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  1. #1
    Registered User Semi Pro Member
    Posts
    271

    If You Max out Your Credit Limit Each Month for Rewards, Try This

    I can understand people who are chasing rewards points or cashback by spending the most they can on their card(s) but at the same time they are charging above their 30% credit limits on their cards. although you may payoff the balance each month, the issue is that your creditors report balances to the credit bureaus only one time a month.

    Let's look at an example. You have a rewards credit card with a $2,000 limit and use it for rewards and pay rent, groceries, gas, entertainment, etc. The statement arrives, you owe $1,800, and you pay it off with a check every month. The big issue here is the credit card company is reporting that $1,800 owed statement balance each month. So you are using 90-percent credit utilization rate and not beneficial for your credit score.

    SOLUTION: You can help your score by sending in two payment a month instead of one.


  2. If You Max out Your Credit Limit Each Month for Rewards, Try This
  3. #2
    Registered User Semi Pro Member
    Posts
    283
    Excellent idea to keep your score as high as it should be since creditors don't revise their system. This is perfect for people who get paid twice or multiple times each month.

  4. #3
    Registered User Senior Member
    Posts
    195
    It is perfect unless you know exactly when the creditor reports to the bureaus. I think that should be disclosed to account holders rather than us guessing.

  5. #4
    Registered User Semi Pro Member
    Posts
    339
    I like this strategy as it keeps us ahead of the credit scoring game with all the ambiguities. You never know what you will get so it's better to pay it early.

  6. #5
    Registered User Semi Pro Member
    Posts
    273
    I've heard quite a few stories of people who pay off 99% of their balance and gain 20+ points from all bureaus.

  7. #6
    Registered User Senior Member
    Posts
    242
    It is not 100% proven to work with everybody. Each person's credit profile is different so doing "X" does nto always equate to an outcome of "Y".

  8. #7
    Registered User Enthusiast
    Posts
    76
    Quote Originally Posted by Joanne View Post
    It is not 100% proven to work with everybody. Each person's credit profile is different so doing "X" does nto always equate to an outcome of "Y".
    Ain't that the truth.

  9. #8
    Registered User Enthusiast
    Posts
    52
    When we moved into our house, we had to max out our cards. Yes our scores ballooned. But once the balances were back under control, scores normalized again within a month or two.

    So don't worry about using a card when stuff happens. Just make sure you can pay it back.

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