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How close do you think the CC company would allow you to get to spending 25 or 30 grand? Let's say you decided to get into debt and before you know it, you're up to $23,000 in debt.
Would they shut you down well before your limit? At 15k would you get a phone call or shut off?
How many of you have got close?
They wouldn't shut it down unless they suspected fraud.
i charged $21,000 in one charge on my Bank of America card with a $25,000 limit to pay back taxes on a property I got for a steal at a foreclosure auction. Going on the market next week when the renovations are done.
Nary a word from them, charge went right through.
@Johnny_Favorite wrote:How close do you think the CC company would allow you to get to spending 25 or 30 grand? Let's say you decided to get into debt and before you know it, you're up to $23,000 in debt.
Would they shut you down well before your limit? At 15k would you get a phone call or shut off?
How many of you have got close?
I don't think this is particularly different from lower limit credit cards. You see here people who have (hopefully mainly in the past!) maxed out or nearly maxed out a credit card. It damages the score for that period, but it's allowed. So Iwould expect it to be OK, with possibly a phone call. Don't think I've gone more than about 10K on a 30K card though. Hey, I'll give it a try now, what shall I buy.....
As with all things credit, it depends. Charging $23K on a $25K limit month over month and paying in full each time is not likely to be met with AA. To the contrary, they'd probably up your limit. Charging it up and starting to make minimum payments, especially if you are maxing out other cards as well, will most likely get you in trouble. And then you've got a whole lot of gray in between.
That said, my Amex SPG has a $27K limit. I don't think I've had it much over $13K. I'm not afraid to do it, I just haven't had the occasion to.
I have let 0% cards sit close to maxed out for multiple months without hearing anything from other lenders. But my overall utilization was still no higher than about 20% when that was going on, and my other lenders were getting paid in full, so I doubt they would be spooked.
The only lender I have read people reporting this with is American Express for charge cards. If a lender didn't trust someone to borrow 25000, why give them that limit?
@hedgeclipper2 wrote:They wouldn't shut it down unless they suspected fraud.
i charged $21,000 in one charge on my Bank of America card with a $25,000 limit to pay back taxes on a property I got for a steal at a foreclosure auction. Going on the market next week when the renovations are done.
Nary a word from them, charge went right through.
I made a similar tax payment using Amex for a property in my LLC that was over 50k.. Went right through. Way higher than any other charge I've made.
Not sure about all lenders, but I suspect that they are similar to Chase. Chase wouldn't bat an eyelash. If your limit is that high then chances it's a soggy or WEMC and they usually allow you to even go over the limit.
@Walt_K wrote:As with all things credit, it depends. Charging $23K on a $25K limit month over month and paying in full each time is not likely to be met with AA. To the contrary, they'd probably up your limit. Charging it up and starting to make minimum payments, especially if you are maxing out other cards as well, will most likely get you in trouble. And then you've got a whole lot of gray in between.
That said, my Amex SPG has a $27K limit. I don't think I've had it much over $13K. I'm not afraid to do it, I just haven't had the occasion to.
I have let 0% cards sit close to maxed out for multiple months without hearing anything from other lenders. But my overall utilization was still no higher than about 20% when that was going on, and my other lenders were getting paid in full, so I doubt they would be spooked.
+1. This is exactly right. If you charge a lot and PIF, you'll probably get a CLI. If you carry that balance then that's a huge red flag that may result in AA. Every December I charge between 40-50k and always PIF. It doesn't seem to bother them one bit.