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Suddenly Keeping A Balance Effects

TheCollector1
Regular Contributor

Suddenly Keeping A Balance Effects

I currently have 60k available credit among my 10 credit cards. I normally let $500 report on my $10,000 limit discover. I had a medical emergency and have to keep a balance of $3,500 on my discover with the rest reporting $0 until I get my bonus in January when I can pay off the full balance. My average spend on discover is about $1,200 a month paid in full which I will continue to do with the $3,500 sitting there being paid down by about $200 a month until my bonus. My question because I've never carried a balance is how will effect my score having one card report a 30%+ balance for 4 months. All of my cards are 6months old or older so I dont believe it will cause any AA but I'm new to the whole carrying a balance thing. Any advice is appreciated from those who normally carry a somewhat large balance.
Cards I currently have and their CL.
Cap1 Quicksilver $2,100 | Amex BCE $15,000 | Discover It $14,000 | Discover It Chrome $6,000 | Chase Freedom $1,500 | Citi DC $1,000 | PenFed PCR $6,000 | NFCU $13,500 | NFCU(CLOC) $15,000 | PenFed(PLOC) $2,000 | DCU Platinum $10,000 | VS $1,250 | Marvel Mastercard $2,000 | Citizens Bank $2,300 | Lowes $20,000 | Home Depot $1,250 | Gamestop $500 | Target $800 | PayPal Extras $5,000 | PayPal Credit $3,000
Scores as of 4/24/19
(FICO 8)
TU: 727 INQ: 11

EQ: 696 INQ: 17

EX: 696 INQ: 15


AoOA 4yr 2mo
AAoA 1 yr
Gardening until Sept 1st 2019
Business Credit
Amex Amazon Prime Business $20,000
Message 1 of 11
10 REPLIES 10
ImTheDevil
Community Leader
Super Contributor

Re: Suddenly Keeping A Balance Effects

You’ll be carrying a 5.8% balance for 3 months and chipping away at it and then paying it off. You’ll have a negligible, if any, effect on your scores, which won’t matter anyway. Don’t sweat it. Credit lines are there to be used, not just preserved like a classic Ferrari.


Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | FNBO Prime Visa | PenFed PCR | Navy cashRewards | Navy Platinum | Apple | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





Message 2 of 11
HeavenOhio
Community Leader
Senior Contributor

Re: Suddenly Keeping A Balance Effects

The bottom line is that you're going to be fine.

 

Scoring based on your overall utilization is likely to be unaffected. You'll probably be dinged for your individual card utilization going over 28.9%. However, some report not being dinged until exceeding 48.9%.

 

Discover is going to be fine. They're extremely tolerant of people carrying balances with much higher utilization and over much longer periods than you're planning on. Your balance isn't going to be high enough for your other lenders to care about.

Message 3 of 11
TheCollector1
Regular Contributor

Re: Suddenly Keeping A Balance Effects

Thank you for your responses I figured everything would be fine it's just nice to have reassurance.
Cards I currently have and their CL.
Cap1 Quicksilver $2,100 | Amex BCE $15,000 | Discover It $14,000 | Discover It Chrome $6,000 | Chase Freedom $1,500 | Citi DC $1,000 | PenFed PCR $6,000 | NFCU $13,500 | NFCU(CLOC) $15,000 | PenFed(PLOC) $2,000 | DCU Platinum $10,000 | VS $1,250 | Marvel Mastercard $2,000 | Citizens Bank $2,300 | Lowes $20,000 | Home Depot $1,250 | Gamestop $500 | Target $800 | PayPal Extras $5,000 | PayPal Credit $3,000
Scores as of 4/24/19
(FICO 8)
TU: 727 INQ: 11

EQ: 696 INQ: 17

EX: 696 INQ: 15


AoOA 4yr 2mo
AAoA 1 yr
Gardening until Sept 1st 2019
Business Credit
Amex Amazon Prime Business $20,000
Message 4 of 11
BrutalBodyShots
Super Contributor

Re: Suddenly Keeping A Balance Effects

At most, you'd probably experience a 3-5 point ding for your individual card utilization landing in the 28.9%-48.9% range.  On some profiles, this number would be 0 points.

 

AA doesn't happen from utilization alone... definitely not from 35% utilization on a single account.  I've known people that have rolled with 96%-100% utilization on every card (6-7) they have (98% aggregate utilization) for nearly a year without experiencing AA, so long as they were always making their payments on time every month.  Miss 1 payment and all bets are off and it's game on for your lenders to take AA.  My point here is that you have absolutely nothing to lose any sleep over.  In fact, it would probably be a good time to hit Discover up for a SP CLI.  Many people have reported favorable CLI results with their Discover utilization in the 30% range as opposed to single-digit [ideal] utilization. 

