Chances of AA for High Util?

[andyaycw]

I'd love for some experts to weigh in on my scenario here - I have come into some unexpected expenses and have decided to draw from an existing PLOC to pay the costs. I will be maxing out one of my PLOCs at $15k/$15k (bal / credit limit) and would like to know how other creditors are likely to view this, and the chances of Adverse Action such as CLDs, account closures, etc. I plan on paying off this $15k balance within 12 months. I believe one key factor is the fact that I have many other accounts with plenty of available credit left, so it will just be this one, single PLOC that is maxed out. 

If there is a chance of AA, I may consider a closed-end personal loan, as it is my understanding that is seen more favorably versus an open-ended line of credit. that is maxed out. 

Details on my other accounts? The other remaining credit cards I have are as follows, with the corresponding credit limits.  None of these cards exceeds 5% of the credit limit. 

Citi TY: $19k

Citi ProCash: $4k

Penfed Plat Cash: $32k

Penfed Plat: $5k

Discover It: $15k

Amex Clear: $20k

US Bank Cash+: $15k

Fidelity Amex: $25k

Chase Freedom: $15k

Chase Amazon: $15k

[CH-7-Mission-Accomplished]

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@andyaycw wrote:

I'd love for some experts to weigh in on my scenario here - I have come into some unexpected expenses and have decided to draw from an existing PLOC to pay the costs. I will be maxing out one of my PLOCs at $15k/$15k (bal / credit limit) and would like to know how other creditors are likely to view this, and the chances of Adverse Action such as CLDs, account closures, etc. I plan on paying off this $15k balance within 12 months. I believe one key factor is the fact that I have many other accounts with plenty of available credit left, so it will just be this one, single PLOC that is maxed out. 

If there is a chance of AA, I may consider a closed-end personal loan, as it is my understanding that is seen more favorably versus an open-ended line of credit. that is maxed out. 

Details on my other accounts? The other remaining credit cards I have are as follows, with the corresponding credit limits.  None of these cards exceeds 5% of the credit limit. 

Citi TY: $19k

Citi ProCash: $4k

Penfed Plat Cash: $32k

Penfed Plat: $5k

Discover It: $15k

Amex Clear: $20k

US Bank Cash+: $15k

Fidelity Amex: $25k

Chase Freedom: $15k

Chase Amazon: $15k

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An installment loan would certainly be preferable.  15K isn't much with your high credit limits.

If you do use the PLOC, don't let it go above 89% of its limit.   You will get an extra 20 point smack for having a card over 90%.

It sure looks like it would be easy for you to bury three 5K charges on three accounts.  Or why not put 10K on the PLOC and 5K on one other credit card?  If you can't do an installment loan, that would look and score better.

[andyaycw]

This might be a dumb question, but other than BT transfer checks (which typically carry a 3-4% fee), is there a way I can actually tap into my credit cards for actual cash? (aside from, of course, cash advances at ridiculously high interest rates). I didn't think there were any other ways. That's a big reason why, around last year, I decided to open up a PLOC just in case I ever needed quick access to cold hard cash.  

[Anonymous]

Pretty sure your pen fed cards are no CA fee and same rate as charges. Do they look at them differently? Don't know. Subscribing to see what others say.

[takeshi74]

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@andyaycw wrote:

I will be maxing out one of my PLOCs at $15k/$15k (bal / credit limit) and would like to know how other creditors are likely to view this, and the chances of Adverse Action such as CLDs, account closures, etc.

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We can't tell you that.  It's partially a matter of yuor specific credit profle and more a matter of a given creditor's risk acceptance.  All creditors will not necessarily respond the same way or at the same point.  All we can say is that generally risk is greater for higher utilization over longer periods of time and that there is additional risk for maxing an revolver.

Your limits and your signature look good to me but I'm not any of your creditors.

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@andyaycw wrote:

I believe one key factor is the fact that I have many other accounts with plenty of available credit left, so it will just be this one, single PLOC that is maxed out.  

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Again, risk tolerance varies.  It's possible that one or more creditors may respond when they see one maxed revolver.  It's possible that none of them may respond.  It's possible that the first creditor to respond would do so X months down the road with high utilization.  Again, we can't speak for your creditors.

As stated above, installment debt isn't seen as the same risk as revolving debt.

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@andyaycw wrote:

That's a big reason why, around last year, I decided to open up a PLOC just in case I ever needed quick access to cold hard cash. 

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I know it's easier to say this than to do this but credit isn't a substitute for a liquid cash reserve.

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@Anonymous wrote:
Pretty sure your pen fed cards are no CA fee and same rate as charges.

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https://www.penfed.org/Form-1213-Visa-Platinum-Cash-Rewards-Summary-of-Terms

https://www.penfed.org/Form-1265-Visa-Platinum-Cash-Rewards-Plus-Summary-Of-Terms/

I have no idea how they'd respond to the OP pulling a cash advance on his PPCR.

[kdm31091]

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@andyaycw wrote:

This might be a dumb question, but other than BT transfer checks (which typically carry a 3-4% fee), is there a way I can actually tap into my credit cards for actual cash? (aside from, of course, cash advances at ridiculously high interest rates). I didn't think there were any other ways. That's a big reason why, around last year, I decided to open up a PLOC just in case I ever needed quick access to cold hard cash.  

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Credit cards are credit cards. If you don't want to take a cash advance (and I can't blame you!), or do a BT for ~3%, then no, there's no real way to get cash out of them because that's not what they are designed for. Some lenders don't charge a BT fee, though, as mentioned above.

[LadyJEsq]

I'm new to the forum. but I would suggest that you NOT max out one of your lines of credit for 12mths. While everything regarding credit is YMMV, I would be extremely surprised if you didn't receive AA over that lenght of time. Have you thought about doing a balance transfer directly to your bank account? I've read that some were able to get 0% APR BT promos for a small fee (compared to any AA that may occur over 12mths that is). Here's what one person did:

http://ficoforums.myfico.com/t5/Credit-Cards/Citi-Balance-Transfer-Direct-to-Checking/td-p/4259121

Another option might be to open another PLOC and pull from both of those instead of maxing out the one.