There are no penalties for paying a credit card balance in full; however, closing an account or having a high balance at the time of reporting can lower a credit score, according to U.S. News. A high balance on the statement reported to credit bureaus adversely affects credit utilization.
Even if a high balance is paid in full after maxing out a credit limit, the excessive spending appears as high usage, as Bankrate details.
Paying a high balance in full and cancelling that credit card can affect the average age of accounts, reducing the overall credit score as well, according to U.S. News. Using less than 30 percent of the credit limit and paying that balance in full improves a credit score.