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How Often Does High Limit Reset?

Regular Contributor

How Often Does High Limit Reset?

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?


Starting Scores (lender pull 3/27/10): 759 (EQ), 752 (TU), 749 (EX)
Current Scores (myFICO 4/4/11): 768 (EQ)
Goal Scores: 800


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2 REPLIES
Established Contributor

Re: How Often Does High Limit Reset?

I dont think it goes away. It does update though if you make a purchse worth more that your previous high balance. I think that high balance field is useful for manual reviews. It makes one think you made a big purchase and paid it off without a hitch :-) BTW: high balance doesnt get factored for scoring as long a CL is being reported.
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Member

Re: How Often Does High Limit Reset?

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.