Hi balance is sometimes used as the CL if the CL isnt showing but most cards actually report the CL these days. It also gives prospective creditors an idea of what you have borrowed in the past and paid back. As far as score it doesnt have any effect unless its used as the accounts CL.
@MTSN wrote:It is also helpful to see if you've ever exceeded your credit limit which is a red flag for lenders. I had done that once or twice a long time ago when I had tiny limits, but once I had CLI'd past that highest balance it was ok again.
This is kinda dubious in my opinion: lots of people (including myself) have a high balance in excess of limits on tradelines; none of the banks I've routinely done business with (most of the major CC issuers) has blinked on that.
To be fair my report has a lot worse things on that from virtually anyone's perspective and nobody has said boo about those either since reconning my Fredom nearly 4 years ago.
I doubt anyone cares, big spender that pays back their debts = winning anyway, regardless of what the theoretical limit was. Lenders are more sophisticated than to frown at a strange high balance unless they don't want you as a customer in the first place.
