cresit utilization question.

[Anonymous]

I have 2 credit cards, one with a 2k limit and a 16% interest rate. And one with a $500 limit but current rate of 0% till next April. Looking to make a few purchases of roughly 350-400 in the next week or so and have already made a plan to pay about $75 per week towards these upcoming purchases. Both cards currently have a $0 balance. Now I'm wondering which card I should use. Obviously the 0% card is what I would presume to use since it'll be payed off shortly but that would come close to the credit limit on it. And I'm unsure if your credit utilization is factored in from card to card or all put together. Will using the 0% card hurt my score since it would be about 80% of the balance.

[Anonymous]

If you are paying that much per week then I suggest the 0% so you do not have residual interest from the grace period on the 16% card.

[OmarGB9]

Both utilization are taken into account. But as I've told other forum members, unless you have an upcoming app spree or mortgage or car purchase, don't freak out about util. Once you pay down your balances, your scores will recover from the temporary drop due to high util.

[Anonymous]

One month you'll hardly feel the sting. Do you plan on beginning payments immediately after the charge is made? If so you should be down to $125-175 by the time statement cuts depending on your timing.

[Anonymous]

I agree with the others; use the 0% APR card and just start paying on it right away. Who knows, maybe it'll even lead to a CLI.

[NRB525]

+4

Use the $500 limit card.

And make sure once this is paid off, that at least one of those two cards always reports something. If they both report $0 balances at the same time, your score will go down.