BEWARE! Discover dropped my CL for no reason!

[NRB525]

---

@Anonymous wrote:

Designer how can you be more correct? You either are correct or you are not correct. That's how language is. 

From Experian.com

High Balance

The highest amount that you have owed on an account to date.

Another site: 

High Balance

High balance refers to the highest amount you have owed on your credit card. This number factors into your credit score. To be eligible for the highest credit score, your high balance should not exceed 30 percent of your credit limit. The amount of available credit you use is increasingly becoming more important to determine your credit score, according tomyFICO.com. FICO is a widely used credit scoring system the credit reporting agencies use to determine your credit worthiness.

Negative Consequences

Be sure you know what your credit limit is each month and how much you are charging. You want to ensure you don’t spend more than your credit limit. That could lead to over-the-limit-fees, an increase in your annual percentage rate and a decrease in your credit limit. If you overcharge too often, your credit card issuer could close your account.

From myfico.com

How much of the installment loan amounts is still owed, compared with the original loan amount

For example, if you borrowed $10,000 to buy a car and you have paid back $2,000, you still owe (with interest) more than 80% of the original loan. Paying down installment loans is a good sign that you're able and willing to manage and repay debt.

---

This is complete B.S. It is written completely wrong. Current balance factors in to your FICO score, High Balance does not.

"It's on the internet, it must be true!" Not.

[Anonymous]

Kung Pao Chicken anyone?

[NRB525]

---

@Anonymous wrote:

---

@axlm wrote:

---

 Oh man, this is getting confusing. I think I'll let heads better than mine figure this out

---

I just concluded that different banks report differently (long ago) and I will keep an eye out on my "High Balance" on my credit report.

---

There is no reason to do this. High Balance is not a factor in your FICO score.

[Anonymous]

---

@NRB525 wrote:

---

@Anonymous wrote:

---

@axlm wrote:

---

 Oh man, this is getting confusing. I think I'll let heads better than mine figure this out

---

I just concluded that different banks report differently (long ago) and I will keep an eye out on my "High Balance" on my credit report.

---

There is no reason to do this. High Balance is not a factor in your FICO score.

---

I know. I"ve been reading the threads here. I'm just doing it out of curiosity sake.

[Imperfectfuture]

---

@Anonymous wrote:

HeavenlyFlower,

You're right, it does not affect score, and it could work for you and against you!

1-It works for you if you charged a large amount and paid it off.

2-It works against you as it happened to me- 

Here's why:

a) I have a Target card with $800 credit line. I bought a item and my balance was $791 and it was paid 2 days later. reported balance was zero. but it shows that I maxed up that card.

b) Capital One $2000 credit line. I bought a Camera-Balance for 1 day $1987. 

and others...similar situation. so when I applied for a new card, they denied me on the basis of Too High Balance to Loan amount--even though no such high balance was reported. It was paid before it was reported.

---

Sorry, that is not accurate.  If you are seeing that now, they don't want to extend you any more credit based on : scores, current income to limits on other cards, all new accounts.  Loan balances are NON REVOLVING DEBT, like my 4 year secured loan used for score building purposes.  Before I had that loan, the reason code was lack of installment loan.  You see this, and are making inaccurate assumptions.  If you read the Understanding Fico Scoring section, you would understand this a bit more.  The ifs section is another part of myfico forums. 

I understand you believe this with all your heart.  It's just not true.

[axlm]

---

@Anonymous wrote:

I wanted to thank you all for your awesome contribution!

---

I learn something new here every day. Sometimes we try all too hard to correlate data in a completely wrong way

[Open123]

---

@NRB525 wrote:

There is no reason to do this. High Balance is not a factor in your FICO score.

---

Right, while on any given month, an unusually high Utility may lower one's score, it will snap back immediately the following month if Utility is lowered.  Of course, if one is getting ready to app for a loan or new CCs, it's best PIF all revolving TLs before they report leaving one reporting 1% to maximize Fico scoring to ensure the best possible terms.  Otherwise, it really doesn't matter what reports (since Fico has no memory for Utilization), and boils down to the individual's preference and tolerance on score volatiity.

[Imperfectfuture]

---

@Open123 wrote:

---

@NRB525 wrote:

There is no reason to do this. High Balance is not a factor in your FICO score.

---

Right, while on any given month, an unusually high Utility may lower one's score, it will snap back immediately the following month if Utility is lowered.  Of course, if one is getting ready to app for a loan or new CCs, it's best PIF all revolving TLs before they report leaving one reporting 1% to maximize Fico scoring to ensure the best possible terms.  Otherwise, it really doesn't matter what reports (since Fico has no memory for Utilization), and boils down to the individual's preference and tolerance on score volatiity.

---

As a point of reference, my last two approvals were under very good terms, WHILE carrying balances.  The best was an apr of 13.99 while carrying two balances over 10%.  Discover gave a nice starting limit while carrying balances.  On the downside, having problems getting cli from Amex, they not liking new credit, balances.  Depends on the bank.  Chase likes to see some use, they really liked me when I went over 10% on their card.  It's definitely a YMMV situation.

[DantGwyrdd]

---

Imperfectfuture wrote

As a point of reference, my last two approvals were under very good terms, WHILE carrying balances.  The best was an apr of 13.99 while carrying two balances over 10%.  Discover gave a nice starting limit while carrying balances.  On the downside, having problems getting cli from Amex, they not liking new credit, balances.  Depends on the bank.  Chase likes to see some use, they really liked me when I went over 10% on their card.  It's definitely a YMMV situation.

---

Yep. Discover just doubled my CL when I asked for a CLI after doing a BT that put me to about 75% util on the card.