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Pay in full or let it ride?

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PaidinFull5
New Member

Pay in full or let it ride?

I've been rebuilding my credit since 2016 when I filed BK on only 13k. I currently own a home, financed car (6k left on loan) and have 4 CC with combined credit of 37k. I just opened my first Amex card and it came with a 2k limit 🫤 I pay all my cards in full each month but the Amex I had plans to take advantage of the 0% for a purchase of $1,411. Should I make the purchase and just pay it in full or would taking advantage of the 0% for 15 months be okay since all other cards carry no balance? 

Message 1 of 14
13 REPLIES 13
FireMedic1
Community Leader
Super Contributor

Re: Pay in full or let it ride?


@PaidinFull5 wrote:

I've been rebuilding my credit since 2016 when I filed BK on only 13k. I currently own a home, financed car (6k left on loan) and have 4 CC with combined credit of 37k. I just opened my first Amex card and it came with a 2k limit 🫤 I pay all my cards in full each month but the Amex I had plans to take advantage of the 0% for a purchase of $1,411. Should I make the purchase and just pay it in full or would taking advantage of the 0% for 15 months be okay since all other cards carry no balance? 


Welcome @PaidinFull5 

Which card? Whats the credit limit? When you say pay off all the cards is that before statement date or after? If nothing reports a balance. You lose points.




Homeowner since Sept 2020. 2021 Explorer ST Chase 3.1%. Sharing my experiences after BK from learning here. Started 540's.
Message 2 of 14
PaidinFull5
New Member

Re: Pay in full or let it ride?

I pay the day I get the statement from the bank on all my cards. I recently got my first Amex card with a 2k limit and what I needed it for cost $1,411. I dont know if I should go through with the purchase. I can pay for this purchase in full but Amex blue cash everyday has a $250 bonus when you spend 2K and 15 months of 0% apr. So even though this purchase will take me close to 75% utilization, I am worried that Amex would consider me a risk and likely not up my limit in the future..

Message 3 of 14
Remedios
Credit Mentor

Re: Pay in full or let it ride?


@PaidinFull5 wrote:

I've been rebuilding my credit since 2016 when I filed BK on only 13k. I currently own a home, financed car (6k left on loan) and have 4 CC with combined credit of 37k. I just opened my first Amex card and it came with a 2k limit 🫤 I pay all my cards in full each month but the Amex I had plans to take advantage of the 0% for a purchase of $1,411. Should I make the purchase and just pay it in full or would taking advantage of the 0% for 15 months be okay since all other cards carry no balance? 


Depends on your other lenders.

Some may assume their card is next to be maxed out or close to it then proceed with AA.  

It will also probably stop you from getting increases on your other cards (if you care about that) until utilization is a bit more reasonable. 

Since you already have the worst derog, I'd be careful with high utilization, but again, that depends on your other lenders.

Amex would be fine as long as you aren't making minimum payments and it's obvious card would've paid off before promo expires. Don't make small payments thinking it will be okay untill you make a bulk one at the end, they really aren't fans of minimum. 

 

The amount you were approved for won't increase for a while, so the only way to decrease utilization is going to be via payments. 

 

"To The Left" ~ Gandhi
Message 4 of 14
simplynoir
Community Leader
Mega Contributor

Re: Pay in full or let it ride?


@PaidinFull5 wrote:

I've been rebuilding my credit since 2016 when I filed BK on only 13k. I currently own a home, financed car (6k left on loan) and have 4 CC with combined credit of 37k. I just opened my first Amex card and it came with a 2k limit 🫤 I pay all my cards in full each month but the Amex I had plans to take advantage of the 0% for a purchase of $1,411. Should I make the purchase and just pay it in full or would taking advantage of the 0% for 15 months be okay since all other cards carry no balance? 


