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Would this lower my credit score?



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amother
OP


 

Post Sun, Feb 04 2024, 12:47 am
If I opened a new credit card for my business with a 0% interest rate for the first year, and max it out, and don't pay it off in full right away? Until now I always paid it off in full, but right now we are having cash flow problems and urgent repairs are needed. If I pay it off over the first year, I won't have to pay interest. But will it affect my credit rating?
thanks
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nicole81




 
 
    
 

Post Sun, Feb 04 2024, 12:51 am
Yes maxing out a card will significantly increase your average credit usage and therefore affect your credit score. It will also lower your average credit age, another reason for a decrease.
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amother
OP


 

Post Sun, Feb 04 2024, 12:54 am
nicole81 wrote:
Yes maxing out a card will significantly increase your average credit usage and therefore affect your credit score. It will also lower your average credit age, another reason for a decrease.


thanks for your response.
so I was really asking specifically about not paying it all off in full each month.
as it is a business card, according to dan of dansdeals it seems that maxing it out wouldn't affect the credit score. the question I'm really asking is about not paying it off in full which is something I have never ever done before. thanks
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amother
Seafoam


 

Post Sun, Feb 04 2024, 1:26 am
Most business cards aren’t listed on your personal credit so wouldn’t matter but I think some may be so find out about your specific card.
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amother
Nasturtium


 

Post Sun, Feb 04 2024, 2:23 am
If it's a business card/liabilty and not showing up on your personal credit it won't affect your score. Keep in mind that as soon as you pay off the balance your score will go up again. Are you planning on needing a high score this year? If not then it matter if your score is low. If you do plan on needing a high score you could always pay it off right before.
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amother
OP


 

Post Sun, Feb 04 2024, 8:31 am
thank you
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Just One




 
 
    
 

Post Sun, Feb 04 2024, 9:56 am
I'm not sure about the personal/ business aspect. But in general, having a high debt to credit limit ratio will affect your credit ,but only temporarily and will go back up once you're paid off. Missing minimum payments on the other hand will lower your credit score for a long time even once paid off.
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amother
Zinnia


 

Post Sun, Feb 04 2024, 9:59 am
Almost all business cards (except capital one cards) do not report to your personal credit. So it won’t affect your credit utilization or score. It will only report if you miss payments, so make sure to make your minimum payments on time
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amother
DarkGreen


 

Post Sun, Feb 04 2024, 10:41 am
I have done exactly this and it did not show up on my credit report because it's a business card.
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amother
OP


 

Post Sun, Feb 04 2024, 10:53 am
thanks so much for responding.
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amother
Charcoal


 

Post Sun, Feb 04 2024, 11:28 am
I've done this with a non business card but because I had multiple cards that I did not max the limit out on, it did not affect my credit, at least significantly that I know of, and definitely not the fact that you're not paying it off because it would only affect if they would report to a credit bureau that you are behind on a payment and since you have a year to pay it off you will not behind.

In general I don't find that these things affect your credit as much as not paying a bill and then having them report it because your credit will tend to go up and down over the month as you spend and then as you pay off
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notshanarishona




 
 
    
 

Post Sun, Feb 04 2024, 12:36 pm
It depends on the credit card, some of them lower both personal and business credit
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