CC with 50-60% Util, Need advice.

Anonymous · ‎08-04-2016

Gents,

I need help, i dont have CC problems, my total util is 1% and my FICO8 score are over 720, here is my question, i need/must to do a very large purchase over $7500 and i am planning to use my CITI Costco visa (CL $15000), i have like 6 months left on my 0% intro APR and my plan is to PIF in 2-3 months so here are my questions:

1- My card util will be around 50%, will this damage my relationship with the CC lender (CITI)?

2- My total util will be around 4-5%, how bad is this?

3- Will having a high balance in that CC damage my relationship with my other CC lenders even though i dont have any balance with them?.

4- I know its hard to say but how bad my score will suffer?, 20, 30, 40 points drop??

I have a very clean file and good relationship with my CC lenders so far.

Any advice will be great.

Thank you guys.

Anonymous · ‎08-04-2016

I'll speak to the things I know with almost 100% certainty first:

A 4-5 % utilization is well below the safe zone of 25-30%. You will be more than fine. Your score should not drop by 20-40 points. I would be surprised if it did. How much it will drop is anyones guess. Maybe 5-12? (And that is a complete guess. It may only drop a point or two.)

Now on to what I'm not as sure of...

As far as your relationship with Citi, you're utilization will be high(er) with that card specifically and I do know that when you apply for an increase they cite your balance with them in their letter of denial (they did with me but I have high util. across the board).Yoru're likely fine to get approved for another card even with a 7.5k balance but if you want to play it safe, maybe wait until you made your 1st or 2nd month payment on that purchase as you'll have decreased it a decent amount. You're relationship certainly won't be damaged with them, and you could probably get an increase even with a 7.5k out of 15k limit balance.

SouthJamaica · ‎08-04-2016

@Anonymous wrote:
Gents,

I need help, i dont have CC problems, my total util is 1% and my FICO8 score are over 720, here is my question, i need/must to do a very large purchase over $7500 and i am planning to use my CITI Costco visa (CL $15000), i have like 6 months left on my 0% intro APR and my plan is to PIF in 2-3 months so here are my questions:

1- My card util will be around 50%, will this damage my relationship with the CC lender (CITI)?

No it won't damage your relationship with the lender.

2- My total util will be around 4-5%, how bad is this?

Not bad

3- Will having a high balance in that CC damage my relationship with my other CC lenders even though i dont have any balance with them?.

No

4- I know its hard to say but how bad my score will suffer?, 20, 30, 40 points drop??

It's impossible to say. My guess is less than that, more like 10 points, since you have a deep file. But whatever it is, it will be just temporary.

I have a very clean file and good relationship with my CC lenders so far.

Any advice will be great.

Thank you guys.

Unify FCU Platinum Visa Variable Rate 35k

TD Bank Business Solutions Visa (Bus) 25k

FNBO Evergreen Business Edition Visa (Bus) 20k

Liberty (formerly Evansville Teachers) FCU Platinum Prime Plus MC 15k

US Bank Triple Cash Rewards Visa (Bus) 12k

SEG-fenced credit union Platinum Visa 10500

Comenity AAA Travel Advantage Visa $6200

Members 1st FCU Low Rate Platinum Visa 5k

PLOC: Langley FCU 40k; Penfed CU 15k; NFCU 15k; Teachers FCU 15k; Affinity FCU 10k. BLOC: NFCU 5k

Total revolving limits 741200 (620700 reporting) FICO 8: EQ 703 TU 704 EX 691

Anonymous · ‎08-04-2016

It shouldn't hurt you at all. As long as you have a good relationship with them now? I have done this with promos and nothing has ever changed. Really never got a boost for paying them off either.

Anonymous · ‎08-04-2016

Thank you guys, it seems like i will be ok, i can take 10-15 points drop no problem eventually i'll get them back, the only thing that is bothering me is the relationship with citi, i have this card for a 1.5 months only and no previous relation with them, i am thinking on this card because is the only one with high CL and 0% APR, i do have a good relation with chase but no 0%, i have 16% APR with them.

Thomas_Thumb · ‎08-04-2016

@Anonymous wrote:
Thank you guys, it seems like i will be ok, i can take 10-15 points drop no problem eventually i'll get them back, the only thing is bothering me is the relationship with citi, i have this card for a 1.5 months only and no previous relation with them, i am thinking on this card because is the only one with high CL and 0% APR, i do have a good relation with chase but no 0%, i have 16% APR with them.

