What if you temporarily exceed 1-9% util?

[Anonymous]

I know the general rule is to not exceed 1-9% utilization on your credit cards, but assume an emergency comes up or you just want to buy a big item and you reach 50-60% utilization, but then you pay it back down within a month or two, will that have a negative effect on your scores?

[Anonymous]

nope - it might cause a little bit of a score flux - but it will stabilize once you pay it down in a month or two...besides utilizing your credit cards for purchases you want to make and are able to pay off should be you first concern before your score, unless:

-you are getting ready to re-finance
-applying for another credit card
-taking out a mortgage
-buying a car or anything else that may require a credit check

Good luck!

[Anonymous]

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stealth71 wrote:
I know the general rule is to not exceed 1-9% utilization on your credit cards, but assume an emergency comes up or you just want to buy a big item and you reach 50-60% utilization, but then you pay it back down within a month or two, will that have a negative effect on your scores?

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1-9% is best case scenario.  30% is okat too.  Any damage to the score from a temporary over utilization will be corrected once balances are paid down, that plus the natural aging of your file will boost your credit.  Don't get too stressed about it just try not to do the things that we know will cause serious damage ie late payments, overlimit, maxing out cards, collections to name a few.  As long as you show responsible use of your credit you creditors will reward you by adjusting your limits etc....

[smallfry]

Well this is another reason to get more available credit.

[Anonymous]

well said all of you. again- so much for staying off the grid

[Anonymous]

Kind of funny I brought this topic up. Completely unforseen, but this afternoon, my wash machine blew out.

[Anonymous]

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@Anonymous wrote:
Kind of funny I brought this topic up. Completely unforseen, but this afternoon, my wash machine blew out.

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I hope you're planning on using a 0% deal from a store card if you can't PIF

[Anonymous]

Unfortunately I haven't received my new Lowe's card yet, so I just used another card. I would have waited, but I kind of need to do some laundry.

[Anonymous]

Oh, that sucks. You didn't even need the card! You could have just gone there and they would have looked up your Lowes account number. Almost all stores will do this if you're charging to their store charge card.

Message Edited by db23 on 10-14-2007 08:23 PM

[Anonymous]

Thought of that, but Lowe's didn't provide me with a huge CL to start with (unlike Home Depot), and I didn't want to darn near max it out in one day. No worries, though.