Incorrect Credit Limit Reported to TransUnion

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Incorrect Credit Limit Reported to TransUnion

Postby WNYC » Sun Nov 24, 2013 3:42 pm

I've had a green card for about 6 months, but I've recently applied for and received a platinum card. On my credit report, the green card has no reported limit, but my platinum card has a reported limit of $4,000. I'm trying to figure out why this is the case as transactions of much more than that are approved on my platinum card, and my account states that the card has no pre-set spending limit, which for the record I know doesn't mean unlimited spending. Also, when I pre-check transaction approvals I am authorized for transactions much higher than $4,000.

I'm worried this will affect my credit score if my balance for any one month gets recorded as higher than the listed limit. Has anyone else encountered this situation?

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Postby WNYC » Tue Dec 03, 2013 12:07 am

Bumping due to lack of response.

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Postby CC Deville » Tue Dec 03, 2013 6:39 pm

Often times Open accounts such as AMEX charge cards and formerly with World and Signature cards, the lender would report the High Spend, meaning the highest balance that has been charged on the card, as the Credit Limit. So, on your Platinum card, has the highest balance been $4,000? If so, this is what is happening.

You do not have to worry about that $4,000 number because the account is an Open account and not a Revolving account; therefore, the $4,000 would not be included in your debt to credit ratio.

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Postby DoingHomework » Wed Dec 04, 2013 10:34 am

The $4000 is effectively reported as your credit limit (though I realize technically it is not). That amount is determined by Amex based either on your previous highest monthly balance or possibly by a higher amount if your card is new or transitioned from an Amex credit card. Visa signature cards work in a similar way. If you go out and charge $3000 in a month then yes, you will show a high utilization for that month. But so what. You pay the card off every month so that by the time the balance is reported you are back to zero utilization. Of course if you use teh option to pay over time at exhorbitant interest rates then you will take a utilization hit. But frankly, if you need to pay over time at Amex's high rates then you are using your charge card as a credit card and do in fact have a high utilization.

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Postby nismoZtuner » Wed Dec 04, 2013 12:32 pm

Strange that they have a limit for a charge card.

Transunion isnt even accurate, a few months ago i received a credit limit on my BOA credit card from $600 to now $2000. TU had that my credit limit went from $600 to NEGATIVE $1400. I called them up and they just told me that their customer credit monitoring isnt even accurate but that there should be no problems with my actual credit report from them.
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