topic Re: High Utilization in Credit Cards

High Utilization

Meanmchine — Mon, 09 Apr 2018 17:40:55 GMT

I have a cousin who is struggling with high utiliztion. She has not missed any payments and so far no AAs. She has multiple accounts with these lenders, BoA, Comenity, Synchrony, Amex, and Barclays. She fears that she will soon have to miss a payemnt here and there. ( cards are 40% - 60% util atm )

Her question is with the lenders listed above, who is more likely to get spooked first? If she has to miss a payment on an account or two, she wants to know so she can try to keep her cards relatively intact.

She anticipates coming into a considerable amount of money within the next 6 months so she has no need for radical options.

Thanks !

Re: High Utilization

Anonymous — Mon, 09 Apr 2018 17:48:20 GMT

In my opinion it will be Barclays first then Amex not far behind.

Re: High Utilization

Anonymous — Mon, 09 Apr 2018 18:20:09 GMT

Minimum payments are a miniscule part of total debt. If she can't even maintain the minimum payments on her cards, she shouldn't have the cards in the first place or get into credit card debt. Just pointing that out for good measure. Having said that, have her set a monthly budget, and follow the debt snowball method. At the very minimum, she should make her minimum payments on ALL of her debt, while attacking the lowest after that with any extra money. She needs to cut back her budget dramatically, simple as that, and get serious about eliminating all of her debt within 24 months. BTW I love the euphemisms on here: 'High utilization' = In debt up to your eyeballs you're paying 18% on :-P

Re: High Utilization

Anonymous — Mon, 09 Apr 2018 18:17:16 GMT

Barclay's is very, VERY quick with their reporting. If I were in that situation, I wouldn't mess with them or AMEX just because I never want to be on the wrong side with AMEX.

Maybe your cousin could reach out to the remaining three and see if they can forgive one missed payment similar to how Discover offers missed payment forgiveness. Might have more luck with the two store card creditors.

Re: High Utilization

simplynoir — Mon, 09 Apr 2018 18:23:06 GMT

@Anonymous wrote:
In my opinion it will be Barclays first then Amex not far behind.

I concur with this. Might throw Synchrony into this as well with how they've been with card shutdowns reported on here recently.

Re: High Utilization

Kforce — Mon, 09 Apr 2018 18:34:53 GMT

@Anonymous wrote:
Minimum payments are a miniscule part of total debt. If she can't even maintain the minimum payments on her cards, she shouldn't have the cards in the first place ( +1 ) or get into credit card debt. Just pointing that out for good measure. Having said that, have her set a monthly budget, and follow the debt snowball method. At the very minimum, she should make her minimum payments on ALL of her debt, ( If she does not, her problems will multiply ) while attacking the lowest after that with any extra money. She needs to cut back her budget dramatically, ( +1 ) simple as that, and get serious about eliminating all of her debt within 24 months. BTW I love the euphemisms on here: 'High utilization' = In debt up to your eyeballs ( 100% correct ) you're paying 18% on :-P

Re: High Utilization

Anonymous — Mon, 09 Apr 2018 19:11:47 GMT

Missing payments IS a radical option.

While not ideal, I would pull cash advances off of cards if I were her to keep up with the minimums.

If she has a car payment, most lenders will let you skip one payment per year, so that is worth asking about. She can also see what kind of flexibility there might be with bills that don't report to credit such as rent and also sell some items of value to keep those minimum payments up.

Re: High Utilization

Remedios — Mon, 09 Apr 2018 20:32:37 GMT

@Anonymous wrote:
Minimum payments are a miniscule part of total debt. If she can't even maintain the minimum payments on her cards, she shouldn't have the cards in the first place or get into credit card debt. Just pointing that out for good measure. Having said that, have her set a monthly budget, and follow the debt snowball method. At the very minimum, she should make her minimum payments on ALL of her debt, while attacking the lowest after that with any extra money. She needs to cut back her budget dramatically, simple as that, and get serious about eliminating all of her debt within 24 months. BTW I love the euphemisms on here: 'High utilization' = In debt up to your eyeballs you're paying 18% on :-P

OP asked a specific question, not for your life philosophy. Your answer, as always, is nothing short of snappy and full of proselytizing.

Re: High Utilization

kilroy8 — Mon, 09 Apr 2018 20:42:35 GMT

That 1st 30-day late murders your score. I would be all about preventing that.

Re: High Utilization

Anonymous — Mon, 09 Apr 2018 21:26:19 GMT

Edited...

