|
Free consumer info. since 1998! As featured by The Wall Street Journal, The NY Times, PBS, etc.
Credit Card High Balance Impact on Credit Score
Guest: jlrdc909 Credit Expert (100+ Posts) Post subject: Credit Card High Balance Impact on Credit Score Posted: Thu Jun 22, 2006 6:53 am Has anyone had this problem: Recently I was reviewing my credit report. I noticed that my high balance was not one month, but nearly 2 months worth of purchases. My limit is $5,000 and my purchases were reported at nearly $2700.00, this caused a drop in my score, however the $2700.00 was 2 months combined, I am not worried about this, but has anyone else had this happen?
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 8:07 am While many creditors only report your balance as of your last billing date, some continually update your reported balance. Thus, your reported high balance might represent your last statement balance plus all charges up to your payment of the statement. If you pay close to the due date for the statements (just before new billing), this could easily represent 2 months of purchases. To my knowledge, this is no big deal. Having had a high balance in the past near your credit limit doesn't impact your score. However, during that time that your balance builds prior to a payment, your current balance may temporarily ding your credit score. Many of us likely encounter this from time to time. I wouldn't sweat it. The situation immediately reverses itself with your payment. If you have a critical credit transaction in process, you may wish to pay your statement immediately upon receipt. - Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Want to Close Credit Card Account Without Adverse Consequences
Guest: nessaness Post subject: Want to Close Credit Card Account Without Adverse ConsequencesPosted: Thu Jun 22, 2006 2:03 am I have paid off a sub-sub-subprime card from a company with a VERY disreputable history. I am in need of some information on how to properly close this account without any adverse actions taken against me. This company has a history of placing a "CLOSED BY CREDITOR" on peoples credit reports even when requested by the card holder. They then do nothing about it when questioned and refuse to fix it if they even answer the phone at all. I am curious how to properly request that my account be closed showing that I requested it. How do ask them that? Also, how can I obtain proof that I requested that since it is illegal to record phone calls in my state? This company has a very poor reputation for such actions and I am very worried that they will do as they please. It is hard enough to shut off this card seeing as they do not even provide a phone number on their website !!! I had to find a phone number for them on my credit report !!! I need to close this account immediately as my yearly fee will be on my next bill. Last edited by nessaness on Thu Jun 22, 2006 3:18 am; edited 1 time in total
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: preluder Posted: Thu Jun 22, 2006 2:14 am should be closed by consumer
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: fire3000 Credit Expert (100+ Posts) Posted: Thu Jun 22, 2006 7:47 am First verify that your balance is zero by checking your balance online. There should be a telephone number for customer service on the back of your card. First try calling them and requesting that it be closed and that they report it to the CRAs as "Closed by request of consumer" and that they mail you a confirmation letter. If that does not work, write a letter stating your desire to close, cut your card in half, and send it all to their mailing address (not the payment address) via certified mail return receipt requested. Do not pay the annual fee. If the account still shows on your credit reports after 45 days, send a dispute form to all 3 credit bureaus saying that you closed the card and sent a certified letter stating this. If all of that does not get rid of it try contacting the BBB. I do not think they can not report the unpaid annual fee as valid unpaid debt.
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 7:56 am This is a sticky situation, for if the creditor reports the account as closed by them, it may be difficult to convince a credit bureau to accept your word that you closed the account. Given your concern, here's what I would do: Send your request by letter. It's critical that the letter be sent to the address specified by the creditor for account correspondence. Use of any other address may allow them to claim that the letter wasn't properly submitted. Obtain a blank Certified Mail Receipt (Form 3800, green on white) from the post office. In your letter, clearly show the form's serial number ("XXXX XXXX XXXX XXXX") at the top. Bring your letter with the form to the post office and pay the appropriate fees, including the Return Receipt Fee. (You don't want to indicate Restricted Delivery). There will be a green return card for you to complete, with your mailing address, that will be attached to the letter by the agent. In the event that the account later shows as "Closed by Grantor", your copy of the dated letter, which includes the form's serial number, and a dated receipt for delivery, will hopefully provide sufficient evidence to submit to the credit bureau that your closure request was voluntary and not made by the creditor. It would be helpful to others if you eventually reported back on your experience. - Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
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 LimitsPosted: 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!
Chase Signature Credit Card Reports High Balance to Credit Bureaus
Guest: spjoink Credit Expert (100+ Posts) Post subject: Chase Signature Credit Card Reports High Balance to Credit BureausPosted: Wed Jun 14, 2006 8:51 pm same here i completely agree
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: Mon Jun 19, 2006 7:07 pm My new Chase Signature account just started reporting. It reports "high balance" -- not "limit". Based upon the change in my credit scores in the last 30 days, I estimate the consequence of the reporting has been to lower my scores by about 10 pts. I look to run the account up to near its limit over the next couple of months. - 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: spjoink Credit Expert (100+ Posts) Posted: Mon Jun 19, 2006 7:35 pm Would you please be so kind and explain how you came to that conclusion?
