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Valued Member
Posts: 38
Registered: ‎12-31-2012
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Would Financing hurt my credit?

I currenty have a Walmart Credit card with a $1000 CL. I want to purchase a computer for $378 and use Wal-marts 12 month Financing. Since I would be paying over 12 months would this show as an balanced owed on my credit report? Also, Would this help or hurt my credit? 

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Registered: ‎12-30-2012
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Re: Would Financing hurt my credit?

[ Edited ]

your score will go down some as the util will go up to probably close to 50% after taxes. It will go back up as you pay the loan. 

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Super Contributor
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Registered: ‎02-27-2013
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Re: Would Financing hurt my credit?

it will show as balanced owed on your report.


it might hurt your credit initially, but overtime it will be beneficial since walmart will be reporting that you paid on time each month.

don't worry about anything. Financing anything helps your credit in the long run as long as you do not default or pay late.

It will hurt the 1st month or two, but as long as you are not applying for any new credit lines during that time period, you are okay.


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Registered: ‎03-08-2013
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Re: Would Financing hurt my credit?



You will be close to 40% of your credit card utilization. You really want to stay below 20%, which means use no more than $200 on your Walmart credit card.

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Credit Endeavor
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Posts: 773
Registered: ‎01-03-2012
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Re: Would Financing hurt my credit?

creditendeavor wrote:



You will be close to 40% of your credit card utilization. You really want to stay below 20%, which means use no more than $200 on your Walmart credit card.



It won't hurt you at all to purchase the computer on your Walmart card; 40% utilization is really not a big deal unless you're actively seeking new credit.  Your FICO score will take a temporary drop secondary to the increased utilization, but as you pay it off it your score will recover.


I have had many cards with 50%+ utilization (I'm not suggesting you make a habit of this) at one time or another, and it's not been a problem.  Keeping credit card utilization at/below 20% utilization is not always realistic or even possible, particularly if you have a low-limit card.  


Get your computer and enjoy - you'll be fine.  Smiley Happy

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Re: Would Financing hurt my credit?

+1,000,000 TNTransplant

I nominate this for post of the night. Said everything that was needed to be said in 5 sentences.

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