If I max out my credit card every month and pay in full every month will that hurt my creidt score?

My Limit is $2000 and I use my card for all my necessary spending i.e. rent, utilities etc.... if i charge $2000 on the card and pay it in full every month leaving no balance will that hurt my credit score or help it. I'd appreciate any advice on this matter

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  • Anonymous
    1 decade ago
    Best Answer

    A lot of people have have answered that it should or shouldn't. Spifiman hit it on the head. It is a catch 22. While it's good that you're paying the card off in full every month. As long as the expenses bring it to the limit each time, your credit score will peak and valley like a roller coaster. Another thing is were you aware that you're able to have monthly payments like rent, utilties, cellular, cable, etc. that don't show on your traditional credit reports report as alternative credit with a new credit bureau called PRBC. They're the only credit bureau that allows you to self enroll and submit payments that once verified can be reported in a scored report that can be included with your regular credit reports under the Fair Credit Reporting Act. These reports have been able to help people obtain FHA approved mortgages. You can have up to 3 years of historical payments verified and reported for a fee and current and future payments reported by using the online billpay service that makes the payments and updates your file with PRBC automatically every month.

    So this is something to think about, I've submitted the links below giving a more detailed explanation

    I hope this answer helps,

    Good Luck!

  • 1 decade ago

    It will help your score - PROVIDING that the "Max Out" you talk about stay within the limit. If you overspend, even by a few cent, your score will suffer. If you stay within your limit and pay in full will actually earn you a better rating than just being a good payer.

    What you do is the only safe way to use a credit card. The minute there is a balance left on your card after your payment was done, a big red light must go on in your head.

  • 1 decade ago

    This is a catch 22. By going over 50% of your limit every month you debt to income ratio will suffer causing you score to go down, but by paying the balance every month your score will increase.

    I would ask your credit card company for a increase in your limit and then you should be fine.

    Source(s): Finance Manager for over 7-years / Consumer Action Handbook 2007 Edition free at www.ConsumerAction.gov
  • Anonymous
    1 decade ago

    Depends on the day you pay vs the day your credit card company reports data and who is looking at the report and for what score. Your report could show that you pay on time, but that you are maxed out every month. Most new creditors want to see that you utilize credit, but no that you are maxed out. In the event that you do not have the opportunity to explain the usage, your score could be lowered.

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  • Anonymous
    1 decade ago

    It depends on when your credit card company reports your balance. A good way to see if your score is being impacted at all is to use Fico's credit tracker. I've used it for a few months now and I've been alerted at every change. Check it out:

    Source(s): Get Free Trial of Credit Score Tracker http://millionster.com/go/fico30 Get Full Credit Score http://millionster.com/go/myfico Try Suze Orman Credit Score Repair Kit http://millionster.com/go/suzekit Learn About Improving Credit Scores http://millionster.com/articles/debt/increase-fico...
  • .
    Lv 7
    1 decade ago

    YES ! ! ! This WILL HURT Your Credit Score ! ! !

    You should not use more than 30 percent of your CREDIT LIMIT per month and then always pay that amount in full.

    You should look at your Credit Card as a way of ESTABLISHING CREDIT; Not as a way of Getting All you can get or as a way of paying bills ! ! !

    When you USE ALL of your ALLOTTED CREDIT Each month it looks like your BARELY MAKING it which Lowers your FICO Score because it looks like your now Desperate and are a CREDIT RISK

    30 percent of your Credit Score is HOW MUCH YOU OWE. When you use all of your credit each month IT LOOKS LIKE YOU OWE ALOT which is NOT GOOD

    LOL

  • Anonymous
    1 decade ago

    It lowers your score, just because they not only look if you are paying it on time, but the balance to limit ratio. Better ask the bank to increase your spending limit, if you are paying in timely manner, they should not have a problem with it.

  • Anonymous
    1 decade ago

    No paying your credit card in full every month will actually help your credit score.

  • 1 decade ago

    That should make your credit score get better if you PAY in full

  • 1 decade ago

    yes it will hurt your score.it will show on your credit report HIGH BALANCE $2000.

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