How much will maxed out credit card affect my credit score?

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x483
 
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How much will maxed out credit card affect my credit score?

Postby x483 » Tue Dec 24, 2013 3:03 pm

Ok so i already know it's bad to max a card out, but here's the background.

got approved for a card with $14,000 limit in oct. since then i have had bad luck with home and car plus holiday spending and as of now my balance is $13,000. I do not need the card anymore and its locked up all repairs are done to house and car and holiday shopping is done.

I know without a doubt i will have the card paid off no later than end of Feb. my question is i know my credit will take a hit but under the circumstances am i generally ok? i used the card knowing i could pay it off in a short time and i really don't like to dip into savings at any reason.

any input or info is greatly appreciated. thanks all


mathman314
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Postby mathman314 » Thu Dec 26, 2013 2:19 am

my guess is that your score will take quite the hit. The recommended CUR is <30%. My suggestion is pay off that card as you go and try not to let your statement show that you owe that much. I heard somewhere that your CUR is based upon your statements and not day-to-day. Don't know if that is correct or not. But in any case, my general rule of thumb with credit cards is to pay off the card after a big purchase ASAP.
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Robrus1
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Postby Robrus1 » Thu Dec 26, 2013 7:39 am

I let 11K report on my CSP last month and my score dropped over 30 points, pretty much instantly. It reported a $120 balance this month, but it still hasn't come back up to where it was. So dumb, but yeah, expect a drop.
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takeshi
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Postby takeshi » Thu Dec 26, 2013 7:47 am

x483 wrote:I know without a doubt i will have the card paid off no later than end of Feb. my question is i know my credit will take a hit but under the circumstances am i generally ok?

Tricky to say for certain but it shouldn't be an issue. You'll take a hit from the very high utilization but if you can pay it off in the short term your score will rebound. It's high utilization with minimum payments over a long period of time that can lead to AA such as credit limit decreases/balance chasing, etc.

MemberSince99
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Postby MemberSince99 » Thu Dec 26, 2013 8:56 am

It's not like your credit will be destroyed for life. As soon as you pay it off, and that reports, the score will come back up.

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djrez4
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Postby djrez4 » Thu Dec 26, 2013 10:29 am

MemberSince99 wrote:It's not like your credit will be destroyed for life. As soon as you pay it off, and that reports, the score will come back up.


This, and your score doesn't matter unless you're applying for credit.
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