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New Contributor
Posts: 66
Registered: ‎10-30-2011
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PenFed Gas Card is $10,963 overlimit. Can this help me increase my utilization later?

So I got a new PenFed Gas Card end of last month.


I applied online and submitted 3 credit cards for balance transfers totalling $14,000.  My credit limit on my new card is only $16,500. 


For some reason, PenFed accidently duplicated all 3 balance transfers.  So $28,000 worh of balance transfers instead of $14,000.  So now my card is - $11,000 in the hole.


I was told it might take a while for PenFed to correct this error because PenFed has to coordinate with the other credit card companies for a refund.  So if this matter is not resolved in 2 weeks, the -$11,000 will report on my credit report because the current month's statement period would be wrapping up.


I know -$11,000 will drop my credit score like nobodies business.  I would be at 170% utilization.


My question is:


I remember reading somewhere on the internet, that your "highest balance" ever, for FICO scoring purposes is now your unofficial credit limit.  So yes, it will hurt your score in the short run, but it might benefit you score wise in the long run because you now have an inflated credit limit that might help lower your utilization percentage.


Is there any truth to this?


If this is true, I would like to ask PenFed to reverse the charges but keep reporting the "highest balance" ever on my credit report.

Starting Score: TU 749 02/02/2014
Current Score: TU 749 02/02/2014
Goal Score: 850

Valued Contributor
Posts: 1,884
Registered: ‎09-20-2011
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Re: PenFed Gas Card is $10,963 overlimit. Can this help me increase my utilization later?

It will do you no good and will look very bad on a manual review of your credit.  UT is done by reported limit not highest balances.  What you may be thinking of is Signature cards.  For the Signature cards that do not report a balance the highest reported limit is used as the balance when calculating UT.  (Not all FICO formulas count signature cards into UT)

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