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Hypothetical utilization vs interest

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Regular Contributor

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?

























Think I am going to garden until at least March of 2020 as that is when 3 inquires will drop and all but one will be over a year old. At that point, I may do a hard pull for a line increase on my chase prime card or maybe go for a savor card assuming it is not offered to me as a promotional upgrade. By June of 2020, I will be apping for a Citibank personal line of credit and overdraft line to equal what I have at USBank, so I may just do nothing until then.
Message 1 of 7
6 REPLIES 6
Frequent 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
Regular Contributor

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

























Think I am going to garden until at least March of 2020 as that is when 3 inquires will drop and all but one will be over a year old. At that point, I may do a hard pull for a line increase on my chase prime card or maybe go for a savor card assuming it is not offered to me as a promotional upgrade. By June of 2020, I will be apping for a Citibank personal line of credit and overdraft line to equal what I have at USBank, so I may just do nothing until then.
Message 3 of 7
Frequent 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
Regular Contributor

Re: Hypothetical utilization vs interest

Oh okay yea im good then lol

























Think I am going to garden until at least March of 2020 as that is when 3 inquires will drop and all but one will be over a year old. At that point, I may do a hard pull for a line increase on my chase prime card or maybe go for a savor card assuming it is not offered to me as a promotional upgrade. By June of 2020, I will be apping for a Citibank personal line of credit and overdraft line to equal what I have at USBank, so I may just do nothing until then.
Message 5 of 7
Community Leader
Mega Contributor

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.
EX 754 EQ 774 TU 752


Message 6 of 7
Super Contributor

Re: Hypothetical utilization vs interest


@TwilightSymphonie 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 719k (592500 reporting) FICO 8 scores: EQ 735 TU 782 EX 746
Message 7 of 7
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