Instead ot trying to figure out specifics for every possible given situation out there (which would be an unwieldy number of permutations), learn the basics with credit scoring and assessment and you'll be better equipped to understand regardless of situation. Granted, there are some details that vary by situation but at least you'll have the foundation to better understand things. Start here
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
but understand that this is just a starting point and only covers typical weighting of factors by FICO. How creditors assess reports can vary.
@Anonymous wrote:
Can I make large purchases and pay an amount immediately to leave a small balance for the statement for "debt/credit ratio" and cashback reasons? (Spend $200 on credit line, pay $160 before the statement comes, and make it look like there is a small percentage of credit used?)
General advice is:
- Both overall and individual revolving utiliation matter
- Do not exceed 30% revolving utilization.
- 30% is not an ideal. It is a max. Lower is generally better as long as you don't have all your revovlers reporting 0 balances
- Number of balances plays a role as well -- fewer is generally better
Give all that, not only can you pay prior to report date on any card, you may want to in order to control reported utilization if apping or if you anticipate that it will exceed 30% -- especially over a number of cycles. If your revolving utilization will end up under 30% don't worry over it. It's determined based on current balances and limits as indicated in your reports. If you need to drop it -- such as when applying for new credit you can do so prior to applying.
@Anonymous wrote:
I am an authorized user on my parents Amex card with "no disclosed limit" and it shows up on my reports. Can I disclose any limit for this or do I just have to deal with it?
You can't disclose anything. Creditors report to the CRA's, not you. I'm assuming this is a charge card though AmEx also has credit cards. AmEx's charge cards do not have limits and do not factor into revolving utilization for current FICO models.
Additionally, accounts where one is an AU are not always considered so don't worry too much over them. They may help in some cases but you'll have to build your own tradelines anyway.
@Anonymous wrote:
When will I see a credit increase on my new Discover card?
We can't tell you that. CLI's are not simply handed out in exchange for time with any creditor.
Your credit profile and income are not only primary factors for the limit you're approved for but your CLI's as well. It all depends on what your credit profile and income support. It's certainly possible for people to see different results in X time based on profile and income. One could see a large CLI. One could see a little CLI. One could get no CLI. One could get a CLD. Time itself doesn't tell you that.
@14Fiesta wrote:
All that matters with DIscover is statement balance.
This meme is very popular but incorrect. Do not rely solely on usage with any creditor. Again, primary factors are credit profile and income. Usage can help to some small degree in some situations but it will not make or break a CLI on its own or overrule profile & income. Cards with little usage can see a large CLI. Cards with heavy usage can see little to no CLI. I didn't heavily use my Discover when it's limit was nearly doubled 3 months after opening. I haven't heavily used it prior to the time I just received my $6K CLI a day or two ago -- or for any of my CLI's with Discover.