The reason for the 0% APR is that Citi is trying to encourage you to use the card heavily and anticipate that you will carry a balance. So, no harm in maintaining a balance (particularly under 50%) during the 0% APR period - as long as you don't forget to pay at least the min due before the due date.

Let us know how your scores react. My guess is a drop of 10 to 20 points because the account is so new. As stated above, the drop is temporary so no worries.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950

JLK93 · ‎08-04-2016

@Anonymous wrote:
Gents,

I need help, i dont have CC problems, my total util is 1% and my FICO8 score are over 720, here is my question, i need/must to do a very large purchase over $7500 and i am planning to use my CITI Costco visa (CL $15000), i have like 6 months left on my 0% intro APR and my plan is to PIF in 2-3 months so here are my questions:

1- My card util will be around 50%, will this damage my relationship with the CC lender (CITI)?
2- My total util will be around 4-5%, how bad is this?
3- Will having a high balance in that CC damage my relationship with my other CC lenders even though i dont have any balance with them?.
4- I know its hard to say but how bad my score will suffer?, 20, 30, 40 points drop??

I have a very clean file and good relationship with my CC lenders so far.

Any advice will be great.

Thank you guys.

You'll probably be flooded with BT offers from your other creditors.

Anonymous · ‎08-04-2016

@oilcan12 wrote:
@Anonymous wrote:
Gents,

I need help, i dont have CC problems, my total util is 1% and my FICO8 score are over 720, here is my question, i need/must to do a very large purchase over $7500 and i am planning to use my CITI Costco visa (CL $15000), i have like 6 months left on my 0% intro APR and my plan is to PIF in 2-3 months so here are my questions:

1- My card util will be around 50%, will this damage my relationship with the CC lender (CITI)?
2- My total util will be around 4-5%, how bad is this?
3- Will having a high balance in that CC damage my relationship with my other CC lenders even though i dont have any balance with them?.
4- I know its hard to say but how bad my score will suffer?, 20, 30, 40 points drop??

I have a very clean file and good relationship with my CC lenders so far.

Any advice will be great.

Thank you guys.

You'll probably be flooded with BT offers from your other creditors.

Well, i have been getting offers from citi (citi diamond preferred) every week, last two were 0% for 12months and then 21.24 APR, last one (yesterday) was 0% for 18 months and then 21.24 APR, also the offer says: You've been PRE-SELECTED to apply" so not interested in a HP for a pre-selected offer, with 21.24 APR i don't think i'll get i high CL.

Will this type of cards be better for what i need?.

JLK93 · ‎08-04-2016

@Anonymous wrote:
@oilcan12 wrote:
@Anonymous wrote:
Gents,

I need help, i dont have CC problems, my total util is 1% and my FICO8 score are over 720, here is my question, i need/must to do a very large purchase over $7500 and i am planning to use my CITI Costco visa (CL $15000), i have like 6 months left on my 0% intro APR and my plan is to PIF in 2-3 months so here are my questions:

1- My card util will be around 50%, will this damage my relationship with the CC lender (CITI)?
2- My total util will be around 4-5%, how bad is this?
3- Will having a high balance in that CC damage my relationship with my other CC lenders even though i dont have any balance with them?.
4- I know its hard to say but how bad my score will suffer?, 20, 30, 40 points drop??

I have a very clean file and good relationship with my CC lenders so far.

Any advice will be great.

Thank you guys.

You'll probably be flooded with BT offers from your other creditors.
Well, i have been getting offers from citi (citi diamond preferred) every week, last two were 0% for 12months and then 21.24 APR, last one (yesterday) was 0% for 18 months and then 21.24 APR, also the offer says: You've been PRE-SELECTED to apply" so not interested in a HP for a pre-selected offer, with 21.24 APR i don't think i'll get i high CL.

Will this type of cards be better for what i need?.

If you are going to pay it off in 2 or 3 months it shouldn't matter.

You can go ahead and make the purchase with your Costco card, and then later accept a good BT offer on another card.

Once your balance reports, you'll receive BT offers from your other cards, if you have any other cards. If not, you'll get new BT offers. You can then pick the best one.

Anonymous · ‎08-09-2016

Hi guys,

Well after pull some strings i think i won't go to 50-60% Util on my card, instead will be less than 30% which is better than 50-60% lol, i do have a question though, 30% util will have the same effect (points drop) than using 20% of the total CL?, is there a threshold between them?

Thanks in advance.