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Question By
erwangdamango

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Is it bad to max out your credit card, but pay it in full?
I was recently approved for a CapitalOne QS1 MC with $500.
My very first credit card after having a secured card for 6 months.
I spend about $1500 a month using my debit card and cash.
Would it be bad to max out my credit cards 3 times a month, but pay it off in full by the end of my billing cycle?
Or should I stay within 30% utilization rate and making about 10 payments per billing cycle?
I want to establish a good credit history so that I can get a big CLI in 6 months time.
Any feedback would be much appreciated!

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you will have to figure out what date the card company reports your balance to the credit bureaus and just make sure that you are at about 10% utilization at that time of the month. the date that they report to the credit bureaus is the important date to have a low balance, with most companies it is within a couple days of your statement date

Reply by
erwangdamango

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Thanks!

Just to clarify, it wont matter how many times I max it out, just as long as I'm under 10% when it gets reported?

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yes, you are correct erwangdam

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CC companies ususally report the balance at the end of your billing cycle to the agencies. if you pay it off before then, then you're golden. 

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