YAC(redit)T - If you pay full amount due monthly but always carry...

[novasatori]

So I'm trying to figure out if I'm hurting my credit score...

I always pay whatever is due that month in full, but just before the due date. You know time value of money and all that, so in essence around 90% of the month I have $1000-1500 on the CC with a $2500 limit. Thats 40% to 60% of my limit, is this negatively affecting my score? Or does it only apply when I carry a balance that I'm incurring financing charges on? Because I've never had a financing charge applied to my account, and don't really plan on it.

I use to only carry ~$500 monthly but I've taken on some rather large monthly payments lately that have greatly increased the amount I pay on my credit card.

Just wondering if I should ask for a limit increase or if I'm alright.

 

[hellokeith]

The financial adviser guy on local talk AM radio says that you get the most benefit by maintaining 30% of that credit card's limit.

 

[eldorado99]

Why are you asking me?

 

[boomhower]

Your financial adviser guy needs to go back to school. Carrying a balance does not in and of itself help your credit. However making payments does. If you want to help carry very small balance. If you carry a 30% balance I promise you it is hurting your credit score, that is just to much. If you really feel the need keep it to 10% or less.

To the OP you are not hurting your credit score. If you bill reports a a zero balance that is what is reported to the credit bureaus, they have no idea what occurred during the month. Also keep in mind that if you have a Capital One card they do not report credit limits. Your highest carried balance is considered you limit with the bureaus. Capital One says they are going to fix that but we will see.

For more credit information than you thought was available take a look at creditboards.com. The site if full of good information and lot of good people that will help you in any way possible.

 

[msparish]

Depending on the card, it is most likely hurting your score a little bit. Even though you are paying it off every month, your credit report will show that you are using $1000-$1500 out of the $2500. That said, I wouldn't worry about it. If you ever need to get a loan, pay off the entire balance just before the statement closing date the month before you get the loan. That way $0 shows on the credit report and your credit utilization ratio is 0%.

Finally, if you are very obsessive about your score, it may not hurt to get another card (or two) and try to get your credit limits raised.