What are the exact repercussions of getting too close to your credit limit?
I recently got a New Borrower’s Visa Card (because I have no credit yet), with only a $ 300 credit limit. I’ve read that if you use more than 30-40% of your credit limit, it reflects negatively on your credit score. However, I am not sure if I understand what that means, exactly. Does that mean my credit score will only be low during the period of time that my credit card balance is too close to my credit limit, and will raise again after I pay off the balance, or does that mean if I get too close to my credit limit a few times, it will adversely affect my credit score long-term? I plan to use this card for holiday shopping coming up, and wanted to know since having only $ 90 in available credit is hardly even worth it.