topic 90% of limit on Chase, need a quick response in Credit Cards

90% of limit on Chase, need a quick response

elim — Sun, 17 Aug 2014 16:11:15 GMT

I'm going to buy a nice set of tires in an hour and was planning on paying cash. If i use my 1k Chase card (middle of billing cycle) it will be 90% of the Limit. If i pay it off immediately after pending is that OK? any flags?

Re: 90% of limit on Chase, need a quick response

trumpet-205 — Sun, 17 Aug 2014 16:13:09 GMT

You can also pre-pay it. Basically push money from your checking account to your Chase card. It is fine to get a negative balance on credit card as it'll temporary increase your credit limit, until the balance becomes positive again.

Re: 90% of limit on Chase, need a quick response

AvadaKedavra — Sun, 17 Aug 2014 16:15:00 GMT

How much balance do you already have on your card? My Freedom doesn't let me pay more than the posted balance.

Re: 90% of limit on Chase, need a quick response

elim — Sun, 17 Aug 2014 16:18:38 GMT

@AvadaKedavra wrote:
How much balance do you already have on your card? My Freedom doesn't let me pay more than the posted balance.

$75

yeah it doesnt let me either and i dont have chase checking. i have always paid this card when it gets to 30% and got an auto CLI the day after statement #2.

Re: 90% of limit on Chase, need a quick response

lg8302ch — Sun, 17 Aug 2014 16:19:44 GMT

@AvadaKedavra wrote:
How much balance do you already have on your card? My Freedom doesn't let me pay more than the posted balance.

If you try to pull then it does not work but by using bill pay from the bank side and push it to the credit card account will work just fine

Re: 90% of limit on Chase, need a quick response

Shock — Sun, 17 Aug 2014 16:21:43 GMT

just pay it off when it posts, and your utlization wont take a hit. it may be benficial though ti max it out for the month as chase may give you an increase and see your high balance as almost maxed out.

Re: 90% of limit on Chase, need a quick response

Closingracer99 — Sun, 17 Aug 2014 16:25:16 GMT

@Shock wrote:
just pay it off when it posts, and your utlization wont take a hit. it may be benficial though ti max it out for the month as chase may give you an increase and see your high balance as almost maxed out.

while they can do that. They can also look at is as a financial risk if you let it post.

Re: 90% of limit on Chase, need a quick response

js0319 — Sun, 17 Aug 2014 16:26:17 GMT

You can always pay part of it with the card, and part with cash to maximize benefit and reduce the risk.

Re: 90% of limit on Chase, need a quick response

capitalkid — Sun, 17 Aug 2014 16:27:48 GMT

See if the Tire Place will take split payments. Pay 50% with cash and leave 50% on the card. Then make a good payment to get it under 50% next month.

Or, ask if the tire place has their own financing, see if you qualify for their card. There is a Goodyear Card- Citi is their underwriter, there is a Firestone card-Credit First National Association is their underwriter, and there is a CarCareOne which is widely co-branded by the different shops and they are underwritten by GECRB, or what is now Synchrony Bank.

My suggestion is to avoid any CFNA backed card if at all possible, they will only report your balance to the CRA's. Which no matter what they report it looks like you are maxxed out to the creditors due to not repoting the Limit. Citi and GE will be fine for reporting purposes, I dont know what Citi backed cards start out at, My CCO card started at 700$ and I had to grow it. CFNA started me out at 1400$ and gave no cli's nor a way to request one. I needed 1K worth of tires, was approved for Firestone card, PIF and closed the account. The whole time I had that card it had my score way drug down. When I closed it my score shot up within a month. So if thats all you can get, use it, get it paid and close it fast.

I apped for CCO before I closed out CFNA to have a tire card replacement. I got 700$ on CCO, closed out my 1400$ CFNA card and within 6 months I had a CLI to 1500$.

Good Luck.

Re: 90% of limit on Chase, need a quick response

Anonymous — Sun, 17 Aug 2014 16:33:30 GMT

IMO this is all overthinking. Providing you don't exceed the CL, there will be no AA, especially if you PIF by due date, no need to pay before statement cut. Utilization has no memory so one month of high util (even with score decrease) is fine if you are not apping this month.

Way overstressed here making people scared to use the credit that they have worked for!

Re: 90% of limit on Chase, need a quick response

lg8302ch — Sun, 17 Aug 2014 16:35:40 GMT

@Closingracer99 wrote:
@Shock wrote:
just pay it off when it posts, and your utlization wont take a hit. it may be benficial though ti max it out for the month as chase may give you an increase and see your high balance as almost maxed out.
while they can do that. They can also look at is as a financial risk if you let it post.

Chase will still report the high balance if you pay it down before statement cut. I did pre-pay my Freedom last year and charged over my credit line and for many month my high limit was higher than my CL and this was when it was not a siggy card...that looked a bit strange but had no consequences as I did pay it down before it reported. This high balance is still on the account but now with 5K limit at least looks a little better.

But what you might want to do is to call Chase and let them know that you intend to charge this amount so it will go through witout you calling when standing in front of the merchant.

Re: 90% of limit on Chase, need a quick response

lonelyisland — Sun, 17 Aug 2014 16:38:52 GMT

@Anonymous wrote:
IMO this is all overthinking. Providing you don't exceed the CL, there will be no AA, especially if you PIF by due date, no need to pay before statement cut. Utilization has no memory so one month of high util (even with score decrease) is fine if you are not apping this month.

Way overstressed here making people scared to use the credit that they have worked for!

ITA. Use it like a normal person would. Put your tires on the card, and pay it when the statement cuts, or sooner, if you just want to get it paid off.

