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Valued Member
mja
Posts: 41
Registered: ‎08-08-2012
0

Re: Does it Really Matter If You Charge to the Limit?

Thank you for your advice!  That's very helpful I've looked online and have the statement closing date so now I'm ready! I'm hoping to be in the mid 600's by next year.

Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
0

Re: Does it Really Matter If You Charge to the Limit?


mja wrote:

Thank you for your advice!  That's very helpful I've looked online and have the statement closing date so now I'm ready! I'm hoping to be in the mid 600's by next year.


Then it does not matter until that point in time next year when you check your score.    You get the same result regardless of your utilization between now and then.

Frequent Contributor
seigex
Posts: 425
Registered: ‎05-16-2012
0

Re: Does it Really Matter If You Charge to the Limit?

I notice a lot of people are concerned with the "high limit" .. I use my $3k chase card to within a couple hundred of the limit every month, pay down to between 6 and 9% before statement and pay off before the due date so I never carry a balance month to month. My report shows a high limit close to the max, as that's the highest amount I've had on that card in the past, but it has had no negative effect on me. I do this since I use the card for all my purchases during the month and am big on maintaining liquidity in cash reserves in my checking & savings accounts for interest purposes and "just in case."

 

Now this isn't to say that some manual reviews wouldn't have a concern with the card being "maxed out" at some time in the past and it having been reported to the high limit, since each manual reviewer can use any piece of info they want to make any decision, but I'm just saying it hasn't effected me. And as long as it can be articulated, I don't it would effect most people unless it adds to a patern.

Lender Pull (11/3/12) FICO EX: 740 EQ: 680 TU: 702

NFCU VISA $17.5k / USAA AMEX $6k / USAA AMEX $4k / USAA VISA $4k / CHASE FREEDOM $3k / Capital One $500
Moderator
Revelate
Posts: 9,486
Registered: ‎12-30-2011
0

Re: Does it Really Matter If You Charge to the Limit?

[ Edited ]

seigex wrote:

I notice a lot of people are concerned with the "high limit" .. I use my $3k chase card to within a couple hundred of the limit every month, pay down to between 6 and 9% before statement and pay off before the due date so I never carry a balance month to month. My report shows a high limit close to the max, as that's the highest amount I've had on that card in the past, but it has had no negative effect on me. I do this since I use the card for all my purchases during the month and am big on maintaining liquidity in cash reserves in my checking & savings accounts for interest purposes and "just in case."

 

Now this isn't to say that some manual reviews wouldn't have a concern with the card being "maxed out" at some time in the past and it having been reported to the high limit, since each manual reviewer can use any piece of info they want to make any decision, but I'm just saying it hasn't effected me. And as long as it can be articulated, I don't it would effect most people unless it adds to a patern.


TBH, I'm fairly confident it's only when your card is at it's high balance that it's a problem; many underwriters will look at current balance vs. high balance, and a card that's been maxxed out previously (or nearso) and subsequently paid off, is nothing but goodness honestly.  Demonstrated responsible use of credit for-the-win in my book.

 

End of the day, the more you use the card, the more profitable you are to the lender who issued it, and credit cards being red water competition in the market north of 660 FICO or so, other lenders will want a slice of the action and be more willing to approve you: every lender likes profitable customers and are more likely to issue a new shiny bit of plastic in order to entice you away from your current credit card.

 

I just don't see any downside in your, or in my strategy as I do it too though my expenses aren't high enough to max my cards every single month; however, I'm front-loading some of the spending I'd do for the rest of the year on my baby Zync this month, just to goose up the high balance on that for future underwriting concerns.

 

 

 

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Valued Member
mja
Posts: 41
Registered: ‎08-08-2012
0

Re: Does it Really Matter If You Charge to the Limit?


Revelate wrote:

seigex wrote:

I notice a lot of people are concerned with the "high limit" .. I use my $3k chase card to within a couple hundred of the limit every month, pay down to between 6 and 9% before statement and pay off before the due date so I never carry a balance month to month. My report shows a high limit close to the max, as that's the highest amount I've had on that card in the past, but it has had no negative effect on me. I do this since I use the card for all my purchases during the month and am big on maintaining liquidity in cash reserves in my checking & savings accounts for interest purposes and "just in case."

 

Now this isn't to say that some manual reviews wouldn't have a concern with the card being "maxed out" at some time in the past and it having been reported to the high limit, since each manual reviewer can use any piece of info they want to make any decision, but I'm just saying it hasn't effected me. And as long as it can be articulated, I don't it would effect most people unless it adds to a patern.


TBH, I'm fairly confident it's only when your card is at it's high balance that it's a problem; many underwriters will look at current balance vs. high balance, and a card that's been maxxed out previously (or nearso) and subsequently paid off, is nothing but goodness honestly.  Demonstrated responsible use of credit for-the-win in my book.

 

End of the day, the more you use the card, the more profitable you are to the lender who issued it, and credit cards being red water competition in the market north of 660 FICO or so, other lenders will want a slice of the action and be more willing to approve you: every lender likes profitable customers and are more likely to issue a new shiny bit of plastic in order to entice you away from your current credit card.

 

I just don't see any downside in your, or in my strategy as I do it too though my expenses aren't high enough to max my cards every single month; however, I'm front-loading some of the spending I'd do for the rest of the year on my baby Zync this month, just to goose up the high balance on that for future underwriting concerns.

 

 

 

 


Thanks! You guys give me hope!  I'll be sure to report my progress.  Thanks again! :smileywink:


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