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Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007
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Lowering UTL with out a CLI or paying debt. Can this work?

Wondering if it can help, hurt scores, or do nothing.

If someone has 2 or more CC's w/ $500 CL each from the same bank. What if:
(I just used $500 CL as an example)

Starting with.
1. Credit Card $500 CL High Limit $500.
2. Credit Card $500 CL High Limit $500.
-----------------------------------------
Total.. CL $1,000 .. High Limit $1,000
If you charge $250 your UTL is 25%.

What if we moved credit lines around and maxed them out one at a time to double High Limit?

First month. Moved CL to card #1.
1. Credit Card $1,000 CL High Limit $1,000.
2. Credit Card $0 CL High Limit $500.

Second month. Moved CL to card #2.
1. Credit Card $0 CL High Limit $1,000.
2. Credit Card $1,000 CL High Limit $1,000.

Third month. Split credit lines again.
1. Credit Card $500 CL High Limit $1,000.
2. Credit Card $500 CL High Limit $1,000.
-----------------------------------------
Total.. CL $1,000 .. High Limit $2,000
If you charge $250 your UTL is 12.5%.

Does HIGH LIMIT over take CREDIT LIMIT if high limit is more? Like with Amex or Cap1 cards that don't report CL, FICO uses High Limit as CL. Or is this HIGH LIMIT ignored since CREDIT LIMIT would be other than "$0". Or even worst, is this negative since it appears as an over the limit? But can someone be 100% or greater over the limit? Not likely.

This idea just popped in. I have no idea what this would actually do to a score. What do you think about it?
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Moderator Emeritus
Posts: 9,252
Registered: ‎03-19-2007
0

Re: Lowering UTL with out a CLI or paying debt. Can this work?

I still think high limits are ignored when an actual CL is being reported.
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