Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
LittleShopper

0 Contributions
0 People Helped
How do multiple payments and charges affect credit utilization?
Hi everyone,

I'm repairing my credit and want to have a better understanding of credit utilization. I currently have a $1000 credit limit and ideally I should use it up to 20%. To maintain it, can I pay the card off every week and charge it again within same month? Let's say I spend $200, and pay back $200 next week, and charge it again for $150 another week and pay if back, etc. to pay it in full at the end of the month, of course. This way, does my credit utilization stay below 20% or do all the charges sum up above that point? Is is good for my credit score or I should avoid charging the card again after making a micro-payment?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Credit Karma Team
Top Contributor
2949 Contributions
4622 People Helped

Hi LittleShopper,

Great question! Your utilization rate is reported to the credit bureau just once per month as a "snapshot". The balance on the reporting day is the reported balance for the entire month, regardless of how many times you make payments and new charges. 

Learn more here: https://www.creditkarma.com/article/credit-card-utilization

Top Contributor
16 Contributions
32 People Helped

If you make multiple payments throughout the month that's fine. They do not report the total you spent all month. Only what you owe on the statement closing date.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.