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Would 5% Utilization Hurt My Credit?

New Member

Would 5% Utilization Hurt My Credit?

As I have said in my other thread, I am 20 years old. I am looking to improve my credit, as well as I can. 

 

I currently have $18,000 in overall credit limits. I have been planning a small trip, and my new Citi Thank You Preffered offers 20,000 point if I spend $1,500 in three months of opening. They also offer 12 months, 0% interest. 

 

If I were to charge $1,0000 in this card for air fare, would it hurt to take 4-6 months to pay it off and use the 0% interest in my favor?

 

I don't want to negativley affect my credit, as I have to the cash to pay for it. However, I could just build it into my monthly budget for a few months and not touch my "vacation" account. 

 

As of now, of my $18,000 overall credit limit, has .002% utilization. BTW my credit limit on this card is $5,000. 

 

 

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3 REPLIES
Super Contributor

Re: Would 5% Utilization Hurt My Credit?


Jmbeebe0722 wrote:

As I have said in my other thread, I am 20 years old. I am looking to improve my credit, as well as I can. 

 

I currently have $18,000 in overall credit limits. I have been planning a small trip, and my new Citi Thank You Preffered offers 20,000 point if I spend $1,500 in three months of opening. They also offer 12 months, 0% interest. 

 

If I were to charge $1,0000 in this card for air fare, would it hurt to take 4-6 months to pay it off and use the 0% interest in my favor?

 

I don't want to negativley affect my credit, as I have to the cash to pay for it. However, I could just build it into my monthly budget for a few months and not touch my "vacation" account. 

 

As of now, of my $18,000 overall credit limit, has .002% utilization. BTW my credit limit on this card is $5,000. 

 

 


Charge away and pay over the 4-6 month during the 0% 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 2 of 4
Senior Contributor

Re: Would 5% Utilization Hurt My Credit?

It will reflect as a 20% utilization hit on that card but by no means it's atrocious.  This is within the normal threshold, just don't go overboard and pay significant chunks down to alleviate the balance.  In the grand scheme of things, if you're not applying for anything else or any major items on the horizon, then it should be a non-event.

Message 3 of 4
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Regular Contributor

Re: Would 5% Utilization Hurt My Credit?

Agree, and remember your credit score doesn't really matter much unless you are applying for anything.     I owed about $8k in CC debt from school and being unemployed.   I took out a loan through lending club to pay it all off, which triggered one of my CC companies to offer 0% on balance transfers and convenience checks and no transfer fee.   Opening the loan and then transfering the debt back to my credit card all "hurt" my credit score in the short-term.    But I ended up getting my interest rate on that outstanding debt reduced from 14.5% to 0% in the process.   Having a good score is a means, not an end in and of itself.    



Starting Score: 676 CK 5/13. Current: 717 EX 6/15 -- Last App: 6/2014
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