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Well technically you maxed the card out and than some. Although 20 point drop for maxing out a card is not uncommon, as long as the balance is paid off i would not worry too much about it. Credit scores are like the stock market...they go up and down daily
Probably a dumb question but long term after the balance has been paid down, any thoughts on how this will effect the score? I think the goal would be to only use 10% of your credit card.
Once the balance is paid down your score will go back up. FICO has no memory of utilization, you are scored for what is reporting the minute your report is pulled. If you were 100% last month an 9% this month that is what your score will be based on.
@guiness56 wrote:Once the balance is paid down your score will go back up. FICO has no memory of utilization, you are scored for what is reporting the minute your report is pulled. If you were 100% last month an 9% this month that is what your score will be based on.
on manual reviews though wont this go bad for the OP for the fact that the highest balance being reported is saying over the actual credit limit... wouldnt it be wise to raise the credit limit so it looks as if you actually had that amount available because to my knowledge with my card on my CR the highest balance stays the same until you go over that but in OP case for ex they have a secured limit of 300 but they spent 350 , highest balance reported will be 350 but credit limit 300 ... = batted eyes to analyst.
I didn't know you could go over the limit on a secured card ....
Yes you can go over the limit. Credit card transactions that process but dont post yet have to be honored. Its not like a debit card where they say yes or no if you have the funds in the account.
Raising your credit limit will help, but the bureaus are changing their reporting method too. For example, EXPERIAN now lists your month balanace, your credit limit that month, so if you went over the limit, it will show. TRANSUNION is also now doing a month by month account of what you charged, what you paid, balance left over, etc. Although a manual review would have to look through every month to find out what you did and didn't do, that would take too much time to process an application. on manual reviews they just want to see key factors like
1-are you paying on time,
2-are you paying min or more than that, or pif each month
3-when was your last late payment
4- when was your last chargeoff, how many collections do you have, etc
they dont focus too much on over the limit unless you are doing it CONSTANTLY than it will be obvious on your credit report. 1 or 2 or 3 over the limits is not uncommon, that's why they have those over the limit fees for a reason.
@shaun2009 wrote:
@guiness56 wrote:Once the balance is paid down your score will go back up. FICO has no memory of utilization, you are scored for what is reporting the minute your report is pulled. If you were 100% last month an 9% this month that is what your score will be based on.
on manual reviews though wont this go bad for the OP for the fact that the highest balance being reported is saying over the actual credit limit... wouldnt it be wise to raise the credit limit so it looks as if you actually had that amount available because to my knowledge with my card on my CR the highest balance stays the same until you go over that but in OP case for ex they have a secured limit of 300 but they spent 350 , highest balance reported will be 350 but credit limit 300 ... = batted eyes to analyst.
No, the highest balance held is not scored by FICO. I have never heard of a creditor reacting to it either.
That will always be a part of the CR now.