Individual vs Total Utilization

[Anonymous]

Recently, I applied for the AMEX BCE card and got a 2k limit. The reason I got this card was because I was going to get the S10+ and was going to use the $200 sign up bonus towards the phone. However, my question is will it drop my score by a lot?  My AAoA is about 1 year.

Scores:

Experian - 743

Equifax - 753

TransUnion - 757

Credit Limits:

0/750 - 0% (Capital One)

14/5300 - less than 1% (Discover)

3541/30000 - 11/12% (AMEX CM)

1684/2000 - 84% (AMEX BCE) <-- That's if I were to get the phone.

The highest individual card if I got the phone would be the AMEX BCE card at 84% utilization. However, my overall utilization would be 13/14%. I would bring the balance down for both AMEX cards, but I was just wondering if I put the purchase on the card, would it bring my scores down by a lot since I would have an 84% individual utilization?

[Anonymous]

Given your other limits, I’d think it wouldn’t be too bad a hit but you’d be better putting it on the CM as even with that purchase you’d still be under 18% UTI on that card and would have the BCE at 0%, instead of the CM where it currently is and the BCE at 84%. Putting the S10+ on the CM wouldn’t even cause it to cross a scoring threshold and you’d have the BCE as a buffer for your aggregate, plus would have another card reporting 0%.

Granted it may all be academic since the BCE won’t report for a couple months, and since you said you’ll pay it down, I’m assuming you mean you’d pay it down in a fairly quick timeframe. If you can pay it down or off in a couple months, then the BCE is the one to use. As you likely know, AmEx won’t report it until probably after your second statement cuts, so in essence you have a hidden place to put a purchase that uses a large part of your SL and pay it off before it reports its existence.

[HeavenOhio]

Welcome, @Anonymous.

As BBS would say, overall utilization is king when it comes to scoring. In your case, you're staying the same, moving from 10% to 14%. We always tell people that a maxed out card will significantly ding one's scores, but you're short of maxed (88.9%). Still, you'll be crossing two thresholds (48.9% and 68.9%). I'd expect a scoring ding to be noticeable, but something that your profile can easily absorb. Someone else can chime in with a point prediction.

@Anonymous  makes a key point about the card likely not reporting until the second statement. So you have some flexibility there.

More than your score, I'd be concerned about AMEX. Your balances are fine. But they do like to get paid, and they'll get cranky if you're paying at or near the minimum over a period of time. How much have you been throwing at your Cash Magnet balance each month? And how much do you plan to put toward the new card's balance?

[Caardvark]

Good advice from both posters above. Two other options that might be possible by calling Amex:

1. Recon the SL of the BCE
2. If you are not successful wiuth #1, see if they'll move/reallocate some of your CM credit line over to the BCE

[Anonymous]

@HeavenOhio I have been putting 1-2.5k monthly since I got the Cash Magnet card. I have also been paying it off in full until this month. I will be paying above the minimun on the card for a few months. As for the BCE, I was just planning on putting the S10+ purchase and then keeping it at a zero balance or less than $10. The card was mainly for the sign up bonus.

[Anonymous]

The questin is how long before you pay off teh S10+? Because like another member posted, it usually takes Amex a couple months for them to post the new accounts to your CR. Kind of a grace period if you will. That rougly $800 per month to wipe it out, or at the very least pay it down to 28% before the statement posts on your second month.

[dynamicvb]

A little off topic, but are you sure you will get the sub? I'm guessing you got the one/s on the cash magnet and it was my understanding that Amex won't give a sub on a second card if you have already received one on another. Or is my information incorrect?

[Anonymous]

@ynamicvb I did not know about this. So, I did a bit of research on it and I am unsure if I would even get the bonus. Both the BCE and CM have the same type of rewards program, which makes it seem like I would not get the bonus. However, they are not within the same line up from my understanding. I think I might just end up putting it on my CM card instead.

[Anonymous]

AMEX told me they are not in the same family and therefore would not do a PC, so therefore you should be good, IMHO.