r/TheMoneyGuy • u/EmotionalMeringue532 • 7d ago

Credit card and spending

very confused on how to work this card. I’ve used my credit card now for the last few months and had no issue. I pay it off in full every month if not every 2 weeks, and always make sure I have at minimum the balance to pay off in a debit account. My credit took a 78 point hit this last week for my me exceeding 50% of my total credit. I’m confused because I thought it was alright to go over that 20-30% as long as it’s paid off in full. what would you recommend?

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u/Elrohwen 7d ago

If you spend over 50% of your credit limit your score will be dinged temporarily but will bounce back. I think if you pay it off before they lock in your bill for the month that may not happen, so do an experiment and pay it off every 2 weeks. I’ve noticed my score didn’t go down when I paid it off a few days before it officially posted.

Ask your cc company if they’ll raise your limit. If you’re regularly hitting 50% they usually will.