FICO not Hurt by not Showing all Your Credit Limits
Guest: guessindigo
Credit Expert (100+ Posts)
Post subject: FICO not Hurt by not Showing all Your Credit Limits
Posted: Tue Jun 20, 2006 12:25 pm
hdporter, if you have 2-3 high limit cards reporting the credit line, it is not going to hurt your fico score to hide the revolving credit access line on your signature cards. My score is not affected positively or negatively, in fact, it provides a shelter to hide ALOT of available credit that you can tap into in an emergency. Also, you can always call chase at any time and ask them to report the access line.
YMMV, but I don't want lenders seeing an additional 40-50K of available credit. Of course, this is only good if you already have an established credit history. By the way, if a bank/mortgage co/car loan/ etc asks why the revolving line does not report, I have found that one call to customer service and they will talk to those people and let them know that it is their highest level card and they really back you up when needed.
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Guest: hdporter
Credit Expert (100+ Posts)
Posted: Tue Jun 20, 2006 1:36 pm
I understand what you're saying, guess. However, I very much think it's the case that "Open" accounts are not evaluated for credit score purposes in the same manner as "Revolving" accounts.
"Open" accounts, by definition do not have a limit (the fact that VISA Signature accounts do have a limit blurs the line a bit, but FICO and other models will treat it as an account without a limit). It's my guess that, unlike a revolving account where no limit is reported, a utilization calculation isn't performed on an "Open" using the reported high balance. In fact, I expect these accounts are omitted from the utilization calculation all together. Were that not the case, I'd look for some account holders to get dinged badly.
Further information on this topic is needed.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hdporter
Credit Expert (100+ Posts)
Posted: Thu Jun 22, 2006 7:35 am
See separate thread started by spjoink for further discussion of this topic ...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Credit Expert (100+ Posts)
Post subject: FICO not Hurt by not Showing all Your Credit Limits
Posted: Tue Jun 20, 2006 12:25 pm
hdporter, if you have 2-3 high limit cards reporting the credit line, it is not going to hurt your fico score to hide the revolving credit access line on your signature cards. My score is not affected positively or negatively, in fact, it provides a shelter to hide ALOT of available credit that you can tap into in an emergency. Also, you can always call chase at any time and ask them to report the access line.
YMMV, but I don't want lenders seeing an additional 40-50K of available credit. Of course, this is only good if you already have an established credit history. By the way, if a bank/mortgage co/car loan/ etc asks why the revolving line does not report, I have found that one call to customer service and they will talk to those people and let them know that it is their highest level card and they really back you up when needed.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hdporter
Credit Expert (100+ Posts)
Posted: Tue Jun 20, 2006 1:36 pm
I understand what you're saying, guess. However, I very much think it's the case that "Open" accounts are not evaluated for credit score purposes in the same manner as "Revolving" accounts.
"Open" accounts, by definition do not have a limit (the fact that VISA Signature accounts do have a limit blurs the line a bit, but FICO and other models will treat it as an account without a limit). It's my guess that, unlike a revolving account where no limit is reported, a utilization calculation isn't performed on an "Open" using the reported high balance. In fact, I expect these accounts are omitted from the utilization calculation all together. Were that not the case, I'd look for some account holders to get dinged badly.
Further information on this topic is needed.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hdporter
Credit Expert (100+ Posts)
Posted: Thu Jun 22, 2006 7:35 am
See separate thread started by spjoink for further discussion of this topic ...
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 3:49 PM
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