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 12:59 am Quote: Would you please be so kind and explain how you came to that conclusion? Ok, upon further consideration I'll take back the statement re the effect of this reporting on my scores. My initial impression was based on the fact that my TU FICO (reported by myFICO) dropped from 725 to 705 in the last month. The signficant changes to my report were the addition of 1 hard inquiry and the reporting of 2 new accounts. It originally seemed to me that an effect of 20 pts was excessive for these factors alone. However, upon further investigation, it appears quite likely that the impact of these 3 transactions on the New Accounts score factor (10%) is sufficient for a 20 pt drop. Also, upon scrutinizing my report more carefully, the new Signature VISA account is reporting as an "Open" account (similar to Green Amex), not as a Revolving account. This, of course, makes a considerable difference and distinguishes the reporting from that of Capital One, for example. (FWIW, the minimum statement payment due is reporting.) btw, I've taken some pains in the last few weeks to stress that credit scores obtained via Equifax are true FICO scores. This was further confirmed when I pulled reports/scores via both today and the scores were identical (718). I now rank myself as a credit score junkie -- a little to my disappointment. At one time I had hoped I wouldn't join those who obsess over their credit score. However, I've been frustrated this past year in being a little clueless as to what significantly impacts my score and by how much. I figure taking a few months and pulling very specific information would be worthwhile as an education investment -- an experience that I hope will be beneficial to share with others. - Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Chase British Airways Visa Signature Credit Card
Guest: guessindigo Credit Expert (100+ Posts) Post subject: Chase British Airways Visa Signature Credit CardPosted: Tue Jun 13, 2006 1:08 am [quote="spjoink"]i also have chase british airways visa signature ...no limit reported BUT...all creditors now these cards only comes with high limits...all of mine are between $10000.00 and $20000.00 [/quote] I have this card too. I love it.
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: Wed Jun 14, 2006 10:21 am Quote: BUT...all creditors now these cards only comes with high limits...all of mine are between $10000.00 and $20000.00 Not sure about that , but the concern is how the reporting of high balance vs. credit limit affects the credit scoring utilization calculation ... it's the old Cap1 issue, though on a premiums scale. My Chase-Sig account hasn't begun reporting yet, but should within a month. I'll be keeping an eye out and will report back. - 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: spjoink Credit Expert (100+ Posts) Posted: Wed Jun 14, 2006 10:31 am Visa signature is considered a premium card by the banks , its for people with higher scores and therefor custommer with these card get higher limits , this is according to my private banker at Wells fargo. Agai this could change , just like the platinum card became nothing more than a marketing tool [/list][/code][/quote]
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: guessindigo Credit Expert (100+ Posts) Posted: Wed Jun 14, 2006 5:51 pm Signature cards have no preset limit, therefore no over limit fees. I did not ask chase to report the revolving line, I prefer the revolving line to remain hidden. Since I was turned down on some recent apps due to "too much available credit" it has worked out well. I don't buy the argument it hurts your score. My score hasn't been affected by not reporting the revolving line and allows me to hide over 50,000 in available credit from other creditors.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Does my credit card company report my credit limit or my highest balance?
Guest: mouse SENIOR MEMBER (Member for 2 yrs.+) Post subject: Does my credit card company report my credit limit or my highest balance?Posted: Mon Jun 12, 2006 4:43 pm Quote: "davidfronue" so did they report limit or not or just your balance I think just "HIGH BALANCE"
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: Mon Jun 12, 2006 4:57 pm There's every reason to expect that an account limit will be reported. A signature account isn't like Amex Green -- there's a specific limit assigned. The difference between a Signature card and other credit cards is that it's agreed that charges in excess of your limit will be considered for approval based upon past account history and, if requested, supplemental resource information. There's no fee for taking the account over limit. However, all over limit charges must be paid in full at the next statement. - 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: mouse SENIOR MEMBER (Member for 2 yrs.+) Posted: Mon Jun 12, 2006 8:23 pm Quote: "hdporter" There's every reason to expect that an account limit will be reported. A signature account isn't like Amex Green -- there's a specific limit assigned. The difference between a Signature card and other credit cards is that it's agreed that charges in excess of your limit will be considered for approval based upon past account history and, if requested, supplemental resource information. There's no fee for taking the account over limit. However, all over limit charges must be paid in full at the next statement. - Harry ON TOP OF THE USUAL MINIMUM PAYMENT (assuming your not going to PIF)
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: spjoink Credit Expert (100+ Posts) Posted: Mon Jun 12, 2006 8:24 pm i have us airways visa signature...no limit reported...just high balance i also have mercedes benz visa signature same story i also have chase british airways visa signature ...no limit reported BUT...all creditors now these cards only comes with high limits...all of mine are between $10000.00 and $20000.00
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Bank of America Visa Signature Credit Card
Guest: davidfronue Post subject: Bank of America Visa Signature Credit CardPosted: Sun Jun 11, 2006 11:59 pm The reason I ask is because alot of credit card issuers dont report limits when you have visa signature card but I know that mbna does but I am not sure if bofa do so any of you out there have that card please tell me if they report limit to the credit bureau thanks
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse SENIOR MEMBER (Member for 2 yrs.+) Posted: Mon Jun 12, 2006 1:09 am Quote: "davidfronue" The reason I ask is because alot of credit card issuers dont report limits when you have visa signature card but I know that mbna does but I am not sure if bofa do so any of you out there have that card please tell me if they report limit to the credit bureau thanks I DID... BofA USAIR VISA
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: davidfronue Posted: Mon Jun 12, 2006 3:03 am so did they report limit or not or just your balance
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: fire3000 Credit Expert (100+ Posts) Posted: Mon Jun 12, 2006 4:41 pm I have three BOA cards and the limits are shown on my reports. Only Capital One does not report my credit limit (high balance still gets reported).
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
|
