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Regular Contributor
PleioneG
Posts: 114
Registered: ‎08-29-2012
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maxed credit card but paying in full in a week. will high limit hurt us?

[ Edited ]

I've researched extensively on the forums so I'll just ask.

 

I have a Capital One credit card with a 500 balance. For the last year, the highest my husband has ever charged the card is 238. That was our high limit. Our balances show that we always pay on time and receive statements with 0 balances every month and has not once ever been late. Always on time paid in full. However, two days ago, we decided to use the card to hold a purchase by maxing the balance and paying it off entirely by this Friday. That's the entire credit balance paid not only in a week but within the Statement period and putting it at a 0 balance. We were under the impression constant use of the card and paying it in bulk will give us good credit.

 

But now I'm reading that maxing the card will hurt us more than benefit. It will set the credit score back 10-30 points and it will now show that $500/max is the highest we have ever borrowed instead of $238 on a $500 limit card. I'm worried because now I wonder if this will hurt our auto loan currently in process or potentially bring down our score. Assuming they take eons to go through everything and the beareus update us showing our high limit no longer 238 but the max... will they turn around and go 'no thanks' because of that? And will our credit score drop even though we paid within a week's frame of "borrowing" it? We used the CC because we figured it needs the occassional usage for us to establish credit since this is what the credit card is for. We wanted to show that we can borrow and pay money back quickly if need be. Now I wonder if I only damaged our scores.

 

It's funny the bad information people tell you about credit cards and then what you learn when you research. What is going to happen with our credit score when they report max charged max paid within a week? Does the highest limit ever borrowed on a credit report effect our score? And if it shows we paid it in full and our balance is still 0 despite maxing credit, will this negate the credit loss for maxing credit?


Wallet: Capital One Platinum - $2000, Amazon - $3000, Walmart - $3000, Discover It - $1000, Chase Freedom - $3000
Current Score: TU98: 678 - 2/2012, Walmart TU - 672 2/2013, Equifax 713 - 1/2013
Goal Score: 700 for all three.
GC Challenge: App free since 1/2013. No more apps! 2015 for mortgage!
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Creditaddict
Posts: 22,067
Registered: ‎10-23-2007
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Re: maxed credit card but paying in full in a week. will high limit hurt us?

I have some questions to make sure I am following:

 

1.  The limit on your Capital One is $500 or you have a Signature Capital One that doesn't report your credit line and the most you have used is $238 in the past?

 

Oh actually that's it for my qestions, LOL

 

1. If limit is $500 and max eveery charged is $236 it won't matter that you have never been to $500 and yes if you have a statement that shows $499 out of $500 you might loose some points, but if you PIF and then didn't use card it would update no debt next month and last month maxed will be gone...

 

What is score? whare are you trying to do? you have other credit cards?

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
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Koop10010
Posts: 731
Registered: ‎02-15-2012
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Re: maxed credit card but paying in full in a week. will high limit hurt us?

Stop worrying!  If that $500 balance isn't going to be there on your statement date and get posted as your current balance, you will be fine.  Having $500 for a high balance means almost nothing.  In fact, it would probably look good, showing that you can charge larger amounts and still pay in full.

FICOs (2/24/12): EX 752, EQ 740
Chase Sapphire Preferred, Freedom; American Express PR Gold, Blue Cash Everyday
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Brian_Trying_700
Posts: 445
Registered: ‎09-14-2011
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Re: maxed credit card but paying in full in a week. will high limit hurt us?

+20,000


Koop10010 wrote:

Stop worrying!  If that $500 balance isn't going to be there on your statement date and get posted as your current balance, you will be fine.  Having $500 for a high balance means almost nothing.  In fact, it would probably look good, showing that you can charge larger amounts and still pay in full.


 

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PleioneG
Posts: 114
Registered: ‎08-29-2012
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Re: maxed credit card but paying in full in a week. will high limit hurt us?

Sorry if I'm not making sense! I'm all over the place and scattered so I'll try to be a little more clear.

 

Highest score for my husband on Exp is 675 right now. The Capital One card we have does report to our credit.  We are still in the August-September statement period. It ends around Sept 11-13th this month. Our credit card had the entire $500 limit available since we didn't use it and already paid it off three weeks ago. I used that entire limit two days ago to make a purchase. I intend to pay off that entire $500 this up and coming friday. That means when they report me, they will state that the highest amount I have ever borrowed from them is $500. The current 'high limit' is $239 which was charged on our account around mid February. It has remained on our report ever since then as the high limit. Now that I know it will no longer be 239 but 500, I was worried this will knock our score down ... vehemently.

 

But we are also going to PIF this week so the statement balance will still show $0. I'm just trying to figure out if that will negate the few points we'll lose because we charged the highest amount possible to our card.


Wallet: Capital One Platinum - $2000, Amazon - $3000, Walmart - $3000, Discover It - $1000, Chase Freedom - $3000
Current Score: TU98: 678 - 2/2012, Walmart TU - 672 2/2013, Equifax 713 - 1/2013
Goal Score: 700 for all three.
GC Challenge: App free since 1/2013. No more apps! 2015 for mortgage!
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Creditaddict
Posts: 22,067
Registered: ‎10-23-2007
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Re: maxed credit card but paying in full in a week. will high limit hurt us?


