FYI: Penfed's position on util

[Anonymous]

I got an email from Penfed this morning offering 2.99% BT with a fee of 1% (max $100). The 2.99% is good until the balance is paid off. I called to ask about their position on util - if they preferred util be under a certain amount, since I'd like to BT to just under 50% util to reduce my util on another card. They told me that they don't track that, and don't care, as long as you don't go over your limit.

So there you have it. Going to BT later today and hopefully see a positive impact on my FICO once all my cards are under 50%.

[Creditaddict]

Chase and Amex seem to be the only real sitcklers to high util over 6 months time.

[Anonymous]

Hmm, good to know - I thought I had read that CUs are sticklers for util as well. I just didn't want to do anything to make them mad since it's my highest CL and I've had it for only a month.

Guess I better work on my Chase at 48% next...

[smallfry]

Is "they" a CSR? It might or might not be true but I wouldn't bet my life according to what a CSR told me on the phone.

[FretlessMayhem]

A lot of CUs I have spoken with seem to not like high DTI.

Navy Federal doesn't seem to take issue with it though.

My CU of 5 years refused to give me a CC over DTI. NFCU approved me for a 10K LOC, 10k MasterCard, and 5k Visa.

[Anonymous]

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smallfry wrote:
Is "they" a CSR? It might or might not be true but I wouldn't bet my life according to what a CSR told me on the phone.

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Yes, it was a CSR. Somehow I don't think they'll connect me to the CEO for a question like this. Penfed is known for its great customer service, so I have a little more confidence in this response than I otherwise would.

I'm taking it with a grain of salt - looking at it as an ok to go ahead & do the BT, but won't be maxing it out.

[haulingthescoreup]

There might be two different util issues going on here. Many banks don't mind high util on one of their promotion cards (BT, 0% purchase, etc.), because they know that that's what got you there, and for cards with a time limit, they'll be happy to pick up some interest if you don't pay it off in time.

But at the same time, they don't like to see high overall util, because that tells them that you might be having trouble paying your debts.

[Scamp]

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haulingthescoreup wrote:
There might be two different util issues going on here. Many banks don't mind high util on one of their promotion cards (BT, 0% purchase, etc.), because they know that that's what got you there, and for cards with a time limit, they'll be happy to pick up some interest if you don't pay it off in time.

But at the same time, they don't like to see high overall util, because that tells them that you might be having trouble paying your debts.

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Whew - thanks for posting this comment, HTSU; I've been kinda paranoid about the BofA card that I got strictly for BTing over my high-interest stuff last month, b/c the util on that did end up uncomfortably high initially.

Hope they look at that card the way you suggest above, and will be happy with me as long as I pay on time with decent amounts each month to start knocking the BT down and don't run up balances or do a lot of spending on other cards!