Saved my first $5k at 26 pls clap 🥹

[u/k1ranell]

I also have some $820 in acorns and <$1500 in a rollover IRA I have yet to move to a ROTH but putting it off for tax/wuss reasons. However, I have $772 in CC debt. But a win is a win, I can pay it off with time 😁

Gonna try to save $10k next year

[u/Academic_Cabinet_994]

If you pay it off in full each month there’s no harm done.

You also want your utilization below 30% typically, otherwise it can negatively affect your credit.

[u/GrandmaOatmeals → u/Academic_Cabinet_994]

This is sort of but not fully true, and the creditcards subreddit has a whole sticky over this myth.

Basically utilization has no memory. So if you have 99% utilization every month, and then you go down to 1% utilization in the month you apply for new credit, you'll have the exact same odds of acceptance as if you have 1% utilization all the time.

There's no tangible benefit to always keeping your utilization below a threshold, only on the months you need new credit.

This is different from payment history, where if you have a late payment, that is gonna hurt your score for 7 years to come.

[u/quiteCryptic → u/Academic_Cabinet_994]

Not important unless you're actively trying to get a house or car loan, credit score will recover quickly once utilization is lower again.

It doesn't hurt to keep it low though if you can, or get more credit available to you to automatically keep it low (as long as you won't be tempted to use that credit available to you...)