Ok, I'm looking for a few specifics on raising my credit rating.

I can't seem to get a straight answer on this one, I've searched everywhere. I keep reading the same damn articles that say that same thing, and I can't figure out what it means.

I have a capital one card with a $400 limit, its a student card. Its the only card I have. I pay the balance off in full every month. I've never paid interest.

Most credit help guides tell you to pay off your balance in full every month (der...) and don't have a high credit utilization rate. That makes sense. What I don't understand is what balance they use to determine credit utilization.

Basically, if I put $399.99 on my credit card, get a bill, and pay it off before its due, so I pay no interest, is that helping my credit or hurting it? Obviously, I don't live anywhere near the credit limit, but a $250 purchase on something like a new PC monitor or a set of tires is nothing to my budget. Even if I pay off the amount when the bill is due, does the credit agency see that I'm over 50% utilization for that month?

The easy answer of course is to pay off the amount before the bill is due, but if I do that, I thought the credit agencies don't see anything, and therefore doesn't get factored in.

Any help!?