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ArchEnemy
Posts: 1
Registered: ‎10-17-2012
Utilization and High Balances Question
[ Edited ]

Hello everyone.  I have a question I've been unable to find the answer to and hoping I can get an answer here.

 

I am on the road to establishing good credit.  I only have a Fingerhut account and a Capital One Secured Master Card currently, with a credit history of just 3 months so far.

Both are now reporting In good standing.

 

 

I noticed on my TansUnion Credit report Capital One has reported the following:

1) Balance   2) Credit Limit   3)High Limit

 

I understand how Balance and Credit Limit equal Credit utilization, and the impact that has if too high.

 

But my question is about the High balance portion.  How does this factor in or does it?

 

 

 

The reason I am curious is because I have ran the card (Capital One) up to approximately 80% utilization rate, but paid it off BEFORE the statement closes. Within a week or 2 of the transactions posting.     Im trying to keep my balances that are report at 30% or less.

 

Will this hurt me?

 

And, for what ever its worth I have been paying the card off in full every month.  If I run it up I just pay it back down.  I thought this may help in regards to using it, but the High balance reporting got me worried.  

 

Also, once I get my statement, I have been paying it in full within the week I get it, even though I have much longer .. a good 3 weeks or so to get it paid.  Will paying long before the due help in any way?

 

Thanks.

 

Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Utilization and High Balances Question

Having an elevated high balance reporting in that field doesn't hurt any for the most part. I'd ignore it. It only comes into play in cases of charge cards or no preset limit CCs. CCs report the balance oyu had on the statement date, so base any payments around that. For max points get all CCs to report $0 except one and get the one to report less than 9% of the CL.

Valued Contributor
creditnocash
Posts: 2,255
Registered: ‎07-23-2012
Re: Utilization and High Balances Question

llecs wrote:

Having an elevated high balance reporting in that field doesn't hurt any for the most part. I'd ignore it. It only comes into play in cases of charge cards or no preset limit CCs. CCs report the balance oyu had on the statement date, so base any payments around that. For max points get all CCs to report $0 except one and get the one to report less than 9% of the CL.


question: if a charge card reports high balance does it go back to 0 next month? if the statement says 0

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Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Utilization and High Balances Question

Before losing my Amex, it reported a high balance and that stayed the same for a while. It seemed to reset every few months or so to my latest statement amt, though my spending was consistent and never really tracked it. I guess it's up to the creditor.