How does the life time high balance on a credit card affect your credit score?

Question

Specifically, will making a one time large purchase on your card that will perminately raise the lifetime high balance a death blow to your credit score?

Answer 1

It will hurt until it's paid off or down to less than 30%. After it's paid down/off the high balance will no longer be a factor on your credit report or you scores. And your scores should gain back the points that were lost from the high utilization.


Just an FYI
If you normally don't make large purchases on that card, you might inform the card company before you make it. That way they will know to expect it and won't deny the charge.

Card companies keep watches on accounts and when a purchase is run through that is out of the norm they may deny the charge.
For example, you normally use the card for dining out and buying gas and then an attempt to purchase a flat screen tv shows up - they would probably deny the charge thinking that your card may have been stolen.

Answer 2

Yes, it will cause your score to go down because your utilization rate will be high. You should keep your balances below 30% of your limit.

Answer 3

it could harm your credit tremendously badly yet your credit will recuperate directly (in assessment to different entries on your credit document) as quickly as you pay it down. it rather is as a results of the fact as quickly because it truly is paid down, your debt to available credit will upward push as quickly by fact the banks document the pay down inflicting your credit to upward push. consequently pay those credit enjoying cards down a month or 2 previously you prepare for greater credit. it is going to strengthen the two your credit besides as returned end debt ratios.