80% Utilization on Credit Card Limit is Key
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: 80% Utilization on Credit Card Limit is Key
Posted: Mon Jun 12, 2006 9:27 am
Rethink that. Yes, if you meet the terms of the balance transfer your rate will not change--it's a contract between you and the bank. But that doesn't mean that your credit score won't drop--it will. That doesn't mean that other banks can't change your rates, limits, or terms--they can. That doesn't mean that your rate for purchases and cash advances on that card can't change--those rates can always change. And that doesn't mean you'll be offered similarly good terms on that card in the future.
I'm not saying any of these adverse things will happen to you. But smiply because the bank must honor this particular deal doesn't mean that taking full advantage of it is a good idea, if you pay attention to the longterm consequences.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
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Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Mon Jun 12, 2006 10:05 am
Quote:
"Brammy"
I had not made the last BT to take me up to 80%. I was going to use one of their BT checks but after reading here decided to call and do it over the phone so that I could have my questions answered and recorded since they always record requests for BTs. I was told by my rep that as long as I did not go over my limit, made payments on time, that the rate would not change because of utilization on the one card. I was also told that THEY encourage cardholders to take FULL advantage of the BT offer while it lasts.
In other words, they DO want you to transfer as much of your debt as possible to their card. Now to keep it at 25% across the board. That's going to be the hard part
Having $100,000+ available at all times makes 25% a NON-ISSUE
I personally shoot for <10%
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Guest: Board Monitor
Board Monitor/ Administrator
Posted: Mon Jun 12, 2006 4:02 pm
Great thread! I have had 80+% utilization on several cards for several months. No rate jacking so far...knock on wood.
_________________
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Curtis Arnold
Board Monitor
http://www.CardRatings.com
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Guest: hdporter
Credit Expert (100+ Posts)
Posted: Mon Jun 12, 2006 5:11 pm
I expect that a 700+ FICO credit doesn't need to micromanaage their credit score and can absorb sporadic hits due to, for example, high utilization or credit inquiries, without fearing adverse consequences (assuming the score remains strong).
However, I do think that someone in more marginal turf, say around 660-680, who may have just started becoming eligible for prime offers faces greater exposure to credit score hits. In such a case, I believe that it pays to be prudent and careful.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: ajulius
Posted: Tue Jun 13, 2006 1:32 am
In my situation I have perfect credit, but now have 90% utilization on 2 cards. One I was able to increase the limit so utilization went down a little, the other one I was able to reallocate with a new credit limit I received from a different CC with the same company so the utilization on the one with the big limit will go down to below 50%.
I received an offer for 0% for 15 mths and Im not really sure the limit I will receive. It says subject to change but as reported here, it doesnt seem likely it will since my utilization will improve significantly when it hits the bureau.
How do I determine in advance the limit I would get on a 0% for 15 mths offer so I can take full advantage and transfer the maximum I can?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Brammy
Posted: Tue Jun 13, 2006 8:33 am
[quote="Polonius"]Rethink that. Yes, if you meet the terms of the balance transfer your rate will not change--it's a contract between you and the bank. But that doesn't mean that your credit score won't drop--it will. That doesn't mean that other banks can't change your rates, limits, or terms--they can. That doesn't mean that your rate for purchases and cash advances on that card can't change--those rates can always change. And that doesn't mean you'll be offered similarly good terms on that card in the future.
I'm not saying any of these adverse things will happen to you. But smiply because the bank must honor this particular deal doesn't mean that taking full advantage of it is a good idea, if you pay attention to the longterm consequences.[/quote]
Thanks P. According to my figures the transferred card will be below 50% with 3 mos history. The remaining cards are PIF monthly so I'm not sure if they factor in. Just keeping usage from normal household bills so that they will show activity.
Seeing that this card will be 50% or less in three months bringing total util to around 17% whats your prediction?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: 80% Utilization on Credit Card Limit is Key
Posted: Mon Jun 12, 2006 9:27 am
Rethink that. Yes, if you meet the terms of the balance transfer your rate will not change--it's a contract between you and the bank. But that doesn't mean that your credit score won't drop--it will. That doesn't mean that other banks can't change your rates, limits, or terms--they can. That doesn't mean that your rate for purchases and cash advances on that card can't change--those rates can always change. And that doesn't mean you'll be offered similarly good terms on that card in the future.
I'm not saying any of these adverse things will happen to you. But smiply because the bank must honor this particular deal doesn't mean that taking full advantage of it is a good idea, if you pay attention to the longterm consequences.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Mon Jun 12, 2006 10:05 am
Quote:
"Brammy"
I had not made the last BT to take me up to 80%. I was going to use one of their BT checks but after reading here decided to call and do it over the phone so that I could have my questions answered and recorded since they always record requests for BTs. I was told by my rep that as long as I did not go over my limit, made payments on time, that the rate would not change because of utilization on the one card. I was also told that THEY encourage cardholders to take FULL advantage of the BT offer while it lasts.
In other words, they DO want you to transfer as much of your debt as possible to their card. Now to keep it at 25% across the board. That's going to be the hard part
Having $100,000+ available at all times makes 25% a NON-ISSUE
I personally shoot for <10%
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Board Monitor
Board Monitor/ Administrator
Posted: Mon Jun 12, 2006 4:02 pm
Great thread! I have had 80+% utilization on several cards for several months. No rate jacking so far...knock on wood.
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews
Sign up for our free monthly e-mail newsletter!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hdporter
Credit Expert (100+ Posts)
Posted: Mon Jun 12, 2006 5:11 pm
I expect that a 700+ FICO credit doesn't need to micromanaage their credit score and can absorb sporadic hits due to, for example, high utilization or credit inquiries, without fearing adverse consequences (assuming the score remains strong).
However, I do think that someone in more marginal turf, say around 660-680, who may have just started becoming eligible for prime offers faces greater exposure to credit score hits. In such a case, I believe that it pays to be prudent and careful.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: ajulius
Posted: Tue Jun 13, 2006 1:32 am
In my situation I have perfect credit, but now have 90% utilization on 2 cards. One I was able to increase the limit so utilization went down a little, the other one I was able to reallocate with a new credit limit I received from a different CC with the same company so the utilization on the one with the big limit will go down to below 50%.
I received an offer for 0% for 15 mths and Im not really sure the limit I will receive. It says subject to change but as reported here, it doesnt seem likely it will since my utilization will improve significantly when it hits the bureau.
How do I determine in advance the limit I would get on a 0% for 15 mths offer so I can take full advantage and transfer the maximum I can?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Brammy
Posted: Tue Jun 13, 2006 8:33 am
[quote="Polonius"]Rethink that. Yes, if you meet the terms of the balance transfer your rate will not change--it's a contract between you and the bank. But that doesn't mean that your credit score won't drop--it will. That doesn't mean that other banks can't change your rates, limits, or terms--they can. That doesn't mean that your rate for purchases and cash advances on that card can't change--those rates can always change. And that doesn't mean you'll be offered similarly good terms on that card in the future.
I'm not saying any of these adverse things will happen to you. But smiply because the bank must honor this particular deal doesn't mean that taking full advantage of it is a good idea, if you pay attention to the longterm consequences.[/quote]
Thanks P. According to my figures the transferred card will be below 50% with 3 mos history. The remaining cards are PIF monthly so I'm not sure if they factor in. Just keeping usage from normal household bills so that they will show activity.
Seeing that this card will be 50% or less in three months bringing total util to around 17% whats your prediction?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 2:45 PM
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