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Does having a greater lifetime "high balance" increase your FICO score? Again, I am talking about the largest balance you ever had on the card, whose transactions happened much earlier than the time where you would obtain this FICO score.
Personally, I would assume that having a greater "high balance" on your credit cards would help your credit score in the long run, as opposed to have many cards with $500 / $10,000 as your "highest balance." To me, having a $500, / $10,000 "highest balance" on most credit cards would make it seem like you just like applying for credit but that you don't actually use much of the credit you apply for, ultimately discouraging creditors from lending you futher credit when you do actually need it.
Anyone know the answer to how much this number affects your overall FICO credit score and/or how lenders view you?
Here's a snapshot of the information for one of my credit cards on a past TransUnion credit report showing the "High(est) Balance" number for your reference:
Note that the "High Balance" is not the same as "[Current] Balance" in the snapshot above.
It will have NO effect on your FICO score. That is one item that may be reviewed by anyone manually reviewing your report.
Some lenders report amount of minimum payment, actual payment amount, payment date. Some reports show this information, particularly Experian.
The "High Balance" comes into play when a lender doesn't report a limit. The scoring system may substitute your high balance when there's no limit reported on a CC.
Very good point chasmith.
I looked at the account to see if there was a limit reported but it would have been better if my first sentence said "It will have NO effect on your FICO score unless that account does not have a limit reported".
Time to go get more coffee...........
@chasmith wrote:The "High Balance" comes into play when a lender doesn't report a limit. The scoring system may substitute your high balance when there's no limit reported on a CC.
The only case I know of is Visa Signature cards that don't get the limit reported.
This was a bigger issue some years ago. As I recall Citi tried to stop reporting all limits on all cards. Not as big an issue now, I think just VISA Signature as stated.