When paying off a credit card, does a higher amount payed off = better score?

Question

Example;

Month A: I spend and pay off $1 on time
Month B: I spend and pay off $500 on time

Would my credit score improve moreso for Month B as opposed to month A? Or, does it not matter at all since the only factor is whether or not it's payed off timely...

? · Accepted Answer

Your credit report would show that the maximum you ever owed to that credit card company was $500 or $1, even after it is all paid off.

But that doesn't matter for the credit formula.  Paying on time is very important.  Having a low utilization is important.  If you owe $500 on a credit card with a $500 limit, that is bad for your score.  Once it's paid off, it doesn't matter whether you originally owed $500 or $1.

Bottom line:  don't charge up your credit card to try to improve your credit score.  It will make little to no difference.

Anonymous · Answer

A credit score is based on a 12 month activity providing you are paying on time. The more you pay, your interest will be less. I always pay the balance the following month no matter what the balance is.

chatsplas · Answer

Using your credit card regularly and paying it off in FULL every month can build your  credit rating
Your payments in one month don't make a LOT of difference
It is your credit limit, and how much of that you use and pay off that is more important

Late payments ding your credit. . . .so avoid them. . . .carrying balances over time costs you lots of money in interest and is not smart financially

Trending News

When paying off a credit card, does a higher amount payed off = better score?

3 Answers