What is the cieling for Revolving Cards before they stop counting the CL?

[Anonymous]

I was/am on my friends Visa, $7k balance, $6k line.  I was told on this board that Fico doesn't count lines after either $30 or $50k.  I'm trying to find out the exact # (in any event I think it is ridiculous especially since they count the balance)

I told my friend to call them and see about lowering the CL to under the cieling, or at least asking them to report it, or at best to split into two cards and split the balance.  Maybe it is more of a manual thing? Get a new card from them and just put the balance on the new card?

[Junejer]

I presume you mean $60K line nycc?

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nyccc2 wrote:

I was/am on my friends Visa, $7k balance, $6k line.  I was told on this board that Fico doesn't count lines after either $30 or $50k.  I'm trying to find out the exact # (in any event I think it is ridiculous especially since they count the balance)

I told my friend to call them and see about lowering the CL to under the cieling, or at least asking them to report it, or at best to split into two cards and split the balance.  Maybe it is more of a manual thing? Get a new card from them and just put the balance on the new card?

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[Anonymous]

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@Junejer wrote:
I presume you mean $60K line nycc?

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@Anonymous wrote:

I was/am on my friends Visa, $7k balance, $6k line.  I was told on this board that Fico doesn't count lines after either $30 or $50k.  I'm trying to find out the exact # (in any event I think it is ridiculous especially since they count the balance)

I told my friend to call them and see about lowering the CL to under the cieling, or at least asking them to report it, or at best to split into two cards and split the balance.  Maybe it is more of a manual thing? Get a new card from them and just put the balance on the new card?

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Yes thanks, I mean the $60k card. I figure since that isn't being counted or used, why not lower it to get it counted in the CL.  Or split into two cards?

[Junejer]

As I recall, Psychic has this figured out pretty well. I think EQ and TU thumb their noses at any CL over $30,000 and EX over $50,000. He will, undoubtedly, correct me if I am wrong here.

If that is the case, then certainly, try splitting it up into two CLs of $29,900. That ought to teach them.

[haulingthescoreup]

This is similar to the issue with lines of credit, especially HELOC's. Somewhere around a CL of $40K, a HELOC will report (properly) as mortgage/ installment, but a CL under that figure reports as revolving and slaughters util once you put that kitchen remodel or landscaping on it.

MV will be glad to sing his tale of woe on this, as EX treats his HELOC as revolving.

[Anonymous]

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@Junejer wrote:
As I recall, Psychic has this figured out pretty well. I think EQ and TU thumb their noses at any CL over $30,000 and EX over $50,000. He will, undoubtedly, correct me if I am wrong here.

If that is the case, then certainly, try splitting it up into two CLs of $29,900. That ought to teach them.

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It's my understanding that credit lines of approximately $29,000 and above will not be calculated by TU and EX.  EQ's threshold is higher at around $50,000+.  

I do agree with ByrdMan, that splitting up the credit lines seems to be the best course of action.  However, it appears that your friend might also have to request a small credit line decrease. 

[smallfry]

FICO gave me no credit for allowing a balance to report on my Navy Fed 40K CC in one area of the report but counted it in another(summary page). Who knows whether it was because it was a CU card or 40K is anyone's guess.

[Anonymous]

Not sure why you feel that a HELOC should report as mortgage if you used it to landscape your garden or get a new kitchen sink. Just because these expenses pertain to a home? Would you also expect all credit card expenses pertaining to your home to report as mortgage?

HELOC stands for Home Equity Line Of Credit. so HELOC is a line of credit just like a credit card and it is quite proper that it should report as such.... 

[Anonymous]

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@Anonymous wrote:

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@Junejer wrote:
As I recall, Psychic has this figured out pretty well. I think EQ and TU thumb their noses at any CL over $30,000 and EX over $50,000. He will, undoubtedly, correct me if I am wrong here.

If that is the case, then certainly, try splitting it up into two CLs of $29,900. That ought to teach them.

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It's my understanding that credit lines of approximately $29,000 and above will not be calculated by TU and EX.  EQ's threshold is higher at around $50,000+.  

I do agree with ByrdMan, that splitting up the credit lines seems to be the best course of action.  However, it appears that your friend might also have to request a small credit line decrease. 

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Thanks I advised her to do so.  She wonders if it is going to help, I'm trying to convince her to do so as she is about to refinance her apartment mortgage.

Outside of the mortgage and some store cards she doesn't use she has two cards;

Citi $0k/$13400k

Citi $7.5k/$55k

and a 792 Score.

Not sure if there is any benefit to going over 800 for her (besides bragging) but as I see it she'll go from 55% util to 12% if she transfers $16k to Card one ($29,400 Line) from Card 2 and then reduces that card another $10k to $29.  I can't see not gainging a few points from getting out of a 50%+ util and can't see 800+ not getting her something with her refinance, no?

[haulingthescoreup]

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feelgood65 wrote:

Not sure why you feel that a HELOC should report as mortgage if you used it to landscape your garden or get a new kitchen sink. Just because these expenses pertain to a home? Would you also expect all credit card expenses pertaining to your home to report as mortgage?

HELOC stands for Home Equity Line Of Credit. so HELOC is a line of credit just like a credit card and it is quite proper that it should report as such.... 

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It's not that I feel that it "should" report this way, as if it were some sort of moral imperative, it's simply the way that it does report. One thing to remember is that it's a secured line of credit; it is tied to your property.

It is very easy to see that it is not treated as revolving credit, because it isn't reflected in the all-important revolving util figures on my reports.

Many people use HELOC's as slush funds for CC debt and so forth, which I think is a pretty dangerous tactic. Ours has been used primarily for home improvement projects, which have increased the value of the home, and for college tuition expenses.