You continually charge things to your credit card with 1000 limit and spend more than limit in a given cycle and to avoid going over limit you keep making early payments is this bad for credit score?
Credit score formulas respond favorable to utilization 30% and below. It’s a good idea to assess all of your credit cards and align them correctly with this formula. Use the form in the appendix. Please note: if you have an American Express card or card with no preset limits. You will be rated on the highest credit you have charged and the 30% rule still applies. Try using the card to increase your high credit limit by spending more with the card with cash you were already going to use and get that limit up to a ratio that will keep you within 30% of that high credit. This is why if you pay your credit off each month in full will not give you a great credit score.
Related Questions
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