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Balance Chasing - Stopping the Bleeding

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Valued Contributor

Re: Balance Chasing - Stopping the Bleeding


@Dervrak wrote:

I must admit being relatively new to the boards this is the first I've heard of "balance chasing". The great mystery of credit card companies I guess, they give you these huge credit limits then punish you when you actually take advantage of them. I can see how it would be incredbly frustrating, you reduce your utilization, they reduce your limit thereby tanking your utilization and putting you back to square one.

 

My question is. Is there a set utilization where banks start "balance chasing". In my line of work I will often use my cards for business expenses, then pay them off as soon as the contract ends. I've had ultilization as high as 65% with no issues in the past (it's currently down around 10% so no worries at present). But I'm now concerned that I might be better off taking out a bank loan during my next contract (which kind of defeats the purpose of having the credit cards in the first place). 


In my experience, banks give you large limits with the expectation, that you won't use it all, normal spend should be 1-9% on less than 10% of your cards, this also happens to give the best credit score,  all zero except 1 with 1-9% showing. If your traveling or have other suprised expenses, carying 30% UTL on 30% of your cards won't hurt your score too much, but maxing-out (over 85% used) even 1 card can be seen as dangerous depending on the lender and your credit history multiple cards may send your other creditors over the line. Best to make large payments, and get the situation undercontrol before it snowballs, high interest as your credit score goes down, and you are certainly in balance chasing territory with 3 or more cards over 85% UTL. 

The OP here should of tried growing limits on his cards even if it of would resulted in a HP or 2 to get some breathing room on his cards before he purchased a house using credit cards. Home Depot card should of been easy to get CLI upto 10k or so if you mention you will be doing a remodel. Perhaps a Lowes card could of been added to his wallet, either to grow to 10 or even 25k with a quick phone call, maybe an Amazon store card can be another great utilization padding card,  5-10k aren't hard to get. Of course all this is hindsight who knows if it would of helped or not. 



 

 

Cards: Chase Southwest 20k & CSR 17k & CSP 10k & Freedom 6.6k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Marcus Loan. 30k second marcus load 15k.
Message 21 of 29
Regular Contributor

Re: Balance Chasing - Stopping the Bleeding

your whole entire plan is silly, convoluted, and makes zero to no sense.  Time out...heres what you need to do.

 

1.  Cut up all your cards as you are using them wrong.

2.  Call a credit union and get a 3.5% mortgage on your house and use the proceeds to pay off the debt.

3.  Stop using cards to save a little in house interest.

4. Have a couple cards reissued after they were cut up and pay in full each month.

 

Your plan to save a little in interest is going to lead you to bankruptcy.

Message 22 of 29
Valued Contributor

Re: Balance Chasing - Stopping the Bleeding



@navyitaly wrote:

your whole entire plan is silly, convoluted, and makes zero to no sense.  Time out...heres what you need to do.

 

 

3.  Stop using cards to save a little in house interest.

 

 

Your plan to save a little in interest is going to lead you to bankruptcy.


 


But OP is not paying house interest, Right?  Isn't the house paid off? (Last year/cash purchase?)  And isn't this about how to spread the inherited(?) money around to the cards?  Am I missing something?

INCOGNITO MODE
Personal Scores: Dec 2019 Exp 716, Tu 738, Eq 744
Savor/ Venture/ Disco CB/ GoodSamsVS/ BB&T Spectrum VS/ BB&T Bright VS/ CareCredit/ Home Depot/ Lowes Adv./ Synovus loc
Business Scores: Exp Biz 96/ Eq B/ D&B (?) improved is all I know, low risk (over 25 yrs. inc.)
Biz Credit: Spark/ Amex BBC/ Amex Lowe's Rewards/ Lowe's Pros/ Amazon Net55/ StaplesMore/ Amex Amazon Biz/ many local vendors

(Oldest Acct: 1998; Youngest Acct: Nov 2019)
"MY TAKE HOME PAY DON'T TAKE ME HOME"
Message 23 of 29
Regular Contributor

Re: Balance Chasing - Stopping the Bleeding

Read the original post.
Message 24 of 29
Valued Contributor

Re: Balance Chasing - Stopping the Bleeding


@navyitaly wrote:
Read the original post.

