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Established Contributor
zerobacan
Posts: 726
Registered: ‎01-13-2013

Does "High Balance" in my CR matters at all?

My High Balance in all of my CR Companies are pretty high compared to my Credit Limits

 

I a couple of cards the high balance in bigger that the CL.

 

does that influence my Score in any way?

 

Thanks :smileyhappy:

Amex PRG NPSL, Amex Delta 2k (AU) Discover iT 5k, BOFA Siggy $5k, BOFA AlaskaAir Siggy 5k, BBVA Compass $5k! Macy's $4.5k, C1 $2.5, SFCU $2.5k, SFCU LOC $2k, Paypal SmartC $4k, Sam's 5.5k Victoria Secret $2k, Kay's $1.7k.,76/Citi $1.5k Amazon $5k, Walmart Disco $3k JC Penny $4k, C1 $2.5, BBRZ 700.
Starting:TU:536 EXP:561 : EQ:552 Current:TU:680 Walmart (2-15-14)EXP:712 FICO!! (12-4-13):EQ:622 (FICO 2-6-14) Uti 27% Goal: 720 By 12-13.
Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011

Re: Does "High Balance" in my CR matters at all?

Good question on whether or not it affects your scores.

 

But I would also question how it affects approvals.

 

Not sure on instant approvals but on a manual review it could be a problem because it indicates that you have went over the CL that was extended to you.  And that's not good.


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Established Contributor
zerobacan
Posts: 726
Registered: ‎01-13-2013

Re: Does "High Balance" in my CR matters at all?


Rhaeny wrote:

Good question on whether or not it affects your scores.

 

But I would also question how it affects approvals.

 

Not sure on instant approvals but on a manual review it could be a problem because it indicates that you have went over the CL that was extended to you.  And that's not good.


Yep but at the same time, it PIF and statement shows 0 balance. and that can show them I can manage, but they toy limits I have makes me get close to their Limits... that is my wish by the way :smileyhappy:

 

who knows if that really matters in some hidden way we dont know.

Amex PRG NPSL, Amex Delta 2k (AU) Discover iT 5k, BOFA Siggy $5k, BOFA AlaskaAir Siggy 5k, BBVA Compass $5k! Macy's $4.5k, C1 $2.5, SFCU $2.5k, SFCU LOC $2k, Paypal SmartC $4k, Sam's 5.5k Victoria Secret $2k, Kay's $1.7k.,76/Citi $1.5k Amazon $5k, Walmart Disco $3k JC Penny $4k, C1 $2.5, BBRZ 700.
Starting:TU:536 EXP:561 : EQ:552 Current:TU:680 Walmart (2-15-14)EXP:712 FICO!! (12-4-13):EQ:622 (FICO 2-6-14) Uti 27% Goal: 720 By 12-13.
Established Member
genmic
Posts: 27
Registered: ‎03-03-2012

Re: Does "High Balance" in my CR matters at all?

I don't think it's true that the high balance can be used to determine an account was previously over the limit.

If I charge 9K on a 10K card, and then later receive a CLD or move the CL for that card to another from the same issuer, etc, the high balance will be greater then the current CL even though I was never over my credit limit.

So I think the high balance field on reports has very little use, and it is rarely discussed here as being brought up during manual reviews.
Established Contributor
zerobacan
Posts: 726
Registered: ‎01-13-2013

Re: Does "High Balance" in my CR matters at all?


genmic wrote:
I don't think it's true that the high balance can be used to determine an account was previously over the limit.

If I charge 9K on a 10K card, and then later receive a CLD or move the CL for that card to another from the same issuer, etc, the high balance will be greater then the current CL even though I was never over my credit limit.

So I think the high balance field on reports has very little use, and it is rarely discussed here as being brought up during manual reviews.

You cleared all my doubts!

 

I like to learn all the little secrests :smileywink:

Amex PRG NPSL, Amex Delta 2k (AU) Discover iT 5k, BOFA Siggy $5k, BOFA AlaskaAir Siggy 5k, BBVA Compass $5k! Macy's $4.5k, C1 $2.5, SFCU $2.5k, SFCU LOC $2k, Paypal SmartC $4k, Sam's 5.5k Victoria Secret $2k, Kay's $1.7k.,76/Citi $1.5k Amazon $5k, Walmart Disco $3k JC Penny $4k, C1 $2.5, BBRZ 700.
Starting:TU:536 EXP:561 : EQ:552 Current:TU:680 Walmart (2-15-14)EXP:712 FICO!! (12-4-13):EQ:622 (FICO 2-6-14) Uti 27% Goal: 720 By 12-13.
Moderator Emeritus
tinuviel
Posts: 4,877
Registered: ‎11-02-2010

Re: Does "High Balance" in my CR matters at all?


zerobacan wrote:

My High Balance in all of my CR Companies are pretty high compared to my Credit Limits

 

I a couple of cards the high balance in bigger that the CL.

 

does that influence my Score in any way?

 

Thanks :smileyhappy:


Although we aren't privy to the details of the FICO algorithms, my understanding is that it doesn't factor into the scores, with the exception of calculating utility in the case of cards that don't report a CL, such as a BoA Visa Signature. In that case, the utility reported uses the High Balance in place of the CL. Other than that, I don't think that it factors in at all.


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
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Valued Contributor
boomhower
Posts: 1,863
Registered: ‎09-20-2011

Re: Does "High Balance" in my CR matters at all?

I've seen zero evidence of it being a factorer in scoring.  Upon a manual review it could go either way.  You can look at it as you overextended your credit or you can look at as the ability to repay high debts without being late or defaulting.

Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011

Re: Does "High Balance" in my CR matters at all?


boomhower wrote:

I've seen zero evidence of it being a factorer in scoring.  Upon a manual review it could go either way.  You can look at it as you overextended your credit or you can look at as the ability to repay high debts without being late or defaulting.


+1

 

That's what I said as well that it could be questioned on a manual review.  If your high balance is higher than your current CL then it could potentially be a problem when an analyst examines it.  Whether or not it affects your score I just can't help but to view this scenario as not so good.  I know for sure I'm not going to chance it.


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Established Contributor
BrokaToe
Posts: 726
Registered: ‎05-12-2012

Re: Does "High Balance" in my CR matters at all?

[ Edited ]

Recently when I tried to recon my starting limit on Chase Freedom, the woman brought up my high balance on BOA. Even though the current util was less than 5%, she still brought it up as a reason I wasn't granted more credit line.

 

I'm not how exactly she was looking at that factor, but all she said was, "Your high balance on BOA is ______".  At the time my BOA limit was only $500 so in order to use the card I had to get close to the max before paying it off, and would do so several times during a month. She responded that she was unable to see payment history during a cycle for other accounts, but after showing some payment history on the Freedom, they could better determine if a CLI was in order. So Poooooo lol

 

Edit: The thing I've noticed about BOA's reporting, is that the high balance is reported as the largest balance you had on the card at any one time, not just the highest reported balance. Not sure if this is the way it is on all creditors or not.


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HiLine
Posts: 2,836
Registered: ‎10-19-2012

Re: Does "High Balance" in my CR matters at all?


BrokaToe wrote:

Edit: The thing I've noticed about BOA's reporting, is that the high balance is reported as the largest balance you had on the card at any one time, not just the highest reported balance. Not sure if this is the way it is on all creditors or not.


 

Easy enough to find out if you have cards from other creditors. Just saying :smileywink:


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