reported a 60%+ balance on a CC, but still PIF.  I've done this at times on purpose a month or so prior to a CLI request, as it paints a picture for the lender that I "need" the CLI more than just "want" it... and when coupled by a PIF it shows I'm exhibiting top-notch credit behavior (lowest risk to the lender) which paints the most favorable look overall IMO.