- Centurion Member
- Posts: 4913
- Joined: Sun May 20, 2012 4:35 pm
- Location: WI
Yes it is bad IF you let that report as the statement balance. You can run 10 grand through the card in a month and as long as you are paying it off before the statement hits, you could report a 0 balance. The ONLY thing that matters in terms of your score is WHAT REPORTS ON YOUR STATEMENT, NOT WHAT YOU DO BEFORE THEN!
Many don't understand this so please don't take it personal with the caps I used I simply wanted to emphasize that point.
Long story short, use it, just pay a few days BEFORE your statement date which you should know or be able to find out leaving a 5% balance to report, then pay that off as soon as your statement posts. Repeat.
Not that hard, as long as you know this information.
And I'm not trying to confuse the living hell out of you by adding this but I'm just doing it to be complete and save others from having to jump in and add it, that using 90% of your limit that way would be VERY bad for your credit score and be considered "max'd out". You know and I know and an analyst will know (if you are lucky enough to get that far) that 450 bucks on a 500 limit isn't exactly devastating, though the FICO garden fanatics would surely hang themselves in their closets if they got caught that way, but to a computer simply crunching numbers to determine an instant approval, most likely it isn't going to consider that and will just see oh my gosh you are swimming in debt with that kind of utilization and will probably give you an instant denial as it's likely not programmed to determine what a low amount of debt is compared to your income when looking at your utilization but strictly the percent used.