I did.....what house interest?  Isn't the cash pymt for the house last year a "done deal"?

INCOGNITO MODE
Personal Scores: Dec 2019 Exp 716, Tu 738, Eq 744
Savor/ Venture/ Disco CB/ GoodSamsVS/ BB&T Spectrum VS/ BB&T Bright VS/ CareCredit/ Home Depot/ Lowes Adv./ Synovus loc
Business Scores: Exp Biz 96/ Eq B/ D&B (?) improved is all I know, low risk (over 25 yrs. inc.)
Biz Credit: Spark/ Amex BBC/ Amex Lowe's Rewards/ Lowe's Pros/ Amazon Net55/ StaplesMore/ Amex Amazon Biz/ many local vendors

(Oldest Acct: 1998; Youngest Acct: Nov 2019)
"MY TAKE HOME PAY DON'T TAKE ME HOME"
Message 25 of 29
Regular Contributor

Re: Balance Chasing - Stopping the Bleeding

So he has all this debt to cover his house he paid cash for that he didn’t really have money for. Somehow he got 0% money on that. The 0% time is up. Easiest method is get a mortgage on paid off house and do what I said. Not play this crazy game.
Message 26 of 29
Valued Contributor

Re: Balance Chasing - Stopping the Bleeding


@navyitaly wrote:
So he has all this debt to cover his house he paid cash for that he didn’t really have money for. Somehow he got 0% money on that. The 0% time is up. Easiest method is get a mortgage on paid off house and do what I said. Not play this crazy game.

But how would OP be able to refinance @ 3.25% being OP is maxed to the hilt and AA's hitting? Wouldn't that add fuel to the fire?

INCOGNITO MODE
Personal Scores: Dec 2019 Exp 716, Tu 738, Eq 744
Savor/ Venture/ Disco CB/ GoodSamsVS/ BB&T Spectrum VS/ BB&T Bright VS/ CareCredit/ Home Depot/ Lowes Adv./ Synovus loc
Business Scores: Exp Biz 96/ Eq B/ D&B (?) improved is all I know, low risk (over 25 yrs. inc.)
Biz Credit: Spark/ Amex BBC/ Amex Lowe's Rewards/ Lowe's Pros/ Amazon Net55/ StaplesMore/ Amex Amazon Biz/ many local vendors

(Oldest Acct: 1998; Youngest Acct: Nov 2019)
"MY TAKE HOME PAY DON'T TAKE ME HOME"
Message 27 of 29
Regular Contributor

Re: Balance Chasing - Stopping the Bleeding

You take proceeds and pay off cards. Escrow can probably do that. You can certainly get approved on this plan.
Message 28 of 29
Valued Contributor

Re: Balance Chasing - Stopping the Bleeding


@navyitaly wrote:
You take proceeds and pay off cards. Escrow can probably do that. You can certainly get approved on this plan.

OP already has 45k cash to distribute.

INCOGNITO MODE
Personal Scores: Dec 2019 Exp 716, Tu 738, Eq 744
Savor/ Venture/ Disco CB/ GoodSamsVS/ BB&T Spectrum VS/ BB&T Bright VS/ CareCredit/ Home Depot/ Lowes Adv./ Synovus loc
Business Scores: Exp Biz 96/ Eq B/ D&B (?) improved is all I know, low risk (over 25 yrs. inc.)
Biz Credit: Spark/ Amex BBC/ Amex Lowe's Rewards/ Lowe's Pros/ Amazon Net55/ StaplesMore/ Amex Amazon Biz/ many local vendors

(Oldest Acct: 1998; Youngest Acct: Nov 2019)
"MY TAKE HOME PAY DON'T TAKE ME HOME"
Message 29 of 29
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