All this talk about UTL and CLD's or AA has me nervous!

[Fresh-Start]

Hey guys! I'm pretty nervous because I started my Christmas Shopping early so my utilization on my credit cards are quite high right now.  Especially Best Buy and Amazon store card. I've read a few post about high UTL and CLD's and or even creditor's closing accounts and it's got me kind of nervous! 

 I usually make huge payments, but I've been carrying a balance on most of my credit cards for the past month, and Amazon and Best Buy I have the 18 month no finance  deal.  My UTL is at 60% right now, but I plan to pay everything down or PIF (EXCEPT Amazon and Best Buy) late December - Early January.  Am I at risk for CLD's???? Or other Adverse Action??  I mean, I have no baddies, perfect payment history on all accounts,  just high UTL temporarily due to holiday shopping. Would they penalize me this quickly??  Sheesh!

[nicholasyud]

As long you make a solid payment for the last 6 months and don't carry more than 60% balance then you should be fine. Remember Cc company make some part of money by charge interest........

[Fresh-Start]

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@nicholasyud wrote:

As long you make a solid payment for the last 6 months and don't carry more than 60% balance then you should be fine. Remember Cc company make some part of money by charge interest........

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That's so good to hear!  I'm in good shape then.  Up until the last month, I've always either PIF or paid a huge lump sum.  The last thing I wanted was to be dinged for one month or two of high utl! LOL! Whew!

[navigatethis12]

Speaking with the Amazon store card analyst yesterday, she said they would only become conscerned if you had a very large balance and only made minimum payments. She said charging a large amount or carrying it does not matter, as that is what the promotions are for, but they like people to pay more than the minimum on the large charges.

I reckon you have to have high utilisation for at least six or eight months before other companies will begin to think something could be up. I say you have nothing to worry about.

[Fresh-Start]

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@navigatethis12 wrote:

Speaking with the Amazon store card analyst yesterday, she said they would only become conscerned if you had a very large balance and only made minimum payments. She said charging a large amount or carrying it does not matter, as that is what the promotions are for, but they like people to pay more than the minimum on the large charges.

I reckon you have to have high utilisation for at least six or eight months before other companies will begin to think something could be up. I say you have nothing to worry about.

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Okay, good info! Thanks!  I am a huge Amazon shopper and I've used them a lot over the last month or so for that no interest deal. I always pay more than the min. so that's good news indeed.

[Walt_K]

I wouldn't worry about it either.  I've been carrying high balances on a couple cards for several months now.  They were 0% offers.  I pay more than the minimum, but they are at about 80% utilization.  I'll pay them off in the next couple months before the 0% expires, but have no intention of paying earlier.  My other cards are getting substantial use and I PIF, so I doubt they are worried about anything. 

[Fresh-Start]

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@Walt_K wrote:

I wouldn't worry about it either.  I've been carrying high balances on a couple cards for several months now.  They were 0% offers.  I pay more than the minimum, but they are at about 80% utilization.  I'll pay them off in the next couple months before the 0% expires, but have no intention of paying earlier.  My other cards are getting substantial use and I PIF, so I doubt they are worried about anything. 

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Thanks Walt_K!