High utilization

[Anonymous]

Hi everyone, I have a question. If I max out my card but pif before the bill comes out, how will that affect my credit. Would that be considered high utilization to the CCC or CRA?

[Anonymous]

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@Anonymous wrote:
Hi everyone, I have a question. If I max out my card but pif before the bill comes out, how will that affect my credit. Would that be considered high utilization to the CCC or CRA?

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If you run up a high balance on your card but PIF and the TL does not report this amount to the CRB it will not effect your CBR or you FICO score. What effect this will have on your standing with your issuer is another matter altogether. Most won't care much - they will like the use. High use and PIF is generally a recipe for success. Some issuers (like AMEX) can be really set off by this to the point where they can go as far as demanding early payment. Maxing a card and not bringing the balance back down very quickly is, however, asking for AA. Be careful.

Message Edited by creditwherecreditisdue on 08-16-2009 07:14 PM

[marty56]

As long as you PIF, it will have no effect.

IMHO the highest balance field on your CR is the highest reported balance and in any case has no impact on your FICO score.

[Anonymous]

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@marty56 wrote:

As long as you PIF, it will have no effect.

IMHO the highest balance field on your CR is the highest reported balance and in any case has no impact on your FICO score.

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In some cases it is the highest reported balance and in other cases it is the highest balance you ever got to intra-report. Looking at my PenFed CC on my EX report the highest balance I ever reported was $134 yet my high balance is $1,017. It would be there for someone to see on an MR but it is never going to effect my FICO score.

In the post above I was talking about a high balance relative to the CL and not the high balance field on the CBR's.

Message Edited by creditwherecreditisdue on 08-16-2009 07:11 PM

[Jazzzy]

tosha, just be sure to PIF before the statement cuts. If the amount shows on a statement, it will be reported and can negatively affect your score

[Anonymous]

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@LynetteM wrote:
tosha, just be sure to PIF before the statement cuts. If the amount shows on a statement, it will be reported and can negatively affect your score

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Unless the card is one of the HSBC ones that reports at the end of the month! Know your reporting dates!

Also do not forget that what reports on a CBR is know to the world, but the issuer knows all and is the only one who set policy for that particular card.

[Anonymous]

As long as a payment is made by the statement date then it will have no effect. Statement dates are the date which most companies report your cc balance.

[Anonymous]

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@Anonymous wrote:
As long as a payment is made by the statement date then it will have no effect. Statement dates are the date which most companies report your cc balance.

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Most but not all! Know your reporting dates. See comment above regarding HSBC!