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utilization???

Member

utilization???

Hi all,

Recently got balance transfer offer from Discover. 

If i use whole limit of my disocver card, How does my credit score effected?

Discover card limit 10.000  , Total credit limits 110.000

Balance transfer is from Citi personal loan.

Message 1 of 10
9 REPLIES
Valued Contributor

Re: utilization???

Maxing individual CCs hurts your utilization and score.

 

Hard to say whether the tradeoff is worth it or not.

 

Message 2 of 10
Super Contributor

Re: utilization???

Don't respect my suggestions right now being a fairly new rookie, but i wonder if breaking off at least a portion of a high balance account to move over to a couple of new BT cards are reasonably acceptable or not. Problem with that method is the new TL + IQ = major score ding?
Message 3 of 10
Moderator

Re: utilization???

Are you looking to obtain new credit in the future where your score is vital for it to be the max it can be? If not, then you have to do what would make financial sense...

On a side note, do you have any other installment loans on your profile?
Message 4 of 10
Valued Contributor

Re: utilization???

New HP + TL will hurt you, but lowering high utilization (per card) will help you.

 

If you have a maxed account, and relieve the pressure in some way, you may also escape AA issues.

 

Message 5 of 10
Member

Re: utilization???

I'm not looking for any credit at least I finish paying debts first.

I had only one installment loan and it's cit personal loan.

How is score calculated individual utilization or total credit account utilization?

 

I had Discover for years no new account or HP needed ..

Message 6 of 10
Valued Contributor

Re: utilization???


yyyyy wrote:

Hi all,

Recently got balance transfer offer from Discover. 

If i use whole limit of my disocver card, How does my credit score effected?

Discover card limit 10.000  , Total credit limits 110.000

Balance transfer is from Citi personal loan.


If you're not planning on applying for additional credit, don't worry about utilization.

Adverse action would be a major possibility, if you kept the Discover over 80% more than a month, or two. You will definitely be "under the microscope" with your other lenders during that time. If your lenders have been in your wallet for years, and years, I'd not worry as much as someone with under five years age, and a few midrange cards.

Message 7 of 10
Valued Contributor

Re: utilization???


yyyyy wrote:

I'm not looking for any credit at least I finish paying debts first.

I had only one installment loan and it's cit personal loan.

How is score calculated individual utilization or total credit account utilization?

 

I had Discover for years no new account or HP needed ..


Scoring takes into consideration both overall and individual utilization, and also proportion of accounts with balances.

 

Message 8 of 10
Senior Contributor

Re: utilization???

If you have $110k in total cred, you should be fine to max out that one card. Your overall util will be fine, but util on that one card wont be. I recently maxxed out a BOA card for $10k with Bal xfers, and I saw no impact on my FICOs. My scores are 680-720. However, Ive made sure to keep at least 10 out of my 16 accounts reporting zero bal and pif before statement cut date. So.. Id do it. Just dont let any more cards report a balance and do NOT charge on the old accts unless you pif.
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 9 of 10
Highlighted
Super Contributor

Re: utilization???

FWIW, i maxed out my US Bank by design. Since it's a plain Jane with no rewards and unlike most i chose to roll a balance all the way out to 0% apr term to test the waters with this lender.

My FICO's have remained consistent throughout 12 months and in addition supported adding a load of new TL's with only mediocre effect at best.

Although i wouldn't make or recommend such a practice, it has offered me some useful insight into how hard scores are impacted in duration (12 months) vs. their influence on apping for new accounts with a single card running a pretty high rollover tally.
Now in process of chopping that balance in chunks to avert drawing attention if PIF.
Message 10 of 10