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Question By
Raybreeezy

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Maxing Credit Cards But Paying In Full
My credit limit is $2,000

Every month I maximize my utilization rate to 90-97% but the day I receive my credit card bill I immediately pay it off in full. Do you think this will hurt my credit score, or help it?

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Top Contributor
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Helpful to 14 out of 16 people

If your cards report on statement date and you're waiting for the statement to pay in full then it will absolutely hurt to have your cards reporting at 90-97%.

If you pay down the balance prior to report date with sufficient time for the payment to clear then you won't see the impact.  It the balances and limits on your reports that impact your scores.

You can use whatever you want.  However do not allow more than 30% to report.  30%, however, is not ideal.  It is a suggest maximum.  Ideal will be much lower.

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Helpful to 11 out of 12 people

You can pay multiple times prior to the statement day. pay off 90% before and then pay off the remaining 10%. That 10% is what will get reported. Then ask for a credit limit increase to your credit card company every 6 months. When you are ready, open more lines of credit and use them responsibly. It seems you are a good candidate for more credit if you use close to 2000 a month.

It's good that you are paying it off completely. That's the key! Keep it going!

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Reply by
Dnelson594

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Helpful to 8 out of 9 people

That's not entirely true - the answer depends on when the creditor reports to the credit bureau. You want to make sure to keep the utilization low the day before the balance is reported to the credit bureau. Typically, this date is either your statement date or the due date of your payment; however, that is not always the case. To find out, you can call your creditor and ask when they report to the bureaus. 

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Hurting

Helpful to 10 out of 11 people

You should not be using more than a maximum of  30%. If it's a reward credit card, and you're maxing it out for points;  then pay it off weekly or bi-weekly so you stay under the 30% maximum usage.

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Increase Score

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if your looking to increase your score leave 25% of the allowable line of credit as a balance then pay $1.00 more than the min. payment for three months then pay it off. keep repeating this and you'll be knocking on 800 FICO's door in no time.

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YES

Helpful to 1 out of 1 people

you need to pay it off before the billing cycle ends. this way they report low utilization ratio and still report you are usinf it

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im not PER-fect

LoanRanger unless you just have to, try not to request for an increase. They will automatically review your account appr. every 6 -12 months and increase it for you. You don't want a lot of hard hits against your credit. It won't look good when you apply for something esle

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It'll hurt your credit history, at least short term...    unless you have another 10,000 or so of credit from other sources that you aren't utilizing.  In that case, it won't make much of an impact at all in the short term.

In the long term, it may help w/ that one $2,000 card, as you may get a credit limit increase in a routine check (better than calling them and asking for one, which results in a hard inquiry *most* of the time).

... but if you only have that one card, or if you have something like $4k or less of total credit, then you're playing with fire, re: other card, or both cards, reducing your limit or raising your APR.

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Can you apply to increase your credit limit? 

Reply by
hustondj

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YES. most times it will require a hard inquiry on your credit report but sometimes they are allowed to do a soft inquiry and you can get you credit line increase. either way if they are going to do a hard inquiry make sure you have been making ALL your payments on time, and no late payments for a year.

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