Card Management Theory Question

[dallasareaguy]

Hi All... so I have a question... if I dont plan to pull credit a single time between now and six months.. is it okay for me to use my "available credit" to pay down collections etc if I know that in six months I will be able to pull the cards back to 10% util... I guess my question is.. does it hurt to have my cards maxed for the next 5 months if I'm not doing any credit pulls... as long as I get them back to where they are now (less than 10% util)... or does keeping low util for 5-6 months in a row matter more than just making sure I'm clean when it comes time to make the actual pull for credit in 6 months. The reason I ask is because I would like to use my credit to my advantage now knowing that I have a large cash payment coming in six months but could pay off the chargeoffs/collections now so they have more time to clear off my credit.

I've just never known/understood whether low UTIL vs. nearly maxed matters for consecutive months or just when it comes time to make actual credit pulls?

Thoughts?

[coldnmn]

It may make your credit card providers nervous with baddies even if they are paid and maxed out credit credit cards. They may balance chase (reduce your credit limit as you pay the cards off) your credit cards. In my opinion wait until your cash becomes available to pay the baddies. You don't want your card providers feel like they are going to be left holding the bag. 

[CreditDunce]

Utilization has no memory.  It doesn't matter what your utilization was for the past 6 months.   If you wind up at the same spot, your score will be the same.

The big exception is if you carry large balances for an extended time, you creditors may get nervous and take AA.   If the account is maxed out it is possible the CCC decides to close or balance chase you when you pay down the card.  IMO it is not likely they would do it if you only carry a balance for a couple of months, but it is more likely with a lower credit score.

[Anonymous]

Sometimes the whole concept of maxing cards out (utilization) is strange. You have a $10K CL and to stay in the good you should not use more than 30% and make sure you pay more than the minimum. Then you are offered a BT for virtually your whole credit line and you take it. Next thing you have nervous creditors and are balance chased. It is beyond me the logic. I noticed that every balance transfer option of late the creditor checked my credit. Barclays checked for a $200 BT against an available $10K CL. Go figure. Pretty much try to keep my credit utilization around 1% and everyone seems happy. Noticed after opening the new Barclay Sallie Mae WMC with $10K CL Citi Bank quit offering me BTs on my three Citi Cards. Hmm... logic?