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Question By
Brijette0322

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High Credit Utilization... How do I make a payment?
I have a credit limit of $500, this month I went over my card utilization ratio of 25%, using 52%.

My question is, how should I make my monthly payment?... The full amount, statement amount or pay about 95% and leave a very small balance (like $1 or $5)?

Thanks so much for the responses in advance.

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When the bill comes in, if you can pay the entire balance due (as shown on the bill), please do so.  That way, you won't be charged interest, and we need to save as much money as we can.  If you leave any balance, interest will be charged.

Please give consideration to reading the articles on this site so you can gain a better understanding of how credit works.  That is why Credit Karma was created--to teach people about credit so they can benefit much better.

Top Contributor
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How I do utilization

How id handle that situation is *BEFORE* the statement comes in, make a payment to try to bring your payment down to 8% utilization.. for 500 there should be (make a payment trying to leave 40$ on the card......... Then when the statement comes in... You should pay in full..... Some folks say you should wait untill close to the due date.. I don't... but if i pay it and more post to the account. I let it ride untill the next statement date (not due date), then I make sure I PIF in addition to recalculating the 8%....

The net gain is a very small boost in score.. but you have to keep up the good utilization for the benefit. but the PIF after the statement I think has more of an effect..

Top Contributor
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Depends on what you want

If your trying to increase your score. Let the full balance report  then pay it off in 2 payment. This will help your score because paying off in part or in full before reporting the large balance tell the creditors that you don't really need the credit. You had the cash on hand. In general that will have far more effect on raising your score. 

In general I only use 0% cards for this type of. Payment scheme. 

If you happy with your score then just pay it full when  the bill is due. 

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