Credit Ratings Effected by Not Reporting Credit Limits
Author: NightStar, Credit Expert (100+ Posts)
Joined: 07 Nov 2003
Posts: 1704
Location: Illinois
Posted: Tue Nov 11, 2003 8:50 am
Post subject: Capital One Reporting Problem & Fix:
Figure while we are dealing with credit cards today and various issues, that we should address the major one of them all. Oh yes, they are nice that they give credit easily then most any other creditor out there. But it is plain and simple they purposely hurt their customers to stay competitive! They will never report your credit limit, only high credit and balance. So most of the time you credit report looks like you are maxed out on your credit! So say you have a credit limit of $5,000 and you recently charge up the highest to $1,000 may be a month of two of paying and you have a recent balance of $800. $5,000 Crdit Limit $1,000 High Balance $ 800 Balance $1,000 divided by $5,000 = 20% utilization $ 800 divided by $1,000 = 80% utilization So all that your credit report shows is the high balance of $1,000 the $5,000 is no where to be found, making you look like your maxed out just about. Then you know what is going to happen when you do charge more then $1,000 it is going to make you look over the credit limit! And you definitely don't want your other creditors seeing that, for the change to jump - claim you are over extended and jack you interest rates with them! **** We have discussed this one around and around and others actually came up with this, but here is what you do to fix this problem. When first opening up an account with Capital One, least this is my way, is to take a cash advance for all but $50 - $100 and before the grace period is up immediately pay back the balance, that way the credit report will show the High Balance close to your true credit limit and it won't have the power to mess with you on the reporting. Some have suggested making a large purchase, close to the credit limit - then returning item to store. That could least save you finance charges associated with cash advances, Or if you can, get a balance transfer - payable to yourself, then immediately pay back. This though, is how you use Capital One to get a fair shake on the credit reporting
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Joined: 07 Nov 2003
Posts: 1704
Location: Illinois
Posted: Tue Nov 11, 2003 8:50 am
Post subject: Capital One Reporting Problem & Fix:
Figure while we are dealing with credit cards today and various issues, that we should address the major one of them all. Oh yes, they are nice that they give credit easily then most any other creditor out there. But it is plain and simple they purposely hurt their customers to stay competitive! They will never report your credit limit, only high credit and balance. So most of the time you credit report looks like you are maxed out on your credit! So say you have a credit limit of $5,000 and you recently charge up the highest to $1,000 may be a month of two of paying and you have a recent balance of $800. $5,000 Crdit Limit $1,000 High Balance $ 800 Balance $1,000 divided by $5,000 = 20% utilization $ 800 divided by $1,000 = 80% utilization So all that your credit report shows is the high balance of $1,000 the $5,000 is no where to be found, making you look like your maxed out just about. Then you know what is going to happen when you do charge more then $1,000 it is going to make you look over the credit limit! And you definitely don't want your other creditors seeing that, for the change to jump - claim you are over extended and jack you interest rates with them! **** We have discussed this one around and around and others actually came up with this, but here is what you do to fix this problem. When first opening up an account with Capital One, least this is my way, is to take a cash advance for all but $50 - $100 and before the grace period is up immediately pay back the balance, that way the credit report will show the High Balance close to your true credit limit and it won't have the power to mess with you on the reporting. Some have suggested making a large purchase, close to the credit limit - then returning item to store. That could least save you finance charges associated with cash advances, Or if you can, get a balance transfer - payable to yourself, then immediately pay back. This though, is how you use Capital One to get a fair shake on the credit reporting
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posted by CardRatings.com at 10:17 AM
9 Comments:
Author: sisflomi
Credit Expert (100+ Posts)
Joined: 07 Nov 2003
Posts: 134
Posted: Tue Nov 11, 2003 1:58 pm
I will never understand anyone that wants a card issued by them. I am lucky enough to have stayed away from it.
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Sis
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Author: Eugene
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 14 May 2003
Posts: 254
Location: Brooklyn, NY
Posted: Tue Nov 11, 2003 6:40 pm
NightStar, wouldn't you owe a truckload of finance charges if you take out a large cash advance, even if you immediately pay it back? There is normally no grace period on cash advances.
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Author: Guest
Posted: Tue Nov 11, 2003 8:41 pm
Yea you are right, so a balance transfer would be better,
Just an idea, if you have a deal where cash advance amount is not much. I know that is asking a lot with Capital One, lol
But it was just one example... most people purchase then return item for refund to get it accomplished.
I think Target is the same way, not reporting the high credit, if I remember right. Another person was telling me that recently, so you definitely want to apply the same rules to work for target.
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Author: NightStar
Credit Expert (100+ Posts)
Joined: 07 Nov 2003
Posts: 1704
Location: Illinois
Posted: Tue Nov 11, 2003 8:42 pm
Ok, above post was me...
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Author: sisflomi
Credit Expert (100+ Posts)
Joined: 07 Nov 2003
Posts: 134
Posted: Tue Nov 11, 2003 8:52 pm
You are right, Target does not report Credit Limits. I actually had exp fix it, but target took that away with the next months reporting. If we ever get this mortgage done and over with, I have a few things like that to fix for good.
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Author: Eugene (can't login) Guest
Posted: Tue Nov 11, 2003 9:29 pm
Yeah , I know several issuers who do not (or did not used to) report credit limits. AmEx and Citibank (some of my favorite ones) are among them, unfortunately.
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Author: NightStar
Credit Expert (100+ Posts)
Joined: 07 Nov 2003
Posts: 1704
Location: Illinois
Posted: Tue Nov 11, 2003 9:39 pm
That is an interesting way to get attention to log in problem Eugene, now if I could fix my memory problem to log in to begin with, lol
Past experience I have only done business with Citi, Capital One, the rest department store cards (which I think everyone of them are terrible!)
JC Penney (crummy customer service - and know that they report 2 tradelines: Installment line & Credit Card line - so they will double hit you if you default on account)
Younkers (no real problem, just did not like the high interest rate - and over priced merchandise - but same can be said of JC Penney)
K-Mart (This is Capital One - customer service is not americans / bad english! interest rate they won't lower stuck at 15% - which is still better then 19% at all the other ones)
Lowe's (19% interest, but at least this card is useful if you need emergency funds for appliances)
Citi Bank (this one I consider to be preditory!) they wait until your balance is up there, then send a change in terms agreement out - got tired of fighting to keep decent interest rate so finally closed the account)
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Author: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Joined: 19 May 2003
Posts: 630
Location: NJ
Posted: Tue Nov 11, 2003 11:25 pm
Call me crazy if you want to, but I've NEVER concentrated on my credit score, and I've never had a problem. For what it's worth I think it's in the high 600's. I apply for about ten new cards a year and get most of them. I don't even care about the cards I don't get. At this point in time the only cards I go for are those offering zero% balance transfer rates and fees, or some other form of cool rebate. I open and close cards with impunity. Inquiries don't matter that much; they're only 10% of your score.
The overall advice I give to people is spend within your means and pay your bills on time. If you do this you can forget that there is such a thing as a credit score. Sounds easy, doesn't it? Try it and you'll find out just how difficult it is. Takes discipline.
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Ira
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Author: NightStar
Credit Expert (100+ Posts)
Joined: 07 Nov 2003
Posts: 1704
Location: Illinois
Posted: Wed Nov 12, 2003 12:54 am
So what are some common cards which you have gone through over the years?
I would be very interested in taking advantage of zero interest rates, are their particular companies which you stay away from?
Do you ever retain given cards - and call back to see if and when they have deals - before you go looking for new cards?
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