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Question By
fdiazz

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My credit report was hurt because I used more than 30% of my credit,. How can I improve my score?
I am trying to build my credit. Currently, I have one secure credit card, and two unsecured credit. I used 48% of my credit and that caused my credit to go down to 633. I have always been responsible with my payments, I never missed one and always pay my full balance. What can I do to improve my credit?

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Best thing is to work on keeping the total charges below 20%, and you should see a raise in your score.

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Your question holds the key to your answer.  If high utilization is dragging your score down then lower your utilization.  You can do this a couple of ways:

1. Limit spend to x%.  Let your statement cut.  Pay in full by the due date.

2. Spend whatever you need.  Pay down your balance to the desired x% by statement end (if your credit card reports on statement date as most do -- you can confirm this by taking a look at when the balance updateed on CK).  Let the statement cut and the balance report.  Pay off the remaining statement balance by the due date.

The key piece of information here is that paying in full doesn't necessarily mean that no balance reports.  As I said, most cards report on statement date.  For those cards whatever your current balance is on that date is what is reported to the credit reporting agencies and used in calculating utilization.

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