$50k limits not part of utilization?

[SouthJamaica]

I've been reading about $50k credit limits on credit cards offered by a few of the credit unions I favor.

But am I correct that if my 33k limit were to ascend to that lofty 50k limit, the account would no longer be included in my FICO 'utililization' calculations?

[Anonymous]

SJ, I'm quite sure that $50k has not been ruled out under FICO 8; I believe several people have tested their $50k line as their AZEO card and have not seen a score drop (as if all cards were seen as having no utilization).  CGID will be able to verify this, as I know it's something he's researched in the past.

Where the cutoff point exists is the question, but no doubt it is north of $50k.  It would be great to hear from anyone that's used a larger credit line than that as their AZEO card, perhaps something with $60k for example, so we could move the sticks and try to really isolate where the line in the sand is.

[Anonymous]

Umm, im curious to know why when you reach a certain CL it won't count towards your FICO 8 scoring.

[CH-7-Mission-Accomplished]

The reason that cards with very high credit limits don't count under revolving parameters is for FICO scoring to allow for revolving home equity lines of credit.   The idea was that people doing say a 100K remodel and funding it with a revolving HELOC should not be penalized like somebody who just ran up their Visa card to 100K.   This was extensively researched and discussed on the other site several years ago when I was reading about it, but I forget the cutoff point in terms of $$$ amount.   I also don't know if it's still in effect.

[Anonymous]

Interesting!

[Thomas_Thumb]

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@SouthJamaica wrote:

I've been reading about $50k credit limits on credit cards offered by a few of the credit unions I favor.

But am I correct that if my 33k limit were to ascend to that lofty 50k limit, the account would no longer be included in my FICO 'utililization' calculations?

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I believe the exclusion limit is $35k for the older Fico 98 and Fico 04 models. It's more than $50k for Fico 8. The lowest limit that might have been excluded for Fico 8 is $60k based on posts I have read.

[SouthJamaica]

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@Thomas_Thumb wrote:

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@SouthJamaica wrote:

I've been reading about $50k credit limits on credit cards offered by a few of the credit unions I favor.

But am I correct that if my 33k limit were to ascend to that lofty 50k limit, the account would no longer be included in my FICO 'utililization' calculations?

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I believe the exclusion limit is $35k for the older Fico 98 and Fico 04 models. It's more than $50k for Fico 8. The lowest limit that might have been excluded for Fico 8 is $60k based on posts I have read.

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So for mortgage score purposes, it would be best not to go for the higher limits.

[Thomas_Thumb]

Yes, if you want the card to factor in. Some may want a high limit card that does not count. I have heard (no personal experience) that cards which don't count can be highly utilized without the experiencing a score penalty.

I want my cards to count (except my AMEX charge NPSL) and decided to keep my highest limit revolver at $34.9k. I also stopped requesting SP limit increases on my Discover card once CL hit $31k.

[SouthJamaica]

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@Thomas_Thumb wrote:

Yes, if you want the card to factor in. Some may want a high limit card that does not count. I have heard (no personal experience) that cards which don't count can be highly utilized without the experiencing a score penalty.

 That is fascinating. If it were the right kind of card, one could safely stick all of one's utilization there

I want my cards to count (except my AMEX charge NPSL) and decided to keep my highest limit revolver at $34.9k. I also stopped requesting SP limit increases on my Discover card once CL hit $31k.

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[Thomas_Thumb]

I did that (put most my charges) on my AMEX NPSL card with no negative impact - except Fico 98 (EX Fico score 2) which dropped my score a good 20 points due to card B/HB utilization being at 100%. Note: If a high limit revolver is 100% invisible your score won't experience such a drop because there is no B/HB being calculated.

The problem with cards that don't count is: If it/they are the only ones reporting a balance, your score with suffer due to the: "No recent activity on revolving accounts" factor. That situation can drop score 20 points.