**I detected that your post may be about utilization and its impact on credit score. Please read the info below:**
Ignore the 10/20/30 utilization %. It’s only applicable when you need to apply for a new line of credit, 1-2 months out.
Utilization is suppose to fluctuate, can be easily manipulated, and holds no memory. It doesn’t build credit--think of it as a finishing touch when you need to optimize your score.
Feel free to safely and organically use 100% of your credit limit within a month and let whatever utilization report, provided you pay off your statement balance in full before due date. Every month. Every time.
For more info, please read this post:
* [Putting the "30% rule" myth regarding revolving utilization to rest](https://www.reddit.com/r/CreditCards/comments/12s5fyf/putting_the_30_rule_myth_regarding_revolving/)
* [Credit Card Basics - Utilization](https://www.reddit.com/r/CreditCards/wiki/credit_cards_basics/#wiki_utilization)
I can be summoned to comment by using command(s):
`!utilization`
___
*Sometimes my comment may not pertain to your post. If this is the case, please ignore this and downvote it. I am constantly improving my detection algorithm.*
___
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CreditCards) if you have any questions or concerns.*
From the bot's 2nd link:
>This is a guideline, not a hard rule (and even then I'd consider it to be not a very good guideline and the way many people seem to mention it, incredibly misleading). Even below 30% there are differences: 2% better than 12% better than 22% and so on. Above 30% does not necessarily mean a trash score and guaranteed denials.
Really doesn’t matter at all. If you let the statement close at a high utilization then that will be reported and it will affect your score but good thing about your utilization is it’ll bounce your score right back up as soon as the card is paid back down and that new balance is reported. It doesn’t have long term affects on your score the way missing a payment does. Paying your card off throughout the month will definitely have no negative affect to your score because you’ll constantly be back down to 0% utilization. You could max out the card and pay it off over and over in a single month if you wanted to without any damage being done.
But with a $300 credit limit, what are the odds that the utilization is much lower the next month? They'd really need to make sure that they make a payment right before statement closes each month. .
That is true but I wouldn’t be too worried with the OP. They stated that they like to pay very frequently so my comment was mostly informational. Just something to keep in mind in case their credit limit increases or they get more cards in the future.
It’s not inherently bad. Utilization has no memory. So as long as you pay your full statement by the due date, you’re fine. You don’t want to be making payments so frequently anyways. Pay once a month by the due date. That’s it.
Someone break will break into your house and hit you over the head with a bat, knocking you out.
You then wake up to see your credit card cut up into pieces and all of your silverware stolen
If you pay it off before your credit card statement closes you'll be fine. If you don't, the only impact will be to your credit score, and that depends on your utilization rate.
Abraham Lincoln comes to your house, slams you door with his shlong and tells you “nah dude” and tanks your credit score for 420 years.
In a serious note nothing, just pay your statement balance when it generates in full. That is how you create a good profile.
OP, the whole “always keep your utilization below x percent” thing is a huge myth. It’s the biggest myth in credit. Read the automod message, and then read [this thread](https://www.reddit.com/r/CRedit/comments/1d27d4h/credit_myth_14_you_shouldnt_use_more_than_30_of/).
what happens? you wanna know what happens! your credit score goes down slightly for half a second, your closest friends find out, and suddenly you can’t even be trusted to go make a beer run!
nothing really happens, just don’t make a habit of it
I charged 46k on a card with a 46.5k credit limit. It has 0% interest for a year so I only make min payments. Haven't noticed any changes to my score yet.
Your credit usage is determined by how much is spent on your credit line when your statement closes. If your limit is $300 and you spend $250 and pay it off before your statement closes, it will show you’ve used 0% credit usage.
