Increase in CC limit

[babbles]

have to find out why they charged me $1.46 interest on a zero balance

[Hockeypnc1]

Yes! It definitely helps your overall profile.

For instance, you have $100,000 worth of credit on 4 different cards. You're using $30,000 across the 4 cards, which is 30 percent.

Now you ask for a credit limit increase on two of your cards and it is approved, a $10,000 increase on both cards, making your total amount of credit across 4 cards = $120,000.

Now you're only at 25% OVERALL utilization and you've fallen below one of the magic thresholds (28.9%). This looks good! Creditors are happy to see that you have a massive amount of total credit ($120,000) and are also impressed that you're only using 25% of it. Good work!!

[Anonymous]

---

@Hockeypnc1 wrote:

Yes! It definitely helps your overall profile.

For instance, you have $100,000 worth of credit on 4 different cards. You're using $30,000 across the 4 cards, which is 30 percent.

Now you ask for a credit limit increase on two of your cards and it is approved, a $10,000 increase on both cards, making your total amount of credit across 4 cards = $120,000.

Now you're only at 25% OVERALL utilization and you've fallen below one of the magic thresholds (28.9%). This looks good! Creditors are happy to see that you have a massive amount of total credit ($120,000) and are also impressed that you're only using 25% of it. Good work!!

---

This example is flawed unless your income is well beyond that $120,000 in total credit limits. FICO may not care about your income when determining the utilization percentage but creditors definitely do and most profiles are going to raise eyebrows revolving $30K on credit cards. 

[Hockeypnc1]

Yes! It definitely helps your overall profile.

For instance, you have $100,000 worth of credit on 4 different cards. You're using $10,000 across the 4 cards, which is 10 percent.

Now you ask for a credit limit increase on two of your cards and it is approved, a $10,000 increase on both cards, making your total amount of credit across 4 cards = $120,000.

Now you're only at 8.33% OVERALL utilization!!

Creditors will love to see that you're keeping below 10% and that you have a massive $120,000 of overall credit limit!

[Anonymous]

---

@babbles wrote:

have to find out why they charged me $1.46 interest on a zero balance

---

This is called "trailing interest".  The remaining interest charged on the balance from the time interest was last charged to the time you paid it off.  I'd pay this off ASAP so the interest doesn't accrue more interest.

Once trailing interest hits zero and you PIF within the grace period you shouldn't get charged any more interest.

[babbles]

thanks for the explanation, my statement ending date is today so I paid it yesterday, no sure it will catch or not but I notice they report between the 21 - 24th of the month

No, missed the cut off statement date, must have printed automatically @ midnight so I'm left with $1.46 balance.

[mikesonthemend]

---

@babbles wrote:

thanks for the explanation, my statement ending date is today so I paid it yesterday, no sure it will catch or not but I notice they report between the 21 - 24th of the month

No, missed the cut off statement date, must have printed automatically @ midnight so I'm left with $1.46 balance.

---

Probably has gone the way of BlockBuster Video Rentals, but there was a time, back during my first rebuild here on MyFico that companies woud automatically forgive balances of less than $2. I remember several of the commentors back then kind of made a game of it.

[babbles]

nope!  with a high limit of 30k navy federal said they report the whole $1.46 balance so hopefully I get a little bump going from$9512 to $1.46.  

So credit Karma says I have a $1 balance and 30k limit, doesn't that  equal  zero percent usage?

[AverageJoesCredit]

I recently had to pay $0.18 to Amazon

[babbles]

well, Navy Fed did me a favor and left me with a $1 balance instead of $1.46