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What is The Limit When A Card Does Not Factor Into Overall Limit

NIM
New Contributor

What is The Limit When A Card Does Not Factor Into Overall Limit

I have heard people say when the limit on a card goes past $50k it is not longer factored in calculating your overall limit. I have a discover card with $50.5k limit and has been at this limit for like 3 years and it still counts towards my overall limit.

 

I guess my concern here is, can I request an increase? If I do and I get an increase to say $60k will it stop counting towards my utilization?

Dis 46k/Amex BCE 34.9k/CapOne Qs 17k/Chase Freedom 14.5k/Chase Slate 12K/PayPal MC 10k
Walmart MC 10k/ BOA cash rewards 13.7k/Citi Simpli 9K

Trans 782/Exp 786/Equ 784
Message 1 of 6
5 REPLIES 5
FinStar
Moderator

Re: What is The Limit When A Card Does Not Factor Into Overall Limit


@NIM wrote:

I have heard people say when the limit on a card goes past $50k it is not longer factored in calculating your overall limit. I have a discover card with $50.5k limit and has been at this limit for like 3 years and it still counts towards my overall limit.

 

I guess my concern here is, can I request an increase? If I do and I get an increase to say $60k will it stop counting towards my utilization?


Nope.  It won't work.  One of my Discover cards is in the $80K range and it reports.

 

And, with that high of a limit, do you really want to poke the bear and potentially trigger a 4506C request? 😬  It's unlikely Discover will yield a $10K CLI, but you're welcome to try.

 

Newer scoring models include any revolving cards in the $50K-$60K range as well. Older scoring models did not factor revolving cards that were around or above the ~$80K threshold, but that figure remained inconclusive based on data points that were reported in the Ultimate FICO Scoring subforum a while back. This was the case (IME) since I have several personal cards above $70K (older models seemed to have excluded utilization, but newer scoring models include it in the metrics) 🤷🏼‍♂️

Message 2 of 6
NIM
New Contributor

Re: What is The Limit When A Card Does Not Factor Into Overall Limit

Good to know.... I guess I'll just let sleeping dogs lie

Dis 46k/Amex BCE 34.9k/CapOne Qs 17k/Chase Freedom 14.5k/Chase Slate 12K/PayPal MC 10k
Walmart MC 10k/ BOA cash rewards 13.7k/Citi Simpli 9K

Trans 782/Exp 786/Equ 784
Message 3 of 6
SoCalGardener
Established Contributor

Re: What is The Limit When A Card Does Not Factor Into Overall Limit


@FinStar wrote:

Newer scoring models include any revolving cards in the $50K-$60K range as well. Older scoring models did not factor revolving cards that were around or above the ~$80K threshold, but that figure remained inconclusive based on data points that were reported in the Ultimate FICO Scoring subforum a while back. This was the case (IME) since I have several personal cards above $70K (older models seemed to have excluded utilization, but newer scoring models include it in the metrics) 🤷🏼‍♂️


So did they *ignore* the limits altogether, like the account didn't even exist? Or simply anything over ~$80K? In other words, if I had a card with a $100,000 CL (I wish!), did the entire $100,000 get ignored when they added up my TCL, or was it $20,000 that got ignored?

Amazon Prime Store CardAmerican Express Blue Cash Preferred CardAmerican Express Everyday CardAmerican Express Platinum CardBank of America Customized Cash VisaCapitalOne Quicksilver MastercardCapitalOne Quicksilver Visa CardCapitalOne Walmart Rewards MastercardChevron Texaco CardCiti Double Cash MastercardDiscover More CardJCPenney Gold MastercardOverstock.com CardSportsmans Guide Rewards CardSynchrony Home Card
Message 4 of 6
FinStar
Moderator

Re: What is The Limit When A Card Does Not Factor Into Overall Limit


@SoCalGardener wrote:

@FinStar wrote:

Newer scoring models include any revolving cards in the $50K-$60K range as well. Older scoring models did not factor revolving cards that were around or above the ~$80K threshold, but that figure remained inconclusive based on data points that were reported in the Ultimate FICO Scoring subforum a while back. This was the case (IME) since I have several personal cards above $70K (older models seemed to have excluded utilization, but newer scoring models include it in the metrics) 🤷🏼‍♂️


So did they *ignore* the limits altogether, like the account didn't even exist? Or simply anything over ~$80K? In other words, if I had a card with a $100,000 CL (I wish!), did the entire $100,000 get ignored when they added up my TCL, or was it $20,000 that got ignored?


Basically, any balances that were on revolving cards with limits >$80K appear to have been excluded from the revolving utilization metrics, almost like the balances were not factored with the rest of the other balances.

 

I have a couple personal cards with CLs = and > $100K, and one of them, despite a balance that I allowed to report in the ~40% range (I used it for testing purposes because who doesn't love being a GP), it did not incur a scoring penalty in the older models (as far as individual card utilization reporting goes). Interestingly enough, it was still captured in the Highest Balance field (at the time), but I was expecting a decent drop based on the size of the balance. This was a while ago, of course.

 

If I did that today (similar scenario), it would probably ding F8/F9 as far as individual card reporting metrics go, but for overall utilization, it would only factor into ~2%.

Message 5 of 6
SoCalGardener
Established Contributor

Re: What is The Limit When A Card Does Not Factor Into Overall Limit


@FinStar wrote:

@SoCalGardener wrote:

@FinStar wrote:

Newer scoring models include any revolving cards in the $50K-$60K range as well. Older scoring models did not factor revolving cards that were around or above the ~$80K threshold, but that figure remained inconclusive based on data points that were reported in the Ultimate FICO Scoring subforum a while back. This was the case (IME) since I have several personal cards above $70K (older models seemed to have excluded utilization, but newer scoring models include it in the metrics) 🤷🏼‍♂️


So did they *ignore* the limits altogether, like the account didn't even exist? Or simply anything over ~$80K? In other words, if I had a card with a $100,000 CL (I wish!), did the entire $100,000 get ignored when they added up my TCL, or was it $20,000 that got ignored?


Basically, any balances that were on revolving cards with limits >$80K appear to have been excluded from the revolving utilization metrics, almost like the balances were not factored with the rest of the other balances.

 

I have a couple personal cards with CLs = and > $100K, and one of them, despite a balance that I allowed to report in the ~40% range (I used it for testing purposes because who doesn't love being a GP), it did not incur a scoring penalty in the older models (as far as individual card utilization reporting goes). Interestingly enough, it was still captured in the Highest Balance field (at the time), but I was expecting a decent drop based on the size of the balance. This was a while ago, of course.

 

If I did that today (similar scenario), it would probably ding F8/F9 as far as individual card reporting metrics go, but for overall utilization, it would only factor into ~2%.


Thanks for the explanation, @FinStar. Having never personally owned a card with a CL that high, I knew nothing about this! Smiley Happy

Amazon Prime Store CardAmerican Express Blue Cash Preferred CardAmerican Express Everyday CardAmerican Express Platinum CardBank of America Customized Cash VisaCapitalOne Quicksilver MastercardCapitalOne Quicksilver Visa CardCapitalOne Walmart Rewards MastercardChevron Texaco CardCiti Double Cash MastercardDiscover More CardJCPenney Gold MastercardOverstock.com CardSportsmans Guide Rewards CardSynchrony Home Card
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