topic Re: Maxed Credit card? in Credit Cards

Maxed Credit card?

Cali_Credit — Wed, 10 Apr 2013 19:46:19 GMT

How much can 1 maxed out effect someones credit score? My Partner score is mid 600's and has 1 maxed out credit card and no badies( AOA is 3.2 years) and 15% UTI. Could this one maxed out card be effect the score so much?

Re: Maxed Credit card?

Adalen — Wed, 10 Apr 2013 19:53:57 GMT

I recently paid a card that was maxed out (94%) down to 73% (overall UTIL as 48%) and my EQ score went up about 25 points. It just depends on how much utilization is weighted on your credit report. Personally, utilization is no longer a big weight on my reports because I have some negative history but I am still confident that the score can and will jump when that card balance is below 10%.

Any way you slice it, a maxed out card will hurt your score.

Re: Maxed Credit card?

HiLine — Wed, 10 Apr 2013 20:28:04 GMT

@IECredit wrote:
How much can 1 maxed out effect someones credit score? My Partner score is mid 600's and has 1 maxed out credit card and no badies( AOA is 3.2 years) and 15% UTI. Could this one maxed out card be effect the score so much?

When I paid off the balance on my maxed out card my Score Watch FICO score jumped 50 points.

Re: Maxed Credit card?

youngandcreditwrthy — Wed, 10 Apr 2013 22:02:40 GMT

I think it depends more on overall utilization too.
Ive had Freedom at 92% util and Barclay's Trav Amex at 82% util and still had like a 690 fico on TU08, 684 on EQ FICO and like 734 on EXP Plus.

Overall util was like 10-15%

Re: Maxed Credit card?

Anonymous — Wed, 10 Apr 2013 22:34:53 GMT

When my util was at 97%, my scores were around 670ish. I also had a 4-5 year old 30 day late.

After I paid everything off and made sure they report 0, my score went above 750 instantly. Of course, it may also be due to my higher AAoA, and the late payment becoming older.

Re: Maxed Credit card?

youngandcreditwrthy — Thu, 11 Apr 2013 13:11:24 GMT

My CK just went up to 747 and I still have a maxxed out card!! Haha

Re: Maxed Credit card?

Anonymous — Thu, 11 Apr 2013 14:48:55 GMT

LOL!

Re: Maxed Credit card?

Anonymous — Thu, 11 Apr 2013 14:59:55 GMT

The most I have ever put on a single CC is $2200 on my BB store card, $2500 limit (88%). I paid it down to $1800 next statement (74%). The total BB bill was $3000. I paid $700 in cash via debit card to prevent maxing out the BB card. My score went up a measly 4 pts after I paid it down to $1800! I think my Orchard is at 65% right now. Cap1 Cash Rewards is at 74% right now due to an emergency and my other 3 cards are essentially at zero because they are my everyday cards that I PIF. So my overall Util right now is 25%...not bad. I think you are dinged when one card is at 90% or greater even if the overall Util is much lower so it is best to use the highest limit card for big purchases or even split the charge across two cards.

Re: Maxed Credit card?

EaglesFan2006 — Wed, 19 Jun 2013 13:07:58 GMT

What is the percentage in which a card is considered "maxed out?" Also, is the "high balance" on credit reports factored into your score if it was from the past. I've been paying all of my cards down, but they report balance history as well

Re: Maxed Credit card?

Blackbeauty212 — Wed, 19 Jun 2013 15:13:45 GMT

@EaglesFan2006 wrote:
What is the percentage in which a card is considered "maxed out?" Also, is the "high balance" on credit reports factored into your score if it was from the past. I've been paying all of my cards down, but they report balance history as well

Having a Bal of 90% or Greater of the CL is considered "Maxed Out" by the CRAs. High Balance is not factored into your Score, the Fico score only looks at Utlization as it stands in real time, it doesn't look backwards.

My Fico has been in a pretty consistent range of 710 to 725 over the last ~5 years, mostly depending on how my Util moves, since I don't app a lot. Last year I opened a Visa Siggy with my CU strictly for the BT offer of 18 months 0% and no BT fees. I transferred 3 Card Balances to that card totalling just over 8K, the cards limit was 9K for a Utli of 93% on the Card (Maxed Out territory), didn't matter to me as I only got the card simply for the BT. My overall Util was ~15% but because of the Maxed out Card my Fico dropped me close to or just under 700 across all 3 CRA. I paid down the Bal in 6 months got it to 50% Util on the card and my Fico rebounded.