When building credit with a credit card. Is it the available credit or the current balance that matters by the due date each month?

So I m buying a lot with credit card, but paying off most of the debt.

Currently I have a negative balance (as in I paid more than what my bill is) but my available credit is low because it is slow and takes a few days to process for some weird reason.

Anyways. what do credit card/credit rating agencies care about? What your balance is, or what your available limit is?

I know you re supposed to not go over 30% per month but is that only for those who pay it off at the end of each month?

Also does over paying to where you have negative debt affect you positively or negatively? I know you re supposed to have "some" debt normally to show you re using it. but... yeah I m so confused.

5 Answers

  • 1 month ago


  • 1 month ago

    The available credit on the card is meaningless.  Credit looks at how you pay off your expenses. 

  • 1 month ago

    Neither.  Your credit rating is based on the day that the credit card company reports to the credit bureau.  It is not based on the due date, unless that happens to be the same day by coincidence, which is extremely unlikely.

    You should stay below 30% at all times, because you don't know their reporting schedule.

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  • Anonymous
    1 month ago

    The credit bureaus care about how much credit you have, how long you've had it, how much of it you've used and whether you pay it on time. 

    There are no bonus points (or subtractions) if you pay it early or if you pay too much (have a credit).   Early = on time. 

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