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My High Balance in all of my CR Companies are pretty high compared to my Credit Limits
I a couple of cards the high balance in bigger that the CL.
does that influence my Score in any way?
Thanks
Good question on whether or not it affects your scores.
But I would also question how it affects approvals.
Not sure on instant approvals but on a manual review it could be a problem because it indicates that you have went over the CL that was extended to you. And that's not good.
@Rhaeny wrote:Good question on whether or not it affects your scores.
But I would also question how it affects approvals.
Not sure on instant approvals but on a manual review it could be a problem because it indicates that you have went over the CL that was extended to you. And that's not good.
Yep but at the same time, it PIF and statement shows 0 balance. and that can show them I can manage, but they toy limits I have makes me get close to their Limits... that is my wish by the way
who knows if that really matters in some hidden way we dont know.
@genmic wrote:
I don't think it's true that the high balance can be used to determine an account was previously over the limit.
If I charge 9K on a 10K card, and then later receive a CLD or move the CL for that card to another from the same issuer, etc, the high balance will be greater then the current CL even though I was never over my credit limit.
So I think the high balance field on reports has very little use, and it is rarely discussed here as being brought up during manual reviews.
You cleared all my doubts!
I like to learn all the little secrests
@zerobacan wrote:My High Balance in all of my CR Companies are pretty high compared to my Credit Limits
I a couple of cards the high balance in bigger that the CL.
does that influence my Score in any way?
Thanks
Although we aren't privy to the details of the FICO algorithms, my understanding is that it doesn't factor into the scores, with the exception of calculating utility in the case of cards that don't report a CL, such as a BoA Visa Signature. In that case, the utility reported uses the High Balance in place of the CL. Other than that, I don't think that it factors in at all.
I've seen zero evidence of it being a factorer in scoring. Upon a manual review it could go either way. You can look at it as you overextended your credit or you can look at as the ability to repay high debts without being late or defaulting.
@boomhower wrote:I've seen zero evidence of it being a factorer in scoring. Upon a manual review it could go either way. You can look at it as you overextended your credit or you can look at as the ability to repay high debts without being late or defaulting.
+1
That's what I said as well that it could be questioned on a manual review. If your high balance is higher than your current CL then it could potentially be a problem when an analyst examines it. Whether or not it affects your score I just can't help but to view this scenario as not so good. I know for sure I'm not going to chance it.
Recently when I tried to recon my starting limit on Chase Freedom, the woman brought up my high balance on BOA. Even though the current util was less than 5%, she still brought it up as a reason I wasn't granted more credit line.
I'm not how exactly she was looking at that factor, but all she said was, "Your high balance on BOA is ______". At the time my BOA limit was only $500 so in order to use the card I had to get close to the max before paying it off, and would do so several times during a month. She responded that she was unable to see payment history during a cycle for other accounts, but after showing some payment history on the Freedom, they could better determine if a CLI was in order. So Poooooo lol
Edit: The thing I've noticed about BOA's reporting, is that the high balance is reported as the largest balance you had on the card at any one time, not just the highest reported balance. Not sure if this is the way it is on all creditors or not.
@BrokaToe wrote:Edit: The thing I've noticed about BOA's reporting, is that the high balance is reported as the largest balance you had on the card at any one time, not just the highest reported balance. Not sure if this is the way it is on all creditors or not.
Easy enough to find out if you have cards from other creditors. Just saying