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CreditRman

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Can I spend as much money on my credit card as I want if I pay it off before my statement?
so, I just got approved for a new credit card that has a $1000 limit and I want to spend a lot of money on it so that I can earn a lot of rewards and of course I plan on paying the full amount so I don't get charged interest. As long as I can pay it before the statement closes, can I spend a lot of my credit limit or will it get reported even if I am able to pay it off before my statement date?

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Not a good idea, really.

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If you pay off your credit card before you even get the statement, you may actually lose instead of gain.  It depends on how the rewards are calculated.  And, your idea of charging a lot just to get the rewards also doesn't take into account the fact that something could happen that prevents that happening.  I'm retired now and have seen bad things happen so many times, it's not even amusing!

Paying before the statement closes will actually show up on your credit score as "ZERO" usage.  If you were to pay the card immediately AFTER receiving the statement, you will not be paying interest on that amount.  The only time you will be charged interest is if any amount of the balance from one statement remains unpaid and is carried over to the next statement, then that carried over amount will be charged interest.

I have not seen any rewards card that pays enough in "rewards" to make going for large charges worth the risk.  Keeping overall card usage below 20% is the ideal way to go so you will also have something in reserve for emergencies (which are bound to happen).

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Tricky but doable !

You said you have a credit limit of $1000. So imagine you spend $800 on purchases and repay it in full before the statement gets generated. So in this case there will be 0% utilisation and hence the credit score will have no gain from this card. Hence pay off the amount such that the statement shows atleast 10-15% utilisation and you will be set. Another danger with your scenario is that some credit card issuers declare the usage to the credit bureau immediately after the statement is generated or at the end of the month. If the your usage is reported at that time of the month when your utilisation is high then your credit score will take a big hit. So follow the 10-15% rule for 2-3 months and check on credit karma when the usage is reported and then plan your scenario. 

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What happens if you rack up a lot of debt on the card expecting to pay it off in full, but then you lose your job and you can't pay it off? You're f*cked, basically.

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