This situation is exactly what credit was created for.

Re: 90% of limit on Chase, need a quick response

JSS3 — Sun, 17 Aug 2014 17:44:19 GMT

Put your tires on your credit card. Pay down half when it posts and then the other half after the statement closes.

Re: 90% of limit on Chase, need a quick response

elim — Sun, 17 Aug 2014 17:49:27 GMT

thank you guys, this place is the best for quick help. i'll use the card and pay it down to 9% in a day or two, when it let's me. wooooot, i like brand new tires... be back later!.

Re: 90% of limit on Chase, need a quick response

red259 — Sun, 17 Aug 2014 18:22:30 GMT

@Anonymous wrote:
IMO this is all overthinking. Providing you don't exceed the CL, there will be no AA, especially if you PIF by due date, no need to pay before statement cut. Utilization has no memory so one month of high util (even with score decrease) is fine if you are not apping this month.

Way overstressed here making people scared to use the credit that they have worked for!

Re: 90% of limit on Chase, need a quick response

Kenny — Sun, 17 Aug 2014 18:41:00 GMT

@Anonymous wrote:
IMO this is all overthinking. Providing you don't exceed the CL, there will be no AA, especially if you PIF by due date, no need to pay before statement cut. Utilization has no memory so one month of high util (even with score decrease) is fine if you are not apping this month.

Way overstressed here making people scared to use the credit that they have worked for!

Exactly. If you have the limit.. use it! If you pay it off before the statement closes, great -- if not, then so long as you pay the amount you owe, Chase won't care!

Re: 90% of limit on Chase, need a quick response

Bman70 — Sun, 17 Aug 2014 18:54:57 GMT

I don't know about Chase, but I've never thought twice about putting big balances (70-90%) on my BofA and Cap1 cards. My only concern with a charge was always, "Can I afford this?" I thought that's what credit limits were for.. you stay under it and pay on time. Simple? lol. Over the years, they only gave me increases. Joining MyFICO was the first time I heard otherwise. I've never paid late, so maybe those stories of being flagged are from people with spotty histories.

Re: 90% of limit on Chase, need a quick response

red259 — Sun, 17 Aug 2014 19:21:54 GMT

@Bman70 wrote:
I don't know about Chase, but I've never thought twice about putting big balances (70-90%) on my BofA and Cap1 cards. My only concern with a charge was always, "Can I afford this?" I thought that's what credit limits were for.. you stay under it and pay on time. Simple? lol. Over the years, they only gave me increases. Joining MyFICO was the first time I heard otherwise. I've never paid late, so maybe those stories of being flagged are from people with spotty histories.

My Amex SPG card has been maxed a couple times this cycle already because they only have an initial CL of 2k. Its a royal pain in the neck to say the least to have to keep paying it down so I can make more charges in order to meet the initial spend. I have not carried a balance at all and the payment for the balance due (and $500 more) is already scheduled. I would note though that I am not overly concerned about this, because this card line is a small percentage of my overall credit util. If this was my only card (or even my only card with amex - I have two other amex cards with 0 balances) I might be a bit more nervous. If Amex took AA against me I believe it would be an incredibly stupid business decision on their part given the sheer number of charges I am running through their card (pretty much every single expense until I meet min spend). I can't wait to meet the min spend so I can go back to putting purchases on cards based on bonus categories.

Re: 90% of limit on Chase, need a quick response

Dw4250 — Sun, 17 Aug 2014 19:36:53 GMT

OP it is important to remember how credit card companies make their money:

1. Transaction/Swipe Fees (they get a certain % of the purchase from the vendor)

2. Interest/APR: They charge their customers interest on the amount they borrow

While I do not think it is bad for you to have a PIF mentality, I think longtimelurker and others are exactly right....we are way over thinking this thing of ours ! If Chase AA/CLDed every person who do not pay off their bill at the end of the month, they would eliminate 90% of their customer base. Credit by definition is "buy now, pay later".

OP even if you send them, say $100/month until the balance is paid off, Chase would be more than happy to have you do that and tack on interest to the principal. It's a win-win for both parties...you get to pay off your tires slowly as opposed to depleting your checking account; they get to charge you interest and make money.

However it is important that you do not max out and stay maxed out (or max out several cards at the same time). To lenders this indicates someone is in financial distress and at a very high risk for default. But if you are making regular, on time payments (above the minimum), and managing your other card well, the chances they AA you are infinitesimal.

Re: 90% of limit on Chase, need a quick response

red259 — Sun, 17 Aug 2014 19:52:16 GMT

@Dw4250 wrote:
OP it is important to remember how credit card companies make their money:

1. Transaction/Swipe Fees (they get a certain % of the purchase from the vendor)
2. Interest/APR: They charge their customers interest on the amount they borrow

While I do not think it is bad for you to have a PIF mentality, I think longtimelurker and others are exactly right....we are way over thinking this thing of ours ! If Chase AA/CLDed every person who do not pay off their bill at the end of the month, they would eliminate 90% of their customer base. Credit by definition is "buy now, pay later".

OP even if you send them, say $100/month until the balance is paid off, Chase would be more than happy to have you do that and tack on interest to the principal. It's a win-win for both parties...you get to pay off your tires slowly as opposed to depleting your checking account; they get to charge you interest and make money.

However it is important that you do not max out and stay maxed out (or max out several cards at the same time). To lenders this indicates someone is in financial distress and at a very high risk for default. But if you are making regular, on time payments (above the minimum), and managing your other card well, the chances they AA you are infinitesimal.

This varies by lender. Some lenders like people who carry balances a bit more (ie citi) vs other lenders who seem to prefer a PIF approach (ie amex).