Citi raised my limit, question...

[C-XRS2005]

I paid off 2 cards and paid 2 down to 2% of the limit.  Citi was one that is 2%.  I was worried that they may lower the limit because of all the stories I have been hearing.  Well they raised it up 2k more.  Will this negatively effect my score?

[Anonymous]

I'd say you were in great shape.

Whenever your credit limit goes up and your

utilization goes down, that normally results in

higher FICO scores. It might take 30-45 days

before you see the scores rise, but what you're 

doing is exactly what you should be doing.

Just continue to keep your balances low.

1-9% of the limit would be ideal...

CanDo

"The right attitude is everything"

[oracles]

Hi C-xr and welcome to the forum.

Congrats on the increase in limit and paying down your debt.

This will definitely help your score. Your util% will decrease thus increasing your score.

[C-XRS2005]

Well good.  I started at 500 in 05 from divorce and was 650 eq on the 16th of Jan.  All 4 of my cc's were 75% to the limit.  Hoping when the score tracker updates my score it will be a big jump.  Maybe even 700!! 

[oracles]

Reducing your util% is the quickest way to improving your score rapidly.

How much is your overall util% now after you paid down the 2 cards to 2%?

I always say take the amount of % points you were at minus the % points you are now and you sholud receive around that figure of fico points. +/- 10 points  Again, this is all speculation.

[C-XRS2005]

Here is my info: 

Citi card limit 3700

Bal $74.00

WAMU card limit 1300

Bal $00

Capitol One limit 500

Bal $00

AMEX limit 4700

bal $52.00

Chase limit 3000

bal $00

Toyota financial bal $9,700

BBT mortgage bal $145,700

That is all that is on my report.  So 700 maybe??  CC utilization was 74%

Message Edited by C-XRS2005 on 02-03-2009 09:55 AM

[marty56]

Try having 1 CC report a balance and see what that does to your score.

[oracles]

700's is definitely a possibility. Also I agree with Marty, let only one card report.

There is another stipulation that states having less than 50% of your total number of accounts report a balance, you will receive some more pts. Since you have your auto and mortgage reporting a balance, you should allow only one cc to report a balance. You will then be below the 50% total accounts reporting a balance and maxing the fico scoring.

Hope this helps and definitely keep us updated as to how many points you received 

Message Edited by oracles on 02-03-2009 03:00 PM

[Anonymous]

+1

Something else to consider:

AmEx is notorious for lowering people's credit limits

who carry a balance. I know that your balance is only 

52 bucks on a $4,700 limit, but if I had to choose another

card to pay off, that would be the one.

Citi, on the other hand, appears to be expanding their

lending to good customers. So keeping a low balance

with them (1-9%) is a good move.

Citi has been agressively taking out full-page ads in

major newspapers about their willingness to lend, but

AmEx is still struggling. So I'd play it safe and use the

Citi card when deciding to carry a balance.

Congrats again on your credit limit increase!!! 

CanDo

"The right attitude is everything"

Message Edited by CanDoAttitude on 02-03-2009 02:51 PM

[Anonymous]

---

@Anonymous wrote:

AmEx is notorious for lowering people's credit limits

who carry a balance. I know that your balance is only 

52 bucks on a $4,700 limit, but if I had to choose another

card to pay off, that would be the one.

So I'd play it safe and use the Citi card when deciding to carry a balance.

---

Is the OP "carrying" that $52 balance, or "reporting" that $52 balance?  Correct me if I'm wrong, but there is a difference, as "carrying" a balance is not paying a statement in full, and results in interest charges.  Simply "reporting" a balance each statement (that is later paid before it's due date) does not result in interest charges, even though a balance is reported each month. 

Either way, with AMEX, it's almost impossible to predict behavior that could trigger AA from them.  I'd probably use their card each month, but pay it before the statement cuts and let it report $0.  I just wanted to be clear on the terminology of "carrying" a balance versus simply "reporting" a balance.