Hello all,
In this thread, a few folks mention that high CLs (somewhere above $30K and $40K) are not factored into scoring utilization http://http://ficoforums.myfico.com/t5/Credit-Cards/I-Love-PenFed/td-p/753438/highlight/true
Is this true? If yes, does this "maximum" CL differ from one Credit Bureau to another? Is there a resource that details the precise maximum by CB (or does anyone have any personal experience)?
The thread suggests that once a CL exceeds some maximum, it's no longer included in scoring utilization - so if you are carrying any balances on other cards, your overall utilization % will increase. But what about the individual utilization on such a CL - is that no longer factored either?
I've never heard of this until today! This definitely would impact my "gardening" approach were I to learn it is true.
Thanks in advance! 
Eh? I've been working. 
I always thought that it was $40K, but then I started seeing posts indicating that at least for some people, it was more like $30K. And I wish that I could tell you which CRA's, but if I knew in the first place, it's long gone.
I used to have a $32K CL on a USAA card, and I'm semi-kinda-reasonably sure that it still factored into util on EQ. But I do remember that my util figures were all over the map about that time with TU, so maybe TU's cutoff is lower. No clue about Experian.
If you don't have a humongous number of cards, you can experiment with letting balances post on other cards and checking the reported util, if that shows on screen 2 as either a positive or negative. Calculate your total util with and without the high-limit card, and see which matches the one on the screen. You can do the same with letting a balance report on the high-util card, of course.
But if a card has "too high" of a limit, it's ignored for both individual util on that card, and also for total, meaning that it doesn't contribute to your total CL, so yes, if other balances report, your util might rise. We've had some irate posts by those with several high-limit cards and only one or two lower CL cards who got dinged for high util.
Sorry, I know that's kind of vague; OK, really vague! but that's the best I've got. You'll probably have to do some experimenting to find out how it affects your scores. Do remember that the TU score here is pretty outdated. If it's the only score with a problem, you might want to just ignore it, in hopes that TU04 has a higher limit.
But they all have a limit somewhere or other.
Thank you, Hauling!
I don't have any cards with CLs in this range so I'm afraid that I cannot experiment - I'm just thinking ahead for the future.
I'll research further and see what I come up with - and hopfully other folks can chime in with their experiences as well. I was just shocked to read that it is possible to have a non-charge account limit excluded from scoring consideration! I sure am glad to be tipped off to this now before anything hit the fan down the line!
It appears that one possible way to maximize utilization would be to ensure that one has several cards whose limits do not exceed $30K-ish. But if one were to carry a balance for a time (say for a home improvement project), one would have to consider the interest rate, utilization %, etc. - so having a card (or several, if one has to split the charge to avoid high utilization on a single card) with a low interest rate (even temporary 0% APR) would be key. And one would also have to ensure that less than half of their lines are hosting a balance at reporting time to lessen the score hit...hmm.
I've been learning absolute LOADS on this site, I love it! So many if-thens to be aware of. Thanks again, and I'll post back with any info I find.
@fused wrote:I have a Visa card with a 40K CL and I did a balance transfer of 10K. Once it reported, my EQ FICO score dropped 20 points, my TU FICO did not change. Hauling is correct!
lol, even a blind squirrel finds a nut every now and then...
Thanks for the testimony. I might just go ahead and combine my USAA cards and close the AmEx. I've been holding off, fearing that it would be removed from scoring once it was over $30K, but as long as EQ behaves, that's good. I just can't get too excited about what TU98 says or does.
