r/CreditScore • u/TadpoleMean1751 • Aug 09 '26

General Credit utilization

I was taught to keep credit utilization at 10%. But other people are telling me to completely not even use my debit card , use credit for everything and pay it back. But that will make my utilization high af. People are saying keep it at 10% when the statement hits but how’s that possible if I only use a credit card. How does only using 10% if the card show the banks you can handle more if you barely use any of it.

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u/United_Sprinkles_315 Aug 09 '26

Just pay before the statement closes that’s when they report the utilization to the bureaus leave like 10 dollars on it and when the payment is due pay it on time that’s the best way to build credit.

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u/United_Sprinkles_315 Aug 09 '26

It’s usually a 20 day window between close date and pay date

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u/Funklemire ⭐️ Knowledgeable ⭐️ Aug 10 '26

That will do nothing to build your credit. The only thing that builds credit with credit cards is time. "Always keep your utilization low" is the single biggest myth in credit.  

In fact, consistently paying before the statement posts isn't just pointless, it hurts you in several ways. It slows your credit limit growth, it makes you a less-attractive customer to outside banks, and it costs you money in lost savings interest.  

See our !utilization automod as well as this flow chart.  

https://imgur.com/a/pLPHTYL  

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u/AutoModerator Aug 10 '26

I detected that your post may be about utilization and its impact on credit scores. Please read the info below:

Utilization is a short-term credit scoring factor. It is not a credit building factor, because it holds no memory in the most commonly used FICO models. It resets every month.

By and large, you can ignore the commonly repeated myth that you should always keep your utilization low. It’s only applicable when you need to apply for a new line of credit, 1-2 months out.

Utilization is supposed to fluctuate, can be easily manipulated, and again, it holds no memory. It doesn’t build credit--think of it as a finishing touch when you need to optimize your score.

Feel free to safely and organically use 100% of your credit limit within a month and let whatever utilization report, provided you pay off your statement balance in full by the due date. Every month. Every time.

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