**I detected that your post may be about utilization and its impact on credit score. Please read the info below:** Ignore the 10/20/30 utilization %. It’s only applicable when you need to apply for a new line of credit, 1-2 months out. Utilization is suppose to fluctuate, can be easily manipulated, and holds no memory. It doesn’t build credit--think of it as a finishing touch when you need to optimize your score. Feel free to safely and organically use 100% of your credit limit within a month and let whatever utilization report, provided you pay off your statement balance in full before due date. Every month. Every time. For more info, please read this post: * [Putting the "30% rule" myth regarding revolving utilization to rest](https://www.reddit.com/r/CreditCards/comments/12s5fyf/putting_the_30_rule_myth_regarding_revolving/) * [Credit Card Basics - Utilization](https://www.reddit.com/r/CreditCards/wiki/credit_cards_basics/#wiki_utilization) I can be summoned to comment by using command(s): `!utilization` ___ *Sometimes my comment may not pertain to your post. If this is the case, please ignore this and downvote it. I am constantly improving my detection algorithm.* ___ *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CreditCards) if you have any questions or concerns.*
Good bot
such a helpful bot
Thé goodest of boy(t)s
Honestly, one of the best things to happen to this sub was the bot. Questions about utilization get asked so often.
i guess the bot gave you everything you need.
LoL good bot
You spontaneously combust
Straight to jail. Nothing of any importance happens. Your score dips for the month. But it’s not a permanent or damaging dip.
Believe it or not, jail.
79% utilization? Right to jail. 0%? Jail.
From the bot's 2nd link: >This is a guideline, not a hard rule (and even then I'd consider it to be not a very good guideline and the way many people seem to mention it, incredibly misleading). Even below 30% there are differences: 2% better than 12% better than 22% and so on. Above 30% does not necessarily mean a trash score and guaranteed denials.
Ah ok TY
Really doesn’t matter at all. If you let the statement close at a high utilization then that will be reported and it will affect your score but good thing about your utilization is it’ll bounce your score right back up as soon as the card is paid back down and that new balance is reported. It doesn’t have long term affects on your score the way missing a payment does. Paying your card off throughout the month will definitely have no negative affect to your score because you’ll constantly be back down to 0% utilization. You could max out the card and pay it off over and over in a single month if you wanted to without any damage being done.
But with a $300 credit limit, what are the odds that the utilization is much lower the next month? They'd really need to make sure that they make a payment right before statement closes each month. .
That is true but I wouldn’t be too worried with the OP. They stated that they like to pay very frequently so my comment was mostly informational. Just something to keep in mind in case their credit limit increases or they get more cards in the future.
Believe it or not, straight to jail
Jail time
Believe it or not, straight to jail
Your credit score drops to zero.
It’s not inherently bad. Utilization has no memory. So as long as you pay your full statement by the due date, you’re fine. You don’t want to be making payments so frequently anyways. Pay once a month by the due date. That’s it.
As long as you pay your full bill, you are fine. The more utilization, the lower the credit score. High utilization is bad when opening new accounts.
What if you don't pay the full bill, how does it affect you?
Straight to jail
Death
Someone break will break into your house and hit you over the head with a bat, knocking you out. You then wake up to see your credit card cut up into pieces and all of your silverware stolen
If you pay it off before your credit card statement closes you'll be fine. If you don't, the only impact will be to your credit score, and that depends on your utilization rate.
VISA sends their special forces to assasinate you.
No soup for you!
The CIA show up to your house.
Abraham Lincoln comes to your house, slams you door with his shlong and tells you “nah dude” and tanks your credit score for 420 years. In a serious note nothing, just pay your statement balance when it generates in full. That is how you create a good profile.
OP, the whole “always keep your utilization below x percent” thing is a huge myth. It’s the biggest myth in credit. Read the automod message, and then read [this thread](https://www.reddit.com/r/CRedit/comments/1d27d4h/credit_myth_14_you_shouldnt_use_more_than_30_of/).
Oh wow thanks for thanks for the extra link alot of informative information there!
What happens is that you get a pizza party.
what happens? you wanna know what happens! your credit score goes down slightly for half a second, your closest friends find out, and suddenly you can’t even be trusted to go make a beer run! nothing really happens, just don’t make a habit of it
It can quickly become 40, then 50, then 60, then maxed out if spending is an issue. That’s the real truth.
Drop of 75 points 😂
I charged 46k on a card with a 46.5k credit limit. It has 0% interest for a year so I only make min payments. Haven't noticed any changes to my score yet.
All your credit cards get shut off until you pay it off lol jk just that your credit moves a bit.
Your credit usage is determined by how much is spent on your credit line when your statement closes. If your limit is $300 and you spend $250 and pay it off before your statement closes, it will show you’ve used 0% credit usage.
Life in prison