topic Re: Carrying a balance on AMEX/Discover and Discover IT question in Credit Cards

Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 01:31:29 GMT

This is the first time for me carrying a balance on any card. I got the BCE with a $10k limit and the 0% intro APR. I have about $1700 on it, and I'm wondering if it will look bad for me to carry that balance?

I have enough in savings to pay it off right away, but I'd rather not touch my savings account. I know carrying a balance will drop my score, but how much of an affect does it have on me applying for other AMEX products?

The other dilemma is, I just bought a bed on Sunday, and Macy's was offering 0% fianancing for 12mos if I opened a card. I said "sure, why not?", applied and was approved. After I got home, I realized it was a stupid move, since I applied for a Discover IT card last week which I should hopefully be recieving this week.

Discover has their double cash back promo, so technically I could get 10% off of the price of my bed which was ~$1300 with tax. I'm hoping my card comes in soon and I can go to Macys before delivery and change my payment method to ths Discover card.

Again though, I would carry the balance for a few months, not because I have to, but because I want to. The issue with this card is that my CL is only $2500, and from reading the forums, it would look extremely bad for my credit util to be 50%, or should I not be too worries since when looking at my overall credit util with all my other cards, it's a drop in the bucket.

Thank you in advance for your help everyone !

Re: Carrying a balance on AMEX/Discover and Discover IT question

OmarGB9 — Wed, 08 Jul 2015 01:33:56 GMT

People stress way too much on here about util and scores lol. If you plan on paying everything off in a few months anyway, it shouldn't matter too much if you choose to carry a balance. Your scores will recover as long as you pay on time and more than the minimum. As for carrying a balance with Amex, I've read that they don't like that too much, but I don't think they'd take any AA against you.

Re: Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 01:37:32 GMT

On your credit report, i believe it is total util that counts, not each individual card, so if u only have 2000 out of 12000 or so, that isn't so bad. I just used my new BCP to buy a laptop. I just have to pay it off over the next few months. No big deal.

Re: Carrying a balance on AMEX/Discover and Discover IT question

Imperfectfuture — Wed, 08 Jul 2015 02:38:37 GMT

Actually, fico uses individual utilization also. But, if Amex has no problems, and you aren't going to app for awhile, then all is good.

Re: Carrying a balance on AMEX/Discover and Discover IT question

mikelo22 — Wed, 08 Jul 2015 02:53:41 GMT

Don't worry about it. I am in a similar situation. I put about $1600 on my Amex BCE and have just been slowly paying it off. Just make sure you pay more than the minimum payment each month and no worries. Feel free to take advantage of that 0% intro.

Re: Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 04:33:29 GMT

Thank you for the information. Minimum due on the BCE was $35, I paid $100. Well actually my balance was $4800ish, I paid $3k before the statement cut, and then $100 after the statement cut and my balance was $1800. And since this is a credit card, I thought AMEX doesn't have an issue with carrying a balance?

Re: Carrying a balance on AMEX/Discover and Discover IT question

OmarGB9 — Wed, 08 Jul 2015 04:57:16 GMT

Well yes it IS a regular revolver and you are allowed to carry a balance, especially if you're taking advantage of 0% promo. From what I've heard though, Amex prefers you to PIF, even if it's not a charge card. (I don't know how true this is, as I don't have any sort of Amex card)

Re: Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 05:00:20 GMT

@Anonymous wrote:
This is the first time for me carrying a balance on any card. I got the BCE with a $10k limit and the 0% intro APR. I have about $1700 on it, and I'm wondering if it will look bad for me to carry that balance?

I have enough in savings to pay it off right away, but I'd rather not touch my savings account. I know carrying a balance will drop my score, but how much of an affect does it have on me applying for other AMEX products?

The other dilemma is, I just bought a bed on Sunday, and Macy's was offering 0% fianancing for 12mos if I opened a card. I said "sure, why not?", applied and was approved. After I got home, I realized it was a stupid move, since I applied for a Discover IT card last week which I should hopefully be recieving this week.

Discover has their double cash back promo, so technically I could get 10% off of the price of my bed which was ~$1300 with tax. I'm hoping my card comes in soon and I can go to Macys before delivery and change my payment method to ths Discover card.

Again though, I would carry the balance for a few months, not because I have to, but because I want to. The issue with this card is that my CL is only $2500, and from reading the forums, it would look extremely bad for my credit util to be 50%, or should I not be too worries since when looking at my overall credit util with all my other cards, it's a drop in the bucket.

Thank you in advance for your help everyone !

Actually I would leave the bed on your Macy's Special Events line of credit. How much is your store limit? Is the $2500 your Special Events limit?

I just bought a mattress there for the same amount as you, and when I got the bill the mattress was merged with my store balance.

