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Benton454

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Credit card utilization and no interest for 5 years
I have a credit card that has a utilization rate of 68%. This card will be interest free for 5 years. What would be my motivation to pay this card off early, after all I'm using the banks money for free for 5 years.

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Becides the score hit, there is no advantage.

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I believe you will still be required to make monthly payments. A 68% credit usage will drop your credit score. As a general rule you want to keep your utilization below 20%. Making on time payments will look good on your credit. If you don't have this fully paid in the five year span, you will end up owing and paying all the back interest. Read your loan disclosures.

Also, try using the credit score simulator on the left pane of your screen to get an idea how your credit will be affected.

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Benton454

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You're absolutely correct.  The monthly amount was figured by the debt on the card divided by the number of months allowed to pay the amount.  If I don't pay it off in time the interest will be calculated from the date that the debt was occured, which could be a large amount of money.

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Assuming no other debt, there is no real downside to the large balance other than a lowering of your score.  And if you don't plan to apply for more credit soon, the score doesn't matter much.

Just don't miss any payments, since THAT hurts score. 

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