How to pay off maxed-out card without being balance chased?

[Ghoshida]

Hello fellow members,

For the past 3-4 months, I've got my Sallie Mae card at a very high-utilization, consistently at or near 90% or so. Every month, I pay off about 10% or so and again charge it back (mostly groceries, some gas, some Amazon or books). I am currently enjoying 0% APR - valid till Dec.

I am at 37% utilization across my cards; 2 cards are at zero balance. By next week (when most of my statements will cut), I'll be able to be at 34% with 3 cards at zero balance. But no lower than that. I do not pay interest; I first pay cards which will incur interest. I always pay more than minimum (at least 2-3 times) on other cards.

By the end of this month, I'll get access to some funds with which I can get about 3/4th or more of my debt removed, if not all. Here's the question:

My SM, along with others except Discover, generate statement on 10th. Discover is on 17th. If I pay off my maxed out SMMC (along with other cards) before Oct 10th, they won't see the those CCs reflect on the CR when they generate their statement. Is there a chance they will balance chase me?

Should I first then pay off non-maxed out cards, let their statements generate, and then pay off the SM? That way the Oct CR will show Barclay's that I'm zero (or near zero) on all other cards.

Please provide your opinion. 

[1GaDawg85]

i dont see why you would be balance chased 

[Ghoshida]

At the same time, I want to play a bit of the utilization game if possible.

I haven't been able to get a CLI on either my AMEX or US Bank REI cards. US Bank is from Aug-13 and AMEX from Nov-13. I want the utilization to look as good as possible before I ask them again.

Right now, I get 2 free FICO: TU and EQ, and both cite top 2 reasons for low scores: age of accounts too low, and utilization of revolving accounts too high.

[Ghoshida]

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@1GaDawg85 wrote:

i dont see why you would be balance chased 

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I have heard that if you are consistently at maxed-out level for a few months, banks lower your credit limit the moment you pay them off... got a few stories on this board itself.

[1GaDawg85]

get it close to zero and then go for a CLI

[Ghoshida]

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@1GaDawg85 wrote:

get it close to zero and then go for a CLI

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My only fear is that if I pay down Barclay's completely, they might balance chase me and that will look terrible on my CR.

(I don't have any baddies on my report, just a thin file: 2 years, AAoA: 1 year or so).

[1GaDawg85]

they shouldn't do that....

[compassion101]

I think you are overthinking this. Just pay them off. Doesn't make sense to me to leave the high balance there longer in order not to be balance chased.

[Anonymous]

Banks do balance chase people, but in your case there is no evidence of them doing it or even wanting to do it.  It's all in your mind,  Don't do this to yourself.  There are enought real problems out there.

[jamesdwi]

unless you have a baddie show up on your reports, or you are maxed out on multiple card, don't apply for additional cards or request HP cli's from other lenders that will spook Barclays the most, the facts that you are using the card and paying more than the minimum payment, will make Barclays happy, they make swipe fees on  all your purchases, they really hope you are going to continue using the card the same way after the zero percent period. Some lenders will actually give you  an auto-CLI when your card is maxed out if you obviously have other cards you could be using and aren't. Its a painful way to get an auto-CLI, I don't recomend it, but I have seen it happen. Not personally thank god.