Is it bad if you max out a credit card but are making your monthly payments on time?

Other answer:

efflandt:
That only matters if you are applying for credit at the time. Also it depends upon your total available credit for any other credit cards you have. Generally you should avoid using more than 30% of the total credit limit of your credit cards.

Also make sure that if a card is almost max'd out that interest added to that may push you over your credit limit (plus possible over limit fee). Actually if you only make minimum payments it makes it look like you either cannot afford the credit you have or that you do not realize how much interest is costing you, and banks will take advantage of that by not reducing your interest rate.

Freescore:
Yes. If you are using your entire credit limit then your utilization ratio is very high. It seems you are depending heavily on credit. By paying your bill in time in full, you ensure you are not charged with interest and late fee but due to the high utilization ratio your credit score is bound to take a hit.

Ideally you must keep your balances below 30% to have a healthy score. Since you are depending on credit so much what if tomorrow your income stream were to disrupt? You will not be able to make the payment on your card. That is why you must keep your card balances low. Use cash or debit card for expenses beyond 30% of your credit limit.

AlCapone:
It's bad for three reasons: 1) it hurts your credit score because you have utilized all your credit limit, 2) you have no ability to charge anything else, even if it's for an emergency, and 3) you are adding a ton of interest every month, which increases your balance. If you simply make minimum payments each month, you'll still be paying off that balance months or years from now — and the amount of interest will likely be more than your original balance.
Elaine:
Yes Off course. It is always bad to spend more than your credit limit.
1. Your credit score will get impact due to utilisation of your full credit limit. 2. When your credit card bill generate, if that time there is no limit available in your credit, then you need to pay over limit fees. 3. Need to pay high interest every month, which increases extra burden.
DEBS:
Bad from what standpoint? Having a high balance, compared to your limit, hurts your credit score. It's better than not making payments, but it still is a negative. Having any balance month to month is always bad since you have to pay interest.
Dan B:
Yes. Credit utilization ratio, which is your debt to credit limit on any single card, can be a detriment to your score. If your limit is $1,000 and you carry a $1,000 balance, your ratio is 100% (very, very, very bad). You want that ratio down to less than 30% (good), less than 10% (excellent). And pay it off in full before the statement closing date (check on line for your balance). Your ratio is reported on the statement closing date, not the payment due date.
StephenWeinstein:
Yes. Using anything over 1/3 of the max is bad.
Mr burns:
NO! Please don't don't ever charge more then 30% I beg you that will drop your score 30-40 points! It is to be 30% PERIOD what you are doing is abusive spending and they will see it.Never think paying something off is good that is just paying for your failure slowly.A credit card is to be swiped at 30% and PAID and then you do it again MAYBE leave 30% balance and then pay it off slowly which is good actually but don't ever abuse it
tro:
if you are only paying the minimum the credit company loves you, they are making money hand over fist on you with the interest they charge you, making the minimum altho timely really only pays the interest almost nothing on the principle
Judy:
bad for your credit score to put that much on it.
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