- Gold Member
- Posts: 29
- Joined: Thu Mar 06, 2014 8:26 pm
- Location: Columbus, GA
Yes, I've paid the balance off.
I'm 18 and only got approved for a 1000 limit, so I have paid the balance down several times throughout the first billing period so that my statement would stay around 10% utilization. I will always pay everything off in full.
For some reason I just don't like the cash back thing. Earning points to use towards products and flights and hotel stays sounds much more appealing, and I would like to make the transition over to points. Because my limit is only 1000 and I plan on putting more than 1000 through it per month, I really want to PC this to the everyday card to earn MR points, and also get a green or gold charge card to use as my main card so I can be completely transitioned away from cash back and only be earning points. Plus, I won't have to worry about utilization with the charge card according to nerd wallet: "The problem is, it’s not initially clear how a charge card should affect your credit score. What’s the debt utilization ratio on a card with no limit and no balance? Is it 0%? Is it 100%? Neither. The way charge card issuers handle it is that they report a “high limit”, which is your highest balance to-date, rather than a credit limit, and they report the credit line as “open” rather than “revolving” (not to be confused with “active” vs “inactive”). When credit bureaus see open accounts with high limits instead of credit limits, they simply don’t include them in their debt utilization ratios, so they have neither a negative nor positive impact on your score."