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Posted in Credit Cards
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Trappedinthesystem

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credit card balance versus credit score
If this the biggest farce in the credit industry? Your credit score is immediately and directly affected by your current credit card balance? I pay off all of my credit cards within a couple days of making a charge, usually a couple times per week. Yet, my credit score is "dinged" due to "credit utilization" of 30, 50, 80%. Really? I've charged almost $20K in one month on a $7,500 limit card and always paid within days. Apparently the credit industry does not realize that in today's world, using a credit card is a necessary (or required) form of payment for things.

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Make sure you have a low utilization come statement time, that is the time when they update balances to the credit bureaus. It does not matter what your balances are at the due date or how much you pay off per month, it matters what amount you owe at statement time, when they report the balance to the bureaus.

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