Credit Card balance and the Credit Rating

Uriziel

I have seen on my credit report that spending more than 25% of my limit negatively impacts my credit rating.
But at which point does it impact it? If I make sure to repay enough of the credit card to reduce it below 25%, before the end of the money, will I avoid any impact?
Or do they see the balance instantly?

MattMattMattUK

Uriziel said:

I have seen on my credit report that spending more than 25% of my limit negatively impacts my credit rating.
But at which point does it impact it? If I make sure to repay enough of the credit card to reduce it below 25%, before the end of the money, will I avoid any impact?
Or do they see the balance instantly?

Credit ratings are made up and totally pointless numbers, ignore them and the silly games the CRAs try to get you to play.

Lenders do not care what monthly utilisation is so long as the balance is cleared in full every month, carrying any interest accruing debt on a credit card is seen as a negative by prospective future lenders and should not be something one does.

maisie_cat

It appears to depend on when you bank reports the information relative to your billing cycle. My bank reports end of the month but my billing is early in the month so I have nearly 2 months expenditure when they report.
Last month I checked my MSE credit file thingy and realised that my "score" had plummeted. I have no loan/mortgage debt but do have a credit card used as a charge card. A single large spend item had the effect of utilising 59% of my limit.
In March I paid the balance early so I can see if it has any effect on FD reporting 31st March.

I have had the same card for 30 years and never paid interest, only carrying the balance between charging and DD.

400ixl

The credit score is for them to try to sell you more products. Like another credit card as example by making on stupid "rules" on how much utilisation you have. As long as you are paying it off each month it will have little impact on any application for credit as long as you can pass the affordability tests the lender applies themselves.

born_again

Uriziel said:

I have seen on my credit report that spending more than 25% of my limit negatively impacts my credit rating.
But at which point does it impact it? If I make sure to repay enough of the credit card to reduce it below 25%, before the end of the money, will I avoid any impact?
Or do they see the balance instantly?

While it may impact their made up figure, which means nothing to any lender. As they never see it.
What matters is you credit history (no missed payments etc) & you income to available debt ratio.
Which then all depends on the risk any lender is prepared to take.

So in reality. Just carry on as you are & stop looking at that score.👍

badmemory

Mine goes up & down like a yoyo.  Up if I spend a little less on my card & down if I spend a little more.  So the difference between a 4 & 5 week month.  Totally meaningless.  If it goes from good to the pits then check someone hasn't made a mistake.