For example, if I have a $250 credit line and spend it all in a month then repay it next month, will that raise my score?
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Credit utilization is simply how much of your credit is being used at the end of a statement period. Banks are more willing to lend more credit to people who are likely to use less of that credit at any given time. Although it helps to spend a lot of money and then pay off all of that debt, banks really care most about how much credit is being used at the moment they come knocking (the end of a statement period).
If you pay your bills consistently each month, banks like that. If you pay your bills *early* each month, banks like that even more, because it implies you’re responsible enough to pay off your debts before being asked to.
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