@lg8302ch wrote:
@Anonymous wrote:I recently opened a "Home Improvement" Visa Card for a new A/C system. I normally keep all my Credit Cards at between 2 and 9 percent usage each month, but this card will be maxed out at the beginning. This card will bring my total usage to about 26 percent. How bad is keeping it at 26 percent for one year or - more importantly - will I be taking a HUGE hit on my FICO score, or a minor one? Thank you in advance!
Welcome to the forum
Since utilization is 30% of the Fico score it will hit you a bit for the maxed out card. But if you are not applying for anything there is no problem with that at all if you only do it on 1 card and keep paying more than the minimum. Less than 30% is still a healthy utilization. You mention you use all of your cards between 2-9 %. Does this mean you let these amounts report on each card ? If so then please pay down to 0 balance before the statement is cut on all cards but the card you will carry the balance. Reporting balances on more than 50% of the accounts is a heavy EQ Fico score killer. Which card is it ? Maybe a CLI possible to lower card utilization ?
Unfortunately it is hard to predict how the utilization will affect your profile. There is no one size fits all.
This could use a little definition, but I doubt it is more than a few points. The advantage to keeping all cards reporting something is that the FICO score gets used to that, is not shocked when one card suddenly reports something, even $20 after being $0 for months, when the dilligence of the cardholder slackens one month when they are not paying everything prior to statement. We also have no indication of what OP's scores currently are.
As to the utilization for buying the A/C system this is presumably on a low or zero interest offer, and cash interest savings always trumps FICO score considerations.
