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Question By
toksheli

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If max credit card to limit
Hi there,

I currently have a high credit score (appr. 800). I have "checks" from my Chase credit card that allows me to use them like regular checks, but it essentially charges my credit card. I then have an interest free period for these charges for appr 6 months.

My Chase credit card has a $10k limit. If I max this credit card to it's limit (i.e. charge $10k to the Chase using the checks) and don't pay for 6 months, I know that there will be a decrease in my credit limit to my utilization percentage. Will my credit score fully correct itself after 6 months when I pay off the $10k in charges at one time? Thanks.

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Top Contributor
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NOT a smart move!!

Maxing out your card and planning on not making any payments for 6 months just because you can do it is foolish.  How do you know you'll have the money to pay it off in full in 6 months?  You could have an accident or get sick.  You could lose your job.  Some other catastrophe could occur.  There is no guarantee you'll even wake up tomorrow.

Do you like playing Russian Roulette?  Same difference.  Your best goal is to keep charges at the minimum and paid ASAP so you'll have as much credit as possible available for when you really need it.  So, think before you leap!

Reply by
toksheli

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Thanks for your reply, although you are a bit pessemistic :>)

I have never delayed paying my balance in the past and I don't plan to this time. Besides, if I was having trouble financially for onee of the reasons you mention above, it would be better to not have to pay off my credit card bill every month and have a few months of breathing space...

That being said, my main question is will my credit score fully correct itself after 6 months when I pay off the full blance at one time?

Top Contributor
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Not pessimistic, realistic.

Actually, I'm not pessimistic since I've had bad things happen to me in the past such as my boss dying over the weekend when we had another project to complete or government checks not being issued on time, so I keep myself paying as much as possible on my cards with the goal to keep them paid off ASAP.  So, I don't have experience with seeing how fast the credit will rebuild after not being paid for a while. 

Credit scores were not a major issue early in my adult life since credit cards were not something everyone had (I'm now retired, so that gives you an idea.)  But making sure my bills were paid on time was a focus, and remains one.

Reply by
toksheli

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That's fair, I guess that it depends on the circumstances. Sounds liek you did the right thing paying it off.

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