If you max a card then PIF on the next cycle; long term damage?

[webhopper]

Does it do any long term damage to Ficos if you Max a card out and then pay in full next cycle?

[MarineVietVet]

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@webhopper wrote:
Does it do any long term damage to Ficos if you Max a card out and then pay in full next cycle?

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Scoring won't care because the utilization will go back down after paying in full but that particular creditor might get a bit nervous and wonder why you maxed out the limit.

[compassion101]

No long term damage. The portion of your score that varies based upon utilization has no memory.

Theoretically a company could check your balance history month-to-month as reported on Experian (not sure if TU ans EQ report balance histories) but I doubt they do that unless it is some specific credit scrutinization.

[Anonymous]

Just make sure your PIF a couple days before the Statement date and not necessarily the due date so that whe it reports on your credit the balance is reported Zero! 

[compassion101]

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@Anonymous wrote:

Just make sure your PIF a couple days before the Statement date and not necessarily the due date so that whe it reports on your credit the balance is reported Zero! 

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I think he is only concerned about long term damage. In which case no need to pay beore the statement date iv he isn't applying or credit this month.

[webhopper]

I had maxed my discover card. Its been open since 99. I had a BT promote that I took advantage of as well as a cruise through shopdiscover. I'm fairly certain discover isn't going to take AA on a card that's been open since 1999 with no late pays. Ive also maxed the card out in the past to use for reimbursed travel and lodging expenses.

The reason I asked is because I was browsing the auto forums and someone advised a guy to apply for an auto refi "as long as he hadn't had late payments or Max a card in the last year"

I thought they was odd but I wanted to bring the topic here to make sure I wasn't missing anything.

My discover was maxed march; PIF in may. Then maxed again at the end of may and PIF in July.

I knew I would be using the full limit on the card; so I called and asked for a CLI but they couldn't do it without a HP.

We had bought a new house in January; done a 4k septic repair in April; married in may; Alaskan cruise for three in June. I guess we've been living larger than life but we.actually had about 4 major life events within a 6 month time period. I'm glad things are semi Back to normal. We had the income and savings to support all of this activity; but you have to admit that maxing out a 4200 card and paying off completely twice is a little unusual

[Revelate]

WH: You know to take everyone's comments with a grain of salt on this forum .

I'll have to go look for that one but the others are correct: FICO itself has no memory when it comes to the revolving utilization calculation.  Underwriting could see a high balance and aggregate payment and might ask (incredibly doubtful assuming you paid it, credit cards are designed for short-term float just like you used it) but if they do, just explain exactly what you said here on this forum.  No big deal.

Edit: that's for auto-loan underwriting where it's almost guarunteed to be a wash if noticed at all; credit card app, it'd probably be viewed as a straight positive in underwriting... people who use their cards make lenders money.

[webhopper]

I'm going to be applying for a mortgage refi. The lender is already aware that I maxed my card because I wouldn't let the LO pull credit until that balance was paid off. She said I probably qualified despite the score drop but I'm very close to the top tier rates and for a 30 yr mortgage; the difference in rates would cost me about 10k over the life of the loan. I told her the card was maxed due to the wedding. Haha she wanted to pull credit anyways. I have my reports frozen; but I will unfreeze them after balances update

[Revelate]

You worry way too much WH .  You'll be absolutely fine, you know what's up credit-wise.

[webhopper]

Thanks for the input guys. My husband tells me the same thing; that I worry way too much.