MW I opened a 0% credit card to pay $11,000 in vacation debt. What could go wrong? Quite a lot, it seems.

By Quentin Fottrell

'We've been aggressively paying down our credit cards'

"I requested a credit-limit increase to cover the full debt, but it was denied." (Photo subject is a model.)

Dear Quentin,

We took a major trip to attend a family event in December and used credit cards to buy the tickets. We've been aggressively paying down our credit cards, but still owe $9,000.

We hate the fees and interest, so after some research we opened a new Citi card in my name to transfer the balance, but the limit is only $6,600.

I requested a credit-limit increase to cover the full debt, but it was denied. We have about $3,000 on my Citi/Costco card (also from the trip), but that's it.

I believe my overall credit-card utilization is less than 10%. I'm just wondering why the credit-limit increase was denied?

Family Vacationer

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You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

If you have to put a total of $11,000 on two credit cards, you can't afford the trip. Don't go. Send your regrets.

Dear Vacationer,

That was one hell of a bill. I hope you had the trip of a lifetime.

Before we get to the credit-card swapping issue, allow me to vent: If you have to put a total of $11,000 on two credit cards, you can't afford the trip. Don't go. Send your regrets. Never feel any pressure to say "yes" to a family trip that gets you into this kind of debt.

The answer can be found in your question. If you hate fees and interest, you avoid them. It can be tempting to throw caution to the wind if you really want something and have already imagined yourself hanging out with your relatives, but sometimes the easiest thing is to say no.

And so to your question: If a new card was recently opened, many issuers will actually automatically decline requests to increase the limit until they have several months' worth of payment history under their belt. That way, they can rightfully assess whether you are a good risk or not.

The Citi $(CUL3)$ card may have access to information about your $3,000 carried on the Citi Costco $(COST)$ Anywhere Visa Card, so the company is again (understandably) limiting how much combined credit they're comfortable extending to a new customer.

Creditworthiness is a complex beast.

It could also be your credit history relative to your income. That you only have a 10% credit utilization with $9,000 suggests you likely have strong credit discipline, but it's still $11,000 on two cards. The company's algorithm likely wants to make sure you use your credit card wisely.

Lafayette Federal Credit Union, which has branches in Washington, D.C., Virginia, and Maryland, commends consumers who maintain a credit utilization of 10% or lower. "For optimal results, aim for a utilization rate under 10%," which it considers "excellent" for your credit score.

The credit union evaluates higher utilization levels as follows: 11% to 30% is considered good, though it carries slightly more risk; 31% to 50% is acceptable, but could begin to negatively impact your score; and above 50% is considered high, which can significantly lower your credit score.

So what now? You may get envelopes through the mail with "OVERDUE" in red letters, so moving your balance to a zero-interest credit card is a smart move. Experian and others suggest many zero-interest credit cards. The obvious solution for you is to split your debt between two cards.

Creditworthiness is a complex beast. "Applying for and opening new credit accounts will tend to lower your credit scores, so avoiding multiple applications over a short time frame can prevent a cumulative negative effect," says Experian. "Cultivate a variety of credit."

Related: 'I can't deal with managing them': I juggle 18 credit cards. How do I close them without ruining my credit score?

Zero-interest credit cards

"Without borrowing too much too fast, you can help improve your credit scores by showing you can manage multiple credit accounts, including a mix of installment loans (such as student loans, car loans and personal loans) and revolving credit accounts," the company adds.

Aside from the 0% interest rate running out after a set period of time (usually within 6 to 12 months), some cards have limits on the amount you can transfer from another account, even if it's within your available credit limit on that particular card. And transfer fees can run to 3%-5%.

It doesn't matter to the credit bureau whether it's $90 or $9,000. What matters is how long the debt has remained unpaid. Once a payment reaches 30 days past due, it is reported to the credit bureaus, and the damage compounds at 60 days and, in particular, at 90 days.

A member of the Moneyist's Facebook group said the same thing just happened to her when she opened a new credit card. "I was going on an Hawaiian cruise and wanted to put our entire trip on [the card] BUT they didn't give me enough credit to do so," she said.

"I called them to see if they would up the limit because I have excellent credit, sufficient income and I don't carry balances on any credit cards," she added. "They told me no because this was a new card and I could call in a few months to see about a credit increase."

Payment history is the most important factor.

Indeed, payment history is the most important factor in credit scoring, according to TransUnion (TRU), Equifax $(EFX)$ and Experian (EXPGY). Being 90 days late on a credit-card payment can cause a severe drop in your score, and it can remain on your credit report for up to seven years.

The typical American carried an average credit-card balance of $6,600, and credit-card debt in the U.S. has climbed to a record total of $1.33 trillion. With interest rates for credit cards at 20% and higher, that adds up to a lot of money if you don't pay off your debt every month.

Funnily enough (or not), Generation X, for what it's worth, carries the largest monthly debt - more than $9,000, roughly the same amount you racked up on your credit card after that family vacation. It is a spooky reminder to keep a lid on your spending.

The National Foundation for Credit Counseling and American Consumer Credit Counseling can help those who are sliding into the red climb out of debt. And 12-step support groups, including Debtors Anonymous, provide a safe space to talk about your willingness to splurge.

There are 11,000 reasons why that is not as dramatic as it sounds.

More columns from Quentin Fottrell:

'She is planning to move out of state': My sister sold our elderly mother's house from under her. What can I do?

'I'm not made of money': My heating engineer didn't fix my radiators on his first visit. Do I pay him a second time?

I'm trying to fix my relationship with my stepdaughter. Should my husband and I tell her how we have divided our assets?

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-Quentin Fottrell

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March 20, 2026 09:30 ET (13:30 GMT)

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