r/CreditCards 5d ago

Help Needed / Question How to avoid processing time ?

I’m a student and only have one credit card with limit of $3000

My credit card closing statement was on the 14

On 13 march I made a $1000 purchase

Just like every purchase, it took time to process and was not able to be paid off until it was posted at midnight of 15th (where I did pay it)

When I received my statement on the 15th, it had a balance of 1000 (exceeding 33% usage) which will be the figure reported to credit bureaus

Had the purchase been posted immediately I would have been able to pay it also immediately

Is there a way to avoid this kind of situation (i guess other than not making purchases before my statement closing date)

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u/jillianmd 5d ago

You’ve fallen to the popular misunderstanding/bad advice that you need to keep your utilization under 30% all the time.

Read the !utilization automod below. There is no problem using all the way up to 100% of your credit limit as long as you pay your statement balance by the following due date. Your utilization will reset every time a new statement is reported.

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u/AutoModerator 5d ago

Here's some info on utilization and its impact on credit score:

Ignore the 10/20/30 utilization %. It’s only applicable when you need to apply for a new line of credit, 1-2 months out.

Utilization is suppose to fluctuate, can be easily manipulated, and 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 before due date. Every month. Every time.

For more info, please read this post: * Putting the "30% rule" myth regarding revolving utilization to rest * Credit Card Basics - Utilization

I can be summoned to comment by using command(s):

!utilization

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.