There are many consolidation lenders online to choose from and all of them vary greatly on features and terms (rate, mos to repay, etc.). In many cases she can get prequalified and determine the rate before she makes an application. A consolidated loan with a fixed monthly payment might save her a lot of money. And funds can be in her account in as little as one day.

Sorry OP, the above isn't what you asked for. From personal experience avoid being late on AMEX at all costs. They hold a grudge - for a very long time.

Re: High Utilization

marty56 — Mon, 09 Apr 2018 21:17:53 GMT

When I entered a DMP program all those years ago, AMEX Closed my Green card even though I always PIF and had no issues so I also agree AMEX would be high on the spooked list.

Re: High Utilization

Anonymous — Mon, 09 Apr 2018 21:23:12 GMT

This is what i would do asap if i was in her shoes:

1. Lower my cell bill

2. Stop eating out as applicable (buy a week worth of groceries and cook at home), if you dont cook learn :-)

3. Cut cable TV and any other TV subscription (netflix, prime etc) - Just leave one

4. Yard sale

5. Sell some jewelry

6. Don't skip a car payment (even if allow) to pay for the cards, leave that option for a more drastic situation

7. DO NOT get cash advances!!

8. Try to borrow some $$ from family? She has money coming in 6 months, she can borrow an amount that would cover 6 months of minimum payments.

9. Stop using your cards

10. Start a budget so that you dont fall on this again...and FOLLOW IT, only spend what you have in your checking account

11. You could try to get a loan, but with such high UTL, i doubt you can get one.

Re: High Utilization

Anonymous — Mon, 09 Apr 2018 21:24:46 GMT

Whatever you do, do not miss a payment on your Amex card. Barclay is a wildcard. I have heard stories are people with high util and missing payments to other issuers and Barclay reward them with a auto cli. At the same time Barclays AA churners all the time with perfect credit.

Re: High Utilization

Meanmchine — Mon, 09 Apr 2018 21:50:21 GMT

@Remedios wrote:
@Anonymous wrote:

OP asked a specific question, not for your life philosophy. Your answer, as always, is nothing short of snappy and full of proselytizing.

@Remedios Thank you jumping in

For everyone else, thankyou for all your replies. Based on your replies, I paid off my cousin's EDP card for her. That should help. The way Barclays is holding a grudge against me, I would of thought they would have been the worst.

Re: High Utilization

Anonymous — Mon, 09 Apr 2018 21:58:47 GMT

missing a payment is something they dont want to do gotta at least pay the minimum

Re: High Utilization

Jnbmom — Mon, 09 Apr 2018 23:34:10 GMT

Also keep in mind if a payment is missed they report, the other creditors see this AA begins and before you know it limits are chopped aprs start going up and the hole gets deeper and deeper

Re: High Utilization

Kforce — Tue, 10 Apr 2018 00:46:59 GMT

Remedios wrote:

OP asked a specific question, not for your life philosophy. Your answer, as always, is nothing short of snappy and full of proselytizing.

If someone is 97% buried in sand and asking if they are going to be eaten by ants, scorpions, snakes or beetles, do you answer that question or suggest a way for them to dig themselves out?

Re: High Utilization

UncleB — Tue, 10 Apr 2018 00:59:11 GMT

Friendly suggestion... we need to stick to answering the question(s) posted by the OP.

Since he's asking for a relative, any extraneous suggestions on life changes aren't likely to be helpful nor were they solicited to begin with.

--UB

Re: High Utilization

Anonymous — Tue, 10 Apr 2018 01:46:43 GMT

One thing I didn't see mentioned yet was being sure to engage in sound communication with all of these lenders in question. If there's a chance a payment could be missed and go 30 days, sometimes all it takes is a phone call to get an extension or buy yourself some time. Perhaps you could even get a minimum payment reduced. I've never tried this, but you don't know until you ask. Maintaining solid communication will show them that you care rather than hiding from the problem and can only help. It may not help, but I can assure you it won't hurt.

Re: High Utilization

Meanmchine — Tue, 10 Apr 2018 03:43:09 GMT

@Anonymous wrote:
One thing I didn't see mentioned yet was being sure to engage in sound communication with all of these lenders in question. If there's a chance a payment could be missed and go 30 days, sometimes all it takes is a phone call to get an extension or buy yourself some time. Perhaps you could even get a minimum payment reduced. I've never tried this, but you don't know until you ask. Maintaining solid communication will show them that you care rather than hiding from the problem and can only help. It may not help, but I can assure you it won't hurt.

Ill tell her that ..... Thanks