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To Carry A Balance Or Not Carry A Balance???

Jordan23ww
Established Contributor

To Carry A Balance Or Not Carry A Balance???

I really would like to have my $2100 limit on my Apple card increased. I currently have had my Apple card 5 months and have been unable to be approved for a limit increase.  I had a very difficult time getting approved for the card due to some missed payments on my student loan (haven't missed a payment in 2 years 8 months). I applied for the Apple card and was denied 11 times through the Wallet App and finally on my 12th attempt got approved through the Apple Cart Trick.  All 11 times I was denied for being recently past due. Now when I ask for a limit increase I am denied for the same reason.

 

In November 2020 I did an installment plan for a Macbook Pro with upgrades spending $1800. Between my Apple Card hitting my report in December and my Apple card utilization being at 90% I lost 15 points. For me that was a big deal as I'm trying to get into the 760 range.  Although I had 12 months with 0% interest to pay off the Macbook, out of frustration with my score dipping, I went ahead and paid it off in January.  

 

This month I just purchased an iPhone 12 on a 24 month installment plan.  Currently the phone is using 50% of my total limit. Even with that high utilization my overall utilization is still under 1%. I expect to see another score dip next month with the utilzation well above 10% on this card.  I usually pay in full and follow AZEO.  I'm trying to gauge would it likely improve my chances at eventually getting a limit increase if I just take the Fico score hit and just finance the phone for 24 months or should I just go ahead and pay the phone off? I have the money to pay the phone off today. Just trying to find a way to get Goldman Sachs to trust me more and raise my limit. 

 




Message 1 of 12
11 REPLIES 11
Saeren
Mega Contributor

Re: To Carry A Balance Or Not Carry A Balance???

Honestly they want heavy use every month to increase the limit. Since the phone is 0% for 24 months, there's no real harm in keeping the installment unless you're actively seeking additional credit elsewhere (and even then, 50% utilization on a single card is normal consumer behavior even if it makes all of us here think the sky is falling) so I would probably keep it and continue to use the card. 





Message 2 of 12
Jordan23ww
Established Contributor

Re: To Carry A Balance Or Not Carry A Balance???


@Saeren wrote:

Honestly they want heavy use every month to increase the limit. Since the phone is 0% for 24 months, there's no real harm in keeping the installment unless you're actively seeking additional credit elsewhere (and even then, 50% utilization on a single card is normal consumer behavior even if it makes all of us here think the sky is falling) so I would probably keep it and continue to use the card. 


Thank you so much for this feedback! I just started being responsible with my credit cards in August 2019 when I began my rebuild.  You hit the nail on the head when you said we feel like the sky is falling!😂🤣😂 I used to have multiple  maxed out cards for years and it didn't bother me at all and now letting more than 1% utilization report makes me feel uncomfortable.😄

 




Message 3 of 12
Saeren
Mega Contributor

Re: To Carry A Balance Or Not Carry A Balance???


@Jordan23ww wrote:

@Saeren wrote:

Honestly they want heavy use every month to increase the limit. Since the phone is 0% for 24 months, there's no real harm in keeping the installment unless you're actively seeking additional credit elsewhere (and even then, 50% utilization on a single card is normal consumer behavior even if it makes all of us here think the sky is falling) so I would probably keep it and continue to use the card. 


Thank you so much for this feedback! I just started being responsible with my credit cards in August 2019 when I began my rebuild.  You hit the nail on the head when you said we feel like the sky is falling!😂🤣😂 I used to have multiple  maxed out cards for years and it didn't bother me at all and now letting more than 1% utilization report makes me feel uncomfortable.😄


I was there too but I learned to let go and just make sure what I'm doing is in my budget to pay. 800+ scores tell me that I'm not doing anything wrong. I wasn't seeking credit and now that I have an app planned for next month, I'm going to drop to AZEO for that and then go back to not micromanaging. 





Message 4 of 12
SouthJamaica
Super Contributor

Re: To Carry A Balance Or Not Carry A Balance???


