Should I contact my CC companies when carrying high balances?

[Anonymous]

I recently had to help my father with an extremely expensive operation that was not covered by his insurance. Anyway, as a result of this, I've had to devote much of my cash for the last few months to this endeavor so I've racked up neary 100% of my available revolving credit for my living expenses. Because this is out of the ordinary behavior for me, and because I'll need to continue carrying near 100% debt to credit ratio for about 2-3 more months before I can pay them off, should I contact my credit card companies to explain the situation? I don't want them to slash my credit lines or raise my rates, etc-- which they haven't done yet, but I was just wondering if this is something that people should do in a situation like this? Thanks so much.

[Skye12329]

I don't think contacting them will do a whole lot, mainly because it is just front line reps. The other thing I would suggest is to just fly under the radar. A computer is what will basically decide to lower credit lines and close accounts if it senses trouble. But just fly under radar and maybe nothing bad will happen.

[Anonymous]

I called CAP ONE to let them know that next week I would be putting 2K on my Venture for car repairs.  I currently have 10K limit and 1.5K balance. The CSR was really nice about the whole thing and said they always appreciate being notified of large spends.  She noted on my account the vendor, the date of transaction (actually I don't know when the repairs will be completed so the date is approximate) and she raised the spend to 2.5K in the event other things are found.  Maybe it is better to call before you put a large purchase on your card - that is my guess.  So far I like CONE very much.

[core]

I would not call.  For all they know, you're carrying balances just because you feel like it.  If they know something bad is going on, that is going to change things.  For the worse.  The most important thing is to pay more than the minimums.  Way more.

I don't think they can raise your rates anymore on existing balances unless you are late.

[Anonymous]

i would not call, thats what credit is for. and they are going to make money so no worries.

[Anonymous]

i dont call, last week or two i passed my classes through my amex gold and there was no problem. it was 1.7k.

GL

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@Anonymous wrote:

I called CAP ONE to let them know that next week I would be putting 2K on my Venture for car repairs.  I currently have 10K limit and 1.5K balance. The CSR was really nice about the whole thing and said they always appreciate being notified of large spends.  She noted on my account the vendor, the date of transaction (actually I don't know when the repairs will be completed so the date is approximate) and she raised the spend to 2.5K in the event other things are found.  Maybe it is better to call before you put a large purchase on your card - that is my guess.  So far I like CONE very much.

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[Anonymous]

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@Anonymous wrote:
I recently had to help my father with an extremely expensive operation that was not covered by his insurance. Anyway, as a result of this, I've had to devote much of my cash for the last few months to this endeavor so I've racked up neary 100% of my available revolving credit for my living expenses. Because this is out of the ordinary behavior for me, and because I'll need to continue carrying near 100% debt to credit ratio for about 2-3 more months before I can pay them off, should I contact my credit card companies to explain the situation? I don't want them to slash my credit lines or raise my rates, etc-- which they haven't done yet, but I was just wondering if this is something that people should do in a situation like this? Thanks so much.

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Personally, I think that flying under the radar is a better way to go. I've been in similar situations in the past -keeping nearly maxed out balances on cards and just paying the minimum until I was able to pay it back -and I never had a reduced CL or even a phone call and that was from major CCCs. The fact is this, when you struggle (for any reason) to make more than the minimum payment or pay down a large balance, this is when they make money off of you. It is when you completely stop paying that they will have a major problem with doing business with you.

Calling them is a nice gesture, but I'm not sure it helps you to tell them anything that can be construed as you starting to have financial difficulties. But in any event, I wish you and your family well moving forward. Medical expenses are a serious and sometimes scary thing to deal with, in addition to the stress that comes from having a family member who needs treatment or surgury.  

[Anonymous]

what do you guys think about this person trying to request SP CLIs on any available cards, just to bring the util down . 

But honestly, 2 or 3 months, is nothing to worry about. I had my credit one maxed out two seperate times, but made considerably large payments (3-5x min or more)

I mean, how many HPs are on your credit right now? what are your scores? are you paying interest? do other members here, think, that if this person has good/exc credit, that maybe they could open a new account if preapproved and do a BT, just to free up somethings? I guess its only a few months. But I would hate to see anyone pay a ton of interest....

[rlx01]

No.

That's the answer to your question.

[Anonymous]

No. 

Calling before an unusually large purchase is fine. It reduces the chance of the purchase being denied for fraud concerns and the like. However, calling about carrying a balance won't gain you anything. Just make sure you pay as much as you can towards the debt each month. Double the minimum payment is about as low as you should go if you can help it. More than that is even better. If you pay off the debt within 2-3 months as you plan, you should not be at too high a risk for AA.