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Established Contributor
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Registered: ‎04-05-2008
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CC Util Question for Mods

[ Edited ]

Background:
I currently have 3 CCs, all of which were open in June of 2008. 

 

Current Balances/CL/Statement Drop Date:

WaMu -     $524.18   $2,000    11/25 

AEFCU -    $236.17      $500    11/28-11/30

HFCU  -     $155.41   $1,000    11/11-11/13

 

Objective:

WaMu  -  Pay $300.00 (leaving $224.18 to post on statement)

AEFCU  - Pay $236.17 (leaving $0 to post on statement)

HFCU   -  Pay $60.00 (letting $95.41 post on statement)

 

This will make my util 9%, correct?


Scenario:

Want to purchase a PS3 for my son tomorrow at Walmart using WaMu CC (unfortunately, I can only get it with the $100 gift card tomorrow only).  I'm coming up on my 6th statement with WaMu on 11/25.  Wondering if I would jeopardize my FICO scores by letting a larger balance on my WaMu CC report (if, in fact, I gain FICO points for 6-month anniversary - not sure how true this is?).  If I purchase the PS3 ($422.94 including tax) and let that balance report with the $224.18 (totaling $647.12) and bringing my util to 21%, will I risk a FICO score drop for this?  I plan on making a huge payment on 11/28, but have some items I need to pay off first.  

 

I'm thinking I should just forfeit the $100 gift card (sweet offer) and look for another offer later, but I really don't want to pass this up.  Hope I made sense.  Your help is greatly appreciated.



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Message Edited by Uniqua on 11-07-2008 11:42 AM

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Established Contributor
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Re: CC Util Question for Mods

Thanks to Cheddar (on another post of mine), I think I have part of my answer.

As far as FICO and six-month anniversary, it is true that my scores may increase for this?

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Moderator Emeritus
Posts: 6,794
Registered: ‎09-29-2007

Re: CC Util Question for Mods

[ Edited ]

You're more than welcome.  I just saw this thread, so I didn't reposnd to it earlier.

 

Yes, your utilization would be 9% after the payments.

 

If I calculate correctly, it looks like after your big purchase, the WaMu card will only be reporting an individual utilization in the low 30s.  (I forgot the exact number and don't want to re-run the calculation, but I seem to remember it was 32%?)

 

That's really not so bad.  I wouldn't worry about letting low 30s utilization report on a single card for only 30 days, even if it did cost a few points temporarily.

 

Remember that ultimately, you want your FICO score to be high so that you can obtain and use the credit you want and need.  Why bother worrying about a high FICO score if it's giong to prevent you from making reasonable use of the credit you've obtained?

 

Just my $0.02.

 

Message Edited by cheddar on 11-07-2008 10:07 AM
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Super Contributor
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Re: CC Util Question for Mods


Uniqua wrote:

CC Util Question for Mods  


Sorry, I am not a Mod so I can't answer  Smiley Very Happy

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Moderator Emeritus
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Re: CC Util Question for Mods


MidnightVoice wrote:

Uniqua wrote:

CC Util Question for Mods  


Sorry, I am not a Mod so I can't answer  Smiley Very Happy


 

As if my answer could be improved on?!?!?! Smiley Surprised

 

JK

 

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Re: CC Util Question for Mods

You're right, Cheddar. That's what I'm "trying" to do. Still getting the hang of this since I'm just starting to rebuild this year. I guess my concern is that I'm in the market to purchase a home, then a new car. I don't want high util to report at all. I've been trying very hard to prevent this so that I wouldn't suffer a score drop. I just made it over 700 and my CU has already stated that if I can keep my current CC balances low, my scores will increase, making it better for me as far as interest rates.

I've decided to go for this deal at Walmart. Just don't know how I can pass it up. Instead of the $300 payment, I'm going to pay $500 so that by the time my WaMu statement cuts, my balance will be $347.12 (making this CC util 17% and overall util 13%). If you can figure out how I came up with those numbers, please -- somebody tell me! Smiley Very Happy

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Re: CC Util Question for Mods


cheddar wrote:

 

As if my answer could be improved on?!?!?! Smiley Surprised

 

 


It could not, oh Mighty Moderator  Smiley Very Happy

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
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Moderator Emeritus
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Re: CC Util Question for Mods

In that case, if saving $100 on a PlayStation is going to cause problems with a mortgage application, I'd say forget about the $100 and get the PlayStation some other time.

 

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Re: CC Util Question for Mods

I don't think it's necessarily about saving $100, but rather letting such a huge balance report on my CR. As I stated, it's already high ($524.18, adding $422.94 to it = $947.12). The $300 payment would have brought it down to $647.12, which is still high and I would not have been able to get it paid down by 11/25. My CL is only $2k. Sounds like a score drop to me, just wasn't sure. From what I hear around here, it will take a while to get those points back. I've been trying not to app for new credit and just gardening the new credit I already have.

I don't know about other people nor do I even care, but for me, I would much rather be in a better position when I apply for a mortgage. I am simply not happy where I am now and I am going to make sure my credit only gets better, and that includes my scores!

Starting Score: TU 723, EQ 708
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Valued Contributor
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Re: CC Util Question for Mods

[ Edited ]

If you can, pay the two non-WaMu accounts down to zero and pay whatever else you can on the WaMu account. (Having less that half your revolving TL's reporting a balance will increase your FICO scores.) Go ahead and make your purchase and then pay whatever you can later in the month (to WaMu).

 

A FICO score only exists at the exact moment your credit report is pulled. Since you are not intending to apply for credit at this time you have little to worry about. Keep focused on the long run and don't cut things too finely. Micro-management will drive you nuts.

 

Your scores are already hovering around 700. Do not anticipate seeing a large bump at the six month point. The higher your scores are, the less bump you will see. (In fact sometimes when positive changes in your CBR's occur that cause a bucket change your FICO score can actually decrease!)

P.S. I am not a mod. Just a mere mortal poster.
Message Edited by jmbfl on 11-07-2008 12:07 PM

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