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Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
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Hey, why isn't my credit limit shown on my CR?

[ Edited ]
I am glad you asked...


Why do I care if my credit limit is reported?

Your utilization percentage is 35% of your FICO score. What this means is that the FICO formula takes your total revolving credit limits into account, then your outstanding balances, and then determines the percentage of limits that you are currently using. When a creditor such a CAP1 reports only your highest balance and your current balance your actual credit limit is not being considered, which ultimately results into false utilization for that card.
Let's say your CAP1 card has a $10000 limit but you have only charged a maximum of $2000 in a single statement period. CAP1 will not report your $10000 limit but instead will report your $2000 high balance. Since no CL is reported, FICO defaults to your high balance entry. This past statement period you charged $1000 and CAP1 reported your current balance as $1000. FICO  thinks that you are now using 50% of your credit limit instead of your actual utilization of 10%. As most of us know a utilization figure of 50% will have a negative impact on this account. Furthermore, FICO also takes your total utilization on all of your revolving lines into account, thus likely lowering your scores even further because now you are overextended on your CAP1 and possibly overextended overall.

Why do some CCCs do this?

It varies by creditor and the card in question. Using CAP1 above, IMO it is to purposely keep your scores lower so that they are able to make more money at your expense in higher interest rates because of lower scores.

What can I do?
Remember to do your homework and choose the best option for you!

1. The cards that do not report limits usually do report your high balance so you can charge up the card to near the limit then pay it off immediately.

2. Balance transfer (BT) from another card over to the non-limit-reporting card and then pay it off immediately.

3. You can dispute the non-limit-reporting with the CRAs and the limit will be entered. The caveat to this is that disputing a tradeline for anything could result in it being deleted completely. Also, be prepared for the limit reporting to disappear the next time the creditor updates your TLs.

4. Some cards have limit ceilings where they will only report your limit under a certain amount. Juniper is a perfect example. If you have a Juniper card with a $7000 limit and it is not reporting you can call and request a credit limit decrease (CLD) to under their ceiling of $5000. The limit should then be reported during your next statement cycle.

5. Beware of “Signature” cards. They are usually advertised as such and boast that there is no preset spending limit or that you are allowed to go over your limit as long as you pay the overage before the next statement date. These cards generally do not report a limit because it is technically "flexible". Avoid these cards if you are concerned about non-limit-reporting. Many issuers such as Citi will allow you to convert to a different card at any time. The Citi Premier Pass is a good example of a card you will want to convert to another Citi card such as Platinum Select because the PP does not report your limit.

6. Some store/retail cards do not report your limit but only your high balance. To fix this, simply purchase merchandise from that retailer and return the merchandise within their return period. The length of time that you had the merchandise does NOT matter, only that the charges posted to your account.

Hopefully this will help you boost your scores and not fall victim to the growing lack of credit limit reporting. Feel free to post any known non-limit-reporting cards and experiences with non-reporting-limit cards.


Message Edited by Tuscani on 05-07-2007 06:25 PM
Senior Contributor
Posts: 4,831
Registered: ‎04-20-2007
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Re: Hey, why isn't my credit limit shown on my CR?

As a general rule do most credit cards post the limit? Do these tend to be prime cards or is it more catch as catch can? Any cards which might be available to those of us that fall between sub prime and prime?
Contributor
Posts: 132
Registered: ‎05-02-2007
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Re: Hey, why isn't my credit limit shown on my CR?

My cr#pital 1 also does note report my credit limit, but what also makes me made is they do not report tham my balanse is $0 since Feb!!!
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Posts: 6,182
Registered: ‎03-29-2007
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Re: Hey, why isn't my credit limit shown on my CR?



smallfry wrote:
As a general rule do most credit cards post the limit? Do these tend to be prime cards or is it more catch as catch can? Any cards which might be available to those of us that fall between sub prime and prime?


Yes most CCs do.
Moderator Emeritus
Posts: 6,182
Registered: ‎03-29-2007
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Re: Hey, why isn't my credit limit shown on my CR?



cinoeye wrote:
My cr#pital 1 also does note report my credit limit, but what also makes me made is they do not report tham my balanse is $0 since Feb!!!


Call them up and complain!
Established Member
Posts: 19
Registered: ‎04-30-2007
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Re: Hey, why isn't my credit limit shown on my CR?

Tuscani -
 
I recently (April) obtained a new mortgage, but the company I went with (Wilmington Finance, Inc.) does not report the loan or payment history to the CRA's.  Their reasoning for this is that they sell 100% of the loans they have within 60 - 90 days.  My reasoning for them to report is they are not reporting the loan at all which does not help my score, and I am not getting the two to three months of payment history I am good for on this loan reported - which does not help my score.
 
One customer service representative stated that I could get some sort of release letter from all three CRA's and then Wilmington would report this.  I have looked at all the websites but have been unable to locate a letter that seemed to fit this description.  Do you have any ideas or leads for me on this?  I greatly appreciate your help!
 
Alix
Established Contributor
Posts: 720
Registered: ‎05-04-2007
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Re: Hey, why isn't my credit limit shown on my CR?

Do you have a specific need to maximize your FICO scores in the next 2-3 months? If not, I wouldn't worry about it. The lender is not required to report it and, when the mortgage is sold to a Wells Fargo or Chase or similar, they will no doubt report it to all three CRAs. When they report the mortgage, it will retain the original date opened, so you will not lose any history.
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Posts: 6,182
Registered: ‎03-29-2007
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Re: Hey, why isn't my credit limit shown on my CR?



Revike wrote:
Do you have a specific need to maximize your FICO scores in the next 2-3 months? If not, I wouldn't worry about it. The lender is not required to report it and, when the mortgage is sold to a Wells Fargo or Chase or similar, they will no doubt report it to all three CRAs. When they report the mortgage, it will retain the original date opened, so you will not lose any history.


Agreed.
 
OP: I am not aware of such a letter. Please share if you find an example.
Established Member
Posts: 19
Registered: ‎04-30-2007
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Re: Hey, why isn't my credit limit shown on my CR?

No, there is not a particular need to maximize anytime soon - other than the persistent desire to imrove my FICO score.  After jumping approximately 120+ points from summer of 2005 to 2006 there has been a seemingly miniscule increase of 11 points from summer 2006 to 2007 and I am trying to use all of the information I have available to me to improve.  It is just a little maddening to have what seems to be such a significant peice of my new credit history delayed for so long because the company I originated through simply "chooses" not to report.
 
Thanks for the perspective though!
 
A
Super Contributor
Posts: 8,179
Registered: ‎03-25-2007
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Re: Hey, why isn't my credit limit shown on my CR?



Tuscani wrote:

4. Some cards have limit ceilings where they will only report your limit under a certain amount. Juniper is a perfect example. If you have a Juniper card with a $7000 limit and it is not reporting you can call and request a credit limit decrease (CLD) to under their ceiling of $5000. The limit should then be reported during your next statement cycle.


I don't know what has changed, but my Juniper card is reporting the full credit limit of $7,500 on my latest TC reports
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