Using credit on the day of closing date

Question

Would it not affect my credit score if I use my credit card on the day of my closing date or a day prior the closing date?

Answer 1

Using your credit card has no impact to your score, at any time ever.

What impacts your score is

• having an open (but not due) balance of less then 30% of your credit limit reported; this is a very minor impact;
• having an open (but not due) balance over 30% of your credit limit reported; that is a bit more impact;
• carrying a balance into the following bill; this has a moderate effect
• having an overdue balance reported; that has a serious effect.

All those reportings are normally done monthly, at the day of closing and billing.

If you want to be ultra-sure, pay off your total amount a day or two points before the bill is cut (look it up online); otherwise, there will be a minor impact of some points, but it will bounce back next month. Using your credit card is normal and expected (if not even desired); they are not worried about you using your card, but about you paying the bills.

If you pay off early (before even being billed), they will report zero usage, and long-term, it is going to affect your credit score slightly negatively.