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letting a large balnce post

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Established Contributor

letting a large balnce post

I am doing some major house repairs, which the estimated cost is about $32K. I will be putting it on my amex platinum card, (not the best maximizer of points, but do not have a card with such a high limit). Should i let balance post and pay it off to show that i can handle such a large balance, and being on a charge card, it won't effect my uti, or should I pay it off before the statement closes not to spook other creditors, factoring in current economic conditions?

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Frequent Contributor

Re: letting a large balnce post

Does your Plat have a spending power limit of 32k? Just because there is no pre-set spending limit that doesn't mean you have no limit.

 

If a large purchase like that isn't common then, at MINIMUM, a call to Amex for a heads up will benefit you. Any out of normal purchase activity can attract attention.

 

If you do not currently have a card with that available limit than I would be hesitant to charge, or try to charge, 32k without checking in with Amex first.

Message 2 of 9
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Established Contributor

Re: letting a large balnce post

@AndypandaI mean do you have any cards that have better rewards or maybe get a new card with a big sign up bonus that may have a decent limit. Whats your highest limit and also like someone else said are you for sure that AMEX will approve the 32K.

Message 3 of 9
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Community Leader
Senior Contributor

Re: letting a large balnce post

If using Amex, definitely check that the card will support charge, and most definitely inform CS of charge way out of your pattern. I'd pay as much off before statement close.

Message 4 of 9
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Established Contributor

Re: letting a large balnce post


@blindambition wrote:

If using Amex, definitely check that the card will support charge, and most definitely inform CS of charge way out of your pattern. I'd pay as much off before statement close.


Did that before i posted here.

Message 5 of 9
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Established Contributor

Re: letting a large balnce post

If floating 32k to due date would benefit your cash flow, then I'd let it report (provided your credit + income supports some higher spend than average)

 

The Amex Biz Plat gets 1.5x on $5k+ purchases, and it could help you avoid reporting a large balance. The extra rewards would help subsidize the AF, too.

+ 100K SUB if you've never had the card before. or 95K + referral

 

I don't personally like letting revolvers report high balance, but I wouldn't care about a charge card as it doesn't affect score

Smiley Embarassed
Message 6 of 9
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Established Contributor

Re: letting a large balnce post


@Dumbee wrote:

If floating 32k to due date would benefit your cash flow, then I'd let it report (provided your credit + income supports some higher spend than average)

 

The Amex Biz Plat gets 1.5x on $5k+ purchases, and it could help you avoid reporting a large balance. The extra rewards would help subsidize the AF, too.

+ 100K SUB if you've never had the card before. or 95K + referral

 

I don't personally like letting revolvers report high balance, but I wouldn't care about a charge card as it doesn't affect score


I have the money saved up for a case like this, and paying it off will be no problem. This is work that has to be done. I have the buisness gold. I don't know if I should open the biz platinum, can't justify the annual fee beyond 1st or second year.

Message 7 of 9
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Member

Re: letting a large balnce post

I wouldn't get in the habit of letting balances post unless absolutely necessary.  I once got out of my paying balances down right away habit and accidentally got a Late.  I was able to fix the issue but it only happened bc I switched my habit.  

 

I guess what I'm saying is, if you don't usually let balances post, don't start now.

 

Good luck on the project (that's a huge stress sometimes)!!!


@Andypanda wrote:

I am doing some major house repairs, which the estimated cost is about $32K. I will be putting it on my amex platinum card, (not the best maximizer of points, but do not have a card with such a high limit). Should i let balance post and pay it off to show that i can handle such a large balance, and being on a charge card, it won't effect my uti, or should I pay it off before the statement closes not to spook other creditors, factoring in current economic conditions?


 

A Bank is a place that will lend you money as long as you can prove you don't need it -Bob Hope
Message 8 of 9
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Moderator

Re: letting a large balnce post

It really comes down your profile including your capacity to repay the borrowed amount.  Having a large balance on a card one month and paying it off as agreed the next shows responsible credit usage.  While there may be some extreme examples (i.e. exaggerated Barclaycard "This cardholder let a $5 balance post to their Discover card - maybe they are about to file bankruptcy?  We'd better CLD them first."), the overwhelming majority of lenders do monthly account reviews and make decisions based on patterns.  If you have $60k in income, and charge $30k this month, then the balance on that or other accounts keeps going up, up, up in consecutive months, they may have cause for alarm.  Otherwise, charge away, enjoy your grace period, and enjoy your rewards.

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