Question on "high balance"

For just about anything you want to get off your chest about credit cards.
7 posts
paparoach429
Centurion Member
Centurion Member
 
Posts: 331
Joined: Tue Sep 11, 2012 12:21 am
Location: chicago

Question on "high balance"

Postby paparoach429 » Thu Aug 21, 2014 10:37 pm

So I've never seen this discussed on here before but a buddy of mine told me that a reported high balance looks good on your credit report. For example: If you have a $10,000 limit credit card but you've only let $1,000 ever report on it, it wouldn't look as good as charging close to that limit, letting it report, and then paying it back down. It makes sense that it would be a smart move because it shows your using all of the credit line and still paying it back, but I guess it still could possibly be negative. What do you guys think?


User avatar
PlyrStar93
Centurion Member
Centurion Member
 
Posts: 410
Joined: Wed Jun 04, 2014 1:06 pm
Location: Chicago

Postby PlyrStar93 » Thu Aug 21, 2014 11:26 pm

From what myself think, the "collateral damage" on this close-to-limit high balance would be like:
You have nearly maxed out an account, then your credit score gets lowered. Then the damage is done.

I do know your point, that reporting a high balance then paying it off shows your responsibility in using credit, and when lenders doing detailed review they should be able to see this. However from what I think, score is damaged because debt/credit ratio was too high. Please correct me if I went wrong.
Citi Forward Visa $5000 10/2012 | American Express Blue Cash Everyday $8000 2/2014 | Discover it $7000 5/2014
Chase Freedom Visa Signature $7000 6/2014 | Citi ThankYou Premier Visa Signature $5000 1/2015
All EMV.

User avatar
djrez4
Centurion Member
Centurion Member
 
Posts: 1468
Joined: Tue Jul 31, 2012 12:20 pm
Location: United States

Postby djrez4 » Fri Aug 22, 2014 9:34 am

High balance is not factored into your score (though it might make an appearance on a manual review). Utilization is. So, PlyrStar93's concern is legitimate, but temporary. If you let a high balance report, your score will drop. But, it will rebound when you pay the balance off.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
[/RIGHT]

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Fri Aug 22, 2014 9:44 am

If someone is going to do this, it only makes sense on something like an Amex NPSL charge card because then it doesn't hurt your utilization. On a regular card I would not do it.

popamode72
Centurion Member
Centurion Member
 
Posts: 1099
Joined: Sun May 04, 2014 4:41 pm
Location: Atlanta, GA

Postby popamode72 » Fri Aug 22, 2014 12:34 pm

I've always wondered why CapOne's high balance on my credit report isn't the highest balance I've had on my statements. It's always the highest that I've ever spent on it while all my other cards tend to have a high balance as in the highest that my statements have reported pretty much. Anyone else gotten that with CapOne? Not necessarily a bad thing for me since I don't spend that much on the card but just saying.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

Bama87
Platinum Member
Platinum Member
 
Posts: 78
Joined: Sat Apr 19, 2014 12:00 am
Location: USA

Postby Bama87 » Fri Aug 22, 2014 1:00 pm

So your max credit limit isnt presented as 18.6K + your highest spend from the Green?

I have heard the Charge cards use your highest spend and some Visa Signatures will use highest balance for your "credit limit" for reports.

marlonbishop
Platinum Member
Platinum Member
 
Posts: 85
Joined: Sat Aug 09, 2014 11:09 am
Location: Florida

Postby marlonbishop » Mon Aug 25, 2014 4:09 pm

djrez4 wrote:High balance is not factored into your score (though it might make an appearance on a manual review). Utilization is. So, PlyrStar93's concern is legitimate, but temporary. If you let a high balance report, your score will drop. But, it will rebound when you pay the balance off.



Reporting a high uti is not good even if you pay it each month. Best way to prevent it from being reported with a high limit. Is to pay your card every week that way when it gets reported it's not a high balance
BoA Cash Rewards $4000
Macy's $1000
Discover it $5000
Chase Sapphire Preferred $5000
Chase Freedom $2000
Amex Green NPSL
Amex Gold Premier Rewards NPSL

Find me on MyFico: Sapingo (if you see me say hello)!



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests