Hi guys,
This month is due my regular 6 month CLI on 1 of my Amex cards. With this CLI my Hilton HHonors will reach $50K on CL. I wanted to know how this affects me to my score and reporting purposes as i only have 3 cards open.
I have a 10K Citi DC, 40K Citi Prestige and this Hilton HHonors $0 AF card that is my only Amex and i think most likely in 10 days or so will get the cli approved putting it to 50K limit.
As i have read on the forums that Revolvers at 50K or over 50K behave differently for Fico8 scoring i wanted to know the consequences, how specifically will affect me that increase on my score. My current scores are from 750-792, they hover in that range be EX EQ and TU. If this 50K Hilton stops reporting??... my total credit lines will be 50K... for the bureaus?
I am just scratching my head if it would be beneficial to increase from 45 to 50K.
I don't think it would change much... i always have a 1% utilization across all my available credit cards .. even if it gets lower... but I'm just wondering what i am missing.... will my AAoA drop? what other effects it will have? What can i expect of my Hilton card to change on my report?
Many thanks to anyone who has any insight, or first hand experience or knows a lot about Fico scores.
@Deuter wrote:Hi guys,
This month is due my regular 6 month CLI on 1 of my Amex cards. With this CLI my Hilton HHonors will reach $50K on CL. I wanted to know how this affects me to my score and reporting purposes as i only have 3 cards open.
I have a 10K Citi DC, 40K Citi Prestige and this Hilton HHonors $0 AF card that is my only Amex and i think most likely in 10 days or so will get the cli approved putting it to 50K limit.
As i have read on the forums that Revolvers at 50K or over 50K behave differently for Fico8 scoring i wanted to know the consequences, how specifically will affect me that increase on my score. My current scores are from 750-792, they hover in that range be EX EQ and TU. If this 50K Hilton stops reporting??... my total credit lines will be 50K... for the bureaus?
I am just scratching my head if it would be beneficial to increase from 45 to 50K.
I don't think it would change much... i always have a 1% utilization across all my available credit cards .. even if it gets lower... but I'm just wondering what i am missing.... will my AAoA drop? what other effects it will have? What can i expect of my Hilton card to change on my report?
Many thanks to anyone who has any insight, or first hand experience or knows a lot about Fico scores.
I have no personal experience with it, and little knowledge of any kind about it, but some forum members have stated that credit card accounts with very large limits are not counted by FICO algorithms in computing utilization. I have heard different opinions on this and on what the credit limit has to be to be discounted by the algorithm, but my recollection is that the most common view was that over 35k is the number for the older model FICO scores like the mortgage scores, and over 75k is the number for the later model FICO scores.
For FICO 8, the one that matters in most cases, I don't think there is a point where it doesn't count for revolving utilization metrics. If there is one, it's pretty astronomical. For the older scores like mortgage scores, I saw a huge increase in mortgage scores and a drop in 8s and 9s when moving balances from cards at or below $50k to heavy utilization on cards at $76,500 and $99,900. So it seems like there is indeed a cutoff point on older models somewhere above $50k but at $76,500 or lower. For HELOCs, six figure amounts are definitely not factored into revolving utilization on 8s or 9s.
@OmarGB9 wrote:I feel like @FinStar or maybe @K-in-Boston answered this before. I just can't remember the answer.
We have indeed 😀
It was quicker and easier to find the most recent K-i-B posts with those references here and here.😉
ETA - K-i-B beat me to it.
@K-in-Boston wrote:For FICO 8, the one that matters in most cases, I don't think there is a point where it doesn't count for revolving utilization metrics. If there is one, it's pretty astronomical. For the older scores like mortgage scores, I saw a huge increase in mortgage scores and a drop in 8s and 9s when moving balances from cards at or below $50k to heavy utilization on cards at $76,500 and $99,900. So it seems like there is indeed a cutoff point on older models somewhere above $50k but at $76,500 or lower. For HELOCs, six figure amounts are definitely not factored into revolving utilization on 8s or 9s.
Thank you guys and everyone!
I will proceed normally then! All your first hand insightful information clear up my mind. I was curious about what to do with the so called "hidden" tradelines but i see that's not the case in here. Anyway as i always PIF and never carry a balance it would not be something that would benefit me. Also my purchases are very small. I put $5K annual on this Amex on 2021 and $2k annual on 2020.
I will be posting wherever i'm succesful in my cli, and i think that's it! Not much interesting on a Hilton entry card. I do hope that sometime this year we see a waited redesign... hopefully Hilton line can get flat cards... I don't know why it has taken them so long.
But many thanks to all of you for your replies.