How will carrying a credit card balance affect my credit score?

Question

I currently have excellent credit (high 700's). I have always paid my CC balance at the end of the month; however, for the next few months, I will need to carry a balance due to educational and moving expenses. I fully intend to pay off the balance in a couple of months. Will this hurt my credit score? If so, how long will it take to bring it back to its current standing.

Answer 1

Depends upon the balance amount versus your line of credit. The closer you are to your limit the more it impacts you. The answer is yes it will bring it down a little. Nothing major and nothing that you won't climb back up from and look better.
General rule of thumb is to never be more then 50% of your available line of credit. Keeping the balance low does in fact improve your score. Again nothing dramatic but as time goes on the score will keep increasing as your balance stays low and your history increases.

Answer 2

It will increase the debt to credit ratio. Therefore it will decrease your score. However, it will only do this temporarily if you can pay off the balance in the few months like you said. Once your cc balance is back to zero, in 30-45 days (depending when your credit reports are updated) it should be back to your high 700's score. As long as you aren't planning on applying for any lines of credit you will be fine.

Answer 3

once you close up an account, you lose component of your credit heritage, and it has an result on your debt/credit ratio. those are 2 major aspects in calculating your credit status. The result isn't that major, and see you later as you nonetheless make different funds it would want to get better in some months. on your case, i might want to first seem into getting yet another mastercard with a a lot decrease credit price. There are various that are providing a nil% interest and allow stability transfers. With this information reachable, contact your modern-day mastercard organisation and tell them to both decrease your interest price or you'll cancel the cardboard and bypass to a special organisation. in the experience that they don't, then save on with by ability of on your probability. you may freeze your account so no more effective interest can take position, then artwork on paying off the debt. once paid off, have them decrease the credit decrease so that you're not any further tempted to run up a pair thousand more effective in debt. Lesson to income in the present day....by no ability by technique of something on credit that you'll't arise with the money for to repay on the top of the month.

Answer 4

if you pay your bill on time all the time it will show that you can be trusted to lend money to. also never pay the mininum amount unless you just have no other result. try to pay at least 3 times the min amount.