Advantage of a High Balance Month?

[afinch1992]

I recieved my CSP this week and have a question about reporting a high balance for one month. I am in a unique position to have a larger balance report on a single card now and wonder if it might be useful for obtaining higher limits in the future to have a large balance report. Obviously this will drop my score like a rock, but from my understanding, my score will return when the utilization is low again (I usually have 1% report). I will PIF as soon as it reports, so that is not an issue. I know that when I applied for the Sallie Mae a few months back, the reason my credit limit was set at $1400 was because my highest ever balance was $13xx on another card (direct words from the analyst).

Thoughts from the credit masters?

Edit: just some more data, My first due date is nearly 2 months away and I already have 2.5k in spending that will go on the card in the couple of weeks. If I were to max it out at 5k, it would put me at about 20% total utilization, so not really that terrible for the overall. 

[Trivolve]

I believe when banks give CLIs they have access to, and take into account, how high a balance you have reached and whether you managed to pay it back down. So the actual high balance on the credit report might not matter to the individual bank that you have that balance on. However, that said, your credit report does list the highest balance ever reached on that particular card, so credit analysts can see that but my guess is that it's not as important as other factors.

[eagle2013]

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@Trivolve wrote:

I believe when banks give CLIs they have access to, and take into account, how high a balance you have reached and whether you managed to pay it back down. So the actual high balance on the credit report might not matter to the individual bank that you have that balance on. However, that said, your credit report does list the highest balance ever reached on that particular card, so credit analysts can see that but my guess is that it's not as important as other factors.

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+1 Well said.

[takeshi74]

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@afinch1992 wrote:

I am in a unique position to have a larger balance report on a single card now and wonder if it might be useful for obtaining higher limits in the future to have a large balance report.

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It could for specific creditors but your call whether it's worth it based on what a Sallie Mae analyst mentioned.  And, as indicated above, Chase doesn't have to look at your reports to see your usage with accounts that you hold with them.

[afinch1992]

thanks for the replies everyone. I probably have enough credit to cover anything at this point, but I was not sure if other creditors acted like barclays did. I know that another analyst mentioned the high balance before (FIA maybe?), but they went back to limits on other cards pretty quickly. I'll just see how everything ends up around the due date and probably just pay it off then