Is 85% credit utilization too high?

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16 posts
flan
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Postby flan » Mon Sep 02, 2013 9:10 pm

Davyvfr wrote:So 6 months of high credit utilization due to a 0% interest offer will hurt a credit score? Then, there is no point of financing anything. Take for example Apple's Barclaycard which offers 3, 6, or 12 month financing.


To clarify: your score is hurt by the high utilization, while the utilization is high. Run up a balance, and carry it for six months, your score will drop during those six months. Pay it off in month seven, and your score will bounce up. There's no memory in most credit scoring systems, they only care about the current instant's utilization. So if you're planning on applying for something else during those six months, you might have problems, but if not, it doesn't matter.

Negative items -- lates, collection accounts, bankruptcy, etc -- are negative as long as they're on the report.


mdl28
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Postby mdl28 » Mon Sep 02, 2013 9:42 pm

What is you cl on that card?
MDL

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HookEmHorns
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Postby HookEmHorns » Mon Sep 02, 2013 10:09 pm

Why are you worried about earning interest on money that is no longer yours? Pay the debt, then worry about earning interest on the money that actually belongs to you.
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Robrus1
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Postby Robrus1 » Tue Sep 03, 2013 8:55 am

What is your interest rate on your savings account? I can't see how that'd really be profitable/worth it at all, even with a zero percent interest introductory card term. Unless you are talking about a super large balance, interest wise, you're talking about pennies.
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takeshi
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Postby takeshi » Wed Sep 04, 2013 5:41 pm

Not sure what my rate is off the top of my head but it's easily dollars without a "super large balance" (though I guess the phrase is highly subjective). Still, I wouldn't use this approach in an attempt to earn any significant amount of money.

Robrus1
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Postby Robrus1 » Thu Sep 05, 2013 7:46 am

takeshi wrote:Not sure what my rate is off the top of my head but it's easily dollars without a "super large balance" (though I guess the phrase is highly subjective). Still, I wouldn't use this approach in an attempt to earn any significant amount of money.


OK so I didn't phrase it well, my apologies. That's what I'm getting at. I just don't get excited when I see rates like 0.85%.
Amex Platinum
Amex BCP 21K
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