Will using a new credit card close to the max mess up my score?

Hello All, Sorry about the poorly worded question, I am new at using credit cards. So here%26#039;s the deal, I recently received a new credit card that has travel rewards and would like to buy something on the card in order to gain a lot of miles right off the bat. The line on the card though is low and buying this item will likely use up 95% of my credit, ex. $1400 out of $1500. My question is if I pay it off right away will will this transaction have any affect on my score? ( I have a really high credit score to begin with and another card with a way higher credit line). Thanks I really appreciate the help!

Will using a new credit card close to the max mess up my score?

Ideally you should never use more than 30% of your credit limit. Having cards that close to the limit does affect your score.

Will using a new credit card close to the max mess up my score?

You lose points for using up more of your available credit.

If this has a max of 1,400, and you have another with a credit limit of $14,000 I%26#039;d say it%26#039;s no big deal, as long as the big credit card is largely unused, and is not carrying a big balance.

It%26#039;s the percentage of total credit available that is important, not credit limits on individual cards.

Will using a new credit card close to the max mess up my score?

Ideally you should pay off the charge at the end of the month anyway. At max you should strive for 3 months to pay the balance in FULL!

Will using a new credit card close to the max mess up my score?

From my understanding of how credit works, if you buy something with a credit card and pay it off right away, it will always help your credit, no matter what the amount. Your credit score is used to help creditors determine how much of a risk you are. If you have a high score, that means you are responsible and them lending you money is low risk, so you get better interest rates and higher credit limits. If you pay off your credit card balances quickly you are showing that you are low risk, and it only makes sense that this would improve your credit score.

Will using a new credit card close to the max mess up my score?

The short answer is yes. How much it will affect your credit really depends on your credit profile. For example if you have a total $10,000 of credit available to you, you should never have more than 50% of your total credit available with a balance ($5000). You have to calculate how much the extra balance will raise you ratio of available credit compared to your balances. Now, in your situation, credit card companies take about a month to report your purchase activity to the credit bureaus (Trans Union, Experian, and Equifax.) So if you pay off your balance within a month your credit score will not vary by much or might not even be reported. Usually having late payments, too many inquires by financial institutions, and too much revolving debt (credit cards balances) in relation to your available credit is what will affect your credit score the most negatively.

Will using a new credit card close to the max mess up my score?

The answer is yes, it will affect your score. However, once you pay it off, your score will rebound right back. It%26#039;s not permanent damage.

So if you won%26#039;t be applying for new credit between the time you charge up your card and pay it off, it won%26#039;t matter one bit. You should allow one month for the paid-off amount to be reported before applying for new credit.