Message 5 of 11
TheCollector1
Regular Contributor

Re: Suddenly Keeping A Balance Effects

You were right Brutal. I just recieved a cli of $3,000 with discover two months ago so I hit the love button with this new balance and they gave me $500 increase. It's not much but nice to get another increase after just receiving one such a short time ago.
Cards I currently have and their CL.
Cap1 Quicksilver $2,100 | Amex BCE $15,000 | Discover It $14,000 | Discover It Chrome $6,000 | Chase Freedom $1,500 | Citi DC $1,000 | PenFed PCR $6,000 | NFCU $13,500 | NFCU(CLOC) $15,000 | PenFed(PLOC) $2,000 | DCU Platinum $10,000 | VS $1,250 | Marvel Mastercard $2,000 | Citizens Bank $2,300 | Lowes $20,000 | Home Depot $1,250 | Gamestop $500 | Target $800 | PayPal Extras $5,000 | PayPal Credit $3,000
Scores as of 4/24/19
(FICO 8)
TU: 727 INQ: 11

EQ: 696 INQ: 17

EX: 696 INQ: 15


AoOA 4yr 2mo
AAoA 1 yr
Gardening until Sept 1st 2019
Business Credit
Amex Amazon Prime Business $20,000
Message 6 of 11
BrutalBodyShots
Super Contributor

Re: Suddenly Keeping A Balance Effects

Nice job, glad to hear you got something!

 

With Discover, I suggest requesting a CLI every month following your FICO score updating on their site.  I went a period of 38 weeks where I requested one every single week, every Monday morning.  There's no harm in trying often and on occasion you'll get a better (>$500) CLI which could help your utilization a bit. 

Message 7 of 11
TheCollector1
Regular Contributor

Re: Suddenly Keeping A Balance Effects

Thanks Brutal. That's awesome I didn't realize Discover gave sp cli so frequently. I'm used to being told wait 6 months and try again. Still waiting for that mark with CapOne and Citi.
Cards I currently have and their CL.
Cap1 Quicksilver $2,100 | Amex BCE $15,000 | Discover It $14,000 | Discover It Chrome $6,000 | Chase Freedom $1,500 | Citi DC $1,000 | PenFed PCR $6,000 | NFCU $13,500 | NFCU(CLOC) $15,000 | PenFed(PLOC) $2,000 | DCU Platinum $10,000 | VS $1,250 | Marvel Mastercard $2,000 | Citizens Bank $2,300 | Lowes $20,000 | Home Depot $1,250 | Gamestop $500 | Target $800 | PayPal Extras $5,000 | PayPal Credit $3,000
Scores as of 4/24/19
(FICO 8)
TU: 727 INQ: 11

EQ: 696 INQ: 17

EX: 696 INQ: 15


AoOA 4yr 2mo
AAoA 1 yr
Gardening until Sept 1st 2019
Business Credit
Amex Amazon Prime Business $20,000
Message 8 of 11
BrutalBodyShots
Super Contributor

Re: Suddenly Keeping A Balance Effects

Yeah, 6 months is pretty standard with many lenders like Cap One, Citi, Amex, etc.  Discover is known to give CLIs out much more frequently.  Don't get me wrong, there are people that go 6+ months without getting a Discover CLI.  My longest period of time without receiving one (while requesting one very frequently) was 10 months.  In fact, I think I'm at about 8 months now.  I have to weigh that against periods of time though where I received frequent CLIs, like 4 of them over a 6 month period for example.  On my account they've sort of come in waves.  The only way I'd know this though is from making frequent requests.  If I was only requesting every 3-6 months for example, I would have never received the waves of CLIs that were possible at times.

Message 9 of 11
Queen_Etherea
Valued Contributor

Re: Suddenly Keeping A Balance Effects


@BrutalBodyShots wrote:

At most, you'd probably experience a 3-5 point ding for your individual card utilization landing in the 28.9%-48.9% range.  On some profiles, this number would be 0 points.

 

AA doesn't happen from utilization alone... definitely not from 35% utilization on a single account.  I've known people that have rolled with 96%-100% utilization on every card (6-7) they have (98% aggregate utilization) for nearly a year without experiencing AA, so long as they were always making their payments on time every month.  Miss 1 payment and all bets are off and it's game on for your lenders to take AA.  My point here is that you have absolutely nothing to lose any sleep over.  In fact, it would probably be a good time to hit Discover up for a SP CLI.  Many people have reported favorable CLI results with their Discover utilization in the 30% range as opposed to single-digit [ideal] utilization. 


What does AA mean?

I think I've found the sacred map that may lead me to this garden everyone keeps talking about.



Officially collection free as of 3/19/19!!
STARTING SCORES: 377 (11/2013) & 580 (3/2018)
Message 10 of 11
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