Your two limits will be merged next month if you used the Special Events line so that in itself should help your utilization and you can save your new Discover for other stuff.

Re: Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 05:21:19 GMT

you can probably go in to the macy's store and make a payment on your store card with your discover. i know i paid my kay jewelers bill with my amex credit card in store numerous times.

Re: Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 10:39:17 GMT

Whenever I've gone to pay my parents Macy's card, they always ask for a debit card to pay it off.....I've never tried using a CC....

Re: Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 11:15:55 GMT

I just put $1,800 on my Discover card on Monday when my DW and I bought a new mattress/bed. The store offered 6 mo. 0% financing, but we opted to put it on my Discover since I have 0% APR until next April. We will easily have it paid off as we're putting $250 per month on it. Right now my UTIL is < 1% and now will be about 2% UTIL. I think initially it will lower my FICO scores but in a couple of months they should be back where they are now. I figure if Discover thinks I can PIF each month, based on my income I've given them, they miscalculated that I could PIF $13,500 with my CL each month! I'm sure AMEX is the same way, although I didn't have the BCE in my wallet on Monday night. Back when I was in severe CC debt a few years ago AMEX was fine with me carrying a $14k maxed out card because I was paying it monthly. I think you'll be just fine.

Re: Carrying a balance on AMEX/Discover and Discover IT question

takeshi74 — Wed, 08 Jul 2015 13:44:36 GMT

@Anonymous wrote:
This is the first time for me carrying a balance on any card. I got the BCE with a $10k limit and the 0% intro APR. I have about $1700 on it, and I'm wondering if it will look bad for me to carry that balance?

"AmEx hates balances" tends to be a popular meme here but AmEx, like any other creditor is concerned over utilzation and the other usual risk factors. If there are no other concerns with your credit 1,700/10,000 = 17%. While lower is better with utilization it is well under the 30% max and I wouldn't worry over it.

@Anonymous wrote:
I have enough in savings to pay it off right away, but I'd rather not touch my savings account. I know carrying a balance will drop my score, but how much of an affect does it have on me applying for other AMEX products?

No idea. Revolving utilization is a significant factor but it's just one of many and your entire credit profile matters. 17% on a card is probably no big deal if there are no other concerns with your credit and the rest of your cards are reporting low utilization to 0 balances. Fewer reporting balances are better for scoring -- as long as you don't get to no balances reporting.

@Anonymous wrote:
Again though, I would carry the balance for a few months, not because I have to, but because I want to. The issue with this card is that my CL is only $2500, and from reading the forums, it would look extremely bad for my credit util to be 50%, or should I not be too worries since when looking at my overall credit util with all my other cards, it's a drop in the bucket.

50% > 30%. How long would it take you to get it back under 30%? To go back to a former question you probably don't want to app while you're reporting 50% and will want to wait until you get your utilization in better shape.

Re: Carrying a balance on AMEX/Discover and Discover IT question

kdm31091 — Wed, 08 Jul 2015 14:11:57 GMT

@OmarGB9 wrote:
People stress way too much on here about util and scores lol. If you plan on paying everything off in a few months anyway, it shouldn't matter too much if you choose to carry a balance. Your scores will recover as long as you pay on time and more than the minimum. As for carrying a balance with Amex, I've read that they don't like that too much, but I don't think they'd take any AA against you.

This. Wasting time and energy stressing about util and minute drops in scores....well, all I can say is, life is too short. Relax.

Sure, if you're maxing out cards, and paying minimums, you're going down a bad road. But simply having a balance? Carrying it? Enjoying 0%? This is why credit cards exist...and it's nothing to fret about. Your score, if it does dip, will recover just fine when the util is paid down, and if the util isn't a huge percentage you will probably not even see a score drop.

Re: Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 15:36:36 GMT

@takeshi74 wrote:
@Anonymous wrote:
This is the first time for me carrying a balance on any card. I got the BCE with a $10k limit and the 0% intro APR. I have about $1700 on it, and I'm wondering if it will look bad for me to carry that balance?
"AmEx hates balances" tends to be a popular meme here but AmEx, like any other creditor is concerned over utilzation and the other usual risk factors. If there are no other concerns with your credit 1,700/10,000 = 17%. While lower is better with utilization it is well under the 30% max and I wouldn't worry over it.

@Anonymous wrote:
I have enough in savings to pay it off right away, but I'd rather not touch my savings account. I know carrying a balance will drop my score, but how much of an affect does it have on me applying for other AMEX products?
No idea. Revolving utilization is a significant factor but it's just one of many and your entire credit profile matters. 17% on a card is probably no big deal if there are no other concerns with your credit and the rest of your cards are reporting low utilization to 0 balances. Fewer reporting balances are better for scoring -- as long as you don't get to no balances reporting.

