04-07-2011 08:01 AM
Out of my three credit cards, the one that I use the most shows a "high limit" of $4,350 of a $5,500 CL. This happened back in fall 2009 when I charged my tuition for a semester. I paid this balance down below 30% util within two months, but to this day the high limit is still the same. Does anyone know if this is something that gets "reset" to a more recent high limit after a certain amount of time, or is this stuck there for the life of the credit card? Secondly, if the high limit remains as long as the CC is reporting, I imagine getting a CLI would help alleviate the negative impact this is likely having on my score, correct?
04-07-2011 08:13 AM - edited 04-07-2011 08:15 AM
04-07-2011 10:33 AM
Yep, having a large high balance is a good thing IMO, as long as your overall utilization is much lower. It lets manual reviewers know that you are actually capable of using your credit. I would think having a bunch of huge credit lines with high balances under $100 or something would look a little odd to a manual reviewer. Back in the dark ages when Cap1 didnt report credit limits to bureaus, people would sometimes make a big purchase with their new cards as close as possible to their credit limit to maximize it.
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