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Regular Contributor
Posts: 155
Registered: ‎04-04-2011
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Inflating Credit Card Limit

I have one of my credit cards (limit of $3,900) with a credit union, and I am actually able to make "payments" to my credit card even if I have a $0 balance.  In essence, I can pay money to the credit card, theoretically raising my credit limit.  My question is, does anyone know if this would actually constitute a higher credit limit on my credit report?  Conversely, would it possibly be seen as a negative/red flag if the balance on my credit report was something like -$100?  I do not use this card that much either, so would raising the limit even help my score that much?  My other cards have a $5,500 limit and $5,850 limit.


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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Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
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Re: Inflating Credit Card Limit

[ Edited ]

It won't show up on your CR.  A negative balance will report as a $0 balance and your CL will not report any differently.

 

Raising your CL only affects your score to the extent it affects your utilization.  If you receive a CLI (which you'd have to either get automatically or request, i.e., the method of overpaying won't work) then your utilization percentage will drop (provided it's not already 0%).  Depending on your level of utilization, you might see a score increase.

 

[edited for spelling]


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Senior Contributor
Posts: 3,067
Registered: ‎11-02-2009
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Re: Inflating Credit Card Limit


tpatterson2k9 wrote:

I have one of my credit cards (limit of $3,900) with a credit union, and I am actually able to make "payments" to my credit card even if I have a $0 balance.  In essence, I can pay money to the credit card, theoretically raising my credit limit.  My question is, does anyone know if this would actually constitute a higher credit limit on my credit report?  Conversely, would it possibly be seen as a negative/red flag if the balance on my credit report was something like -$100?  I do not use this card that much either, so would raising the limit even help my score that much?  My other cards have a $5,500 limit and $5,850 limit.


To round this out, for maximum score, the generally accepted rule of thumb is that you want only one card to report a balance, and you want that card to report a balance between 1% and 9% of its credit limit.  As always, your mileage may vary.

 

It seems like you have decent overall CL already, and if you're not using it that heavily, you're probably not going to see any difference from increasing the CL on the card from your credit union. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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