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Credit score dropped for seemingly no reason
(lemmy.world)
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this post was submitted on 29 Dec 2023
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I assume you mean paying it off mid statement cycle to spend more than the limit? This is called cycling and can get you shut down by some banks, rare but worth noting.
Anyway the other comment still works with what you’re saying, you could spend 5x your limit by cycling but leave it at 9% when statement posts and it would be good for your credit score. I fully recommend doing this if the bank isn’t sensitive to cycling, could even get a credit limit increase
I'm sure it depends a lot on the original application and your current credit and income at the time. I thought the person I was replying to said if you put more than 10% of your limit on the card you would take a credit hit. That is clearly false. Cycling and spending more than your limit might get questioned, but credit card companies do not want you to pay your balance off. They want you to be just a bit behind all the time but likely to be able to pay off eventually vs. bankruptcy.