Utilization on Business card

[janov]

Hello i'm trying to understand if i can have any problem with my utilization on business card

Right now we have:

Capital One Spark for 2000$

Amex Blue Business Cash for 2000$

first card is open for 5 months amex just a couple

on capital one we put a lot of spending, basically for all the SL every month and even more. We alwasy pay the statement in full but every following month we report a balance, usually around 40%. Our Statement cut on 12 and we pay the full statement for the end of the month but for the following 12 we have a balance to report again. We never paid interest and always use the card, just UTL is high. 

Amex gave us a 18 month 0% Apr that we use for buying a license and fees and repaying it month by month. we pay more than the minimum and in 4-5 months we should pay it off  but basically now it's maxed out since it's over 90%

Can this be a problem? i don't want to find myself that they're going to close one of the card for too much utilization

thanks for all the help 

[Anonymous]

I probably wouldn't stay at 90% too long TBH. Riding out a 0% APR at 40 or 50% is another matter as long as you're making large payements, and making a dent in the debt. 

Maxing out a card then PIF every month should be fine though, as long as they're getting paid it shouldn't be an issue.

[mikesonthemend]

I have read the CO Spark reports to personal file. That could be an issue.  Hate that Cap1 reports activity after statement. I always have to go a week without using it in order to get a zero balance reported.

[Creditaddict]

The issue with Capital One is it's reporting to your personal credit so if you are allowing the balance to report maxed you are messing your personal credit for that month.

The amex, while 0%, I'd pay it off once or twice so you can hopefully get the triple your current limit CLI after 62 days.

Then it will be more worth while to carry at 0% for a bit since you can put more on it!

[janov]

Yes, CO Spark report to personal but lately it was hard to take it completly down to 0. I'm trying to pay it off in the next months, scores are fine anyway right now 720-730 across al bureau and not planning to apply anywhere before the end of the next year.

Amex is the one i want to pay off asap but I will need at least 2-3 months and i hope is not gonna be a big deal, i'll try this month to bring down to 50% to reduce risk.

I don't really hope in any CLI since even on personal cards with huge spending and always PIF i had no luck in the last year so i'm not planning to ask it for another year 

[Creditaddict]

That’s just silly not to ask.... I’d ask every single month with cap1, once approved, set in calendar for 6 months later.
With Amex, doesn’t hurt to ask if you haven’t had increase with personal or business in 6 months

[LittleSal]

AMEX doesn’t seem to mind a maxed out business card.

I picked up the BBP in Jan with $27k limit and it’s been at or over the limit since March. It’s at $39k right now. I’ll pay it off just before the 0% ends.

[SouthJamaica]

---

@janov wrote:

Hello i'm trying to understand if i can have any problem with my utilization on business card

Right now we have:

Capital One Spark for 2000$

Amex Blue Business Cash for 2000$

first card is open for 5 months amex just a couple

on capital one we put a lot of spending, basically for all the SL every month and even more. We alwasy pay the statement in full but every following month we report a balance, usually around 40%. Our Statement cut on 12 and we pay the full statement for the end of the month but for the following 12 we have a balance to report again. We never paid interest and always use the card, just UTL is high. 

Amex gave us a 18 month 0% Apr that we use for buying a license and fees and repaying it month by month. we pay more than the minimum and in 4-5 months we should pay it off  but basically now it's maxed out since it's over 90%

Can this be a problem? i don't want to find myself that they're going to close one of the card for too much utilization

thanks for all the help 

---

No one's going to close either card for too much utilization, but your Spark card reports to personal credit, so your utilization figure could hurt your scores.

The Amex card is a pure business card, does not report to personal credit, and won't hurt your scores.

On pure business cards you don't have to worry about 'utilization'.

[GApeachy]

---

@mikesonthemend wrote:

 I always have to go a week without using it in order to get a zero balance reported.

---

Yep, it's a pita no doubt. Why they feel the need to report positive to personal is hindering.  Can't use it like it's intended...business is a whole different bird than personal.  Would like to have scheduled bills running throughout the billing cycle (ie. workman's comp, general liability, etc.) but the ding on personal is rediculous.  Pif'ing every month does not reflect positive on personal cr's. when using a business card as intended.

[janov]

thank you everyone for all the help!

Luckily business is doing really good and i'm going to pay it off all the cards this week

I have a question to ask for help,

For amex ?'m going to pay it in full, does it make sense to do it after the statement cut (20 of november) so it'll report the utilization and payment?

This is going to be the 4th statment, i can ask for a CLI ?

thank you