John Miller, Credit Cards Moderator
@john_miller
No, what you use your credit card for does not affect your credit score. It’s your payment history and credit utilization that influence your credit score, and not the type of transaction that you make with your card. Even if you don’t use your card at all, it will still report positive information to the credit bureaus, contributing to your credit history.
However, the type of transaction can still impact your finances in other ways. For example, cash advances often come with higher APRs and additional fees compared to regular purchases. This can make them more expensive in the long run, even though they don’t directly affect your credit score.
To learn more about what impact your credit card has on your credit, you can refer to WalletHub’s guide on the factors that affect your credit score.
People also ask
What happens if you use 100% of your credit limit?
One thing that will happen if you use 100% of your credit limit is that you won’t be able to make any more purchases without paying some of the balance, first. There may be other consequences, too, like damage to your credit score or appearing irresponsible to lenders.
What Can Happen If You Use 100% of Your Credit Limit
- You Won’t Be Able to Make New Purchases: Once you’ve maxed out your credit limit, any further...
Is it okay to use 40% of a credit card?
No, it is not okay to use 40% of a credit card because it can negatively affect your credit score. It is recommended that you keep your credit utilization ratio below 30% in order for it to have a positive impact on your credit score and signal to other lenders that you can manage debt responsibly.
However, please note that while credit utilization is an important factor in determining your credit score, it is only one variable among...
read full answer by John Miller, Credit Cards ModeratorDid we answer your question?
Important Disclosures
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers. For full transparency, here is a list of our current advertisers.
Advertisers compensate WalletHub when you click on a link, or your application is approved, or your account is opened. Advertising impacts how and where offers appear on this site (including, for example, the order in which they appear and their prevalence). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.
Advertising enables WalletHub to provide you proprietary tools, services, and content at no charge. Advertising does not impact WalletHub's editorial content including our best picks, reviews, ratings and opinions. Those are completely independent and not provided, commissioned, or endorsed by any company, as our editors follow a strict editorial policy.