Trying2getAhead Posted April 10, 2009 Report Share Posted April 10, 2009 Hi everyone, what a great forum! I guess I'll start things off with my first post by asking a simple question about a credit card I currently have...I have been reading around the website and forum a lot, I really like it, but I wasn't sure based on what I read how my credit would be pulled or affected with the following situation:I would like to purchase a new TV at Best Buy where I have had a credit card (store card only) for 2 years, there is a $1,000 limit, and a current balance of $0.00. My question is, since high utilization is horrible (and you can't get a 50 inch decent tv for under $1,500) how/why should I use this card towards the price of the TV if I am never supposed to utilize over 9%? Secondly, if I make a request to have a CLI, does that show up as a hard or soft pull since I am a current customer (even though I am "applying for new credit")? Will it hurt (even on a small level) my FICO? The worst that could happen is that I get turned down for CLI, and I get a free credit report, haha I can only use the BB Credit Card for $90 of the almost $2,000 purchase price if I abide by the FICO high-achiever rules Link to comment Share on other sites More sharing options...
looksbothways Posted April 10, 2009 Report Share Posted April 10, 2009 The utilization guideline is for maximizing your FICO score, nothing more.If you pay the card off each month, utilization is irrelevant. If you're making a purchase you can't afford to pay off by the end of the month, then you're buying something you can't afford to buy right now. It's a TV. You don't need it right this second. Take the money you'd make in payments on your card and sock drawer it until you can buy the TV outright. Tada...zero utilization, no finance charges, and no risk of getting in over your head. Unless your plan was to pay on a $1500 TV for the next four or five years making minimum payments, you should be able to buy it outright for cash in less than 6 months. Link to comment Share on other sites More sharing options...
Trying2getAhead Posted April 10, 2009 Author Report Share Posted April 10, 2009 Great point, I never buy above my means... lol, I hardly ever buy anything at all. I won't drag you through the boring zone with details, but I literally take weeks to research a purchase of anything over the cost of a tank of gas. I don't need the TV, you're right... I probably won't buy one until I can complete my home theater system which won't be for a while because I am saving for a new home loan. I was just curious about whether or not it would be a hard pull or soft pull, even though utilization is about FICO, I am still always concerned with FICO. Aside from wanting to build a home in 5 years, I am also in need of a new car at some point in 2010 Link to comment Share on other sites More sharing options...
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