maxing out a CC

[Andypanda]

I had some major expenses come up this mont, so I have bearly maxed out my discover card. I plan on paying it immeditly before the cycle ends, so I am not worried about effects on my Fico. My question is, I have read that CC companies do not like seeing people max out their card, but since I paid it off immeditly, will Dico frown upon it, with preventing future CLI, or worse possible AA?

Thanks for the help,

Andy

(do witches use spell check?)

[Brian_Earl_Spilner]

Disco and capital one are 2 banks that could care less if you're maxed and carrying a balance forever. It's one of the reasons I will always carry a cap1 card even after my rebuild is complete. They'll never block a charge and they'll never hassle me if I have to carry a balance.

[Andypanda]

I did have an issue early this week. I live in Sacramento, but I went down to L.A. to do some Passover shopping ( 500 miles south). Ithe bill came out to about $1100 dollars( part of the usuue why i am close to my max). I forgot to call ahead to say i was traveling, so initially the charge was declined. I had to call disco so the payment could go through. The cashier didn’t mind, but I could tell the people behind me were getting annoyed..

[Anonymous]

Lenders don't like seeing a maxed out CC while you're applying for a loan and such--and it'll impact your score heavily (probably around 70 points).
If they see your card currently maxed out for 4 months straight, they'd be very cautious to release you much.

But what you're doing? It'll never pop up on any credit report. Only your card issuer will know about it in their internal records. And they issued that credit limit because they believed you to be good for it. A lot of people are having their AMEX cards saying "use it or lose it!" by slashing credit limits for people who aren't using anywhere near their limits ("why did we give this Steve guy a $35k limit when he only charges about $200/month on it...?").

[CreditInspired]

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@Andypanda wrote:

I did have an issue early this week. I live in Sacramento, but I went down to L.A. to do some Passover shopping ( 500 miles south). Ithe bill came out to about $1100 dollars( part of the usuue why i am close to my max). I forgot to call ahead to say i was traveling, so initially the charge was declined. I had to call disco so the payment could go through. The cashier didn’t mind, but I could tell the people behind me were getting annoyed..

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I think the reason for the initial decline was due to it being a large amount charged away from your homebase and Disco algorithm thinking possible fraud. So paying it in full or paying more than the minimum is okay. You’ll be fine. 

And ppl behind you being annoyed—meh. 

[tcbofade]

As already mentioned, you are over thinking this one.  This is WHY credit cards exist, and if you plan to pay it before the statement cuts, no one will ever see it.

...and if you don't, maxing out the card WILL affect your score for 30 days but if you're not applying for anything in that month, then it STILL won't matter any.

Use your card as needed and pay it off.  Repeat as necessary. 

[Shooting-For-800]

Keep in mind that you can always send payments early before you statement cuts especially if you are real close or over your limit.

[pinkandgrey]

I can’t imagine Discover having a problem with that. Just pay it as soon as you can. 

[jamesdwi]

a couple weeks ago, I did a BT to cover some surprise expenses,  pro-tip don't go to phoenix, AZ during spring training, hotel prices basicly double.  (couldn't be avoided, wife's DM ended up in the hospital, for 10 days). So I BT $5000 to my discover card for 18 months at 5.99% no fee. The CL was $18,000 at the time, after the BT had posted. I requested a CLI.  I expected the typical $500 CLI, but they surpised me, and gave me a full $5000 CLI basicly covering the BT effect on my UTL. 

My advice would be to pay down some of the Balance on the card so its not maxed out and request a CLI and see what happens. If your gutsy and have a good history with Discover, do the request without paying it down and see what happens. 

[Anonymous]

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@Brian_Earl_Spilner wrote:

Disco and capital one are 2 banks that could care less if you're maxed and carrying a balance forever. It's one of the reasons I will always carry a cap1 card even after my rebuild is complete. They'll never block a charge and they'll never hassle me if I have to carry a balance.

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But other banks might see your Discover or Capital One maxed out and take action. I myself would not let a maxed out account report. Just pay before the statement cuts.