Reply
Regular Contributor
Fresh-Start
Posts: 238
Registered: ‎10-18-2012
0

All this talk about UTL and CLD's or AA has me nervous!

Hey guys! I'm pretty nervous because I started my Christmas Shopping early so my utilization on my credit cards are quite high right now.  Especially Best Buy and Amazon store card. I've read a few post about high UTL and CLD's and or even creditor's closing accounts and it's got me kind of nervous! 

 

 I usually make huge payments, but I've been carrying a balance on most of my credit cards for the past month, and Amazon and Best Buy I have the 18 month no finance  deal.  My UTL is at 60% right now, but I plan to pay everything down or PIF (EXCEPT Amazon and Best Buy) late December - Early January.  Am I at risk for CLD's???? Or other Adverse Action??  I mean, I have no baddies, perfect payment history on all accounts,  just high UTL temporarily due to holiday shopping. Would they penalize me this quickly??  Sheesh!

Valued Contributor
nicholasyud
Posts: 1,737
Registered: ‎08-13-2012
0

Re: All this talk about UTL and CLD's or AA has me nervous!

As long you make a solid payment for the last 6 months and don't carry more than 60% balance then you should be fine. Remember Cc company make some part of money by charge interest........


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 13k| Amex: NSPL|Dis: 9.4k|Cap: 5.5k|CAP: 2k|CSP: 13.4k| Pen:4.5k

Regular Contributor
Fresh-Start
Posts: 238
Registered: ‎10-18-2012
0

Re: All this talk about UTL and CLD's or AA has me nervous!


nicholasyud wrote:

As long you make a solid payment for the last 6 months and don't carry more than 60% balance then you should be fine. Remember Cc company make some part of money by charge interest........


That's so good to hear!  I'm in good shape then.  Up until the last month, I've always either PIF or paid a huge lump sum.  The last thing I wanted was to be dinged for one month or two of high utl! LOL! Whew!

Valued Contributor
navigatethis12
Posts: 1,952
Registered: ‎01-24-2012
0

Re: All this talk about UTL and CLD's or AA has me nervous!

Speaking with the Amazon store card analyst yesterday, she said they would only become conscerned if you had a very large balance and only made minimum payments. She said charging a large amount or carrying it does not matter, as that is what the promotions are for, but they like people to pay more than the minimum on the large charges.

 

I reckon you have to have high utilisation for at least six or eight months before other companies will begin to think something could be up. I say you have nothing to worry about.

Regular Contributor
Fresh-Start
Posts: 238
Registered: ‎10-18-2012
0

Re: All this talk about UTL and CLD's or AA has me nervous!


navigatethis12 wrote:

Speaking with the Amazon store card analyst yesterday, she said they would only become conscerned if you had a very large balance and only made minimum payments. She said charging a large amount or carrying it does not matter, as that is what the promotions are for, but they like people to pay more than the minimum on the large charges.

 

I reckon you have to have high utilisation for at least six or eight months before other companies will begin to think something could be up. I say you have nothing to worry about.


Okay, good info! Thanks!  I am a huge Amazon shopper and I've used them a lot over the last month or so for that no interest deal. I always pay more than the min. so that's good news indeed.

Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: All this talk about UTL and CLD's or AA has me nervous!

I wouldn't worry about it either.  I've been carrying high balances on a couple cards for several months now.  They were 0% offers.  I pay more than the minimum, but they are at about 80% utilization.  I'll pay them off in the next couple months before the 0% expires, but have no intention of paying earlier.  My other cards are getting substantial use and I PIF, so I doubt they are worried about anything. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Regular Contributor
Fresh-Start
Posts: 238
Registered: ‎10-18-2012
0

Re: All this talk about UTL and CLD's or AA has me nervous!


Walt_K wrote:

I wouldn't worry about it either.  I've been carrying high balances on a couple cards for several months now.  They were 0% offers.  I pay more than the minimum, but they are at about 80% utilization.  I'll pay them off in the next couple months before the 0% expires, but have no intention of paying earlier.  My other cards are getting substantial use and I PIF, so I doubt they are worried about anything. 


Thanks Walt_K!


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}