Frequent Contributor
Posts: 337
Registered: ‎03-24-2012
Is charging to limit a bad thing?

I have a Orchard card with a $300 limit and a Capital One card with a $200 limit. Every month I pay the Cap 1 card to a zero balance and Orchard to a $20 balance before the statement closes. My question is by maxing my cards out monthly even though I pay them down is that hurting my fico?

Valued Contributor
Posts: 2,323
Registered: ‎09-16-2011
Re: Is charging to limit a bad thing?

shouldn't effect your fico score, but your creditors may not like it, and you can get burned if they have an fee for going over the limit. If you ever let it report it will effect your high balance field that may effect you.  May want to app for another card possibly GE backed card they may take a chance they are quite good at giving CLI's every 4 months and the walmart card comes with monthly TU08 scores if you go paperless statements. 

 

 

Cards: Chase Southwest 20k & CSP 10k & Freedom 6.6k & Amtrak/Freeom 4.6k, FNBO DISC 20.1k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 12k Sally Mae5.5k Sams Club MC 10k, Paypal Extras MC 7.5k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5.9k, Walmart 10k, Citi Simplicity 7k, Discover IT 11.5k and a nice stack of store cards.
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Frequent Contributor
Posts: 337
Registered: ‎03-24-2012
Re: Is charging to limit a bad thing?

Thanks. I'll look into a GE card

Moderator Emeritus
Posts: 14,379
Registered: ‎12-30-2011
Re: Is charging to limit a bad thing?

Sassy_Taurus wrote:

I have a Orchard card with a $300 limit and a Capital One card with a $200 limit. Every month I pay the Cap 1 card to a zero balance and Orchard to a $20 balance before the statement closes. My question is by maxing my cards out monthly even though I pay them down is that hurting my fico?


No, and it will likely be viewed as a positive both by your current lenders (ok, maybe not C1) but certainly others when it comes to manual review.

 

Lenders like people who are using their cards, that's unarguable, and you've already established the pattern.  You'll be fine.

Starting Score: EQ 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 694, EQ 8 714, TU 8 708, EX 8 724 (04/01/16)
Goal Score: 700 on EQ 04 (01/01/17)


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Established Contributor
Posts: 1,011
Registered: ‎04-08-2012
Re: Is charging to limit a bad thing?

EX and TU reports your highest balance (ever) on your credit report, not sure if EQ does it

-Rebuilding with CapOne Cash: $1.5k, NFCU cashRewards $8.5K, NavCheck $5K, Wal-Mart: $1.1K, Sam's: $1.2K, Amazon: $1.9K, Apple Barclay: $3K, Haverty's: $1.5K, GE capital: $5K, Sears: $250(AU), PP MC:$1.5K, CareCredit:$3K (closed 1st home 05/08/13)
Starting Score: 492-TU04, 480-EX FICO V2, 467-EQ Beacon 5 (Via Mortgage PreQual March '12)
Current Score: EX,EQ,TU (lender pull): 652, 659, 689, Walmart TU FICO: 691 (05/13)
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