PleioneG wrote:

Sorry if I'm not making sense! I'm all over the place and scattered so I'll try to be a little more clear.

 

Highest score for my husband on Exp is 675 right now. The Capital One card we have does report to our credit.  We are still in the August-September statement period. It ends around Sept 11-13th this month. Our credit card had the entire $500 limit available since we didn't use it and already paid it off three weeks ago. I used that entire limit two days ago to make a purchase. I intend to pay off that entire $500 this up and coming friday. That means when they report me, they will state that the highest amount I have ever borrowed from them is $500. The current 'high limit' is $239 which was charged on our account around mid February. It has remained on our report ever since then as the high limit. Now that I know it will no longer be 239 but 500, I was worried this will knock our score down ... vehemently.

 

But we are also going to PIF this week so the statement balance will still show $0. I'm just trying to figure out if that will negate the few points we'll lose because we charged the highest amount possible to our card.


Im not understanding if your limit is $500 why you are thinking your limit reporting is $239?

is this $239 high balance, then elsewhere you see liit is $500. or you saying no limit of $500 reported AT ALL?

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Regular Contributor
PleioneG
Posts: 114
Registered: ‎08-29-2012
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Re: maxed credit card but paying in full in a week. will high limit hurt us?

 

Koop10010, I'm worrying a ton lol! I'm paranoid about credit cards so I'm worried I may have done more damage than good.

 

Yet from what you're saying, the high limit showed on the report is just a statistical number? Why does it show on the report? Is it used for anything other than stating highest amount charged on the card?

 

I have absolutely NO PLANS to ever charge that high ever again. But the fact that I have at some point worries me. I'm only now understanding the rules behind credit cards. I'm just glad I did not do anything too terrible and kept my balance at 0 every month!


Wallet: Capital One Platinum - $2000, Amazon - $3000, Walmart - $3000, Discover It - $1000, Chase Freedom - $3000
Current Score: TU98: 678 - 2/2012, Walmart TU - 672 2/2013, Equifax 713 - 1/2013
Goal Score: 700 for all three.
GC Challenge: App free since 1/2013. No more apps! 2015 for mortgage!
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squirrely2005
Posts: 100
Registered: ‎02-01-2012
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Re: maxed credit card but paying in full in a week. will high limit hurt us?

I could be wrong but I don't think that you'll see the highest reported balance as 500 on your report unless that's the balance that reports. And it doesn't make a difference. Or it shouldn't. It could be that you had a higher limit at that time.

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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: maxed credit card but paying in full in a week. will high limit hurt us?

You will be fine. Any score drop you see will be temporary and will not hurt you. With only a $500 limit that card is way too easy to "Max" Have your husband check out the zync by amex or maybe a different charge card product. It may fit your needs better if used responsibly.

Starting Score: 08/29/2011 TU 671 EQ 674
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Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
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Regular Contributor
PleioneG
Posts: 114
Registered: ‎08-29-2012
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Re: maxed credit card but paying in full in a week. will high limit hurt us?

[ Edited ]

Creditaddict wrote:

PleioneG wrote:

Sorry if I'm not making sense! I'm all over the place and scattered so I'll try to be a little more clear.

 

Highest score for my husband on Exp is 675 right now. The Capital One card we have does report to our credit.  We are still in the August-September statement period. It ends around Sept 11-13th this month. Our credit card had the entire $500 limit available since we didn't use it and already paid it off three weeks ago. I used that entire limit two days ago to make a purchase. I intend to pay off that entire $500 this up and coming friday. That means when they report me, they will state that the highest amount I have ever borrowed from them is $500. The current 'high limit' is $239 which was charged on our account around mid February. It has remained on our report ever since then as the high limit. Now that I know it will no longer be 239 but 500, I was worried this will knock our score down ... vehemently.

 

But we are also going to PIF this week so the statement balance will still show $0. I'm just trying to figure out if that will negate the few points we'll lose because we charged the highest amount possible to our card.


Im not understanding if your limit is $500 why you are thinking your limit reporting is $239?

is this $239 high balance, then elsewhere you see liit is $500. or you saying no limit of $500 reported AT ALL?




On both my Trans and Exq reports, for the revolving account it shows my last balance, last payment, credit limit, and then high limit.

 

From what I understand, high limit is the highest charge that was placed on my card thus far. $239.08 charged on my card some months ago for a car rental. That was our highest charge to this card thus far and reports that. It has been on there for months.

 

Now that I have charged exactly $500.00 to my credit card, this will now show $500 being the new 'high limit' or the highest charge I have ever charged to my credit card. That statisic never changes and remains there. I was wondering what purpose did it serve son our report and if it will make or break our credit score since our limit is only up to $500. Does it serve as a ratio or anything? 

 

Not sure if that made better sense or  not.


Wallet: Capital One Platinum - $2000, Amazon - $3000, Walmart - $3000, Discover It - $1000, Chase Freedom - $3000
Current Score: TU98: 678 - 2/2012, Walmart TU - 672 2/2013, Equifax 713 - 1/2013
Goal Score: 700 for all three.
GC Challenge: App free since 1/2013. No more apps! 2015 for mortgage!

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