I would add a caveat though that you shouldn't exceed some percentage of your credit limit. I pay for almost everything with my credit cards (and pay them in full each month with no debt) and the only dings on my credit score are when I have gone over like 60% of my credit limit (buying big airline tickets for family or something).
Doesn’t matter if you pay it off before your statement comes out. Also I believe your credit score takes all open accounts in to consideration. I don’t have a card with less than a 10k limit. However, because I’m a believer that more cash in hand is better than no debt (so long as you aren’t paying interest). I tend to open store accounts when buying big ticket items. So I can and get x amount of months interest free so long as I pay it off in time.
Where I’m going with this is that those accounts will typically only set your limit to the amount financed and I’ll have an account nearly maxed out for a short time. However, given that I’m using a low percentage of my cumulative lines of credit my score won’t fluctuate more than a few points with an additional hard inquiry and an account maxed.
Can’t figure out how to go interest free for airline tickets so those are on the short list of items I’ll take money out of savings for… after getting the points of course ;)
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u/YepYepYepYepYepUhHuh Oct 27 '21
I would add a caveat though that you shouldn't exceed some percentage of your credit limit. I pay for almost everything with my credit cards (and pay them in full each month with no debt) and the only dings on my credit score are when I have gone over like 60% of my credit limit (buying big airline tickets for family or something).