I have a credit card with a $500 credit limit I've just started building my credit. I always make purchases close to the limit like of $300 or $400 but I always pay it off as soon as the online system thing allows me to, so I never carry over any balance to the next month. Does this affect my credit in any way or is it ok to do so?|||As long as you're not carrying balances over 30% of your credit line from month to month, you're fine. It's only when you do that is when your FICO will suffer. Using the card as you are using it and paying it off every month is great and showing responsible management of the card as well as building a positive payment history.
FICO doesn't know or care if you are paying interest...only your pocket book suffers, but carrying over balances that are high in relation to your credit limit will cause your credit score to drop. You are not carrying a balance if you pay your card off in full when the statement is issued.|||It's fine - as long as you're not carrying over any balances - so you're not stuck paying interest - this will look good on your credit report.|||Probably a mixed bag.
You get brownie points for paying it off everytime.
You get dinged for carrying a balance close to the limit.|||Utilization counts for 30% of your credit score so it depends on what is reported to the credit agencies. Credit cards usually report the numbers that are on your billing statement.|||Pay it off, cut the card in half and be done with it. Stop paying interest.
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