Not Enough Available Credit?

[purplepenguin7]

The Amazon store card says not enough available credit due to high balances is a negative impacting my credit score. I don't understand. I pay off all balances in full each month and don't max out cards. CK says I have a 4% utilization of credit. Could the problem be that I don't have any installment loans? I paid off my car early last year. 

Not enough available credit on revolving accounts

Bankcard accounts include credit cards and charge cards from a bank and are frequently revolving accounts. They allow you to carry a balance and your monthly payment will vary, based on the amount of your balance. The total combined amount you owe on all your bankcard accounts is high, resulting in reduced available credit to use if needed, creating a greater chance of becoming overextended.

Paying down the balances on your accounts will benefit your score.

[Mr_Mojo_Risin]

Did you let higher balances post to your statements? Maybe it was a timing issue with the app and your statement balances had not been paid down yet? 

[SouthJamaica]

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@purplepenguin7 wrote:

The Amazon store card says not enough available credit due to high balances is a negative impacting my credit score. I don't understand. I pay off all balances in full each month and don't max out cards. CK says I have a 4% utilization of credit. Could the problem be that I don't have any installment loans? I paid off my car early last year. 

Not enough available credit on revolving accounts

Bankcard accounts include credit cards and charge cards from a bank and are frequently revolving accounts. They allow you to carry a balance and your monthly payment will vary, based on the amount of your balance. The total combined amount you owe on all your bankcard accounts is high, resulting in reduced available credit to use if needed, creating a greater chance of becoming overextended.

Paying down the balances on your accounts will benefit your score.

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They're going by your reported balances, which are usually your statement balances.

So paying off your statement balance has no effect on what they're seeing. You would need to make payments before the statement cut to affect the utilization displayed to the credit bureaus.

[Anonymous]

Are you seeing that negative reason statement from your CC (Synchrony?) account?  Is it a VS4 score they're giving you to go along with it?

[Anonymous]

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@purplepenguin7 wrote:

The Amazon store card says not enough available credit due to high balances is a negative impacting my credit score. I don't understand. I pay off all balances in full each month and don't max out cards. CK says I have a 4% utilization of credit. Could the problem be that I don't have any installment loans? I paid off my car early last year. 

Not enough available credit on revolving accounts

Bankcard accounts include credit cards and charge cards from a bank and are frequently revolving accounts. They allow you to carry a balance and your monthly payment will vary, based on the amount of your balance. The total combined amount you owe on all your bankcard accounts is high, resulting in reduced available credit to use if needed, creating a greater chance of becoming overextended.

Paying down the balances on your accounts will benefit your score.

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Pardon, maybe I'm missing something. I don't see your total CL's cited. Somehow I'd understood that that was the Total Available Credit. I got comments I don't remember which credit app, probably WalletHub, citing that with my income, or something like that, that I should have at least $5K of Total Available Credit. I've been building to that. Perhaps that's part of this. I could be misunderstanding.

[Anonymous]

Credit limits in and of themselves are not a known Fico scoring factor in the majority of models.  There are a couple of models out there I believe that may consider ACL (average credit limit) as a minor factor, but I don't know what they are and I don't believe they're commonly used.  Since OP referenced seeing this possibly from a Synchrony account that deals with VS, I'm wondering if the negative statement being displayed is related to that scoring model and not Fico.