CC bal and FICO

[bichonmom]

I know all about the 9% rule. And I've been doing that. However, I've incurred some moving expenses over the last couple of weeks that I need to finance w/0% BT offer I have.

So, my question is about the balance % of CL and how it affects FICO. I'm wondering if there is a % where it hits your FICO more. Like if your bal is over 50% of your CL on that card, does it impact FICO a lot more than at 40%? Or for example, with a $10k CL, does a $6k Bal lower your FICO a lot more than, say a $5k bal?

I'm trying to figure out how much to BT w/o too big of a FICO hit.

Thanks!

[jamesdwi]

any single card over 70% is considered maxed out, and you will take a hit. 

over 30% UTL is another red flag for creditors.

you may find various lenders that will over look those if your history is good enough or if the company is subprime. 

[bichonmom]

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@jamesdwi wrote:

any single card over 70% is considered maxed out, and you will take a hit. 

over 30% UTL is another red flag for creditors.

you may find various lenders that will over look those if your history is good enough or if the company is subprime. 

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So, is the 30% on a single card? Like $3k bal on $10k card, or is that 30% of the TOTAL util w/all CC CLs combined?

[jamesdwi]

70% on a single card  BAD

30% on total UTL is another BAD mark, at least under it you shouldn't have it come up as a negaitive to getting new cards. 

[Revelate]

Not worth worrying about unless you have an application coming up in the near future.

Do what makes the most financial sense for the BT: if that means maxxing out the card on something you can't immediately pay off and want the 0% financing for, then do that.  Long term FICO-wise it's absolutely irrelevant, and any money which you save puts you further ahead financially, which is more important than short-term FICO worries.

[Crashem]

If any card and assume total util as well, there seems to be some magic numbers were it hurts more on a percentage basis.  Those numbers seem to be 10%, 30%, and 80%. 50% might also be.  Although the actual formula is actually much more complicated so these percentages may be illusionary.  I assume you are asking question as you are planning on maxing a card.  If that is case, keep it below 80%.

[bichonmom]

So, if I do $6k on a $10k card, my util on that card w/be 60%, but my overall util will be about 10 to 11%.

My concern is that Amex is gonna freak. Really, they're the only one I'm concerned about. The 0% w/be on Barclay's, but so far my experience with them has been very good -- and they sent me the 0% offer. So, I think they'll be okay with my doing it.

I've just not carried a balance since I've rebuilt (except for my iPad ), so I'm a little concerned about how the CCs are going to react when they soft me.

[Revelate]

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@bichonmom wrote:

So, if I do $6k on a $10k card, my util on that card w/be 60%, but my overall util will be about 10 to 11%.

My concern is that Amex is gonna freak. Really, they're the only one I'm concerned about. The 0% w/be on Barclay's, but so far my experience with them has been very good -- and they sent me the 0% offer. So, I think they'll be okay with my doing it.

I've just not carried a balance since I've rebuilt (except for my iPad ), so I'm a little concerned about how the CCs are going to react when they soft me.

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Non-issue in my opinion as long as you start making payments regularly on the balance.  It's when cards get maxxed, and then *stay* maxxed that lenders start worrying.

In this case you're doing exactly what credit cards are designed for: short-term float.  Why would any lender get upset over that except to ask why you didn't use them instead?