 TITLE: When to Use a Credit Card for Big Purchases CONTENT: How Using a Credit Card for Large Purchases Affects Your Credit\n---------------------------------------------------------------\nThe amount you earn or spend on your credit cards doesn't directly impact your credit scores. What matters is how close you get to the credit limit on each one of your cards, even if the dollar amount is relatively low.\nThe amount of credit you use relative to your card's limit is called your credit utilization ratio, and it's the second most important credit scoring factor. Using a large portion of your credit limit—or having a high utilization ratio—can hurt your scores, while using a small portion is best for your scores. For this reason, using your credit card to make a large purchase could hurt your credit if it increases your credit utilization ratio.\nAn important detail to remember is that the credit utilization calculation depends on what's on your credit report. Generally, credit card companies send an update to the credit bureaus around the end of your card's statement period, which is about three weeks before your bill's due date.\nAs a result, if using your card to make a large purchase brings you close to your credit limit, it will raise your utilization rate even if you pay your bill in full and on time. If you have the money available, you can avoid this by paying down your card's balance before the end of your statement period. END