Does carrying a CC balance effect credit rating?

Discussion in 'Community Discussion' started by mattwolfmatt, May 23, 2012.

  1. mattwolfmatt macrumors 65816

    mattwolfmatt

    Joined:
    Jun 7, 2008
    #1
    I'm changing jobs soon, and there will be 30 days when I have no paycheck. I'm wondering if not paying off a credit card balance will hurt my credit rating.

    For example, lets say I owe $1000 on my credit card, and the minimum payment is $40. If I pay $300, will the $700 balance hurt my rating? We're interested in buying a house soon, too.

    I've never not payed off my credit card and am nervous, I guess.

    Thanks all.
     
  2. AnimaLeo macrumors 6502

    Joined:
    Sep 2, 2009
    #2
    Don't get yourself into debt over those 30 days. Can't be that difficult to not buy something for $1000.
     
  3. Dustman macrumors 65816

    Dustman

    Joined:
    Apr 17, 2007
    #3
    Not really, as long as you're paying the minimum, it won't hurt your rating. It won't improve it either though. If you want the best answer though, give your CC company a quick call and find out for sure :)
     
  4. LethalWolfe macrumors G3

    LethalWolfe

    Joined:
    Jan 11, 2002
    Location:
    Los Angeles
    #4
    As long as you at least pay the min amount you are fine but you of course want to pay it off as quickly as you can so you don't waste too much money on interest.

    On two occasions in the last 10yrs or so I've racked up over $10k in CC debit, each time it took a couple of years for me to pay it off and my credit rating is around 800.


    Lethal
     
  5. mattwolfmatt thread starter macrumors 65816

    mattwolfmatt

    Joined:
    Jun 7, 2008
    #5
    Do you mean groceries and our storage unit and my phone bill and gas?

    I'm not buying a new iMac here.
     
  6. Nabooly macrumors 6502a

    Nabooly

    Joined:
    Aug 28, 2007
    #6
    Try to keep ur balance at a ~30% utilization. If you have a high utilization im pretty sure that it will effect ur credit rating. Although i don't believe it effects it too much.
     
  7. Sythas macrumors 6502a

    Sythas

    Joined:
    Oct 22, 2009
    Location:
    Québec, Canada
    #7
    You should not use more than 70% of your CC limit and pay at least the minimum every month...

    So if you plan to use around 1000$ next month, you should have a 1400$ limit on your credit card...
     
  8. InvalidUserID macrumors 6502a

    InvalidUserID

    Joined:
    Sep 7, 2008
    Location:
    Palo Alto, CA
    #8
    Difference should be negligible, if at all. We're only talking about 30 days here and as you mentioned, you aren't going to spend needlessly.

    I wouldn't even think twice about it. Just make sure you make any payments, in at least the minimum payment and you'll be just fine.
     
  9. LethalWolfe macrumors G3

    LethalWolfe

    Joined:
    Jan 11, 2002
    Location:
    Los Angeles
    #9
    The balance between CC limit and CC debit certainly is a factor but I don't think it's on a card by card basis. I mean, if someone has a CC limit total of $50k (5 cards each w/a $10k limit) and they are carrying $9k in debt I don't think it matters if the $9k is all on one card or if it's spread across multiple cards.

    The big thing really is long term trends. If you always are close to maxing out your cards that will negatively impact your credit score but if you just carry a large balance every now and then that's nothing to worry about (again, as long as you don't miss any payments).


    Lethal
     
  10. Sythas macrumors 6502a

    Sythas

    Joined:
    Oct 22, 2009
    Location:
    Québec, Canada
    #10
    it matters if it's on the same card for the score, not a big slap on the wrist tho... Two things that affect your scores a lot with CC is busting your limit or not paying you minimum payment for 3 months......
     
  11. Surely Guest

    Surely

    Joined:
    Oct 27, 2007
    Location:
    Los Angeles, CA
    #11
    This is good advice.

    Also, make sure that you don't do anything that would require a credit check during the time you're carrying the balance.
     

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