Hey DemPooches

Hey LKH!

Isn't that an amazing thing??? This is definitely one of those "knowledge is power" deals.

Imagine having a "maxed out" $200 line and not knowing it's doing big damage to your score. No telling how many countless times that's happened to those who just didn't know better.

Who would have ever thought there'd be a "magic number" like 50% that would make such a difference?

Nice to know at least some of the rules and at least have a fighting chance in the game.

BTW - Anything special you're planning for in reaching that 750? Or just onward and upward?

DemPooches

 

Dempooches

Actually I seem to remember that >35% utilization will raise your score even more. It appears that there may be at least two levels of increase. one at >50% and one at >35%.

You are right though...knowledge truly is power.


fla-tan

 

fla-tan,

We haven't had that experience yet. But with all of EQ's scoring models, it might be the case on some.

We have experienced no difference at all in EQ scores with an individual account showing $1 balance all the way up to 50% minus $1 balance.

But hit that 50% mark on ANY account and we get an instant drop of around 20 points.

With respect to total utilization, there may be a link to <35%. I have noticed FICO uses 34% as the average utilization in the explanation of their scoring reasons.

If I remember correctly, one of our utilizations is at 33% overall right now and should go over 35% in a week or two. I'll post and let you know if it makes a big difference.

DemPooches

 

Doesn't this make any Capital One card a drag on your report due to their policy of not reporting credit limits?

 

das72071,

You're exactly right.

That's the reason we closed our Cap1 account. You can run it up to the max via purchases or BTs and then pay it off immediately if you want to force the limit to report.

We just decided we've got choices now and we're not going to do business with a company that is so actively damaging our credit when we give them business.

They can certainly be helpful for rebuilding, but they're not for us now. If they change their policies, we'll reconsider.

The only Cap1 accounts that won't hurt you this way are the business accounts, because like other business accounts, they don't report at all on the personal reports.

DemPooches

 

Even if you run it up and pay it off they will still be reporting 100% usage. When they report they always seem to report balance an credit limit as the same. At least that is how it shows on my reports.

 

I've been keeping my Capital One account around because they are my oldest account(5 years) but i'm reconsidering.

 

For those who do it, I believe they run it up and then pay it off BEFORE the statement ends. That way the balance is already back down on the statement closing date and doesn't report as 100% utilized.

But the high credit moves up to the actual high credit amount.

DemPooches

 

If it were our oldest tradeline we probably would have kept it.

That's the only reason we're hanging onto a 13 year old Sears and a 4 year old Providian.

Needless to say, they almost always stay at a zero balance.

DemPooches

 

DemPooches, you are correct. You pay off BEFORE the end of the cycle.

Note that ANY BT with Cap1 is billed as a PURCHASE, so you get the full "float" at 0% interest. Makes a big cap1 line a very nice cash management tool IMHO.

I won't defend their reporting policies, but if one knows how they work, it's really easy to work around them--and really easy to get a high limit PROVIDED one's FICO score is good AND one transfers a large balance on application.

 

I got a chuckle outa this... my scores went up and I asked for an increase a few months ago - all they could muster up for me was a whopping $200 (via PFB/Mr Cooke). I've had the card for nearly 3 years, never late, OTL, etc. $1800 limit and had $1000 to start with. I realize you were talking about an initial application, but it's 3:30 am and I felt like rambling a little...sorry if I got ot.

Ozzy.