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Should I Let My Cards Report A High Balance?

WomanITGeek
Established Member

Should I Let My Cards Report A High Balance?

Rebuilt my credit and now im conscious of making sure my cards report 0 before statement cut except 1. But should a high balance report at least once in a while to show the banks you are capable of paying it all off? 


Thoughts? I am thinking of letting my Amex Gold report the $11 grand and change balance I have right now, Citi Custom Cash about $1600 and CFU about $650 and then pay it all off once the statement cuts.

 

Will this have the opposite affect and spook them instead?

Message 1 of 11
10 REPLIES 10
simplynoir
Community Leader
Super Contributor

Re: Should I Let My Cards Report A High Balance?

That is a sound plan there it will show the highest reported balance and your ability to pay it off. It's one of the few drawbacks when someone is practicing AZEO especially if they have a lot of spend. I would not worry about spooking any banks with high reporting balances since utilization is a fluid situation that changes from month to month. It would be a concern if someone was carrying high balances for an extended period of time

Message 2 of 11
Yasselife
Frequent Contributor

Re: Should I Let My Cards Report A High Balance?

@WomanITGeek Helps in UW for the reason you explained.



Message 3 of 11
WomanITGeek
Established Member

Re: Should I Let My Cards Report A High Balance?

Thank you so much! This is exactly what I am hoping for! I will ignore my credit score for a month LOL and just remember the big picture instead.


 

Message 4 of 11
MsMoneypeso
Established Member

Re: Should I Let My Cards Report A High Balance?

Yes, you should report a balance occasionally. 

 

I was checking my mortgage score, and one CRA dinged me for not using revolving credit. What? I had a couple of CC that would show up with a small balance, and a few others where I was aggressively paying them down and a bunch showing 0.. 

 

And you should probably show the balance on different cards at different times.

Message 5 of 11
OmarGB9
Community Leader
Super Contributor

Re: Should I Let My Cards Report A High Balance?


@MsMoneypeso wrote:

Yes, you should report a balance occasionally. 

 

I was checking my mortgage score, and one CRA dinged me for not using revolving credit. What? I had a couple of CC that would show up with a small balance, and a few others where I was aggressively paying them down and a bunch showing 0.. 

 

And you should probably show the balance on different cards at different times.


It's well know around here that mortgage scores react best to AZEO, or All Zero Except One, wherein you have ALL cards Except for one at $0 balance. The one you leave a small balance on must be a bankcard (i.e. no store card such as the Lowes card or Home Depot or Target, etc.) and the balance must no be so small that it gets rounded down to 0% utilization.


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 6 of 11
SouthJamaica
Super Contributor

Re: Should I Let My Cards Report A High Balance?


@WomanITGeek wrote:

Rebuilt my credit and now im conscious of making sure my cards report 0 before statement cut except 1. But should a high balance report at least once in a while to show the banks you are capable of paying it all off? 


Thoughts? I am thinking of letting my Amex Gold report the $11 grand and change balance I have right now, Citi Custom Cash about $1600 and CFU about $650 and then pay it all off once the statement cuts.

 

Will this have the opposite affect and spook them instead?


1. There's nothing to be gained by having a high balance report, with most cards and in most scoring models.

 

2. The Amex Gold is a charge card, not a credit card, and is disregarded by most scoring models for percentage dollar utilization purposes.

 

3.  There is an arcane benefit that could be achieved by allowing a high balance to report once on the Gold.  A few of the older scoring models still do count the Amex charge cards for dollar utilization percentage purposes, and use the "high balance" as though it were a credit limit.


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 7 of 11
hdporter
Contributor

Re: Should I Let My Cards Report A High Balance?


@SouthJamaica wrote:

3.  There is an arcane benefit that could be achieved by allowing a high balance to report once on the Gold.  A few of the older scoring models still do count the Amex charge cards for dollar utilization percentage purposes, and use the "high balance" as though it were a credit limit.


Good point.  However, my experience is that creditor's determine the reported "high balance" and will use the highest balance ever carried on a card, not just highest statement balance.  In other words, it's not necessary to show a high statement balance to bump this field up.

Message 8 of 11
SouthJamaica
Super Contributor

Re: Should I Let My Cards Report A High Balance?


@hdporter wrote:

@SouthJamaica wrote:

3.  There is an arcane benefit that could be achieved by allowing a high balance to report once on the Gold.  A few of the older scoring models still do count the Amex charge cards for dollar utilization percentage purposes, and use the "high balance" as though it were a credit limit.


Good point.  However, my experience is that creditor's determine the reported "high balance" and will use the highest balance ever carried on a card, not just highest statement balance.  In other words, it's not necessary to show a high statement balance to bump this field up.


I used to think that but I've seen conflicting reports on that issue, so I just don't know for sure.


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 9 of 11
CentralNY
Established Member

Re: Should I Let My Cards Report A High Balance?

I don't know if this is the case any more but I remember years ago there was at least the notion that size of payment reported had some influence on how creditors would view you.  Some accounts seem to report size of payment every month and some don't.  So it is possible to show a history 0 or close to 0 balance every month and a large payment each month depending if the creditor reports it that way.  Not sure what that actually does to scoring and which models it would affect if any.

Message 10 of 11
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