Fairly New to the Credit Card Game. Is it OK to...

Anonymous · ‎09-13-2015

I want to purchase a large computer monitor that cost $1,299 USD but in doing so my credit utilization for this credit card will be over a little over 50% So my plan is to pay it when it post and reduce the balance to say $75.00 USD and let them report that amount to the bureaus and then, like always, pay off the entire balance before the due date so I'm back to 0 balance.

I'm just concerned that I may raise a red flag on them because people have been surprise that once they pay a huge lump sum to remove the balance, the creditor reduced their credit limit drastically.

Anonymous · ‎09-13-2015

@Anonymous wrote:
I want to purchase a large computer monitor that cost $1,299 USD but in doing so my credit utilization for this credit card will over a little over 50% So my plan is to pay it and reduct the balance to say $75.00 USD and let them report that amount to the bureaus and then, like always, pay off the entire balance before the due date so I'm back to 0 balance.

I'm just concerned that I may raise a red flag on them because people have been surprise that once they pay a huge lump sum to remove the balance, the creditor reduced their credit limit drastically.

A few months of paying down a balance isn't going to set off any red flags. Relax, Go buy some stuff, and pay it off before the 0% ends. One more thing. No minimum payments!

Anonymous · ‎09-13-2015

Sounds perfect to me.

Anonymous · ‎09-13-2015

I won't pay the balance in a few months since that would accrue interest. I would pay it all in one month, but I'd have to make sure that they don't report 0% usage so I'll leave a small balance on the statement date and then only pay rest after they have submitted my usage to the credit bureuas.

And yes, although I'm new to the credit game, I've always wondered why I've read instead of being rewarded for paying the entire balance at once, although they did carry a very high balance for many months, but was punished for paying it all at once.

My assumptioin is that the creditor probably saw this person as a risk and took their business away from him/her by reducing from say $5,000 CL to $500.00. It shocked me to read this.

Anonymous · ‎09-13-2015

I wouldn't worry for a second about letting the statement cut with the full balance.

kdm31091 · ‎09-13-2015

You cannot stress about these things because it's beyond your control. If a creditor wants to cut someone's limit, they will. There is no point in worrying about what causes it or doesn't cause it because the fact of the matter is that all we have is anecdotal evidence. Only the creditor and possibly the consumer know the 100% story as to why it was done.

The only time I would feel any way concerned is if I were maxing out a card and then paying minimums. Otherwise, just live your life.

Anonymous · ‎09-13-2015

The creditor wants to see you charge 50%.

That creditor and others dont want to see you at 50% on all accounts you have. Depending on the retailer, you can break it into multiple accounts if you wish. HINT if you are paying at best buy and you have an AMEX, you can get 25 back a 250 purchase, and couple it with 10% off usps mover's coupon etc etc.

Yes I saw the thread where the member got a cut in credit after paying a balance at once. As stated above, we dont know the story, maybe they got additional credit to pay off said balance and the original bank didnt like that. Debt shuiffling is fine when you are paying it down, it's no good if your debt is the same, trending up, spending up.

Anonymous · ‎09-13-2015

@Anonymous wrote:
The creditor wants to see you charge 50%.

That creditor and others dont want to see you at 50% on all accounts you have. Depending on the retailer, you can break it into multiple accounts if you wish. HINT if you are paying at best buy and you have an AMEX, you can get 25 back a 250 purchase, and couple it with 10% off usps mover's coupon etc etc.

Yes I saw the thread where the member got a cut in credit after paying a balance at once. As stated above, we dont know the story, maybe they got additional credit to pay off said balance and the original bank didnt like that. Debt shuiffling is fine when you are paying it down, it's no good if your debt is the same, trending up, spending up.

YES! And dont forget you can trade in practically any tablet right now and get a $50 gift card. As long as its not e-ink.

Anonymous · ‎09-14-2015

If you are concerned, you can always call the CCC and let them know that you will be making a large purchase. However, with your plan, I don't think it is necessary. You should be fine, expecially as you're paying most of it off before the statement cuts.

jsucool76 · ‎09-14-2015

what you're planning on doing is fine OP. it's the way credit cards are meant to be used.

you make a purchase and then pay it off. paying off before the statement isn't necessary, but it will prevent your card from reporting 50% until.