Credit Card Utilization Question

[MyLoFICO]

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@Anonymous wrote:

We got pricing with several diff companies before deciding to go with the ac/heating company we chose and we can't pay for that type of repair in full at this time is why it was financed with wells fargo, when I asked the manager of the hvac company about the cc he said it can only be used with his company but im not 100% sure of that after reading wells fargo's site. Once it is paid off then it will either sit open with $0 or we will close it if we can't use it anyplace else. If we are able to sell our house then we can pay that bill in full out of money from our selling the house. I just hope it doesn't raise our utilization to the point that we won't be able to sell and buy another home in Sept which is 2 yrs from discharge date. We had no choice but to put a new unit in and its really bad timing. 

Since it has 0% APR then each payment will drop the amount until its paid off, At least thats what we were told.

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I am in the same boat financially. No way I could afford that right now. That being said, it looks like you don't have a choice. You're going to take the hit either way. Maybe down the road you can refinance it but for now, your scores dropping a bit seems like the least of your worries. Get everything with your house in order and then tackle the A/C loan. Butm at 0% until paid off, I think I would leave it alone and just pay extra on it when you can to get it PIF faster. 

[Aduke1122]

Well it looks like it will be used as part of your Utilization, if you truly have no other choice then don't worry about it Op once you start paying it down you will gain those points back that you lost , so what is your overall UTi like without it right now ?

[Anonymous]

I would asume all the cards, even within their own catagory, work somewhat differently since it's a business service offered by wells fargo and has options for the buisness to customize it. Unfortunately there isn't all that much info available, at least that I could find.

Since you have a few months until September you may be able to get the balance down enough that your overall utilization looks better. And since the purchase was for an unavoidable home repair its possible the loan officer would give some leniency towards the high balance.

[MyLoFICO]

Interesting reviews on the card:

https://www.creditkarma.com/reviews/credit-card/single/id/home-projects-visa-credit-card 

[MyLoFICO]

This old thread has your answer. First page, posts 4 & 6. 

http://ficoforums.myfico.com/t5/Credit-Cards/Home-Projects-Wells-Fargo-VISA/td-p/2316667

[Anonymous]

Thanks for posting the link, so from reading that post they stated that it didn't report on credit reports and then it goes on to say that it is considered a "visa". I just looked at my card and it does NOT have "Visa or Mastercard" written anywhere on it and there are no symbols,abreviations or anything that say Visa/MC it does say the word "Carrier" in the upper left hand corner and its a light blueish color.

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@MyLoFICO wrote:

This old thread has your answer. First page, posts 4 & 6. 

http://ficoforums.myfico.com/t5/Credit-Cards/Home-Projects-Wells-Fargo-VISA/td-p/2316667

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[HeavenOhio]

Luv2Cruise, is this your card?

I had the above card until I closed it this week. In my case, I had a generous credit limit, so utilization wasn't an issue. Somewhere on Wells Fargo's site, there's a place where you can find out where this card can be used. Danged if I can find it right now, though. I found approximately 50 dealers within 50 miles of my home. However, I'd estimate that about 80% of them were for plumbing and heating. Other dealers were for products like doors and windows, siding, etc.

Wells Fargo explained to me that there used to be a Visa that was discontinued a couple of years ago, and it was replaced by the retail card pictured above. Had they issued me a Visa, I likely wouldn't have closed it. But the retail card was a bad fit for me to begin with, and I had little use for it going forward.

[Anonymous]

Where I live the local utities both gas and electric offer financing at great rates ie about 4% for HVAC they require you to use high rated products (energy savings)   and both have a short list of vendors you can go through. It is financed as loan with UCC1 filed and due at sale of house 

[Anonymous]

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@HeavenOhio wrote:

Luv2Cruise, is this your card?

I had the above card until I closed it this week. In my case, I had a generous credit limit, so utilization wasn't an issue. Somewhere on Wells Fargo's site, there's a place where you can find out where this card can be used. Danged if I can find it right now, though. I found approximately 50 dealers within 50 miles of my home. However, I'd estimate that about 80% of them were for plumbing and heating. Other dealers were for products like doors and windows, siding, etc.

Wells Fargo explained to me that there used to be a Visa that was discontinued a couple of years ago, and it was replaced by the retail card pictured above. Had they issued me a Visa, I likely wouldn't have closed it. But the retail card was a bad fit for me to begin with, and I had little use for it going forward.

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Yes it is very close to this card pictured except its a light blueish color. WHen we opened this account I asked the Hvac company if it could be used anyplace else and he said no, he said it could only be used through his company and that most people usually close it once its all paid for.

[HeavenOhio]

I suppose the card would be good if you wanted to use it for furnace tune-ups or whatever else that company does.

I don't like the idea that companies issue maxed out cards. CareCredit did that to me. When I learned about utilization, I started paying it down pronto. If consumers need financing and it's done through a card, there ought to be enough of a limit to absorb the charge. Otherwise, an installment loan would be a much more appropriate route.

Obviously, Wells Fargo doesn't care that the card is maxed. But I'd be a concerned about what your other lenders might think. I'd try to get the balance down to 88.9% of the limit or lower ASAP. At least at that point, the card would no longer be maxed. If you can do it before Wells Fargo reports to the credit bureaus, so much the better.

Another option would be to see if Wells Fargo will double your limit, hopefully with a soft-pull. You could pay down to 48.9% and breathe a lot easier.

You'll definitely want to get your utilization cleaned up if you're thinking of applying for a mortgage. Otherwise, it could end up being costly in the long term.