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Bad to rack up CREDIT CARDS and pay off IMMEDIATELY?

I am trying to build my credit so I can get a loan for a motorcycle. I have had an bankofamerica student visa platinum card since oct. of 2007. I just applied for Discover, amex, mc, and a Capitol One cards...so-far I only know that I have been excepted for the Capitol One and will find out about the others shortly.... Ok and now for the real question.... Every month since I have gotten the visa(which has a 700$ limit) I have rack it up....I spend close to the limit every month BUT as soon as the bill comes in I pay it off Completely-Immediately. I have heard people saying that a large portion of your credit score is the ratio of available credit to debt....they say that under 30% is good and under 15% is better....but since I pay the bill off right away everymonth(after racking up 80-99% of my available credit) is this consider debt...and is this hurting my credit score..... OR will this just merely make my bank want to raise my limit so they can actually make some money? The question is not whether or not it is good not to pay the cards off immediately Im pretty sure that that is good for me...the question is that i have heard many people saying to keep your credit card balance under 30 percent of the total available credit...and i want to know whether or not me spending %90+ of my credit limit each month (BUT paying it off as soon as the bill) will hurt my credit...does this constitute as having above 30 percent of available credit out or not?

Public Comments

  1. i think thats good for you
  2. Every time you apply for a credit card, the companies have to look at your credit. Everytime someone looks at your credit score, it actually makes your score go down. If you pay your bill off every month, it is good for your credit. It would be bad if you maxed it out and then didn't pay it off for like 6 months.
  3. i think its better to pay it off immediately because it could bring your credit score up also, try not to apply for so many things at once because your credit score goes down yes, everytime someone does a credit check on you, your score goes down.
  4. It looks good that your paying it off instantly and it's not staying there getting slowly paid off a little each month so that part is excellent...having more than two credit cards though will hinder your credit score...the more credit out there on cards the worse it looks to lenders. So either stick with only two cards or keep the one and raise the limit a bit.
  5. Honestly I am not really sure. I have had a Capital One credit card for 5 years (my only credit card besides a Kohl's charge card that I hardly use). I have paid my bill off entirely every month for the past 5 years. When I first got my card, I had a $500 limit. I just got a letter saying the limit went up to $2,000. Like I said, I have always paid it off in full every month, and I still got raises on my limit. However, I also recently paid off a car, so that could have uped my credit a bit too. Overall though having the credit card and paying it off every month is building good credit at the least.
  6. To find out specifically what you must do to raise your score, you can order your score report from all three national credit bureaus. In addition to your score<!--you'll get your credit report, an indication of how your score ranks nationally and an explanation of how you can boost your standing. http://best-loans.awardspace.com/creditscore.htm In order to improve your credit score, it's important to know where you stand currently. Despite all the media attention given to free credit reports-->you still have to pay to find out your credit score, the three-digit number ranging from 300 to 850 that is the key to your borrowing costs.
  7. Pay it off completely
  8. Maybe. It depends on how much is on the card when they report it. Credit cards only report once a month so the percentage of debt to limit on that card could be just about anything. That card should increase your limit. Have you had it more than 6 months? Applying for so many additional cards in a short period is going to take a huge bite out of your credit score. You may get turned down by several of them. To keep the accounts active, you will have to charge on them periodically. And of course, it is always best to pay them in full every month.
* Some answers may have been provided by Yahoo! Answers.