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Question By
Laraadr

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Credit balances and credit score
Hello, so my question is:
Does the balance have to report to the credit agency and then paid off to affect my credit? For example I make a huge purchase and pay it off right away, will it still be reported as a balance and paid off?

Also if I pay off my credit card debt, the credit simulator my credit goes up about 50 pts(650-700), but if I add an increase of debt it goes back down to half way. Is that normal for credit to fluctuate up and down by just making purchases? Tying back to my original question, if I pay off my current debt, add more and pay it off right away should maintain my credit at the simulated increase?

I would also like some tips and tricks to help restore my credit. Since I never really had someone to really teach me other than people telling me I need to keep a good score I'm kind of winging it as I go.

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Most credit card companies only report balances once per month, so the balance that you have the date they report will be the balance reported for the month. They do not report your activity to the bureaus, they don't report that you charged a hundred dollars but paid it off a day before the statement date. Some companies do report an all time "high balance though" but this does not affect your credit in any way. What you are addressing in your other questions is "credit card utilization" and how it affects scores. When you are using less than 10% of your credit line you get the best scoring, if you are over 50% you will get penalized pretty good, you go over that or max the card out, then you are really penalized will score decrease. All of this will fluctuate from month to month and is not permanent, the scores will adjust as you adjust your utilization rates. Also I want to add, there is no need to "wing it". The internet is full of everything that you need to know about credit, be sure to make time to read about credit. Reading and learning is safer than winging it. Any questions along the way in learning about credit, feel free to ask, but be sure to do some studying on your own.

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