I have an isurance bill due soon and I just found out that I can put it on my Discover card (so I can get 1% CB + 1% matching), and it appears there are no fees for doing so. Unfortunately, I only have a $1k limit, which will put me at 64% usage (at least). Of course, I can pay it off right away, but I try to never go above 30% now, after I nearly maxed my Cap1 card when I first got it (only $300 SL). Discover reports on the 5th and DCU reports on the 11th, so I can try to do it sometime in between so that it doesn't report. Are there any negatives to doing this?
@KLEXH25 wrote:I have an isurance bill due soon and I just found out that I can put it on my Discover card (so I can get 1% CB + 1% matching), and it appears there are no fees for doing so. Unfortunately, I only have a $1k limit, which will put me at 64% usage (at least). Of course, I can pay it off right away, but I try to never go above 30% now, after I nearly maxed my Cap1 card when I first got it (only $300 SL). Discover reports on the 5th and DCU reports on the 11th, so I can try to do it sometime in between so that it doesn't report. Are there any negatives to doing this?
No, Discover actually likes high use of their cards I have had mine to the limit before without a problem and carried balance on it for over year. Just pay the bill the day after your statement cuts which appears to be the 5th of the month and then pay it before the next statement cut so it doesnt show above 30% at the CRA if that is what you wish to do.
Ok, I guess the consensus is to go for it! I'm pretty conservative and not much of a risk taker, so I don't want to screw anything up, but I suppose everything should bounce back up afterward. I'm actually going to ask for a CLI on May 6th (31 days since last request). Is there any benefit to doing it with the high balance, as opposed to doing it after I pay it down? I've seen mixed results on the Data Points thread, but there may be an indication that they're more generous when you're showing a high balance.
@KLEXH25 wrote:I have an isurance bill due soon and I just found out that I can put it on my Discover card (so I can get 1% CB + 1% matching), and it appears there are no fees for doing so. Unfortunately, I only have a $1k limit, which will put me at 64% usage (at least). Of course, I can pay it off right away, but I try to never go above 30% now, after I nearly maxed my Cap1 card when I first got it (only $300 SL). Discover reports on the 5th and DCU reports on the 11th, so I can try to do it sometime in between so that it doesn't report. Are there any negatives to doing this?
As long as you pay the bill after the 5th, or pay Discover down before the 5th, it will be fine.
I don't understand why you referred to DCU.
Because when Discover statement cuts on the 5th it will report a high balance. DCU cuts on the 10th or 11th so if I pay before then, Discover balance will report as paid then. I know I’m overthinking this, but I’m trying to maximize scores before I app for a new card or two. Also hoping to get a CLI but we’ll see.
@KLEXH25
You're golden. I personally don't like to carry any high balances, even though there's some consensus "X lender likes a high balance". I push near max through my daily cards every month, but I typically pay down every week and only run really high balances thru if I was already going to pay that charge in full anyway- obviously to get whatever point benefit with given used card. I usually hit the love button after I've used a card heavy for 2 or 3 weeks and PIF.
You're golden. I personally don't like to carry any high balances, even though there's some consensus "X lender likes a high balance". I push near max through my daily cards every month, but I typically pay down every week and only run really high balances thru if I was already going to pay that charge in full anyway- obviously to get whatever point benefit with given used card. I usually hit the love button after I've used a card heavy for 2 or 3 weeks and PIF.
Utilization scores are not perm.
As your Utilization goes down, your score will go back up.
Don't worry about it and always try to pay 3x your minimum payments.
You will be fine.
GL!