@Anonymous wrote:
Again though, I would carry the balance for a few months, not because I have to, but because I want to. The issue with this card is that my CL is only $2500, and from reading the forums, it would look extremely bad for my credit util to be 50%, or should I not be too worries since when looking at my overall credit util with all my other cards, it's a drop in the bucket.
50% > 30%. How long would it take you to get it back under 30%? To go back to a former question you probably don't want to app while you're reporting 50% and will want to wait until you get your utilization in better shape.

The only "issue" on my credit report would be the number of HP's I have, which is close to 15 on Experian which everyone seems to love to pull from. It's becuse I discovered this forum/churning and signed up for cards since I was making a lot of furniture purchases.

I don't plan on keeping my card utils high for very long, I plan on paying them both off within the next 2-3 months max. Honestly though, I'd prefer to pay it off over 6-10months just beacuse it's 0%, and one thing I've learned, it's better to keep your cash, especially if the bank if letting you borrow money for "free", because if some type of emergency ever pops up out of nowhere, cash is king (at least thats what my father has always told me). I hope I don't get ridiculed for having that outlook......

Re: Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 16:09:37 GMT

no i am with you and am 24. your "cash" is more important as long as you aren't paying to borrow. if a bank is willing to lend me $5k interest free for 2 years i will put that entire $5k in my savings account to have the "cash" and slowly pay off the loan. essentially i am paying what i have saved but it's easier to make a small monthly payment vs just get rid of all your money now when you don't need to. emergencies happen and you don't wanna pay interest on an emergency

Re: Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 16:22:54 GMT

@kdm31091 wrote:
@OmarGB9 wrote:
People stress way too much on here about util and scores lol. If you plan on paying everything off in a few months anyway, it shouldn't matter too much if you choose to carry a balance. Your scores will recover as long as you pay on time and more than the minimum. As for carrying a balance with Amex, I've read that they don't like that too much, but I don't think they'd take any AA against you.
This. Wasting time and energy stressing about util and minute drops in scores....well, all I can say is, life is too short. Relax.

Sure, if you're maxing out cards, and paying minimums, you're going down a bad road. But simply having a balance? Carrying it? Enjoying 0%? This is why credit cards exist...and it's nothing to fret about. Your score, if it does dip, will recover just fine when the util is paid down, and if the util isn't a huge percentage you will probably not even see a score drop.

I agree with both of these guys. You should be absolutely taking full advantage of 0% APR offers. Keeping a 0% APR card at a balance of < 10% is just giving away free money. I wouldn't worry about carrying a 50% balance either, as long as you're paying more than the minimum.

@@Anonymous you should pay it off over a longer time, don't rush to pay it down to zero. But not just because cash is king, but because you should be earning interest on your money while your loan is at 0%. I'd just work out a payment plan that pays off the balance gradually over the 0% period.

Re: Carrying a balance on AMEX/Discover and Discover IT question

jawbrkr — Wed, 08 Jul 2015 20:22:44 GMT

I honestly dont understand credit card companies who have an issue with people carrying a balance. If they have a problem with it, why issue revolvers at all? Why not just hand people charge cards with set limits locked and require payment in full? Then anyone who doesnt pay in full gets a negative mark. Problem solved.

Re: Carrying a balance on AMEX/Discover and Discover IT question

Jmill79 — Wed, 08 Jul 2015 21:42:23 GMT

AmEx didnt care too much about my carring a bit over $2k (0%) when they approved my 3x CLI to $21K. Pay more than minimums, always.

Re: Carrying a balance on AMEX/Discover and Discover IT question

Anonymous — Wed, 08 Jul 2015 22:25:34 GMT

@Jmill79 wrote:
AmEx didnt care too much about my carring a bit over $2k (0%) when they approved my 3x CLI to $21K. Pay more than minimums, always.

So you were carrying a balance after CLI? How long did you wait to ask for a CLI? What was your starting CL?

Re: Carrying a balance on AMEX/Discover and Discover IT question

Jmill79 — Wed, 08 Jul 2015 23:24:39 GMT

@Anonymous wrote:
@Jmill79 wrote:
AmEx didnt care too much about my carring a bit over $2k (0%) when they approved my 3x CLI to $21K. Pay more than minimums, always.
So you were carrying a balance after CLI? How long did you wait to ask for a CLI? What was your starting CL?

SL was $7k, denied my initial 60 day cli request (First AmEx and I suspect they wanted to see a bit more history) Hit 90 days and successfully got 3x cli to $21K. And finally yes, as I said before had approx $2k balance when I hit them up at day 90.