Can anyone explain how Experian determines the high balance on revolving accts? Does this change monthly, quarterly? What about credit limits not showing on the report, is it an advantage or disadvantage to our score?
The credit bureaus receive their information including high balance directly from the creditors. If the creditor does not report your credit limit but does report your balances you could look like your maxed out when you r nowhere near your credit limit. ex - cl 1000, high balance 250, current balance 200 - if your cl isn't reported - it looks like you only have $50 available credit instead of the $800. It's going to depend on what your other credit reported in your profile on whether it hurts your score and how much it hurts it. Not disclosing credit limits definitely does not help it! Some send their statements and have the limits reported. Others max the cards out for a month and pay it off so that their high credit is close to their actual credit limit. hope this helps some, Kelly
Thanks Kelly. Anyways, I just fired off a letter to Experian requesting investigation, and asked for these creditors to include the credit limits.
