So, long story short, my husband maxed out my home depot store card. I just found out about it a few days ago, and I'm still fuming. I should've never let him be an authorized user because currently, he's not being wise with credit. He's behind on payments on some accounts and has been late in the recent past on the others. Once everything is all caught up for him this month, I plan to help him write GW letters to get late payments removed so he can get back to at least having fair credit. Needless to say, I am NOT on his accounts and he's no longer on mine. That's not changing anytime soon, either.
Currently, I have a 707 on TU, and a 713 on EQ. I have 0 late payments, 0 collections, 0 derogatory remarks, a low amount of inquiries, a collective utilization that is less than 20 percent. and each card has a balance that is less than 30 percent aside from that dumb home depot account. I'd like to think that since my scores aren't in the middle to upper 700s that I won't get slaughtered, but I have no idea what to expect. All I know is that maxing out a card=bad, bad, bad.
As for the particulars of the card. Opening CL was low, at 1k. They gave me CLIs I did not request that got it up to 3200. That's what the limit was when the card got maxed out. I did a balance transfer of 1k to my Chase Slate card on the 7th, and that has NOT posted yet, but it should soon and this morning I asked for a CLI and it was granted in the amount of 3k.That means the utilization is down at 50 percent or so without the balance transfer that is soon to be complete. My statement for this card cuts on the 13th of this month. Should I expect my new credit limit to be reflected on said statement since it has not yet cut, and the new CL is ready to use? How many points am I fixing to lose here, and when can my scores go back up? Is it true that as soon as the balance is paid significantly or paid off, my scores will reflect that activity once the monthly report for that line of credit is given to the credit bureaus? I know that the damage done is easily fixed, and that I should be thankful for that because many have collections etc that take quite some time to fix. This balance is also interest free for 6 months, but I intend to have it taken care of in around 2 months. I really just want to know what to expect. My husband is a self employed carpenter who can easily bring in thousands in a short time period, and I am a part time retail employee/student who makes far, far less, but still enough to get those cards of mine handled, even if I have to pay just the minimum. Better to pay the minimum than nothing. I just want to know what to expect. In the next few years, we would like to buy a home and I want my credit to sparkle. That's why I put so much time into managing it appropriately.
Awesome job containing the damage. I think the new line will report, you should be in good shape. So, with a 6200 limit, 48.9 percent max would be good if you can manage t hay before the cut. Otherwise, i think you've done great and i wouldn't sweat it. You will be all back whole in no time.
Don't know how much your score will drop, but it will only be until you pay it off. The only negative here so far is a higher utlization and utilization (as it factors into a credit score) is reset monthy. So as soon as you pay it off/down, your score should go back up to where it is now.
Utilization has a short memory...if you get the balances down you'll see your score rebound quickly...you may get a ding for a month but it's nothing that will follow you around for years as long as you pay bills down.