Converting to Visa Signature - My Debt to credit increased way high

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nvtech
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Converting to Visa Signature - My Debt to credit increased way high

Postby nvtech » Wed Apr 24, 2013 2:27 pm

Guys,

I have a BOA Visa Signature with a Balance of 20k. I took a BT on this card.
In the Experian report, the Debt to credit ratio was around 5% when the card was Visa Signature with a balance of 20k as over all debt. The overall debt is shown but still the debt to credit ratio was low.

I have called BOA to convert the signature to platinum so that, once I paid off the whole CL would be reflected.
Today in my credit report, I suddenly see the Debt/credit ratio went above 34%...

Can you please explain, if this would impact my credit scores a lot...What really happened in the conversion?
Should I request to change the card back to signature?

Please let me know.


FutureBillionaire
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Postby FutureBillionaire » Wed Apr 24, 2013 2:47 pm

There is a balance reporting on that BofA now?
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

nvtech
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Postby nvtech » Wed Apr 24, 2013 3:01 pm

The balance was reported both prior and after the conversion.

Before the conversion, with the same balance, my debt to credit ratio remained under 5%. ( Looks like the balance did not come to count)

After the conversion to Platinum...My overall credit lines is reflecting the complete amount ( increased from the Signature card).
My Balance remains the same..but my debt to credit ration got sky rocketed to 34%.

FutureBillionaire
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Postby FutureBillionaire » Wed Apr 24, 2013 3:19 pm

nvtech wrote:The balance was reported both prior and after the conversion.

Before the conversion, with the same balance, my debt to credit ratio remained under 5%. ( Looks like the balance did not come to count)

After the conversion to Platinum...My overall credit lines is reflecting the complete amount ( increased from the Signature card).
My Balance remains the same..but my debt to credit ration got sky rocketed to 34%.


I thought it would be the other way around. I must admit, I'm confused here. It was my understanding that the high limit for the signature reported as the credit line. Perhaps that amount was higher than what your limit is reporting now. I'd be interested to hear input from others.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

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djrez4
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Postby djrez4 » Wed Apr 24, 2013 3:36 pm

BoA doesn't report limits on some of their Visa Signature cards. The reporting agency doesn't include balances on those cards to account for the fact that the limits aren't reported. When you transitioned the balance to a new card that did report a limit, the balance reported correctly as a portion of your limit.

Your utilization was always high. It just wasn't reported correctly before.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
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nvtech
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Postby nvtech » Wed Apr 24, 2013 4:03 pm

djrez4 wrote:Your utilization was always high. It just wasn't reported correctly before.


Are you sure it wasn't reported correctly before?

BOA card is the only card I have balance and its balance was always reported but Experian, Transunion and Equifax.
However, in my overall utilization, the debt on Visa Signature was never counted to the over all utilization.

Looks like after the card was made as Platinum, something really got changed.

Sevenfeet
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Postby Sevenfeet » Wed Apr 24, 2013 9:28 pm

My Amex Platinum has the "pay over time" feature which basically turns it into a credit card for purchases above a certain amount. But it means that any money carried on it still isn't included in the utilization calculation since the Platinum is a NPSL card, regardless. At one point I had $39K sitting on that card and my utilization still got calculated like it wasn't there. Changing your BofA product from the Visa Sig to a lesser card stopped hiding your debt from the utilization calculation. Therefore, your utilization should have gone up.

I'm not sure why people don't necessarily like the BofA Visa Signature unless you're really just trolling for a higher credit limit. Having the card in the first place does boost your scores, especially if it's paid on time. Changing it to the lowly Platinum Plus card means you're giving up the cash back benefits of the product and are stuck with the old WorldPoints program (I had this card once, it sucked). The alternative most people forget is that there is a BofA Cash Reward Mastercard (I carry it). So you get the cash back features of the Visa version (minus the Signature specific stuff) and it still reports a limit like you want. The problem is that I don't think you can just do a product change from a Visa to a Mastercard. You'd have to app for it first. Once you get it, I think it's easy for BofA to transfer your credit line to the new Mastercard and close the old Visa product.
Cards:
American Express Platinum (NPSL)
Penfed Platinum Reward Visa ($28K)
Chase Freedom Visa ($25K)
Fidelity American Express ($20K)
American Express Blue Cash Preferred ($20K)
Bank of America Cash Rewards MasterCard ($20K)
Citi Thank You Preferred Visa ($9.5K)
Chase Sapphire Preferred ($7.5K)
US Bank Cash + Visa Signature ($7K)
Discover IT ($4K)



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