@Jordan23ww wrote:

I really would like to have my $2100 limit on my Apple card increased. I currently have had my Apple card 5 months and have been unable to be approved for a limit increase.  I had a very difficult time getting approved for the card due to some missed payments on my student loan (haven't missed a payment in 2 years 8 months). I applied for the Apple card and was denied 11 times through the Wallet App and finally on my 12th attempt got approved through the Apple Cart Trick.  All 11 times I was denied for being recently past due. Now when I ask for a limit increase I am denied for the same reason.

 

In November 2020 I did an installment plan for a Macbook Pro with upgrades spending $1800. Between my Apple Card hitting my report in December and my Apple card utilization being at 90% I lost 15 points. For me that was a big deal as I'm trying to get into the 760 range.  Although I had 12 months with 0% interest to pay off the Macbook, out of frustration with my score dipping, I went ahead and paid it off in January.  

 

This month I just purchased an iPhone 12 on a 24 month installment plan.  Currently the phone is using 50% of my total limit. Even with that high utilization my overall utilization is still under 1%. I expect to see another score dip next month with the utilzation well above 10% on this card.  I usually pay in full and follow AZEO.  I'm trying to gauge would it likely improve my chances at eventually getting a limit increase if I just take the Fico score hit and just finance the phone for 24 months or should I just go ahead and pay the phone off? I have the money to pay the phone off today. Just trying to find a way to get Goldman Sachs to trust me more and raise my limit. 


You're mixing up 2 completely different kinds of utilization: revolving and installment. They are totally separate scoring factors.

 

To optimize your installment utilization you should pay the installment loan down to 9% of the original amount; then pay as little as you're required to pay from there on out.

 

I don't know what revolving cards you have other than the Apple card, but each month you should let one of your revolving accounts report a balance of $10 to $25, while the others report zero balances.

 

And you should stop applying for things, and stop refinancing.


Total revolving limits 663000 (585000 reporting) FICO 8: EQ 716 TU 742 EX 713

Message 5 of 12
blindambition
Community Leader
Senior Contributor

Re: To Carry A Balance Or Not Carry A Balance???

Carrying balance won't affect the CLI request. GS likes decent spend, but those lates are what's hurting you. DP show GS doesn't like BK and other derogs. Time may be your only option.

Message 6 of 12
Saeren
Mega Contributor

Re: To Carry A Balance Or Not Carry A Balance???


@SouthJamaica wrote:

@Jordan23ww wrote:

I really would like to have my $2100 limit on my Apple card increased. I currently have had my Apple card 5 months and have been unable to be approved for a limit increase.  I had a very difficult time getting approved for the card due to some missed payments on my student loan (haven't missed a payment in 2 years 8 months). I applied for the Apple card and was denied 11 times through the Wallet App and finally on my 12th attempt got approved through the Apple Cart Trick.  All 11 times I was denied for being recently past due. Now when I ask for a limit increase I am denied for the same reason.

 

In November 2020 I did an installment plan for a Macbook Pro with upgrades spending $1800. Between my Apple Card hitting my report in December and my Apple card utilization being at 90% I lost 15 points. For me that was a big deal as I'm trying to get into the 760 range.  Although I had 12 months with 0% interest to pay off the Macbook, out of frustration with my score dipping, I went ahead and paid it off in January.  

 

This month I just purchased an iPhone 12 on a 24 month installment plan.  Currently the phone is using 50% of my total limit. Even with that high utilization my overall utilization is still under 1%. I expect to see another score dip next month with the utilzation well above 10% on this card.  I usually pay in full and follow AZEO.  I'm trying to gauge would it likely improve my chances at eventually getting a limit increase if I just take the Fico score hit and just finance the phone for 24 months or should I just go ahead and pay the phone off? I have the money to pay the phone off today. Just trying to find a way to get Goldman Sachs to trust me more and raise my limit. 


You're mixing up 2 completely different kinds of utilization: revolving and installment. They are totally separate scoring factors.

 

To optimize your installment utilization you should pay the installment loan down to 9% of the original amount; then pay as little as you're required to pay from there on out.

