Credit card ulitization and how does it efect my score.

[firefox100]

Here is the story, I have fico scores around 790 with total credit lines of 118.150K and total ulitization of 2 percent owe 2.2k on all my cards. I just got Wells fargo amex card with cl of 7k. To get the 300 bouns you need to spend 3k in 3 months. If I put 3 grand on card and pay it off over three months How big of hit will that amount hurt my scores. On that one card it will take my ulitization over 36 percent ulitization. My ulitization on any card is less then 10 percent and most have 0 percent.

[Anonymous]

dont put all 3k on it at the same time, only put on it what you can pay off before the statements ending date, thus keeping you at a 0% UTI for that card (reported). 

If you put all $3K on it al once, and carry a balance on it for the 3 months, then the amount your paying in interest and fee's will negate most of that $300 bonus, which would be pointless to even do it to begin with.

Do you have a card with a 0% balance transfer?  If so, then you can use the WF card and hit the $3k spend all at once, and then transfer the balance over to the 0% card, and pay it off over a few months that way, which will save you from paying a single cent of interest.

[firefox100]

The Wells Fargo amex card has 0 percent for first 12 months ther will be intrest charge. It is Fico scores that may be problem.

[firefox100]

No intrest charge on Wells Fargo Amex card I just don't want to take score hit.

[Anonymous]

The fact that you just added a new account will likely result in a greater hit to your credit scores from the inquiry/age of accounts reductions than having a single trade line report in the 29%-49% range, which is where you'd land with a $3k balance. 

Just make sure you aren't unnecessarily spending here, as you effictively surrender your $300 bonus if you spend $300 or anything that you otherwise wouldn't have.  When you say you're planning on spending $3k (the full amount required for the bonus) immediately, it just makes me wonder if that $3k is a necessary spend or not.  There's no benefit to spending it all at once, so long as you hit the $3k spend within the [3 month] required time frame for the SUB.

[SouthJamaica]

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@firefox100 wrote:

The Wells Fargo amex card has 0 percent for first 12 months ther will be intrest charge. It is Fico scores that may be problem.

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Utilization is based on the reported balance only, so make sure statement balance doesn't exceed $1960. If you spend more than $1960 in 1 month, make sufficient payments prior to statement date to bring it down to $1960 or less.

[firefox100]

The 3 grand that I will put on the card is for my carring charges for co op wher I live. I will pay 2 months. After 3 percent charge I will net 260 dollars. How fast does score go back up after I pay the card off.

[xaximus]

Credit Card UTI and the impact it has on your FICO score is dynamic. I would do the charge and then make the payment once the charge is no longer pending. If you don't want to take the chance of the charge reporting, make the payment as soon as you see it clear. Other wise, you can make 1.5k payment a month. The drop in your score will come back once the payments have cleared and reported to all CRAs.