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Question By
Anastasiabarney

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Is utilizing 30% or less of a credit limit a once a month/billing cycle good practice?
I just got a credit card to help build my credit. My limit is $300. I spent less then 30% of my credit limit and once the bill was posted I paid it off the next day. My question is: once I've paid my balance down to zero, am I okay to use less then 30% of my limit again in the same billing cycle/month? Or is the recommendation to only use 30% of the credit limit once a month, regardless if I've paid it off and still have weeks remaining in my billing period/month?

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You can find out when the credit card compaines report what your balances are - simply call and ask. I have the dates when all my credit cards report my balances.

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Timing is not really the issue because you have no idea when the credit card company reports to the credit bureaus, so you don't know if they will be reporting a balance or zero balance.  Always keep your utilization below 30% for best score results.

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Anastasiabarney

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So if my credit limit is $300 and I spend $90, pay $50 the day after the bill is posted, once my $50 is credited to my account I can spend another $50 again in the same period? Because the utilization is never above 30% at one time because I make multiple payments during the month?

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