topic Re: How do CCCs judge usage? in Credit Cards

How do CCCs judge usage?

Anonymous — Mon, 26 Oct 2015 23:05:47 GMT

(In particular, Capital one and discover)

Do they judge usage based on your balances that appear on statements? Or overall usage meaning if you paid down your balance before statement cut, that usage counts as well?

Re: How do CCCs judge usage?

OmarGB9 — Mon, 26 Oct 2015 23:38:48 GMT

Can't speak for discover, but I have two cap one cards, and as far as I can tell, they only care about how much you charge and that you pay it back with large, hefty payments. They don't really seem to mind when you pay them (as long as it's on time of course).

Re: How do CCCs judge usage?

Anonymous — Tue, 27 Oct 2015 00:33:06 GMT

They just by overall. So if you pay it down before it is reported, it idoes not count.

Re: How do CCCs judge usage?

kdm31091 — Tue, 27 Oct 2015 00:56:30 GMT

None of us work for them so there's no real definite answer but id assume as long as you are charging and paying they see it as usage whether it reports or not.

Re: How do CCCs judge usage?

Anonymous — Tue, 27 Oct 2015 01:58:35 GMT

@Anonymous wrote:
They just by overall. So if you pay it down before it is reported, it idoes not count.

Are you sure about this? Because most of my cards get paid off daily except for 1 or 2....

Re: How do CCCs judge usage?

Anonymous — Tue, 27 Oct 2015 02:07:15 GMT

@Anonymous wrote:
@Anonymous wrote:
They just by overall. So if you pay it down before it is reported, it idoes not count.
Are you sure about this? Because most of my cards get paid off daily except for 1 or 2....

From where I'm standing YIM's comment seems to be contradictory? Forgive me if I'm reading it wrong.

You're saying it looks at overall, but then you're second sentence is saying that if it isn't reported, then it doesn't count -- meaning it isn't overall...lol.

Re: How do CCCs judge usage?

Gmood1 — Tue, 27 Oct 2015 02:29:38 GMT

Well my bankcard score went up with several balances reporting and new cards reporting. I guess they like to see you light'em up!

Re: How do CCCs judge usage?

Anonymous — Tue, 27 Oct 2015 03:44:58 GMT

@Gmood1 wrote:
Well my bankcard score went up with several balances reporting and new cards reporting. I guess they like to see you light'em up!

Are you sure it wasn't anything else?

Those two factors are what lead to a lower score:

1) Decrease in AAoA

2) Higher util %.

Re: How do CCCs judge usage?

CreditMagic7 — Tue, 27 Oct 2015 03:56:16 GMT

@Gmood1 wrote:
Well my bankcard score went up with several balances reporting and new cards reporting. I guess they like to see you light'em up!

It sure can't hurt your internal scores with those lenders as well as any future U/W reviews to as you say, light'em up!!

My most challenging point in managing credit is right after an app spree and then breaking those new ones in.

You want to PROVE to them that you can deal with the new (higher) lines no sweat and come back for more.

Re: How do CCCs judge usage?

Anonymous — Tue, 27 Oct 2015 11:10:53 GMT

I imagine it depends on whether they are looking internally or externally. Internally, they can see your full spend. However, if you're paying your chase card daily, CapOne likely can't see that, so it would just be by statement.

Re: How do CCCs judge usage?

takeshi74 — Tue, 27 Oct 2015 12:44:20 GMT

@Anonymous wrote:
How do CCCs judge usage?

Creditors are not all identical so don't assume that one answer applies to every creditor out there.

Additionallly, IMO people rely far too much on usage here on myFICO and other credit sites. Usage may play a small role in some cases but primary factors are credit and income with any creditor and usage will not overrule those nor will it make or break a CLI or APR reduction on its own. A person with poor credit and high usage may not get a CLI while a person with excellent credit and low usage can certainly get CLI's. There is, of course, a whole spectrum of credit profiles in between those two extremes. People seem to tend to look for quicky and easy fixes and simple, assumed causal relationships but all creditors will consider your entire credit profile when determining whether or not to grant a CLI. That's why they use an SP or HP.

A creditor who holds an account can obviously see all activity with that account. A creditor that does not can only go by the data on your reports.