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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No one can say for certain how the proprietary credit models work, but generally speaking, maxing out your credit line (100% utilization) will hurt your score. Paying your balance on time will help your score, but probably not more than having high utilization / maxing it out hurts it.
Your credit line is how much the bank is willing to lend you in a month before they want you to pay them back before they lend you any more. In a sense, it communicates how much risk they’re willing to take on lending to you, because there’s always the possibility you don’t pay them back.
Maxing out credit lines is typically risky behavior to the lenders. People can and do max out their credit lines (buying stuff with the bank’s money) and then run away and never pay it back, and then the bank is out that amount of money.
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