My husband and I were shopping for new furniture for our new house a year ago, so we applied for La-Z Boy/Synchrony credit. My husband only qualified for a $1,200 SL and I was denied altogether, so we waited until last last month to try again.
Our new TV room furniture came to about $7,100, so my husband whipped out his $1,200 La-Z Boy card and the saleswoman called Synchrony for an increase -- he was approved to only $3,000. Since my credit had gotten substantially better since last year, I also applied and was given a $3,000 limit. Our saleswoman then processed his card and my new account number and had both of us sign separate $3,000 receipts to utilize the full combined limit of $6,000 on our purchase. (I paid the remaining balance with my relatively new 0% Amex ED.)
Yesterday, I registered my new La-Z Boy card online and noticed that, although my credit limit was $3,000, there was an Over Limit Amount of $3,000 and the Available Credit was showing as -$6,000. (Our saleswoman must have combined the sale and put the entire $6,000 through my new account -- although I do not know how or why after we signed separate receipts.) It then occurred to me that this account will show on my CRs as 200% utilization -- and, after checking, it does indeed as of 2/19.
On 2/20, after my daily checking of CRs, my heart sunk -- both my EX and TU scores dropped dramatically: EX-25 points and TU-17 points. (EQ is usually very slow to report for me, so I have no idea what to expect, but I am now braced.) . My overall utilization this month has increased from 15% to 19% and, with the new added account, I was expecting drops, but not that steep.
Putting two and two together this morning, I contacted Synchrony to see if they could (i) increase my limit to $6,000, (ii) split the sale between our two accounts, or (iii) combine our two accounts into one joint account, but was told that I had to contact the store to make any changes -- which I did. My saleswoman will get back to me tomorrow. Hopefully, this can be resolved quickly and my scores will reflect a true (gulp) 100% utilization for that account and not be as devastating.
A year ago, I did not think of such things as utilization. Today, I am very glad I do -- otherwise, I would have lived with this scoring deficit for the next half of the 36-month 0% term.
Thanks, again, myFICO!!
