can i spend up to 70% of my credit limit

[Anonymous]

I am trying to use 70% of my credit limit to make a big purchase and i am wondering if that will raise a red flag on me?

i hear staying under 35% is good how  about 70% not 71%?

Message Edited by mandela on 12-17-2008 04:13 AM

[marty56]

You will take a FICO score hit and depending on your total util, #cards with a balance and the CRA, the amount will vary.

Also depending on who the card is with, you could get AA on the card itself.

If you are making a store purchase, I might consider a storecard and if you can get 0%, even better.

[Anonymous]

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@Anonymous wrote:

I am trying to use 70% of my credit limit to make a big purchase and i am wondering if that will raise a red flag on me?

i hear staying under 35% is good how  about 70% not 71%?

Message Edited by mandela on 12-17-2008 04:13 AM

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You absolutely can spend any or all of your credit limit.  

Should you?  That's probably a different story.  As the above poster said, you will take a FICO hit by having a card with that high util.  Depending on what reports to the CRA's you may face AA from other cards who might see you as a higher risk.  Additionally the card you place that on may see you as a risk and may start chasing your balance.  

Depending on the amount and the interest rate, and how fast you get it paid off, as the above poster said, if you get a store card with a special 0% interest offer that may help you spend less money.  

But only you can decide if using 70% of your available credit on a card/an item is something you should do.

[Anonymous]

Hi mandela!

What is the credit limit on the card that you're planning to use?

[score_building]

no doubt you'll ask yourself some key questions. 

1. do any of my other accounts have balances over 50%

2. how are my sores?

3. ANY baddies on my report?

4. have i recently received a wrong mortgage, wrong address, cld or other AA reasons letter in response to an app. or cli  request 

although there are probably one shot deals that lead to AA, like a single recent lateness, it seems often to be a cumulative response by the issuer (risk management software) to a handful of smallish negative inferences. 

sometimes a weighted risk on balances pays off, other times not so much.  it also can depend on the issuers you are juggling.  a zero percent offer may mitigate any subsequent AA or not...   it's true, of course, that only you can determine whether or not you're willing to take the plunge or if perhaps you have better/ other options.  remember it is those card holders that use their cc more like a personal loan that seem to have attracted the most negative attention overall.  so there may still be a difference to the assessment software between a card holder with a 4 month balance and one with a 12 month balance.  it is safe to assume your other issuers will neither know nor care if the reason for carrying a balance is a juicy 0% apr offer.

there have been a small handful of posts indicating high balances sometimes even across accts. without AA (yet) but i'd imagine if their balances aren't cleared in short order, etc. those people will eventually draw some negative attention.  Others report AA just shortly after a big rise in balances, so YMMV.  if it is something you can pay down in a few months that may of course work in your favor, but no hard and fast rules or guarantees.  one gets the sense that all of us- creditors, borrowers and the fed alike are sorta making things up as we go along.  GL!

[Anonymous]

the credit limit is 1300

[Anonymous]

Call the card issuer and ask them. For the past few months, whenever I do something out of the ordinary, I call and ask them that very question. Like the others have said, you will take a hit on your Fico, and it may trigger an AA from other issuers you have, not just the card you plan on using. They've all told me they look for 'out of the ordinary' usage, but they've also told me that there's not much 'ordinary' at Christmas time. Any time you call them, they make a note in your file. If you just let them know what you're planning, then you at least have something to fall back on if they do question anything. And, like score_building said, much depends on the rest of your limits.