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Will carrying a balance hurts my score?

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Anonymous
Not applicable

Re: Will carrying a balance hurts my score?

It won't hurt your score dramatically. I have carrying a VERY large balance (approx 18% of my utilization) for the past 6 months as i used a 0% offer. still doing apps, however i just explain to them its debt for a balance transfer offer i took on

Message 11 of 13
NRB525
Super Contributor

Re: Will carrying a balance hurts my score?


@Anonymous wrote:

I do have TL: $51,000. Planning to take advantage of my 0% APR of my 3 cards, but going to pay it off within 3 months. I might carry $5000 balance, do you think it will hurt my score?


Your scores are 750 - 760. Even if you saw a slight drop in scores (say 5-7 points) from the increased utilization, it won't affect any credit products you are looking at, and since you will be paying it off soon, any effect on scores will come back just that fast.

 

How long is the 0% APR offer? Typically we utilize those for as long as the offer runs, pay to zero on a glide path to zero.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 12 of 13
Thomas_Thumb
Senior Contributor

Re: Will carrying a balance hurts my score?


@Anonymous wrote:

I do have TL: $51,000. Planning to take advantage of my 0% APR of my 3 cards, but going to pay it off within 3 months. I might carry $5000 balance, do you think it will hurt my score?


An increase in aggregate utilization (as long as you stay below 20%) should have minimal impact on score.

 

Also any impact of high utilization on score is temporary. As soon as UT drops back down, score will bounce back. You will be fine.

 

P.S. Minimal defined as => 10 points or less

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 13 of 13
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