cancel
Showing results for 
Search instead for 
Did you mean: 

Hypothetical utilization vs interest

tag
Anonymous
Not applicable

Hypothetical utilization vs interest

So I let a friend borrow some money and I charged my prime card to where it is at 68% utilization. I have another card I can move the same amount of money to and it would only bring it to 26%. The catch is, I have no interest on the prime card but will with the other. Is the interest worth it to keep the lower utilization?

Message 1 of 7
6 REPLIES 6
AllZero
Mega Contributor

Re: Hypothetical utilization vs interest

Finances over FICO.

Are you applying for credit? If not, see above.

FICO scores are a snap shot in time. They will rebound once your utilization is under control.
Message 2 of 7
Anonymous
Not applicable

Re: Hypothetical utilization vs interest

Okay ill leave it be. I wont be applying for anything for a while, but I was a bit concerned over existing creditors is all

Message 3 of 7
AllZero
Mega Contributor

Re: Hypothetical utilization vs interest

It's good to be concerned and ask questions.

I think you'll be okay if you aren't maxed out 88.9% or above on the majority of your CCs and keeping balances months on end.
Message 4 of 7
Anonymous
Not applicable

Re: Hypothetical utilization vs interest

Oh okay yea im good then lol

Message 5 of 7
Remedios
Credit Mentor

Re: Hypothetical utilization vs interest

How "good" you are will depend on how long high utilization persists and how your other lenders respond to it.
A month or two are usually not an issue, especially if other cards are within more reasonable percentage.
I would not use 89% as guideline for anything, that's a disaster waiting to happen.
If you have other cards with high utilization, there is always a chance off AA, however small it may be.
The only other issue I see with this, is should you need to apply for something, a card with high utilization may result in denial and/or poor terms.
Hopefully you and your friend have a very clear plan on how fast this is getting paid down.

I dont think you have too much to worry about, but just putting a few things to keep in mind.
Message 6 of 7
SouthJamaica
Mega Contributor

Re: Hypothetical utilization vs interest


@Anonymous wrote:

So I let a friend borrow some money and I charged my prime card to where it is at 68% utilization. I have another card I can move the same amount of money to and it would only bring it to 26%. The catch is, I have no interest on the prime card but will with the other. Is the interest worth it to keep the lower utilization?


It's just a matter of personal priorities, so no one can answer that but you.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.