Is 85% credit utilization too high?

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Davyvfr
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Is 85% credit utilization too high?

Postby Davyvfr » Fri Aug 30, 2013 6:40 pm

Hello,

Is a 85% utilization on single credit card acceptable if you pay more than minimum balance? I could easily pay the full amount but choose not to because I gain interest on my savings account.


Dylan1982
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Postby Dylan1982 » Sun Sep 01, 2013 9:56 am

Yes that is extremely high. You want to keep your utilization rate at <5%-10%. Having such a high utilization rate will bring down your credit score.


If you have been a card member for a long period of time and have good credit, call the CSR and ask for a CLI. That way with a higher CL, your utilzation rate will drop some.
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)

DavidNY
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Postby DavidNY » Sun Sep 01, 2013 10:34 am

If you have a bunch of other cards with low utilization it's not a big deal. If you don't, it may be a problem if you ask for more credit and your credit report is pulled.

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Calipso
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Postby Calipso » Sun Sep 01, 2013 2:41 pm

85% is insanely high. That should be paid in full ASAP.

The amount you are paying on interest on the CC (or your credit card reports for such high utilization) overshadows whatever you get in savings/checking interest.
My Limits:
NFCU NavCheck: $15,000/NFCU Platinum: $11,500/NFCU nRewards: $8,000
Chase Freedom: $6,500/Chase Slate: $6,000/CSP: $5,000/Marriott Rewards Primier: $5,000/United MileagePlus Explorer: $5,000/Southwest Primier: $3,000
Citi Hilton HHonors: $9,700/Citi Simplicity: $8,200/Citi Forward: $5,500
AMEX Blue Cash Everyday: $8,000/SPG AMEX: $5,000/AMEX Everyday: $5,000/AMEX Delta Skymiles Platinum: $3,400
Discover IT: $7,700
Barclay's NFL Extra Points (Carolina Panthers): $5,000
DCU Platinum: $3,000
RTN FCU CC: $2,000
CCCU Platinum Rewards Visa: $2,000

Current total limit: $129,500

Chief
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Postby Chief » Sun Sep 01, 2013 3:42 pm

Calipso wrote:85% is insanely high. That should be paid in full ASAP.

The amount you are paying on interest on the CC (or your credit card reports for such high utilization) overshadows whatever you get in savings/checking interest.


Unless OP is taking advantage of a 0% offer. 85% is high, but if you are taking advantage of a 0% offer and you aren't apping for anything while carrying the balance, it shouldn't really matter for the time being.

Dylan1982
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Postby Dylan1982 » Sun Sep 01, 2013 7:44 pm

Chief wrote:Unless OP is taking advantage of a 0% offer. 85% is high, but if you are taking advantage of a 0% offer and you aren't apping for anything while carrying the balance, it shouldn't really matter for the time being.

Regardless, it will hurt his credit score from month to month.....
Chase Freedom - $12,500 (2/2013)
GM Card - $7,700 (7/2002)
CitiBank (Thank You Preferred) - $6,400 (6/2012)
CitiBank (Diamond Preferred) - $4,600 (6/2012)
Rogers & Hollands - $3,300 (3/2006)
Target REDcard - $3,000 (11/2014)
BestBuy - $1,600 (9/2003)
Discount Tires - $1,000 (2/2004)
Kohl's - $300 (4/2012)

Davyvfr
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Postby Davyvfr » Sun Sep 01, 2013 9:10 pm

Dylan1982 wrote:Regardless, it will hurt his credit score from month to month.....


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.

flan
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Postby flan » Sun Sep 01, 2013 9:59 pm

Dylan1982 wrote:Regardless, it will hurt his credit score from month to month.....


Which matters only if he's applying for something. If he's not, there's no problem.

Davyvfr
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Postby Davyvfr » Mon Sep 02, 2013 1:55 pm

flan wrote:Which matters only if he's applying for something. If he's not, there's no problem.


Yes, this is what I am thinking. If I wanted to apply again, I would wait 6 months of having very low utilization before applying. My creditay get lower when I have high util but WILL bounce back.

RewardHop
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Postby RewardHop » Mon Sep 02, 2013 5:31 pm

flan wrote:Which matters only if he's applying for something. If he's not, there's no problem.


+1

It will only hurt your credit score for as long as you keep your util % that high. You can keep it at 85% for 6 months to take advantage of a 0% intro offer and then pay it off completely and your credit score will got back to normal after the $0 balance is reflected on your credit report.
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Amex BCE: 3% grocery, 2% gas
Bank of America Better Balance Rewards MC: $25/quarter bonus
Barclaycard Rewards Visa Signature: 2% gas, groceries, utilities
Capital One Quicksilver Visa Signature: 1.5% everything
Chase Freedom Visa Signature: 5% rotating
Citi Forward Visa: 5% restaurants/fastfood, movie theaters, amazon.com
Discover It: 5% rotating
SallieMae MC: 5% Groceries, Gas, Amazon
US Bank Cash+ Visa Signature: 5% electronic stores, restaurants
Sock Drawered: Chase Sapphire, Chase Amazon[/size]



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