FICO scores and over the limit question

[android01]

I'm considering transferring the CL of one of my Chase cards to another.  If I do so, the CL will then be less than the high balance reported, creating what would look like over the limit spending on my part.  Does anyone know if/how FICO looks at this scenario, and if there are any negative ramifications? 

[RobertEG]

Fair Isaac recently published a rough estimate on how certain credit file changes would effect scoring.  A maxed out card was one of the items listed.

Check the "Credit in the News" forum, and look for the "Fico Damage Points" post for the numbers.

[android01]

Thanks, Robert.  I looked at the thread you mentioned and it really didn't shed much light.  I guess I'm wondering if  "high balance" is even a FICO scoring factor and does FICO look at historical utilization or only current utilization?   My guess is that only current utilization factors in a FICO score, but I don't know for sure.  

The scenario I'm trying to figure out goes like this:

Credit Limit: 10,000

High Balance: 8,000

Current Balance: 0

Credit Limit: 5,000 (5,000 transferred to another card)

High Balance: 8,000

Current Balance: 0

Will the fact that the historical high balance of 8,000 is now greater than the new reduced credit limit of 5,000 affect my score?  There is a reason FICO risk score reason code called  "Number of Accounts with balances higher than limits" but my guess is that has to do with current utilization and not historical. 

[Revelate]

FICO to the best of anyone's knowledge only calculates current balances.

High balance though, almost certain to be used by lenders during underwriting, or even directly in their own custom algorithms which virtually all of them have whether they publish those to us or not.  Some historical information is available to lenders that isn't given directly to us on our reports; actually on a recent case there was a post here within the last day or two about someone's being denied with one of the reasons as their payments on their other cards weren't large enough over time.

Honestly, I think the numbers you posted are nothing but goodness; it's a clear demonstration of responsible use of credit: you borrowed, you paid, you don't owe anything now.  I wouldn't worry about it at all.