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Question By
rikki32

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1 Person Helped
use of credit card/paying balance, no change.
the first time i used my cap. one credit card and made my first payment my score went up dramatically. It has since gone down quite a bit because it said i had a balance. I have paid the balance in full with each bill yet my score has not gone up..at all..its stuck at 594 and I would like to know why that is? I am using it, and paying it and my score hasnt changed except for that first time, it is discouraging to say the least. please help with this question. thank you

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Credit Card Utilization

Helpful to 5 out of 5 people

If you don't know already, credit utilization is the ($ amount) balance to credit card limit. It rates High on your credit score.

How much is your credit limit?

Here is a scenario. Let's say you have a $500 credit limit on your card and you are charging close to that amount (anything above 30% of your limit is bad for your score). When your billing cycle closes (the same as when your statement comes in), Cap One then reports that balance to the credit bureaus.

Even if you pay the full balance off every month, and Cap One reports a high balance to credit limit, your score will continue to stay low.

The trick is to pay off the full balance BEFORE your billing cycle closes. You can max out the credit card if you want, but if you pay off the full balance before the billing cycle closes, then when your statement comes in, it shows a $0 balance and that is what will be reported to the credit bureaus.

Find out when your billing cycle closes and then you will know when you will want to have that balance paid off. If you do it that way, your scores will improve quickly.

Reply by
rikki32

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Helpful to 1 out of 1 people

i get it now..thank you!

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