what credit card is this?

great cl

asdf9876 said:That was a bold move Scott. If I remember correctly you wre upset when your 800+ credit score dropped 8 points when you applied for a credit card.

Now you've jumped off the deep end and have >90% utilization on a single card and >50% overall utilization. I am completely guessing here but based on how upset you seemed over 8 points I hope you've prepared yourself for 25-50-75 point drop in your credit score. Or are you planning to pay half of it off before your statement closes?

Now I am stressing out about what I did, I think my mind went blank when he offered me $75 cap. Maybe I will just pay the whole thing off online just before it reports and even with the $75 fee I could still make over $300 profit. Not sure why I care so much about my score since I will never borrow money. Seems my reports always say I don't use enough credit and I thought that maybe borrowing this $100k then paying off would help in the long run.

SUCKISSTAPLES can I PM you a question?

I did mini AOR 4 months earlier and made mistake of CL utilization of > 90% on 5 credit cards (60K 0% BT). To make matter worse, my credit history is only 2 year old.
Though total CL utilization was around 55%, my credit score dropped more than 170 points. I'm slowly recovering from this hit.

Individual utilization and total utilization are both important.

dont pay 20k off... 10k is enough to get you below 90% individual utilization. Then reduce your total utilization with new cards, bc once this large new balance starts reporting getting more cards will be difficult

asdf9876 said:I'd like to see Dave Hanson's opinion on this.Sure, FWIW. I'd like to try to help Scott, who's made a point to share information with the community. edit2: Oh by the way, I'd say this is more "BT investing" then AoR. This had nothing to do with the number applications or number of new accounts you opened in a given time period.You took the words out of my mouth. This isn't about any applications, much less bunching them together.


scott1961, here are my suggestions:

1. RELAX. There is no need to panic--you have done nothing that cannot be undone relatively easily. Moreover, it was moving hastily that caused you the anxiety in the first place. To paraphrase Ross Perot, this is a case where one should "measure twice, then cut once."

2. Check your statement date. MBNA will generally not report your balance until your cycle closes, UNLESS they change your credit limit AGAIN. They are unlikely to do this unless you request it, or unless your credit profile drastically changes. So, until your cycle closes, no one should even know that you did this huge BT, with its big utilization.

3. Review your credit profile. What are your overall aggregate credit limits? If they are over 300K or so, and this is your only BT, you don't have to really worry about overall utilization--just "per line" utilization on this card. OTOH, if your limits are below $200K overall, then you will want to take action to raise them "while the getting's good"--that is, BEFORE the new MBNA line reports.

4. Don't do a big AOR without thinking it through. Large AORs WILL hurt your credit profile. It's POSSIBLE that the damage of many new inquiries and lines will be outweighed by a lower overall utilization. But that depends on what your aggregate limits are now, and how large the lines are that you get.

5. If you have a few other lines, focus on getting them higher. Why not call up other issuers and say, "MBNA gave me 100K. Can you match that, given my exemplary credit history? If not, how close can you come?" With your income and history, you should not have much problem boosting the other lines you have. These will cost you a few inquiries, but won't send up any "warning signs" on your credit profile. They will help you regardless of what other action you take, AOR-related or otherwise. And this can best be accomplished while your profile is still top-notch.

6. Do cut utilization on the MBNA line before it reports. As I've said many times, 90% is an absolute maximum. But if you have no other lines with balances, and can get your overall aggregate credit limit up, you may be OK just keeping it at 89%.

I hope this is clear, and that it helps. Feel free to follow up.

I have a question-
Reading all of the responses, I can't help but get the feeling that the damage done (let's say if you go over 90% util for example) is longer term than just that month..... I would think that let's say 3 months from now he paid down the line significantly, would his credit score not jump right back up the next month after it reports/updates? Or does it take longer to refresh back to higher scores?

Also, when people talk about consolidating, are they talking about actually closing one of the cards and moving the line over? Or just moving the majority of the line over but keeping all lines open?

THANKs

I was on the phone with MBNA earlier this evening, before I saw this thread, asking about promotional BT offers. The CSR was rather aggressively trying to talk me into a 1% BT until July with a $75 fee, claiming that I had to take the offer right now; if I called back later, it might not be available. He even offered to deposit it directly into my checking account. Then he offered to request an instant credit increase (from 28,800 to 35,000), which turned out not be instant after all. All in all, I got the impression that MBNA's money is burning a hole in its pocket.

Holy crap? OP got a 100k limit CREDIT CARD on a NEW account? Was this done through consolidation and did you have to provide financial docs?

I have never seen a credit card that offered that high of a limit. I am sure it wasn't a charge card because of the balance transfer involved.