topic Re: High usage in Credit Cards

High usage

samarrone — Sat, 02 Jun 2018 04:11:15 GMT

Aside from score, are there any cons from running the utilization to nearly 100% on a card and then paying it down (in a monthly cycle)? Or should there be more frequent payments before nearing 90% ballpark. Do banks care or is there a negative veiw on this ?

Re: High usage

Pikaboo-icu — Sat, 02 Jun 2018 04:25:31 GMT

As long as you're paying it off each month or at least way down, this type of spend/pay will actually help you when you ask for a CLI.

There shouldn't be any problem from it.

Hopefully you're paying it down before the statement cuts or the UTI can hurt your score..

CHEERS

Re: High usage

Meanmchine — Sat, 02 Jun 2018 05:11:48 GMT

Just dont pay the "minimum amount due" and expect your lender to be happy when you ask for your next CLI

Re: High usage

NRB525 — Sat, 02 Jun 2018 06:01:30 GMT

As with most questions in credit, “it all depends”.

With a $2k limit on an AMEX revolver I had been using for nearly a year, in 2014 I felt no shame in charging it up to 95% of limit, then paying it down. As I approached the limit the next month, they gave me an auto CLI to $3k.

With higher balances on Citi, BofA and Chase year’s earlier, from balance transfers, I was subject to balance chasing on all, card closure on some Chase and Citi cards.

Others have reported problems with Barclays and sudden increases in balances. Some issues with Chase.

What limit is the card you are considering going to 90% of the limit? If it is $500, I almost insist you push the limit since it is so low. If the limit is $20k, nah, I would think about 90% of that.

The only absolutes in credit are to always make the minimum payment on time, and always have at least one revolver with something reporting.

Everything else is a series of choices about how to use credit.

Re: High usage

pip3man — Sat, 02 Jun 2018 09:07:10 GMT

I’ll never understand why some folks with high utilization on their CC get balance chased and even sometimes have their accounts closed entirely meanwhile u have some people on the other side of the spectrum who also carry high balances for several years and never for once experience any sort of adverse action. Mind boggling

Re: High usage

EAJuggalo — Sat, 02 Jun 2018 13:26:34 GMT

A lot of it is lender dependent. I've been balance chased by Synchrony but had problems with anyone else. Just about every lender will have something that spooks them into looking more closely. For Synch it was a BS collection that showed up on my report, only an issue on my Walmart card and not on my Amazon.