When you’re using a credit card, people often think:

1 – As long as you pay back by the end of the month, you can use the entire amount of money on your credit card.

2 – Or, you can use the entire amount that’s on your credit card as long as you’re paying back month to month at least the minimum amount.

Both are wrong. You never want to use the total amount on your credit card unless it’s an emergency. That’s because there is a factor that comes into play called credit usage that can affect your credit score.