If I use 50% of my available credit and pay that off every 2 weeks does that negatively impact my credit?

Deal Score0

I’d like to pay down some bills, so I’d like to charge 2 bills to my CC monthly (1 bill ever 2 weeks), and pay off the entire balance every 2 weeks. However, I understand that using more than 30-35% of your available credit can impact you negatively. I’m trying to have credit activity so that I can increase my credit score.

  1. Reply
    timothy p
    December 30, 2012 at 9:17 am

    Credit scores are based on the balances reported. These are usually the numbers on your bill. It depends on how your billing date falls within that 2 week cycle.

    All of my credit cards report the balance on the billing statement and not the balance owed after being paid. Ex… My bill comes with a balance of $ 300, I pay the balance in full, $ 300 is still reported to the credit bureaus even though it is paid in full. These numbers are not updated in real time and usually only reported once per month. Some companies only report quarterly.

  2. Reply
    December 30, 2012 at 9:57 am

    Whatever you have left on your credit card after your payment due date is what is reported. Anything else is in the “grace period” of most cards which means it is not reported or charged interest. If you pay your balance every month, you will be building credit rather than damaging it. However be careful of letting a few months slip at %50 of your limit you could be in over your head if you miss two payments. Regardless as far as credit limit usage, that is an easy fix for your credit score and it will disappear the next reporting cycle after you pay it down.

    Leave a reply

    Register New Account
    Reset Password