<prompt> Human: Hello, Im about to pay off my first bill. However, Im not sure what would be the best way to go about it. Ive read that its best to use about 30 of your credit limit and then to pay it all off after the statement arrives and before the due date. Well, I used my credit card and utilized about 6 of my credit limit and after a short while my statement came with the minimum payment and current balance, which is the 6 I just used. After my statement, I used 23 of the credit limit, which means I utilized about 27 of my credit limit in total. Now the due date is approaching, and Im about to pay off the amount, but im not sure whether to pay it off in full, the 27 it accumulated to after the statement arrived, or by the last statement balance, the 6 the statement showed. If I pay it off in full, the 27, will it show on the reports? If I pay it off by last statement balance, will the remaining balance be reported as if Im carrying a balance on my card? Thank you for reading.Edit: Thanks for the advice! Ill be paying off the balance in full.  <response>: Heres how to use a credit card. Assumption: Today, your current balance is 0. During a statement period, say January 5th - February 2nd, you use your credit card and charge 1000. That statement period closes on February 2nd. You get your statement for the period of Jan 5 - Feb 2 a few days after the 2nd. Its due date is February 23rd. The statement balance on your statement is 1000. Between Feb 2nd and before you get your statement, you charge another 100 to your card. Your current balance when you get the statement will be 1100. However, your statement balance will just be 1000. Before February 23rd, you should pay your statement balance of 1000 in full to avoid interest. In the meantime, any new charges you make after the close of the prior statement on February 2nd will apply to your next statement. You do not have to pay those until your next statements due date. On the day that a statement closes, the current balance is reported to the credit agencies. That balance makes up your credit utilization ratio. Thus, if you reduce your current balance before the statement closes, the difference will not get reported. If you pay off your balance in full before the statement period closes, your balance will be reported as 0.TL;DR: Dont pay off your card until you get your statement. Pay the balance listed on your statement in full before the due date. 