topic Re: High Balance in Rebuilding Your Credit

High Balance

Anonymous — Fri, 09 Mar 2012 16:37:33 GMT

I noticed a few of my credit cards report a "high Balance" to the credit agencies. What does this high balance mean and how does it effect my overall score??

Re: High Balance

Anonymous — Fri, 09 Mar 2012 16:41:38 GMT

I got the same message while carrying a 4.5K+ balance on my 15.9K card.

There must be a minimum through which their algorithims determine what a "high balance" is based on the CL of the card.

What are your cards' CL and balances?

And overall it seems to affect negatively if you are carrying a "high balance".

Re: High Balance

Anonymous — Fri, 09 Mar 2012 16:58:06 GMT

Walmart $250 CL $242 High Balance

Pennys $700 CL $100 High Balance

Orchard $300 CL $155 High Balance

Capitol 1 $300 CL $221 High Balance

Amazon- $600 starting CL- just moved to $1300!! In 5 short months! $142 High Balance

And my beautiful Discover Escape- $2000 CL - New card- has not reported yet - but this one worries me. I have a balance of $700 ish- changed a new flat screen due to the 0% 6 month introduction offer.

Re: High Balance

Anonymous — Fri, 09 Mar 2012 17:03:38 GMT

Might be that anything over 10% of that card's usage is considered to be "high balance".

Re: High Balance

Anonymous — Fri, 09 Mar 2012 17:11:02 GMT

Perhaps. Seems they are reporting the maximum that was ever placed on the card. This "high balance" doesnt even match up with the amount they report at statement closing.

Re: High Balance

Anonymous — Fri, 09 Mar 2012 17:12:38 GMT

Ohhhh, I think what it might mean is what is the highest balance you've ever had on that card.

If so, I don't think it affects anything.

What seems to affect your score is your current balance on those cards.

Re: High Balance

Anonymous — Fri, 09 Mar 2012 17:33:27 GMT

@Anonymous wrote:
I noticed a few of my credit cards report a "high Balance" to the credit agencies. What does this high balance mean and how does it effect my overall score??

High Balance just means that's the most you've had charged to that account in a billing cycle.

The balances we have on each credit card and only negatively affect our score when are utilization is high. It is customary and suggested to keep our balances below 9%.

Example:

If you have a credit card with a $5,000 credit limit, you should keep your balance below $450.

If you have a 3 credit cards with overall balance of $15,000 then you should keep your overall balance below $1,350.

Hope this helps

Re: High Balance

Anonymous — Fri, 09 Mar 2012 18:20:47 GMT

It does help and thanks.