Will maxing out my credit card affect my credit score if I pay it off each month?

There are all sorts of "credit expert" sites that say only use __ (pick a percentage). Yes, utilization is a factor in your FICO score. However, it ain't worth the effort to determine exactly when the creditor reports to each credit bureau and then scheduling charges and payments to create that perfect percentage ... all for just a couple score points.

As long as you pay the statement balance in full every month, it really makes no difference how much of your limit you use. It all evens out in the end. There is no cummulative affect. In fact, if you use 70%+ of your limit and pay the statement balance in full every month for about 9 months, the card will probably increase your limit. Cards LOVE people who use the card and pay the balance in full -- they make profit from merchant fees.

The ONLY time to even consider credit card utilization would be when you apply for a mortgage ... and then only if your FICO score is close to the minimum for the better interest rates.

Scores are only a snapshot based on the current credit report. There is no history of scores.

Ive found that even small balances affect one of my scores....The vantgage score. One card I have a $6000 limit and I charged $240. My score went down JUST for having a balance show up. Its not even due yet.

But then when I pay it, that score goes back up.

My credit karma score does not change.

The only way I can avoid those swings is to pay BEFORE the billing date so that my bill shows zero.

My vantage score went from 913 to 903 for a $240 charge on a $6000 credit card out of a total credit limits of $94,000.

I went ahead & paid the $240 early so I expect my score will jump back up 10 points fairly soon but in the past it can take up to a few weeks.

I havent carried really large balances in many years so I cant say for sure.

And I just this month got my first fico score from Discover. It was lower than I expected at like 709.

My credit karma score is 787.

I maximize my cash & rewards back too. But, dont overspend because you are getting pennies back. Thats pennywise & pound foolish.

No, it won't affect your score. Your balance is reported (from what I understand) a few days after your payment due date. It's not the 50% utilizaton number. What you don't want to do is carry forward any balance that is greater than about 33% of your credit limti - this is only a guide. What may affect your score more is carrying forward a high balance and paying the minimum payment due. That indicates a possible cash flow problem - too much cash flowing out, too little flowing in.

A credit card is suppose to be for small items and in the event of a emergency. You will have to charge $5,000 to get a $50 refund so you shouldn't go crazy with the card.

the utilization percentage is for when you carry a balance month to month. you are absolutely fine, as a matter of fact you may find them offering you/advising you of a higher credit limit as you continually pay in full monthly. accounts generally reviewed annually. happy new year.

It is temporary. It does not do permanent harm.

However, your score does not go up as soon as you pay the card. It can take up to 2 months.

No - running a big balance and asking for MORE credit will lower your score.

As long as you pay it off you should be fine.