 

I don't know what revolving cards you have other than the Apple card, but each month you should let one of your revolving accounts report a balance of $10 to $25, while the others report zero balances.

 

And you should stop applying for things, and stop refinancing.


Apple Card has a feature where you can make a purchase on the card and it is held back from your credit limit and reported as credit card utilization but functions like a 0% interest installment plan. 





Message 7 of 12
Jordan23ww
Established Contributor

Re: To Carry A Balance Or Not Carry A Balance???


@blindambition wrote:

Carrying balance won't affect the CLI request. GS likes decent spend, but those lates are what's hurting you. DP show GS doesn't like BK and other derogs. Time may be your only option.


Thank you!

 




Message 8 of 12
Jordan23ww
Established Contributor

Re: To Carry A Balance Or Not Carry A Balance???


@SouthJamaica wrote:

@Jordan23ww wrote:

I really would like to have my $2100 limit on my Apple card increased. I currently have had my Apple card 5 months and have been unable to be approved for a limit increase.  I had a very difficult time getting approved for the card due to some missed payments on my student loan (haven't missed a payment in 2 years 8 months). I applied for the Apple card and was denied 11 times through the Wallet App and finally on my 12th attempt got approved through the Apple Cart Trick.  All 11 times I was denied for being recently past due. Now when I ask for a limit increase I am denied for the same reason.

 

In November 2020 I did an installment plan for a Macbook Pro with upgrades spending $1800. Between my Apple Card hitting my report in December and my Apple card utilization being at 90% I lost 15 points. For me that was a big deal as I'm trying to get into the 760 range.  Although I had 12 months with 0% interest to pay off the Macbook, out of frustration with my score dipping, I went ahead and paid it off in January.  

 

This month I just purchased an iPhone 12 on a 24 month installment plan.  Currently the phone is using 50% of my total limit. Even with that high utilization my overall utilization is still under 1%. I expect to see another score dip next month with the utilzation well above 10% on this card.  I usually pay in full and follow AZEO.  I'm trying to gauge would it likely improve my chances at eventually getting a limit increase if I just take the Fico score hit and just finance the phone for 24 months or should I just go ahead and pay the phone off? I have the money to pay the phone off today. Just trying to find a way to get Goldman Sachs to trust me more and raise my limit. 


You're mixing up 2 completely different kinds of utilization: revolving and installment. They are totally separate scoring factors.

 

To optimize your installment utilization you should pay the installment loan down to 9% of the original amount; then pay as little as you're required to pay from there on out.

 

I don't know what revolving cards you have other than the Apple card, but each month you should let one of your revolving accounts report a balance of $10 to $25, while the others report zero balances.

 

And you should stop applying for things, and stop refinancing.


Hey, so the way the Apple Card installment works is you spread out the payment of the device over a specified period of time.  iPhones are 24 months and Mac computers are 12 months.  Although it is technically an 0% APR installment plan the total balance owed of the product shows on your credit report. When I bought my MacBook in November although I only had to pay about $150 a month on MyFico and other credit monitoring apps my Apple Card balance displayed as $1800 owed. That's what I meant by my utilization on the individual Apple Card in comparison to my total utilization.  Now that I have the new iPhone installment it's using 50% of the Apple Card limit.   I had the money to buy these devices on hand. I'm just trying to find the best strategy to get Goldman Sachs to increase my card limit. 

You probably missed it but in the post I mentioned I'm already following AZEO.  As you suggested in your reply with the let $10 to $25 report on one card and pay the rest to $0, I'm already doing that.  Also all my revolving accounts are in my signature. 

 

You mentioned I should stop applying for things and stop refinancing. I'm not sure what made you say that? I haven't  refinanced anything. I didn't mention that in my post. 

 




Message 9 of 12
HeavenOhio
Community Leader
Senior Contributor

Re: To Carry A Balance Or Not Carry A Balance???

@Jordan23ww, is the monthly installment included in the calculation of the monthly minimum payment?

Message 10 of 12
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