How will this affect my credit score?

[Chaselover]

I had visited the ABC warehouse for getting new furniture for home and they told me about their 2years 0% financing credit card. And also about their equal installments every month.

I was told that my minimum payment is around $100 monthly and that the statement may show $2,000(the full price for the furniture). If I pay just over the minimum monthly payment (Eg: $150) every month, will this affect my credit score in anyway? I have always PIF and so I have no idea of how this would affect. I am almost sure, this is not a late payment but what do you feel ?

[Anonymous]

Any idea of the credit limit? Accounts like these typically will show high UTIL and drop by the payment each month but will most likely lower your credit score if you carry very small balances on other cards.

[Chaselover]

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@Anonymous wrote:

Any idea of the credit limit? Accounts like these typically will show high UTIL and drop by the payment each month but will most likely lower your credit score if you carry very small balances on other cards.

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no idea of the credit limit. Only noe that the furniture costs $2,000/- .So, would it be like if I get a 2,000 credit limit. I am using how much ever I owe them and that would increase my Util drastically, which would affect the credit score? And yeah, I am carrying very small balances on the other cards.

[Chris679]

You would see a score drop that could be 15-20 pts if you have a thin file or much less if you don't. The whole point of good credit is to save money on interest though so I would not hesitate to pull the trigger. Don't let your credit score cost you money.

[Anonymous]

I have the same thing with my best buy card... 95%UTI . But I sure do like my TV

[Techno]

See installment and credit line are diffrent. although there is a credit line to the finance, i do not think it shows up as bad as if you get a 2k limit on a card and max it even though it has into 0 apr. correct me if i am wrong, but if they can finance it for you its way better.

I work for verizon and we "finance" phones through our edge program and i dont think that shows as a loan or a TL on one's report.

[takeshi74]

The minimum payment doesn't matter.  It's utilization that matters.  You need to know the limit and balance reported to determine the impact to your utilization.

[Klesko]

I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better. 

[Chaselover]

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@Chris679 wrote:
You would see a score drop that could be 15-20 pts if you have a thin file or much less if you don't. The whole point of good credit is to save money on interest though so I would not hesitate to pull the trigger. Don't let your credit score cost you money.

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Nice point.

[Anonymous]

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@Klesko wrote:

I went to Havertys Funiture and bought a new couch and took them up on 36 months 0%. The total was 4k and 400 down. I applied and they approved me for 5k which would have put this card at 72% util which would really hurt my score. So I called them and had them CLI, only got $6,600 total but now my util will be like 55% which looks much better. 

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What kind of couch?

@Anonymous me a miser, but our last couch set cost less than $600 @ Ikea..