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Question By
Mioke

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10 People Helped
Paying balances
I have 2 credit cards one for my business and one personal. I'm building my credit back up and I'm curious if what I'm doing is good or bad. Both cards are cash back so basically I decided to run everything through them. I don't have perfect credit so the limits are low($500 & 2k). I go above 50% credit utilization because I use them so often. However, I always pay the entire balance off, weekly, sometimes multiple payments in one week. I have had the cards for 2-3 months and have combined cash back of almost $400 on purchases I normally would have ran through my debit card. So in a nut shell I earn cash, back I don't pay interest, I don't put anything on the card I wouldn't normally spend using my debit card. BTW, I check Credit Karma often. I haven't seen anything bad come up.

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Credit Card Utilization

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What you are doing is ok, in fact I do it myself, but there is a hitch.  Credit card utilization percentages have a very large impact on your score.  If your credit cards report the utilization at 50% as you cite, your credit score will take a big tumble.  If you watch your report closely and know when the companies report to the credit bureaus you can manage this easily by making sure you pay the cards off just before the reporting date.  Some cards also just report on the last statement balance.  This is even easier to manage by making sure you bring the card balance, not just the statement balance, to $0 the day before the billing cycle ends.  (Remember to pay your statement balance on the due date too).

Reply by
Mioke

2 Contributions
10 People Helped

How do i find out when the balances are reported?

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