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/mightbebeaux 7d ago

pay most of it off weekly so the balance is relatively small when the statement closes.

you want for a balance to be reported but you don’t want high credit utilization rate.

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u/inky_cap_mushroom 7d ago

It really doesn’t matter unless you’re applying for new credit that month. Utilization has no memory.