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mjgoldstein88

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Utilization and Paying Statement Early
Hi All,

From what I've read in some articles, it is my understanding that If I use my credit card, and pay off some of the balance before my statement generates, that only the remaining balance is what is reported to the 3 bureaus. I'm going to buy plane and sports tickets, but combined with my regular monthly spending, it will take me over 30% of my utilization. I have a rewards card, so I want the points, but I don't want my utilization to spike.

If I pay the two ticket charges off before the statement generates, will the reported balance be the remaining monthly expenditures? I am spending about $1000 on the tickets, and I typically total about $1000 per month on credit cards. My utilization will go from about 15% to 30% if everything reports to TU, EQ, and EX. Otherwise I will use my debit card.

Thanks in advance.
MG

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Unless you are going for a mortgage loan within the next month, you are way too concerned about your utilization. Thirty percent utilization is not the end of the world, not would ninety percent be as it can be corrected by paying the balance down before the following month's reporting time. Anyway, the answer to your question is that as long as you pay the balance down before reporting time then the higher balance will NOT be reported if you have it paid down. There are usually always more perks and benefits in using a credit card rather than a debit card with the exception of paying interest if applicable. Don't revolve your life around credit, credit is something that should help your life not give you anguish.

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kerriepope

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I agree with this.

Yes, its important to watch your utilization rate...because it does have a big impact on your score total.  BUT...that's the one that will fluctuate wildly from month to month, depending on what you pay off and what you leave on there.  Its not a big deal unless you're about to make a major purchase next month (car, home, etc). 

Its okay to be over 30% for one month.   It won't hurt you at all, as long as you pay it back down next month.

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If you pay off the tickets before the statement then it will show the normal utilization and you will not be above 30 percent. I do this every monbth to keep my utilization at 10 percent or below.

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Don't become too obsessed with utilization rates for short term purchases such as those tickets you will buy. Even if your score takes a dip for a bit, it's not a big deal.  One credit card I have just offered me a one year 0% interest 'loan' (utilizing my available credit on the card) that I will use to finish paying off another card.  I'll be using 50% of the available credit which might 'ding' my score and utilization rate for a bit, but all things balance out in the end. Saving money on the interest that I would otherwise be paying is a plus.  Credit is a game to be played to save money, and one I am thoroughly enjoying. 

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Thank you both for your responses. I guess I'm too concerned with little dings. One month of high utilization isn't the end. I have my whole life to build up, or knock down my credit score. I've been more cognizant of it after I opened a new account and the score is reported to me monthly. 

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