Carrying a Balance

[selena]

I will be making my first major cc purchase for MacBook Pro (~$1100). My current one is really old, heavy, and starting to have trouble keeping a charge. I'm actually using an iPad at the moment. Anyway I plan on using my Citi (CL 10,000) to make the purchase and paying it off next month because I have an extra check coming. I have never had a balance over $400 since I cleaned up my credit and I'm wondering if letting it report is a bad thing. I'm making the purchase now and with the card for the bonus points. My overall utilization is 5%. I'm also really curious to know how many of you consistently pay in full, allow a balance to post every once in a while, or carry a balance from month to month.

[Pway]

No it is not a bad thing.  Carrying a balance here and there does not hurt.  You may see a little dip in scores or not.  We all have carried balances.  Remember scores changes month to month.  Some months we see a significant increase in scores and then things change like carrying a balance.  It will not spooke your other creditors you have credit cards with.  Only a month don't sweat the small stuff.  If all your cards reported a large balance then I would worry, but in you case nothing to worry about.

[vanillabean]

Also, some cards offer an extended warranty on top of the points.

[tiger_uppercut]

Yeah, it's not a big deal. If you see a score dip it will be minimal and will recover just as quickly. While it is important to keep balances low and manageable, being overly anal retentive about things will just drive you nuts. Let your credit cards provide you the benefit of paying over time once in awhile. Enjoy the new computer, and pay it off as soon as you can.

I generally don't carry balances only because I am trying to stay out of debt. However, if I had a big purchase to deal with (like a computer), I would be fine with carrying a balance for a couple of months or so if I needed to. That's life. Most people do it and it's all fine. Good luck!

[Anonymous]

I agree with the previous comments. It's also very small relative to the CL. If you had a 1200 CL, it would be a different situation. You would barely be over 10% of that line. And if you can turn it around and pay it quickly, your score will bounce right back. 

[petejk]

I'm carrying a balance right now after purchasing a laptop, but it's on my PayPal Credit account, which doesn't report as far as I know.

But if I had a carry the balance on a credit card I would do so, I would simply pay it off as quickly as I could

[selena]

Thanks for all the advice. I'm alittle anal when it comes to using cc's, wasn't so smart in the past. I was also considering using PayPal for the 0% financing and paying over 6 months but I can really use those points.

[Anonymous]

Unless you are looking for a large loan (mortgage, auto or similar) having a balance report is a minor thing. It may drop your score a bit, but as soon as it is paid and updated the score comes back. I let all my balances report as I pay by due date, that is part of the perk of the card, carrying that balance interest free until the due date. I also have a couple cards with 0% promos right now that I am carrying balances. It has dropped my score a small amount, but I won't be doing any large loans for awhile so not really worried.

But as always only spend what you can afford, and I personally always try to maximize points/rewards. That is the reason for having those rewards cards. If do you have to carry a balance then the 0% offers can be the better option.

[vanillabean]

---

@Anonymous wrote:

If do you have to carry a balance then the 0% offers can be the better option.

---

Definitely. The 2% convenience checks can come in handy once you know how to steer clear of the pitfalls.