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What happens if I max out a few credit cards?

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Anonymous
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What happens if I max out a few credit cards?

I needed to use some credit due to business. I have a credit score of 790. What would happen if I maxed out 3 of my credit cards? I would have all of the money paid off in 3-4 months. Will the other cards that I have decrease my limit even though I would be paying atleast the minimum payments? I still need the other cards for daily use and I'm worried that they might see that I used the other cards and decrease all of my limits.

Message 1 of 14
13 REPLIES 13
Anonymous
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Re: What happens if I max out a few credit cards?

Your credit score will tank but once it's paid off in the 3-4 months, your score will go back to where is was.  If you have major financing coming up, like closing on a mortgagte, don't do it.  But if you're clear in that time frame, you're fine.

Message 2 of 14
Anonymous
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Re: What happens if I max out a few credit cards?

How fast can I expect for my credit limits to decrease after using the cards? Should it be after the next billing cycle or will it be overnight?

Message 3 of 14
Anonymous
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Re: What happens if I max out a few credit cards?

As soon as the higher balances report your score will drop, not until then.
Message 4 of 14
Anonymous
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Re: What happens if I max out a few credit cards?

Is there a time frame in which I can expect them to report it? And as soon as it's reported do the other credit card companies decrease my limits right away or will it take time?

Message 5 of 14
Anonymous
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Re: What happens if I max out a few credit cards?

Generally your balance will be reported shortly after your statement cuts. Maxing out a card is no guarantee of a CLD from other card companies. It would just depend on how their internal risk analysis views it.
Message 6 of 14
Anonymous
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Re: What happens if I max out a few credit cards?


@Anonymous wrote:

I needed to use some credit due to business. I have a credit score of 790. What would happen if I maxed out 3 of my credit cards? I would have all of the money paid off in 3-4 months. Will the other cards that I have decrease my limit even though I would be paying atleast the minimum payments? I still need the other cards for daily use and I'm worried that they might see that I used the other cards and decrease all of my limits.


If you have a credit score of 790 apply for business cards that don't report and max those out for your business or whatever you are going to do.  That way,

 

a) Your score does not drop.

 

b) Lenders are not spooked.

 

c) You have the piece of mind a bit knowing those tradelines are hidden.

 

BOA, Chase, Citi, US Bank etc business cards don't report to personal credit.  So do your research and go that route.

Message 7 of 14
Anonymous
Not applicable

Re: What happens if I max out a few credit cards?

So if my billing end date was on the 19th of every month and I maxed it around September 10, does that mean that the balance would not be reported until October 19?

Message 8 of 14
Anonymous
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Re: What happens if I max out a few credit cards?


@Anonymous wrote:

How fast can I expect for my credit limits to decrease after using the cards? Should it be after the next billing cycle or will it be overnight?


Your credit limits (you hope) will not decrease.  It's possible that you mean "how fast will my available credit decrease after using the cards?" 

 

You inadvertently raise a good point, however.  Maxing out a whole bunch of credit cards may conceivably cause one or more creditors to panic and lower your credit limits.   This is a reason to consider not maxxing out any particular card and also to consider opening a new credit card deisgned to carry a balance for the next 12 months (0% APR).

Message 9 of 14
DantGwyrdd
Frequent Contributor

Re: What happens if I max out a few credit cards?

The decrease is by no means a given. I've had to live off my CCs for a while due to an unemployment spell right after finishing school and was at over 100% util (charges + interest) continuing to make minimum and a little above minimum payments and whereas getting new credit was impossible, none of my lenders (Cap1, Discover, BofA, Synch) decreased my limits. In fact, the only CLD I've gotten so far at all was rececntly for non-usage (15 months idling on the Synch/Amazon SC).

 

Now, not saying this is a rule or anything so YMMV, but this was my experience.

Message 10 of 14
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