Does using your credit card below the limit a lot and paying it off ruin your credit score?

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My credit limit is about $ 1200 and I’ve been spending about $ 300-$ 400 for the past three months but I have been paying most of it or all of it off, but is that bad or good for my credit?

3 Comments
  1. Reply
    karlaellis_64030
    November 10, 2011 at 5:28 pm

    No, it is just the opposite the sooner you pay the bill off chances you credit limit will continue to increase. The key is to stay ahead of the game say if your minimum payment was $ 50 you would double the amount to stay ahead of the interest accrued for waiting. Mostly look at the terms and conditions of the (APR) to judge how you should pay it off. Don’t wait for the bill to come go ahead and pay it.

  2. Reply
    bdancer222
    November 10, 2011 at 5:56 pm

    You do not need to max out your limit or carry balances to build credit. As long as you pay at least the minimum payment by the statement due date, it will be reported to the credit bureau as on time payment. If you pay the balance in full every month, you won’t pay interest. That is the best way to use the card.

    You don’t get any extra points by paying interest. In fact, if you carry balances of more than 30% of your limit, it will hurt your score. Maxing out the card can kill your score. Pay off the balances and your score will rebound.

    Just keep doing what you are doing. It takes years to build good credit and you are on the right road. You need to use that card for at least 6 months before it even begins to count in your FICO score. It takes at least 24 months of consistent, on time payment history to see a decent score.

    By the way, do NOT make multiple payments online. Wait for your statement and make one payment by the statement due date. Credit card companies don’t want you to make multiple payments as it costs them money to processs the payments. Some will freeze you online account after a certain number of payments each month.

    It also does nothing to help your credit/score. In fact if you pay immediately after charging something, it likely that the monthly update to the credit bureau will not reflect any utilization which won’t help your score at all.

  3. Reply
    stan c
    November 10, 2011 at 6:16 pm

    A credit score is based on a 12 month activity. It usually goes up between 5 to 10 per month. The balance should always be paid the following month if possible. A good credit score is 660/749. Excellent is 750/840. If your new using your credit, it will probably take 18/24 months to get it to 660.

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