AMEX is a strange creature at times. They don't mind you paying it slowly off to take advantage of the intro offer you get with the card but at the same time they want to get paid. Don't know if it is still a thing with them but they occasionally send "helpful" emails to customers that have lingering balances and it seems to be a roundabout way of telling you "pay me!" to me. If you're going to take advantage of the 0% intro offer I would just make sure to pay a little more than the minimum payment. Impact to your scores for utilization is temporary as you pay your balance down

Message 5 of 14
PaidinFull5
New Member

Re: Pay in full or let it ride?

I have high limits on my other cards and when I have asked for limit increase in the past its always " the current credit line usage is not high enough to justify limit increase." 

Message 6 of 14
PaidinFull5
New Member

Re: Pay in full or let it ride?


@simplynoir wrote:

@PaidinFull5 wrote:

I've been rebuilding my credit since 2016 when I filed BK on only 13k. I currently own a home, financed car (6k left on loan) and have 4 CC with combined credit of 37k. I just opened my first Amex card and it came with a 2k limit 🫤 I pay all my cards in full each month but the Amex I had plans to take advantage of the 0% for a purchase of $1,411. Should I make the purchase and just pay it in full or would taking advantage of the 0% for 15 months be okay since all other cards carry no balance? 


AMEX is a strange creature at times. They don't mind you paying it slowly off to take advantage of the intro offer you get with the card but at the same time they want to get paid. Don't know if it is still a thing with them but they occasionally send "helpful" emails to customers that have lingering balances and it seems to be a roundabout way of telling you "pay me!" to me. If you're going to take advantage of the 0% intro offer I would just make sure to pay a little more than the minimum payment. Impact to your scores for utilization is temporary as you pay your balance down


I am trying to build a good relationship with Amex as I did with other cards. I think I'll make the purchase and pay it off in two payments. Then rinse and repeat. 

Message 7 of 14
simplynoir
Community Leader
Mega Contributor

Re: Pay in full or let it ride?


@PaidinFull5 wrote:

I have high limits on my other cards and when I have asked for limit increase in the past its always " the current credit line usage is not high enough to justify limit increase." 


Is this AMEX giving you this message? In any case it's exactly as it says since you don't really use the card they cannot justify giving you an increase at this time. I imagine a large purchase that is paid off in a timely manner would help facilitate a future increase

Message 8 of 14
PaidinFull5
New Member

Re: Pay in full or let it ride?


@simplynoir wrote:

@PaidinFull5 wrote:

I have high limits on my other cards and when I have asked for limit increase in the past its always " the current credit line usage is not high enough to justify limit increase." 


Is this AMEX giving you this message? In any case it's exactly as it says since you don't really use the card they cannot justify giving you an increase at this time. I imagine a large purchase that is paid off in a timely manner would help facilitate a future increase


No the Amex was just opened two days ago. This is message I get from Discover 9k limit, Capitail one 6.7K, and Active cash 5.5K. Apple gave me a 10k limit right off the bat and Wells Fargo gave me a 10k business platlium when I opened my Business checking with them. Theres seems to be no method to the maddness and thats what I am here trying to learn.

Message 9 of 14
simplynoir
Community Leader
Mega Contributor

Re: Pay in full or let it ride?

Discover - They are weird with CLIs. Sometimes they'll give out more credit like candy for minimal use and other times regular use sees no CLIs at all. There is really no strategy other than using the card and seeing if they give your more credit

 

Capital One - Not budging unless showing use. This has been known with them for awhile. You can probably get CLIs which are softpulls so doesn't hurt to ask but they'll be small ones in the $100-$500 range without heavy use on the card

 

Wells Fargo - SP with HP if you want to push it with them. Amount of CLIs can vary

 

Apple - I'm not familiar with but can find threads for you if needed

 

Truth be told like you said for a majority of them there is no method to the madness really. Best you can do is research, ask people here for their previous experiences and go from there. Great to hear you're trying to learn so don't be shy about asking questions we are a friendly bunch around here

Message 10 of 14
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