Sorry if the question sounds confusing. Basically I'm asking if I had a $500 credit limit on a credit card, what would be the most I should spend without hurting my credit, assuming I paid it back on time. I'm looking more for a percentage or a rule of thumb. Thanks in advance.|||You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments - credit-report-free.totalh.com|||While utilization does play a part in your credit score, it is not worth the effort to figure out exactly when your credit cards report to the credit bureaus and schedule your charges and payments to get the best utilization percentage.
What really impacts your score is carrying balances. Carrying balances of more than 30% of your limit hurts your score. Pay off the balances and your score rebounds. If you pay the balance in full every month, this makes no difference. In fact the fastest way to get your limit increased is to charge up to 80% or 90% of your limit and pay in full for about 6 months.
Don't worry about utilization. Just always pay the balance in full. You're score will build and you'll save all that interest.|||Technically, 0%. If your balance is 1% of your limit, then your credit will be (very slightly) worse than if your balance was $0. Realistically, anything under 10% will not hurt very much, and 30% is the minimum that will hurt a lot.|||Rule of thumb, you should not carry debt more than 30% of your available credit.
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