Hey folks: How do creditors that report to CRA's but do NOT report your credit limit effect your scores? I know that Cap 1 only reports the balance but not the CL. Also, a card I'm applying for does the same. How will this affect me? Thank you in advance for your vast wisdom.
Hard to say, but technically it effects negatively. A positive balance will enter into the FICO equation but no offsetting increase in total credit limit, so your score will decrease. Of course the overall effect may be different due to other factors such as a new credit card listing reporting a never late status that may affect your score in a positive manner so the actual effect is not as black and white. To be fair: All other things being equal, adding a revolving credit listing that does not report a total limit, but does report a balance....would affect your FICO score MORE NEGATIVELY, than adding one that reports a credit limit AND a balance. -Peace, Dave
SCENARIO...you have 4 cards...3 CAPITAL ONE cards which DON'T report credit limit...and one BANK OF AMERICA that reports the credit limit...all $5,000 each. Lets say you spend $1,000 on each...total of $4,000. The truth is that you have spent $4,000 of $20,000...but CAPITAL ONE doesn't report the limit...so you have spent $4,000 of $5,000 limit~~~YOUR AT 80%...WAY TOO HIGH...REALLY YOU ARE AT 20%... CREDIT LIMIT N/A IS NOT THE SAME AS... CREDIT LIMIT $5000
IF YOU GET $5,000 FROM CAPITAL ONE, AND HAVE $30,000 IN OTHER CREDIT LIMITS THAT REPORT...IT DOESN'T MAKE AS MUCH OF A DIFFERENCE... Another BAD thing about CAPITAL ONE is that they ALWAYS "PULL" ALL 3... ...BUT once your in...they treat you pretty good~~~and they have MR COOKE
