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Rlayes316

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Making large payment on card, then using it, will it help my credit?
I planned on making a large payment on my credit card and then paying my monthly bills with it, will this help my credit score if i do it weekly/monthly?

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MAybe, Maybe not

Helpful to 1 out of 1 people

It all depends on how many cards you have: You total available credit vs utilization rate.  

as an example: if you have 1 card with a $1000 limit and you charge $500 this month, (50% utilization) Then pay them $400 when the bill is due, Then charge $375 the next month. When that card reports it will show a balance due of $475. (48% utilization)  It will appear as if you only made a $25 payment.  So its actually best to pay it off and then not use it so that it will report a 0 balance at least 2 or 3 times a year.  Thats the advantage of multiple cards, so that you don't over use any one card at any time.

Ideally you want to keep your utilization below 15% of any card. or no more that 15% of your total available credit of all your cards. If you make exessive paymetns (3 or more a month) to your card, they lenders takle the attitude that you really don't need a card if you are making multiple payments,  that you could have actually paid cash. 

hope that helps.

Reply by
Rlayes316

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Thank you for your response, i actually have 4 credit cards, 2 with no balance and one with a very low balance (Less than $50) but 1 of my cards a Visa is almost at its limit and is very high, i wanted to make a very large payment (what i would have normally used to pay bills) and then use that card to pay said bills instead, hoping it would help my rate go up a bit due to a high payment.

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