Chase CLI!!!

[kal9988]

Chase raised my CLI by $4,000 by themselves! Did not have to request it. I moved and had a lot of expenses the first few months and kept getting close to the limit before each billing cycle ended, which is why I assume they did it. However, because this is one of their cards that does not report credit limits to the bureaus, I'm going to have to charge it up to the limit (I'm thinking buying a $5k camera or something similar and then returning it a week later). Then I'll pay the whole thing off and hopefully see my score go up.

Don't think this is extreme -- my typical monthly expenses are 20% of my revolving credit limit. Even though I pay it off in full every month, the balance is reported which hurts my score. By charging up the card, it will report my credit limit as the highest balance, and as such my debt to limit ratio will be a little better. Thoughts?

[slarano]

So let me understand this right. When we have cards that do not report its credit limit, the highest balance that has been reported on the card is considered as its credit limit? Does that hold true when factoring utilization? I always thought that neither or these things were the case.

[Anonymous]

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@simonlarano wrote:

So let me understand this right. When we have cards that do not report its credit limit, the highest balance that has been reported on the card is considered as its credit limit? Does that hold true when factoring utilization? I always thought that neither or these things were the case.

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No  ...   It shows as Highest Balance.

No  ...   It does not included in my case.

[slarano]

Ok, thanks for clarifying. That's what I always thought as well, but OP's post seems to suggest otherwise.

[kal9988]

bunnyrabbit are you sure? If you search through the forums, there are many posts that say that for chase cards that don't report the credit limit, the highest balance is used by FICO.

[Alcibiades]

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@kal9988 wrote:

bunnyrabbit are you sure? If you search through the forums, there are many posts that say that for chase cards that don't report the credit limit, the highest balance is used by FICO.

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I just checked, Chase reports my credit limit, not highest balance.

I think the only cards that report highest balance are

1) Charge cards like Amex

2) Certain "Visa Signature" or "World Mastercard" cards

[kal9988]

Yes I have a Chase World Mastecard (it's the Onepass Plus). Isn't the highest balance used by FICO to calculate the util ratio?

[Alcibiades]

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@kal9988 wrote:

Yes I have a Chase World Mastecard (it's the Onepass Plus). Isn't the highest balance used by FICO to calculate the util ratio?

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Then most likely yes, it is the highest reported balance.

[kal9988]

I thought so too, not sure why bunnyrabbit is saying the opposite. Yes, is is listed on reports as the highest balance, but FICO uses it as the credit limit when calculating the score.

[Anonymous]

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@kal9988 wrote:

I thought so too, not sure why bunnyrabbit is saying the opposite. Yes, is is listed on reports as the highest balance, but FICO uses it as the credit limit when calculating the score.

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Hey Guys,

I thought you might be interested in this.  From an interview with a FICO spokesman:

Because charge cards typically don't have preset spending limits, the FICO scoring model previously considered the highest balance on those cards. "In the old days, our scoring model had an option in which, under certain circumstances, it could substitute highest balance on record for a missing limit on a charge card," Watts says. For example, if you charged $5,000 on a card one month and your balance never exceeded that amount, the model would consider $5,000 to be your credit limit. FICO says that approach hasn't been used in its general scoring models during the last 10 years, however.

The full article is here: http://www.creditcards.com/credit-card-news/jeremy-simon-credit-score-charge-card-amex-1508.php

I was curious about it and a little skeptical, but this is straight from the source.