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Question By
carlock0211

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Credit Card Payment/Use Question
I just want to make sure I'm using my credit card right since I'm new to this. My credit card due date is the 6th of each month and my close date is the 9th of each month. My credit limit is $500 and I have only been using $80.00 which I'm told is good for utilization purposes which I get. My question is, is it best to pay the balance in full by the 6th but make a small charge before the close date to reflect use of the card by the time is reported to the bureaus? Or does the $80.00 I used and paid back get reported? I'm guessing it doesn't because I paid it before the report date.

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Credit Utilization = report date to cred

Helpful to 2 out of 2 people

I see someone told you that 16% of your credit limit is good, but I prefer to place my card accounts at a 9% monthly utilization of my credit limits prior to my billing.  Some card companies may close the account if you either don’t use the account, or use it too little, so 16% might work for you. As long as you don’t go over about 30% as that’s when your score starts going down.  However to give the card company more incentive to keep my accounts open, I actually charge almost full credit limit (or at least a large charge) every now and then and pay it off prior to my billing statement comes out.  All of my cards report my payments to the credit bureaus on my statement dates.

So planning to attach and pay off a certain bill each month is a good way to place a large charge I already plan to pay and give time to post a payment before my statement date.  I make sure I leave 9% of the credit limit as a balance on the account for the statement.  The card will report the largest credit amount used (the largest amount ever charged) and my credit utilization of 9%.  Then I just pay off the remaining 9% off before the cycle over again each month.  Thus demonstrating to creditors that I can make larger charges, and pay them off responsibly, effectively increasing my chances of getting a higher credit limit with that or any other card company later.

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