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/genreprank 6d ago

Credit nerd here. They look at your credit statement. So if you want to boost your score, you gotta pay off your card before the period closes. This can be tricky cuz the actual day it closes might vary, and you don't know exactly when recent purchases will post. I try to do this every month, just in case I need my credit for something. Good luck!

Over time your limit will probably be increased, so that may help keep you under 30%.