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CC App Guidance - High Util

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Anonymous
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CC App Guidance - High Util

Been surfing the forums here on and off for years. But I've finally gotten to the point where I can I'm not sure what to do for my next move. I'm currently looking to see what Credit Cards I should app in the short term to make my utilization go lower while I work on paying them. Here's a bit about my situation:

 

80-90% CC utilization across four accounts totaling up to about 10K. (Paypal, Chase Freedom, Discover IT)

20K Student Loans

No bad payment history or other negatives to be concerned with.

1 HP over the last year.

Credit score around 680 from TU over the last year.

 

I'm just pulling into a situation where I'm finally finding a roommate and getting a raise, giving me some extra income per month that isn't spoken for elsewhere. I can now gradually work on paying off my CCs after dealing with a bit of nasty dental work that has been my financial focus on paying off over the past year. Since I can look at paying off my CCs, I want to figure out what my short term tactic should be to raise my score and potentially get a decent BT card I can transfer some of the debt onto. Easiest way to do that would be to open one or two cards with decent CL to lower my utilization from looking at the math. I also want to be on the safe side and have a better score, since my car has a few mechanical issues and I don't want it to suddenly go under while my score is just merely "Good" if I need to get a new vehicle suddenly.

 

The Chase Slate looks fantastic, but from reading, it looks like I would just get approved and get a low CL; wasting the HP. So what should I be looking at right now to app for? I got a prequalified fro a Cap One Plat MC in the mail. The Cap One website tells me I'm pre-qualified for a QS Rewards Visa at this point. Researching these cards has been quite mixed from looking at them.

Message 1 of 11
10 REPLIES 10
Anonymous
Not applicable

Re: CC App Guidance - High Util

apping probably isn't the best idea due to utilization. if you're prequalified then try i guess because it will be 0% for around a year but you paying your cards down will raise your score as that's 35% of it right there
Message 2 of 11
Anonymous
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Re: CC App Guidance - High Util

Welcome to the forum. In regards to your question about what you should app for, in all honesty, nothing right now. With utl between 80% and 90%, most lenders if not all will view that as risky and either deny the application, or if by chance you do get approved it would probably be for a low sl. Now I could be wrong but most banks do not see that high of a utl as favorable. What you should do is work on paying that down, way down, I' say to at the most 30% before applying for any new cc's. I know that's not really what you want to hear but that is the position you are in right now.

Message 3 of 11
Anonymous
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Re: CC App Guidance - High Util

when i had high utilization i only got approved for $1k stuff. paying down will increase your score although interest will be something you'll be paying, unfortunately.
Message 4 of 11
myjourney
Super Contributor

Re: CC App Guidance - High Util

Welcome 

 

Throw the extra income you now have at the debt and I have to be honest 

1) change your thinking of getting new cards to reduce UTL  because that's a bad credit decision and usually leads to more debtSmiley Surprised

2) you won't be approved at 90% and if you do it will be low limits and this won't change UTL anyway I assure you

3) Chasing cards for UTL is simply not teaching you to pay them down and seek credit when you need it and not when balances are high Smiley Sad

 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 5 of 11
Anonymous
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Re: CC App Guidance - High Util

Certainly won't disagree with you Journey. I was more interested in doing some tactical moves to enable me to pay down my debt faster by hopefully swinging into a BT Card. I just wasn't sure on the likelihood of that being an option at this utilization. Certainly would allow me to use money I'm paying on interest to divert to CC debt if that were all possible. 

Message 6 of 11
myjourney
Super Contributor

Re: CC App Guidance - High Util


@Anonymous wrote:

Certainly won't disagree with you Journey. I was more interested in doing some tactical moves to enable me to pay down my debt faster by hopefully swinging into a BT Card. I just wasn't sure on the likelihood of that being an option at this utilization. Certainly would allow me to use money I'm paying on interest to divert to CC debt if that were all possible. 


I do understand and wish I had another option for you but I have to ask will a new card with a $500-$1000 limit help you after the BT and how far will it drop UTL? 

Even tho yes that amount will be under a $0% for XXXXX amount of time allowing you to save $$$$$$$ but in all honesty you'll now have another card maxed out? 

If that amount is the key then I say yes go for it but if not you're still in the same bracket IMHO 

 

Another question do you own a home or something that would allow you to borrow against for a long term low APR loan?

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 7 of 11
Anonymous
Not applicable

Re: CC App Guidance - High Util

or even a few grand equity in a vehicle
Message 8 of 11
degs138
Established Contributor

Re: CC App Guidance - High Util

Do you have any money you can put a dent in your debt? I would just come up with a plan and start paying down your card. You could try to get a lower interest personal loan to pay off you're debt but with that utility it would be hard. Just have to pay down and watch your score raise.

FICO TU 757 Eq 741 116,900 Total revolving Credit.
Favorite cards: AMEX BCP, US Bank Cash+, Chase Sapphire Prefered
Message 9 of 11
Anonymous
Not applicable

Re: CC App Guidance - High Util

only bad thing about a PL is they're almost always manual review so keep that in mind too. (i say almost because i personally don't know of any that aren't but i would venture to guess there are some)
Message 10 of 11
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