Will this credit rule still in affect if I am paying my credit card fully each month?

Question

I understand that "The lower your credit utilization is, the better your score". But what if I am paying off my credit card completely every month? so, say I utilized 70% of my credit card this month, but I paid everything when the statement was issued, and carried 0 balance forward, will I still getting hit by negative points for utilizing 70% instead of say 10%?

It is just painful for me to open my credit card transaction online every 2 days to pay a $100 to keep my utilization low. would be better if I can use my credit card as normal and pay it once at the end of the month without hurting my score..

Jake · Answer

I don't believe it is seen as a debt load if you pay off the balance of your monthly bill, just the fact that you were not charged any interest on it is a strong indication that it is not seen as a loan at that point.

One discussion of car loan qualification mentioned that a B rating might include a credit card balance under 50% while an A rating would hav a balance under 33%.

Dan B · Answer

No, your score won't be impacted by using 70% and paying off in full.  Balances are reported to the credit agencies several days after the payment due date.  As long as your payment is posted to your account on or before the payment due date, it will be recorded as an on-time payment.  Your score will not be affected.

Anonymous · Answer

Creditors only report your utilization (balance) and payment history to the credit bureaus once a month, if that - it's not a "real time" system.  If you pay in full each month, you're utilization rate is zero.

StephenWeinstein · Answer

Yes, the rule is still in effect.  If your balance is over 30% of your limit on whatever day they pick for reporting information, then it will hurt your credit score.

wg0z · Answer

if you don't carry a balance, your credit utilization is zero.

Will this credit rule still in affect if I am paying my credit card fully each month?

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