topic Re: How will this affect my credit score? in Credit Cards

How will this affect my credit score?

Chaselover — Wed, 07 Jan 2015 04:37:41 GMT

I had visited the ABC warehouse for getting new furniture for home and they told me about their 2years 0% financing credit card. And also about their equal installments every month.

I was told that my minimum payment is around $100 monthly and that the statement may show $2,000(the full price for the furniture). If I pay just over the minimum monthly payment (Eg: $150) every month, will this affect my credit score in anyway? I have always PIF and so I have no idea of how this would affect. I am almost sure, this is not a late payment but what do you feel ?

Re: How will this affect my credit score?

Anonymous — Wed, 07 Jan 2015 04:43:04 GMT

Any idea of the credit limit? Accounts like these typically will show high UTIL and drop by the payment each month but will most likely lower your credit score if you carry very small balances on other cards.

Re: How will this affect my credit score?

Chaselover — Wed, 07 Jan 2015 04:49:15 GMT

@Anonymous wrote:
Any idea of the credit limit? Accounts like these typically will show high UTIL and drop by the payment each month but will most likely lower your credit score if you carry very small balances on other cards.

no idea of the credit limit. Only noe that the furniture costs $2,000/- .So, would it be like if I get a 2,000 credit limit. I am using how much ever I owe them and that would increase my Util drastically, which would affect the credit score? And yeah, I am carrying very small balances on the other cards.

Re: How will this affect my credit score?

Chris679 — Wed, 07 Jan 2015 06:00:10 GMT

You would see a score drop that could be 15-20 pts if you have a thin file or much less if you don't. The whole point of good credit is to save money on interest though so I would not hesitate to pull the trigger. Don't let your credit score cost you money.

Re: How will this affect my credit score?

Anonymous — Wed, 07 Jan 2015 09:28:57 GMT

I have the same thing with my best buy card... 95%UTI . But I sure do like my TV

Re: How will this affect my credit score?

Techno — Wed, 07 Jan 2015 10:12:35 GMT

See installment and credit line are diffrent. although there is a credit line to the finance, i do not think it shows up as bad as if you get a 2k limit on a card and max it even though it has into 0 apr. correct me if i am wrong, but if they can finance it for you its way better.

I work for verizon and we "finance" phones through our edge program and i dont think that shows as a loan or a TL on one's report.

Re: How will this affect my credit score?

takeshi74 — Wed, 07 Jan 2015 14:42:56 GMT

The minimum payment doesn't matter. It's utilization that matters. You need to know the limit and balance reported to determine the impact to your utilization.

Re: How will this affect my credit score?

Klesko — Wed, 07 Jan 2015 14:45:23 GMT

I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.

Re: How will this affect my credit score?

Chaselover — Wed, 07 Jan 2015 18:07:53 GMT

@Chris679 wrote:
You would see a score drop that could be 15-20 pts if you have a thin file or much less if you don't. The whole point of good credit is to save money on interest though so I would not hesitate to pull the trigger. Don't let your credit score cost you money.

Nice point.

Re: How will this affect my credit score?

Anonymous — Wed, 07 Jan 2015 18:11:52 GMT

@Klesko wrote:
I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.

What kind of couch?

@Anonymous me a miser, but our last couch set cost less than $600 @ Ikea..

Re: How will this affect my credit score?

Chaselover — Wed, 07 Jan 2015 18:15:17 GMT

thank you all for ur replies. so it looks like the util is going to shoot up on that particular account and remain zero on the other accounts.

Re: How will this affect my credit score?

Chaselover — Wed, 07 Jan 2015 18:17:40 GMT

@Klesko wrote:
I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.

This looks like the same deal. i will also call and try to CLI if I plan on taking this.

Re: How will this affect my credit score?

Chaselover — Wed, 07 Jan 2015 18:22:20 GMT

@Anonymous wrote:
@Klesko wrote:
I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.
What kind of couch?

@Anonymous me a miser, but our last couch set cost less than $600 @ Ikea..

Its a recliner set, with a big couch, a loveseat, 2 side tables, cocktail table and a full dining set for 2.4k including taxes and delivery. Thanks for that option, I will check in Ikea also. Sorry Lexie, for going out of topic.

Re: How will this affect my credit score?

Anonymous — Wed, 07 Jan 2015 18:24:33 GMT

@Chaselover wrote:
@Anonymous wrote:
@Klesko wrote:
I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.
What kind of couch?

@Anonymous me a miser, but our last couch set cost less than $600 @ Ikea..
Its a recliner set, with a big couch, a loveseat, 2 side tables, cocktail table and a full dining set for 2.4k including taxes and delivery. Thanks for that option, I will check in Ikea also. Sorry Lexie, for going out of topic.

Including delivery, Not too bad.

Re: How will this affect my credit score?

Anonymous — Wed, 07 Jan 2015 18:29:18 GMT

@Anonymous wrote:
@Klesko wrote:
I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.
What kind of couch?

@Anonymous me a miser, but our last couch set cost less than $600 @ Ikea..

Miser

Re: How will this affect my credit score?

Anonymous — Wed, 07 Jan 2015 18:39:12 GMT

@Anonymous wrote:
@Anonymous wrote:
@Klesko wrote:
I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.
What kind of couch?

@Anonymous me a miser, but our last couch set cost less than $600 @ Ikea..
Miser

*Takes a bow*

Re: How will this affect my credit score?

Anonymous — Wed, 07 Jan 2015 20:52:08 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Klesko wrote:
I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.
What kind of couch?

@Anonymous me a miser, but our last couch set cost less than $600 @ Ikea..
Miser
*Takes a bow*

Hardly a miser, a true shopaholic, paying almost $600 (yes, six hundred!!) for a couch. Go to a local supermarket, see if they can give you say 20 cardboard boxes. Tape them itogether as approriate (yes, you probably do have to buy some tape, but nothing worthwhile is free), cover with old newspaper or towels, and there you have a lovely couch.

Re: How will this affect my credit score?

Anonymous — Wed, 07 Jan 2015 20:58:05 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Klesko wrote:
I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.
What kind of couch?

@Anonymous me a miser, but our last couch set cost less than $600 @ Ikea..
Miser
*Takes a bow*
Hardly a miser, a true shopaholic, paying almost $600 (yes, six hundred!!) for a couch. Go to a local supermarket, see if they can give you say 20 cardboard boxes. Tape them itogether as approriate (yes, you probably do have to buy some tape, but nothing worthwhile is free), cover with old newspaper or towels, and there you have a lovely couch.

I might have to do that because one of my dogs decided that he wanted to get at the stuffing inside my leather loveseat . Friggin dog

Re: How will this affect my credit score?

Anonymous — Wed, 07 Jan 2015 20:58:18 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Klesko wrote:
I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.
What kind of couch?

@Anonymous me a miser, but our last couch set cost less than $600 @ Ikea..
Miser
*Takes a bow*
Hardly a miser, a true shopaholic, paying almost $600 (yes, six hundred!!) for a couch. Go to a local supermarket, see if they can give you say 20 cardboard boxes. Tape them itogether as approriate (yes, you probably do have to buy some tape, but nothing worthwhile is free), cover with old newspaper or towels, and there you have a lovely couch.

I like it!

Re: How will this affect my credit score?

Chris679 — Wed, 07 Jan 2015 23:04:24 GMT

@Anonymous wrote:
@Klesko wrote:
I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better.
What kind of couch?

@Anonymous me a miser, but our last couch set cost less than $600 @ Ikea..

Way off topic but do have a lot of experience with ikea? They just delivered some cabinets for me and while I have heard good things I'm still nervous about the quality.