topic Re: What would look better? CC troubles in Credit Cards

What would look better? CC troubles

Anonymous — Fri, 19 Apr 2019 04:28:15 GMT

I have the AMEX Platinum and it's the card I usually use for big purchases and my terrible shopping habbits (I know) because I've come to notice it doesn't affect my util. Possibly because it's a charge card. So I had it up at 13K two months ago after a trip with my husband and AMEX set a hard limit of 13K (but it usually let me charge to approx. 15K) I lowered it down last month to 1K because my husband gets hefty bonuses divided into bi-yearly bons at the company he works at. When it arrived I used most of it to lower down the CC's we had, and the rest I stuck in our savings. Important to note too we have only one shared account, so all of our money goes to the same place.
Point is he made a purchase last week of 5K, bringing the balance up to 6K and some. I was a bit annoyed because I consented to the purchase but I didn't know how much he was going to add to the card, but I assumed maybe 1K. Important to note he has no CC's, we mainly use mine, he's an AU.
I don't want to pay down the balance again because between our month expenses and savings, I'd end up not being able to save as much as I always do. My husband is due for his second bonus on October, so we're fine in terms of payment but it's quite a long time from now. I know I should just pay it off now and save the rest of the bonus when it comes around but I am quite the spender so I prefer to see strain on the money lol
Now, I was recently approved the Citi DC with an CL of almost 15K and 0% APR on BT.
Should I leave it on the platinum with no effect to my util or should I transfer to save on the interest? I'm also stressed amex will see it badly that I leave balances on a card that isn't meant to have balances. Or, should I put 3K on DC and leave 3K on the plat? I am planning on applying to two more cards next month to up my available credit, you know, killing it all in the span of one month to leave my credit breathe for a while.

EDIT: The advice I'm asking for is how to go about with the BT's and the balance. I know I should pay it off, but I just don't want to stop saving cash to pay off the debt when what that opens me up is to: saving $0 over the course of 2 months, setting my savings back 6K and me possibly opening myself to spend close to that amount before his bonus arrives, therefore "losing" 6-12K in the process. When I could just leave the 6K overall balance untouched because I usually get deterred from using my cards when I see money on them, keep saving what I save monthly and pay off all of my balances on October when the money arrives.

Re: What would look better? CC troubles

CreditInspired — Tue, 16 Apr 2019 22:09:17 GMT

Hi and welcome.

Does your plat have “plan it”. If yes, go that route. Otherwise, AmX may not be happy with a partial pymt.

Re: What would look better? CC troubles

Anonymous — Tue, 16 Apr 2019 23:55:28 GMT

From what I can gather, You have means to pay it now but that would maybe be cutting it close on finances?

I would pay off enough that you can right now on the platinum where it doesn’t affect your monthly finances. If you have to leave a balance, you could consider BTing it to the DC for 0 APR. But you will not get any rewards or hit any SUB from that. I would only recommend the BT on these conditions:

1. Pay off what you can with cash on hand now without affecting finances
2. Have enough credit available to keep total utilization on credit to 30% at most (6K on 15K = 40%)
3. Probably most important. Make paying of the BT a priority before spending on new things. If you don’t, you are gonna find a bigger hole than you started and that big bonus won’t be so much a bonus as a bucket to bail water out of the boat.

You say you are a big spender. I challenge you to be a big saver and pay it off before that bonus.

Re: What would look better? CC troubles

Anonymous — Wed, 17 Apr 2019 02:10:10 GMT

Doesn’t really seem like you have CC troubles. You can pay it off but you don’t want to.

Re: What would look better? CC troubles

DebtJoe — Thu, 18 Apr 2019 00:19:35 GMT

@Anonymous wrote:
Doesn’t really seem like you have CC troubles. You can pay it off but you don’t want to.

I'd have to agree here. I think I'd be exploring budgeting options vs opening more cards to pad your utilization (which most of the time just causes people to use more credit <------- Spoken from experience).

Re: What would look better? CC troubles

UpperNwGuy — Thu, 18 Apr 2019 01:10:21 GMT

Just pay it. Then take it out of your wallet and lock it away so you won't be tempted to use it for a while.

Re: What would look better? CC troubles

KLEXH25 — Thu, 18 Apr 2019 02:48:44 GMT

You have to plan based on your current income, not future income that is 6 months away and that may or may not happen. God forbid something happens to your husband or you. You’ve already spent the money. Pay down what you can to lower your utilization. In the end, the interest you’re paying is likely more than you’re earning with your savings anyway.

Re: What would look better? CC troubles

mikesonthemend — Thu, 18 Apr 2019 03:06:49 GMT

Welcome to MyFico.

Re: What would look better? CC troubles

CreditInspired — Thu, 18 Apr 2019 09:40:19 GMT

@KLEXH25 wrote:
You have to plan based on your current income, not future income that is 6 months away and that may or may not happen. God forbid something happens to your husband or you. You’ve already spent the money. Pay down what you can to lower your utilization. In the end, the interest you’re paying is likely more than you’re earning with your savings anyway.

+100

Thanks for saying what I was thinking but didn’t know how to say it.

Re: What would look better? CC troubles

Anonymous — Thu, 18 Apr 2019 16:46:55 GMT

I thought the Platinum was a charge card, and are you not penalized for leaving a balance on it?

Since Amex like Transactors, I would also suggest BTing some of it to the Citi DC during their 0% promo. At least Citi likes balance carriers a little more.

