topic Re: CC App Guidance - High Util in Credit Cards

CC App Guidance - High Util

Anonymous — Wed, 24 Feb 2016 04:36:54 GMT

Been surfing the forums here on and off for years. But I've finally gotten to the point where I can I'm not sure what to do for my next move. I'm currently looking to see what Credit Cards I should app in the short term to make my utilization go lower while I work on paying them. Here's a bit about my situation:

80-90% CC utilization across four accounts totaling up to about 10K. (Paypal, Chase Freedom, Discover IT)

20K Student Loans

No bad payment history or other negatives to be concerned with.

1 HP over the last year.

Credit score around 680 from TU over the last year.

I'm just pulling into a situation where I'm finally finding a roommate and getting a raise, giving me some extra income per month that isn't spoken for elsewhere. I can now gradually work on paying off my CCs after dealing with a bit of nasty dental work that has been my financial focus on paying off over the past year. Since I can look at paying off my CCs, I want to figure out what my short term tactic should be to raise my score and potentially get a decent BT card I can transfer some of the debt onto. Easiest way to do that would be to open one or two cards with decent CL to lower my utilization from looking at the math. I also want to be on the safe side and have a better score, since my car has a few mechanical issues and I don't want it to suddenly go under while my score is just merely "Good" if I need to get a new vehicle suddenly.

The Chase Slate looks fantastic, but from reading, it looks like I would just get approved and get a low CL; wasting the HP. So what should I be looking at right now to app for? I got a prequalified fro a Cap One Plat MC in the mail. The Cap One website tells me I'm pre-qualified for a QS Rewards Visa at this point. Researching these cards has been quite mixed from looking at them.

Re: CC App Guidance - High Util

Anonymous — Wed, 24 Feb 2016 04:41:17 GMT

apping probably isn't the best idea due to utilization. if you're prequalified then try i guess because it will be 0% for around a year but you paying your cards down will raise your score as that's 35% of it right there

Re: CC App Guidance - High Util

Anonymous — Wed, 24 Feb 2016 04:45:49 GMT

Welcome to the forum. In regards to your question about what you should app for, in all honesty, nothing right now. With utl between 80% and 90%, most lenders if not all will view that as risky and either deny the application, or if by chance you do get approved it would probably be for a low sl. Now I could be wrong but most banks do not see that high of a utl as favorable. What you should do is work on paying that down, way down, I' say to at the most 30% before applying for any new cc's. I know that's not really what you want to hear but that is the position you are in right now.

Re: CC App Guidance - High Util

Anonymous — Wed, 24 Feb 2016 04:52:32 GMT

when i had high utilization i only got approved for $1k stuff. paying down will increase your score although interest will be something you'll be paying, unfortunately.

Re: CC App Guidance - High Util

myjourney — Wed, 24 Feb 2016 04:53:56 GMT

Welcome

Throw the extra income you now have at the debt and I have to be honest

1) change your thinking of getting new cards to reduce UTL because that's a bad credit decision and usually leads to more debt

2) you won't be approved at 90% and if you do it will be low limits and this won't change UTL anyway I assure you

3) Chasing cards for UTL is simply not teaching you to pay them down and seek credit when you need it and not when balances are high

Re: CC App Guidance - High Util

Anonymous — Wed, 24 Feb 2016 05:26:34 GMT

Certainly won't disagree with you Journey. I was more interested in doing some tactical moves to enable me to pay down my debt faster by hopefully swinging into a BT Card. I just wasn't sure on the likelihood of that being an option at this utilization. Certainly would allow me to use money I'm paying on interest to divert to CC debt if that were all possible.

Re: CC App Guidance - High Util

myjourney — Wed, 24 Feb 2016 05:35:54 GMT

@Anonymous wrote:
Certainly won't disagree with you Journey. I was more interested in doing some tactical moves to enable me to pay down my debt faster by hopefully swinging into a BT Card. I just wasn't sure on the likelihood of that being an option at this utilization. Certainly would allow me to use money I'm paying on interest to divert to CC debt if that were all possible.

I do understand and wish I had another option for you but I have to ask will a new card with a $500-$1000 limit help you after the BT and how far will it drop UTL?

Even tho yes that amount will be under a $0% for XXXXX amount of time allowing you to save $$$$$$$ but in all honesty you'll now have another card maxed out?

If that amount is the key then I say yes go for it but if not you're still in the same bracket IMHO

Another question do you own a home or something that would allow you to borrow against for a long term low APR loan?

Re: CC App Guidance - High Util

Anonymous — Wed, 24 Feb 2016 05:42:26 GMT

or even a few grand equity in a vehicle

Re: CC App Guidance - High Util

degs138 — Wed, 24 Feb 2016 05:52:33 GMT

Do you have any money you can put a dent in your debt? I would just come up with a plan and start paying down your card. You could try to get a lower interest personal loan to pay off you're debt but with that utility it would be hard. Just have to pay down and watch your score raise.

Re: CC App Guidance - High Util

Anonymous — Wed, 24 Feb 2016 06:02:39 GMT

only bad thing about a PL is they're almost always manual review so keep that in mind too. (i say almost because i personally don't know of any that aren't but i would venture to guess there are some)

Re: CC App Guidance - High Util

Anonymous — Wed, 24 Feb 2016 14:33:40 GMT

Nah. I got a bit of a savings margin around 1.5K, but I'm intentionally keeping that liquid just in case. Vehicle I'm slowly riding into the dirt and it's value isn't anything worth attempting to use. What liquidadable funds I used to have were tied up in Dental expenses in the last six months. I'm nowhere near a sliding state for my debt and I'm just coming out of a floating state for my debt level. Just trying to be proactive as I can be at the moment really.

Sounds like the CC gambit to lower util isn't really worth exploring if I'm just going to be offered low CL cards based on my circumstances.