topic Re: Balance chasing question in Credit Cards

Balance chasing question

minimock — Sat, 05 May 2012 09:45:30 GMT

I am about to have to go up to 70 and 80% util, and hold at that level for about three months. (Big project)

What do you think are the chances of getting balance chased.

I know its a rather subjective question, but was curious if anyone has done this recently and what effects it may have had.

TIA

Re: Balance chasing question

LS2982 — Sat, 05 May 2012 13:19:08 GMT

@minimock wrote:
I am about to have to go up to 70 and 80% util, and hold at that level for about three months. (Big project)

What do you think are the chances of getting balance chased.

I know its a rather subjective question, but was curious if anyone has done this recently and what effects it may have had.

TIA

Who do you think will chase you? If you have a valid reason for your high usage you should be ok.

Re: Balance chasing question

crunching_numbers — Sat, 05 May 2012 15:00:27 GMT

I am not hearing about the tales of aggressive balance chasing that used to occur during the peak of the recession. It seems that credit is picking up and the CC companies are less touchy. Make greater than minimum payments and if you are only at a high balance for a few months and then PIF, it might actually help you with CLI's further down the road. YMMV of course. I would not max out ALL my cards. That would look bad. Just don't apply for credit ore even peek at your FICO while you are at 80% util. It will give you indegestion

Re: Balance chasing question

minimock — Sat, 05 May 2012 17:31:04 GMT

@crunching_numbers wrote:
Just don't apply for credit ore even peek at your FICO while you are at 80% util. It will give you indegestion

Yea, I did the FICO simulation maxing out all cards and it was 575 LOL.

I plan on abusing only 5 of the seven, and definatly not the new AMEX, although it hasnt reported yet, it will add 7K to total, thus less impact.

I plan on paying them all back down in 90 days...

I was just a little nervous looking at the balance chasing search result..

Re: Balance chasing question

Anonymous — Sat, 05 May 2012 17:44:38 GMT

I think you should be fine. I recently had high balances, nearly maxed out. Didn't experience any balance chasing. Your plan is only 90 days I would expect for you to be fine.

Re: Balance chasing question

jefftca925 — Sat, 05 May 2012 18:10:50 GMT

Have you tried asking for a CLI on any of the cards? It might help "pad" your utilization while you're financing for a short-term project. Plus you have a good excuse now for requesting one.

Re: Balance chasing question

Creditaddict — Sat, 05 May 2012 23:10:07 GMT

@minimock wrote:
I am about to have to go up to 70 and 80% util, and hold at that level for about three months. (Big project)

What do you think are the chances of getting balance chased.

I know its a rather subjective question, but was curious if anyone has done this recently and what effects it may have had.

TIA

Cap1 won't care

Barclay won't care

Chase - Probably won't care if it's just 3 months and you have signature

BOA - again if it's short term probably okay

Citi - okay also probably.

Discover def. okay.

Now the only thing that might change some of these, is having all of these cards go maxed all at the same time vs. just having 1 or 2 very high.

But you are talking short term I don't think it will be very big of an issue as long as you are not obtaining all the money via cash advance or something?

Also I don't think you would drop into the 500 scores just for high util.... I don't even think below 650.

Re: Balance chasing question

score_building — Sun, 06 May 2012 03:31:07 GMT

Amex will be watching like a hawk.

Re: Balance chasing question

Anonymous — Sun, 06 May 2012 03:44:56 GMT

Just know that if it does drop your score and then you pay off in 90 days then I would give it a couple months after that I'm sure you will be right back to where you started if not higher!

Re: Balance chasing question

minimock — Sun, 06 May 2012 04:28:05 GMT

@score_building wrote:
Amex will be watching like a hawk.

Yea, i was thinking about that, but maybe because I put all the cards on out of country vacation status, they will over look it....

Hopefully LOL

Re: Balance chasing question

score_building — Sun, 06 May 2012 07:44:41 GMT

@minimock wrote:
@score_building wrote:
Amex will be watching like a hawk.
Yea, i was thinking about that, but maybe because I put all the cards on out of country vacation status, they will over look it....

Hopefully LOL

LOL, but yes not escalating debt further may give them some reassurance. In a sense, you will be conditioning them from the outset, showing you can handle high UTI and dispense with it summarily (i.e. over three months) with no cause for alarm. This could prove a valuable lesson and ultimately bolster payment score. If DTI, etc. isn't a cause for alarm to current creditors under this scenario of a big jump in UTI, would imagine could readily pull this off and remain unscathed (no AA) in current climate, ultimately earning nice CLIs upon returning to a more PIF based payment pattern.

Re: Balance chasing question

minimock — Sun, 06 May 2012 10:40:09 GMT

@score_building wrote:
@minimock wrote:
@score_building wrote:
Amex will be watching like a hawk.
Yea, i was thinking about that, but maybe because I put all the cards on out of country vacation status, they will over look it....

Hopefully LOL
LOL, but yes not escalating debt further may give them some reassurance. In a sense, you will be conditioning them from the outset, showing you can handle high UTI and dispense with it summarily (i.e. over three months) with no cause for alarm. This could prove a valuable lesson and ultimately bolster payment score. If DTI, etc. isn't a cause for alarm to current creditors under this scenario of a big jump in UTI, would imagine could readily pull this off and remain unscathed (no AA) in current climate, ultimately earning nice CLIs upon returning to a more PIF based payment pattern.

DTI? Whats that LOL, I have no house, no car no debt at all except for the CC's.

My home is a $39.95/Month Uhaul storage locker back in the states. I live in the sand box, all expenses paid of course

This is a little off topic, but I tried to buy a house, and got to closing, and they whipped out this paper I had to sign that said, I must occupy the house 6 months out of the year...... Some kind of FHA rule.....

In hind sight, it was a good thing. 6 months before I get home, they will let me close on a house.

So back to the DTI, Im worth about 250 K in 401 k and stocks and bonds on paper anyways.

I always like a good credit experiment...... see how it goes.

Thats why I love this place, reading everyone's success and failures, its like the old ABC wide world of sports...... The thrill of victory, the agony of defeat LOL

Thanks for all the imput.

Re: Balance chasing question

Anonymous — Sun, 06 May 2012 14:22:58 GMT

If the charges are going to be made out of country you might want to let them know in advance of it. You may get shut down with fraud alerts if not. Out of country charges and nearly maxing out all cards could lead to bad things if done at the same time.........I was looking at buying a lake cabin last year. Credit no problem, down payment and clsoing costs no problem, finding a place no problem. Then when i was about ready to go, they came back and told me i needed to have, in addition to all of that, cash reserves.set aside for six.months of payments for both my new property as well as my current mortgage. Problem.

Re: Balance chasing question

minimock — Mon, 07 May 2012 03:10:58 GMT

As I said, they are already on notice that I am out of the country. 99.9% of the time, Im out of the country LOL