What is considered "high balance" on a CC?

[Anonymous]

We just recently each got a $300 dollar credit card from Orchard Bank in an attempt to vary our credit history and get us going on the right track.

We are paying it off in full every month. However, it gets close to it's limit because one is used for gas and the other is used for groceries - and at $300 each it goes quickly, however, it's paid off every month. But I do know that if they decide to report to the credit bureaus the day before I pay the $289 dollars that's on the card, it will look like I'm carrying a high balance?

What's considered "Close to maxed out"? Does this really "hurt you", so to speak?

[llecs]

Ideally you'd want that card to report anywhere from 0% to 9% utilization. You would be taking a score hit for any amount above 9%, with the most severe being 99%, of course.

You'd lose additional points if it hits 100% or more.

Good news is that if it did report $289, you can always fix that for next month by having a payment credited by the last biz day of this month.

[Anonymous]

+1 Ilecs!  Plus, I love your groovy picture!

When DH's $500 CL Orchard card's reported balance went from $27 to $135, he lost 16 points (EQ FICO).  That's because he went from 5% to 27% utilization.

I ran a lot of cash and purchases through my ($500 CL) Orchard for six months.  However, I paid several times a month - very easy to do on their website.

DH did not run a lot through his card - just the occasional $30 or so and paid it off.  Orchard liked us both the same - we both got the same CLI after six months.

Good luck with your Orchard and your rebuilding! 

[Anonymous]

well for July it reported $0 because i hadnt received it in the mail yet. LOL

Payments are due on the 16th of the month. I got the statement last week... When do they report so I know when you pay it off to show $0 dollars?

This is so difficult...

[Anonymous]

Oh and 9% utilization for the whole balance???  that means I can only spend $30 dollars a month on that card???? wth?

[Anonymous]

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@Anonymous wrote:
Oh and 9% utilization for the whole balance???  that means I can only spend $30 dollars a month on that card???? wth?

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No, it means you can only allow $27 to report. It is very hard to manage UTIL effectively when you only have one reporting revolving TL. Best thing is to keep reporting zero balances until you reach three open revolving TL's.

Also Orchard does not report on the statement date. Someone else who actually has one will chime in here with the details.

[Anonymous]

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@Anonymous wrote:
Oh and 9% utilization for the whole balance???  that means I can only spend $30 dollars a month on that card???? wth?

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Well, the 9% utilization affects you when you're looking at the balance that reports to the CB's.

Most CC's report the balance on the statement date.  Orchard has it's own set of stripes - they report on the last business day of the month.  That keeps it simple.  Keep your reporting balance (last business day of month for Orchard) down to a low utilization.   And in a few months, when you've increased your CL's and app'd for another card or two, keeping the utilization down will be easier. 

[llecs]

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creditwherecreditisdue wrote:

Also Orchard does not report on the statement date. Someone else who actually has one will chime in here with the details.

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Orchard and HSBC cards (not the co-branded versions like BB or Discover) report the balance that you had on the last business day of the month. So, if, OP, you want a $0 balance to report you need to make sure your payment is credited no later than September 30. They will then report the new balance roughly 2 weeks later around the 15th. YMMV w/ the reporting date.

ETA...I'm a slow typer.

Message Edited by llecs on 09-08-2009 02:55 PM

[llecs]

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beamMEup wrote:

Plus, I love your groovy picture!

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Thanks! There's no such thing as too much Beaker.

http://www.youtube.com/watch?v=yQj2NP25TIo&feature=related

http://www.youtube.com/watch?v=xpcUxwpOQ_A

OP, sorry about the temporary TJ. Hope you didn't mind.

[Anonymous]

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@llecs wrote:

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@Anonymous wrote:

Also Orchard does not report on the statement date. Someone else who actually has one will chime in here with the details.

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Orchard and HSBC cards (not the co-branded versions like BB or Discover) report the balance that you had on the last business day of the month. So, if, OP, you want a $0 balance to report you need to make sure your payment is credited no later than September 30. They will then report the new balance roughly 2 weeks later around the 15th. YMMV w/ the reporting date.

ETA...I'm a slow typer.

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