practical value of a huge credit limit?

[rlx01]

The figure is somewhere around 50k.

The individual card utilization is ignored but it still factors into the *total* utilization.

[909]

I was in for the test by having only my $50K CL AMEX report a balance in December but two auto-payments posted before I was able to pay them off.

If it helps, I went from two cards reporting a balance (incl. the Amex) to three cards and my scores went up a few points (EQ +7 to 807 and EX +6 to 797).

As a reminder, my Amex CL was increased from $20K to $50K in late November, the new balances and score increases happened after that.

[Anonymous]

Unfortunately it's impossible to test then as you had multiple other cards with balances reported.  Next cycle if you can allow the $50k Amex to report a zero balance (with no other cards reporting balances) you'll be able to see whether or not your $50k card is included in your revolvers for scoring purposes.

[Revelate]

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@Anonymous wrote:

Unfortunately it's impossible to test then as you had multiple other cards with balances reported.  Next cycle if you can allow the $50k Amex to report a zero balance (with no other cards reporting balances) you'll be able to see whether or not your $50k card is included in your revolvers for scoring purposes.

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Think you meant Amex non-zero?

Not sure if this is a great test as the 50k line might still factor into number of revolvers with balance but not against individual or aggregate utilization potentially.  Charge cards historically do that for example but sadly I can't think of any better one other than maxxing out the line, which may not be in the cards.

[909]

Maybe I can spend $50k on a car and return it for full credit?

[909]

p.s. Also, a possible cause for my scores increasing when I had additional accounts posting balances is that an inquiry for a mortgage refi aged past a year in Dec. I'll try to eliminate all balances except the $50k Amex in January.

[Revelate]

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@909 wrote:
p.s. Also, a possible cause for my scores increasing when I had additional accounts posting balances is that an inquiry for a mortgage refi aged past a year in Dec. I'll try to eliminate all balances except the $50k Amex in January.

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Yeah, concrete testing can be hard.  At least the test can tell us something so thank you for doing this!

[Anonymous]

Correct above, Rev, I meant Amex non-zero.  I mis-spoke, no doubt. 

[bettercreditguy1]

I also inquired about placing my wife's new automobile purchase on a credit card a couple of years ago. The Dealer's policy was maxed at $1500.00 because of the merchant fee. A point to ponder, some merchants upcharge or add the processing fee. This would then negate any positives for attempting to obtain points, rewards, or free services. Plus if you did not pay in full, the added interest would greatly diminish the value of those rewards. 

[Anonymous]

Correct.  It would be very difficult for one to possess a CC with an interest rate nearly as good as the rate on an auto loan

For those looking to buy a car in cash, they'd have to do the math to see if the service charge on using a CC would be worthwhile.  My guess is probably not.  Best case may be a break even situation which could help with a CC spend if that's the goal, but there's no much more that I see beneficial by doing this.