Will my credit score still be lowered if my high debt is paid off in full during the same billing cycle?
by Author on Saturday, August 7th, 2010 | 5 Comments
I am getting married and I planned to use one of my rewards credit cards to pay for some of the deposits. We have the money to pay the deposits in full, but wanted to take advantage of the points we would be awarded. I heard if you incur a debt of 30% your available credit, this will lower your credit score. Is that true even if you pay it off during the same billing period and do not carry it over to the next month?
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30% or more will lower your score.
But only for the time being that the use is high.
Enjoy your rewards, pay off when you get the bill in the mail.
Your rating will go back to normal.
You can always view your bill online and make a payment before the closing date.
Card companies report to the bureaus on the closing date.
But this is not necessary since the ding on your rating will be temporary.
You can also pre-pay your credit card – just make a payment for what you think you will spend. Some people do this when they know they will go on vacation and use a lot of their balance.bd
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Yes, that is true, but it you pay off the bill before the due date it will not reflect in your scores because it will not show that balance when your statement cuts off, which is when your creditor reports to the bureaus.
For more information about paying off balances in full each month, visit http://www.credittrauma.com/do-you-still-get-a-credit-score-if-you-pay-off-your-balances-in-full-every-month/
Carrying balances of more than 30% of your limit will hurt your score. Using more than 30% and paying the balance in full won’t hurt your score at all. It ain’t the utilization; it’s carrying the balances. But even if you carry the balance for a few months, paying it off will immediately rebound your score.
It averages out during the month – so if you incur 30% of your limit monthly, but pay it off, you should be assessed at 15% of usage, which is actually an optimal rate. I wouldn’t worry.
Hi
It is possible to get rid of debt, but you have to know exactly how to do it.There are many sites , that offer that service, but unfortunately most of them are scams.
Last year I found a company that helped me to save more than 30% …
They are one the best sites .
If you really need help, I would recommend you http://DebtExpertAdvice.info … They really know how to help you.
hope that helps