practical value of a huge credit limit?

[Anonymous]

Good info to know.  I never really understood why a $50k revolver would be excluded from overall utilization calculations, but I had heard that it was believed that they were for whatever reason.  Seems like are at least several data points now showing that $50k+ under FICO 08 still counts into aggregate utilization, which I'm sure everyone is OK with.

[Revelate]

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@JLK93 wrote:

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@Revelate wrote:

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@JLK93 wrote:

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@Revelate wrote:

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@Anonymous wrote:

 Is the cutoff higher than $50k as previously thought?

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Hrm, it might not exist anymore. 

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At this point I doubt that the cutoff exists for FICO 8. Someone, who is no longer active on any of the forums, tested a 100K card. He said that it was included in the utilization calculations for FICO 8.

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Yeah, it'd be interesting to revist FICO 04 and 98: Experian Risk Model v2 at least does complain about revolving utillization for me which presumably is my HELOC none of the 04/8/9 models did, which suggests FICO 98 might still work the old way.

Simple enough test if one is setup for it, but not sure it has much relevancy outside of the mortgage space currently.

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Several months ago I let only 1 card with a 45.5K limit report a balance. EX 98 took a dive. No other scores were affected. So, it doesnt seem to have changed.

I would bet that 50K limits are still excluded by FICO 04. I can't imagine that they would change the algorithm.

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Interesting re: EX 98, suggests the line is lower than that there though my 27K HELOC does count.

If there's a clear problem FICO will change the algorithm but it's rare: the HELOC change and the anti-AU abuse (FICO 8) are the only two things I'm aware of; IIRC the HELOC change went in 2007 (though I may be confusing dates, or maybe 2009) which was assuredly before the adoption of FICO 8 and potentially it's release too.

If it got raised by the GSE's, it may have gotten tweaked.  If it got tweaked for HELOC, might've gotten tweaked for this too is my thinking.  Not sure I caught FICO 04 with my HELOC testing, guess I should go do that again.

[909]

I'll try to keep the $50K Amex as the only card with a balance to see what happens to fico4 when I get the full compliment of reports in February. I may be getting a mortgage this summer so I'm interested in keeping that score in good shape.

[JLK93]

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@909 wrote:

I'll try to keep the $50K Amex as the only card with a balance to see what happens to fico4 when I get the full compliment of reports in February. I may be getting a mortgage this summer so I'm interested in keeping that score in good shape.

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When it comes time to apply for your mortgage loan, you'll want to make sure that the 50K Amex is not the only card reporting a balance. It will be the same as zero cards reporting a balance as far as the mortgage scores are concerned. Your mortgage scores will drop.

[JLK93]

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@iced wrote:

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 note the Barclays score is from 12/19. My low limit card which I sent to $0 has a statement which closed on 12/18, so I can't say with confidence that it reported to TU before Barclays pulled it. It's possible both scores are post-$0.

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iced,

Barclays site shows TU FICO historical scores. Could you check and see what your scores were in Oct, Nov and Dec. 

[Anonymous]

After reading through this thread, I've come up with 1 more practical value of a huge credit limit...

...with a huge credit limit, one can perform datapoint testing using that credit line to determine if such a huge limit is factored into overall utilization

[iced]

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@JLK93 wrote:

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@iced wrote:

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 note the Barclays score is from 12/19. My low limit card which I sent to $0 has a statement which closed on 12/18, so I can't say with confidence that it reported to TU before Barclays pulled it. It's possible both scores are post-$0.

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iced,

Barclays site shows TU FICO historical scores. Could you check and see what your scores were in Oct, Nov and Dec. 

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October and December were both 746. They did not provide a score for November.

[Anonymous]

Just an update, just bought a $23,000 car with my card, going to PIF but I wouldn't have been able to if I didn't have a high enough limit. Car was off ebay, had a friend go inspect it and having it shipped down to AZ. 

Car is a Volvo S60 R-design for those wondering  

[Anonymous]

Sweet, Tydawg!  Good for you.

And helpful to bring us back to our original subject (practical uses for a huge credit limit).  Many thanks.

In your opinion, how high did you need your CL to be to make this purchase easily and safely?  Would $24k have been enough?  Or did it in practice need to be a bit higher, like 27k?

[Anonymous]

My CL is $25k on that card, charged it to Fairmont card, I think I would have been fine with even a $23,001. With that being said YMMV to an extreme, I have spent now over $100k over Chase cards in the last 12 months or so, I tried the purchase without alerting Chase because I was curious if it go through without me calling Chase. I had called the Exec. line a few months ago to alert them of a ~$20,000, and I remeber the agent rather surprised saying that my account was coded as approve all transactions... Not sure if this is a thing or not but the only thing I can think of is that I earned it due to my high spend with Chase? 

To build off of that, I have tried putting the "wrong" zipcode at gas stations to see if my card would still approve, I put the zip code for Detroit when I live in Tempe, AZ, the transaction still approved, any of my other cards declined it. I also tried updating my Spotify account to the wrong zip code Chase approved the transaction, all other cards declined..... saved ~$0.50 sales tax  

Anyone else have experience?