cancel
Showing results for 
Search instead for 
Did you mean: 

Used over $100,000 in credit, here is what happened to my score

tag
gen-specific
Frequent Contributor

Re: Used over $100,000 in credit, here is what happened to my score


@NRB525 wrote:

Ok, Playa Smiley Tongue

 

$100k in open balanced owed? I went through that a few years ago. Will be interested to see what your result is. Mine was pre-financial crisis, and the subsequent action was all my high limit cards were CLD balance chased, some closed. Chase, Citi, BofA, not CapOne. No experience here of Wells Fargo, US Bank or AMEX in that situation.

 

Can you put some details on that explanation? Which cards have cash advances against them? If you have cash in the bank, they aren't balance transfers, they are cash advances, should have a higher APR once any 0% concludes.


 

Just got my first CLD balance chase from Barclays. On the Barclays World Elite card. Dropped from $30000 to $28750

 

No negative impact on utilization from this, except that doesn't reflect that my utilization would otherwise have also gone down, highlighting a weakness in the FICO formula for demonstrating credit worthiness/eligibility.

Message 81 of 126
elim
Senior Contributor

Re: Used over $100,000 in credit, here is what happened to my score

damn Barclays.

thanks for the update,   great thread

Message 82 of 126
Avinion
Established Member

Re: Used over $100,000 in credit, here is what happened to my score

This has been an incredible read; thank you for sharing your enlightening experience.

10/10 would purchase this experience as a book.

Message 83 of 126
gen-specific
Frequent Contributor

Re: Used over $100,000 in credit, here is what happened to my score


@Avinion wrote:

This has been an incredible read; thank you for sharing your enlightening experience.

10/10 would purchase this experience as a book.


Kickstarter ebook with a stretch goal for print book?

Message 84 of 126
onstar
Established Contributor

Re: Used over $100,000 in credit, here is what happened to my score


@baller4life wrote:
Very interesting thread! I've subscribed to see which creditors will stick by you through it and who will kick you to the curb. We already see Amex isn't down. Which is precisely why I NEVER carry a balance with them. I don't trust them. I have read too many horror stories of cld or closure for carrying a balance too long.

I actually view things the opposite way. I respect Amex WAY MORE now because of this thread. They actually pay attention to your credit profile, and when things start heading south in a major way, they take action. Shouldn't all banks be doing that?

 

If it were me doing this experiment, then I would only keep cards where the creditor goes into a slight panic mode due to my excessive balance, whether it's CLD or some other AA. To all the banks where they took no AA even when my balance climbed from <$20K to >$100K out of nowhere, I'd kick them to the curb for not paying attention.

 

Anyway, interesting thread indeed.

BK DC 4/9/2018
FICO 08 (4/9/2018): EQ 647 EX 609 TU 620
FICO 08 (10/16/2020): EQ 676 EX 659 TU 653
Message 85 of 126
gen-specific
Frequent Contributor

Re: Used over $100,000 in credit, here is what happened to my score


@onstar wrote:

@baller4life wrote:
Very interesting thread! I've subscribed to see which creditors will stick by you through it and who will kick you to the curb. We already see Amex isn't down. Which is precisely why I NEVER carry a balance with them. I don't trust them. I have read too many horror stories of cld or closure for carrying a balance too long.

I actually view things the opposite way. I respect Amex WAY MORE now because of this thread. They actually pay attention to your credit profile, and when things start heading south in a major way, they take action. Shouldn't all banks be doing that?

 

If it were me doing this experiment, then I would only keep cards where the creditor goes into a slight panic mode due to my excessive balance, whether it's CLD or some other AA. To all the banks where they took no AA even when my balance climbed from <$20K to >$100K out of nowhere, I'd kick them to the curb for not paying attention.

 

Anyway, interesting thread indeed.


Why?

 

Their retail credit card products have no impact on their solvency, they collect 18-21% interest which is over 51 times the fed funds rate that they borrow at which is 0.25%, they have private insurance for actual defaults so who cares? None of this affects you. These institutions will take the risk of extending you five figure credit lines because one interest payment means they've made a huge profit.

 

 

 

Message 86 of 126
gen-specific
Frequent Contributor

Re: Used over $100,000 in credit, here is what happened to my score


@elim wrote:

damn Barclays.

thanks for the update,   great thread


So I got that from a credit karma update. Credit Karma uses Vantage Score 3.0, these are around 546.

 

The Barclays letter just came in the mail. The redundant message telling me they lowered my account credit limit, it contains an actual FICO score from transunion which is 633. Way higher than I thought, makes me happier and less worried.

 

Now remember, I have a cash credit line from Citi that I think about. It will actually be inconvenient for me if they lower this because I may have a purchase coming up.

Message 87 of 126
Anonymous
Not applicable

Re: Used over $100,000 in credit, here is what happened to my score

Maybe I missed it, so I am going to ask, since a poster above thinks things "have gone south."  Having been the guy that had to make margin calls on clients in the past...

 

Has any creditor so much as called and said "Hey! gen-specific, what's going on?"

Message 88 of 126
gen-specific
Frequent Contributor

Re: Used over $100,000 in credit, here is what happened to my score


@Anonymous wrote:

Maybe I missed it, so I am going to ask, since a poster above thinks things "have gone south."  Having been the guy that had to make margin calls on clients in the past...

 

Has any creditor so much as called and said "Hey! gen-specific, what's going on?"


No, It is very impersonal and robotic.

 

Yeah if I was leveraged up on a bad trade a broker would make a phone call quickly, but that all happens so much faster than the credit card system and really can affect the solvency of a brokerage firm. Just curious, do brokers even monitor client's FICO reports? Like, if I opened a new brokerage account in the future with my credit score so low, would they factor that in? Because you can get so, so SO much more credit to trade with from a broker than any of this credit card stuff.

Message 89 of 126
NRB525
Super Contributor

Re: Used over $100,000 in credit, here is what happened to my score


@Anonymous wrote:

Maybe I missed it, so I am going to ask, since a poster above thinks things "have gone south."  Having been the guy that had to make margin calls on clients in the past...

 

Has any creditor so much as called and said "Hey! gen-specific, what's going on?"


During my time of CLD, none of the banks, Citi, Chase, BofA ever callsed me, because I wasn't missing any payments. They were simpkly taking action to limit my ability for future borrowing. This was driven home when I made a $25 Starbucks card reload using my BofA MC in December 2012, after not charging anything on the card for 4 straight years, only making payments. Literally days later I got another CLD letter in the mail. Citi simply worked things so accounts got closed, Chase also, to a lesser degree.

 

If I had missed any payments, you can bet the arrangement and communication would have changed immediately.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 90 of 126
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.