Re: What would look better? CC troubles

HeavenOhio — Thu, 18 Apr 2019 16:57:07 GMT

@Anonymous wrote:
I thought the Platinum was a charge card, and are you not penalized for leaving a balance on it?

You're not penalized except in the Experian FICO 98 family of scores. Those scores use one's highest balance as a psudo-limit. Because the classic 98 score is used for mortgages, it would make sense to pay attention to charge card balances come mortgage time.

Re: What would look better? CC troubles

NRB525 — Thu, 18 Apr 2019 19:02:21 GMT

Maybe check with DH how he intends to pay off his Platinum charge card balance that he incurred? As an AU he is somewhat responsible for his charges, no?

Re: What would look better? CC troubles

Anonymous — Fri, 19 Apr 2019 04:11:46 GMT

I love your comment so much, 1,000 Kudos to you! Very good advice, thank you.

Re: What would look better? CC troubles

Anonymous — Fri, 19 Apr 2019 04:20:45 GMT

The money is pretty secure, he's gotten these bonuses for the past 4 years consistently, so there's really no problem with expectation. I'm pretty sure that's the reason he charged it outside of the budgeting we were doing. I usually have no problems with this but I was kind of bummed we had gotten out of all our CC debt for the year and seeing balances again is frustrating. Plus, it's a pretty big amount that'll have to sit there for months. Paying 6K out of our monthly incomes and saving 0 dollars of liquid cash is kind of stupid, considering the fact that in not long I will be able to pay it fine. I'm just not sure between what cards to juggle it on to, and the amount, to avoid high util on one specific card and interest.

"In the end, the interest you’re paying is likely more than you’re earning with your savings anyway."

That's the thing, if I BT I won't have to pay interest.

Re: What would look better? CC troubles

Anonymous — Fri, 19 Apr 2019 04:22:08 GMT

Yes, the platinum is a charge card but they usually give you a payovertime CL. It's like a revolving account inside your charge card. So you can leave on balances like you can with a credit card, for all purchases over $100.

Re: What would look better? CC troubles

Anonymous — Fri, 19 Apr 2019 04:23:41 GMT

Our money is joint. If he pays it off, I pay it off. We don't have separate money, so we're both responsible for the charge! lol

Either way, AU's charges are usually (if in not all cases) the responsibility of the primary cardholder.

Re: What would look better? CC troubles

Anonymous — Fri, 19 Apr 2019 04:47:28 GMT

If it’s “our money” what’s the problem with him charging it?

You also wrote ...”and my terrible shopping habbits (I know)”. I think you’re missing the context about everyone saying you don’t have a CC problem, you have a budgeting problem. Also, if you are spending that much on platinum a month, they really don’t like the pay over time. It’s a prime reason for a FR. (I did the same thing years ago, a FR is not fun).

Re: What would look better? CC troubles

Anonymous — Fri, 19 Apr 2019 07:54:32 GMT

Where did I state there was a problem? I specified in my post a sentence that literally said I had no problem, I had consented, but my only problem was the quantity because we had just zeroed all our cards and I'm looking to see how to make the amount work while money we're expected comes in.

The advice I'm asking is just how I should go about with the BT.

In regards to the amount I'm spending, it's irrelevant to the post. Again, the advice I'm asking is whether I should transfer it's complete balance to DC or 50/50 it between Plat & DC, nothing related to the things you mentioned.

Re: What would look better? CC troubles

tacpoly — Fri, 19 Apr 2019 10:15:21 GMT

@Anonymous wrote:
Where did I state there was a problem? I specified in my post a sentence that literally said I had no problem, I had consented, but my only problem was the quantity because we had just zeroed all our cards and I'm looking to see how to make the amount work while money we're expected comes in.

The advice I'm asking is just how I should go about with the BT.

In regards to the amount I'm spending, it's irrelevant to the post. Again, the advice I'm asking is whether I should transfer it's complete balance to DC or 50/50 it between Plat & DC, nothing related to the things you mentioned.

If you’re not going to pay off the Amex bill in full, then of course transfer whatever remaining balance to a card with a 0% offer. It’s the best way to save money on interest. Unless you’re worried about your score (ie applying for a loan) the goal is really to save as much money as possible. If you’re worried about cc applications, I don’t think new cards report immediately so your balance transfer may not be on your credit report when you apply (others will have to confirm as I don’t follow scoring or reporting closely).

And while you may may think that your (and your husband’s) spending are not relevant to this issue, the fact that you even have to resort to balance transfers or use high balances to deter your shopping suggests you may not have complete control over your finances or have the healthiest financial habits. It seems like you have enough income that you can easily spend $13,000 on a trip — shouldn’t you also have enough savings to easily pay off $6,000 (without having to wait for a bonus)?

Re: What would look better? CC troubles

Anonymous — Fri, 19 Apr 2019 20:57:20 GMT

Thanks for the advice.

It's still not relevant because my financial habits, income etc aren't in play here. My question is pretty clear. Besides, I don't think it's prudent to take out savings to pay off an amount tha I could pay off very easily in the future.
My income, the amount I spent on the trip (that was mentioned specifically to state why I would be annoyed by a big amount being charged once again towards the card, and giving insight to what I charged such a big amount on, not "Hey, look at what I spend on trips, infer my income") and my shopping habits are things that have absolutely nothing to do with the advice I'm looking for, it has nothing to do with the post itself, I'm not seeking financial habit advice. Again again again, the advice I'm asking is whether I should transfer its complete balance to DC or 50/50 it between Plat & DC, nothing related to my income, my savings or whether or not I spend too much on socks.