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Valued Contributor
Duncanrr
Posts: 2,843
Registered: ‎06-08-2012
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High balance - any influence on score or credit approvals?

Ive been pushing the max through my secured cards and paying all or 99% of balance off before statement cuts.  One my Cap1 card it reports the high balance on the card.  This number is very close to my credit limit.  Is this a problem? Im pretty sure it doesnt affect credit scores but do lenders look at this as a negative or positive?

 

Thanks,

 

 

Duncan



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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Established Contributor
compassion101
Posts: 585
Registered: ‎06-06-2012
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Re: High balance - any influence on score or credit approvals?

I don't think it should have any effect

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Revelate
Posts: 9,016
Registered: ‎12-30-2011
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Re: High balance - any influence on score or credit approvals?


Duncanrr wrote:

Ive been pushing the max through my secured cards and paying all or 99% of balance off before statement cuts.  One my Cap1 card it reports the high balance on the card.  This number is very close to my credit limit.  Is this a problem? Im pretty sure it doesnt affect credit scores but do lenders look at this as a negative or positive?

 

Thanks,

 

 

Duncan


Hard to say, but I'd bet any reasonable amount of money on it's being a positive on underwriting.   You have to be able to responsibly demonstrate full use of your credit before you can be granted more in some situations.  That doesn't come up very often I'll admit, but on the other hand you want to run as much of your financial life through your cards if you're trying to build better relationships both with current lenders and future ones.  

 

Using your card = winning for banks; egro, you make yourself look not only safe, but also profitable... banks like that combination.

 

FICO doesn't care about high balance to my knowledge other than in utilization calculations for flexible spending account / Visa Sig style cards, or charge cards under the '98 model.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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