WHY ISN'T MY CREDIT LIMIT BEING REPORTED??

[devil21]

WHY ISNT MY CREDIT LIMIT BEING REPORTED?

 

There is a problem in credit reporting that is becoming more widespread by the day and unfortunately most consumers are not aware of the problem and the negative impact that it has on their credit scores. The problem is the non-reporting of your credit limit on your credit reports by the creditor.

 

Why is not reporting my limit a problem?

Simply put, your utilization percentage (commonly referred to as “utilâ€) is 35% of your FICO score. What this means is that the FICO formula takes your total revolving credit limits into account, then your outstanding balances, and then determines the percentage of limits that you are currently using. When a creditor such a CapitalOne reports only your highest balance and your current balance your actual credit limit is not being considered, resulting in a false “util†for that card.

 

EXAMPLE: Your Cap1 card has a $5000 limit but you have only charged a maximum of $1000 in a single statement period. Cap1 will not report your $5000 limit but instead will report your $1000 high balance. In the absence of a limit entry the FICO formula defaults to your high balance entry. This past statement period you charged $500 and Cap1 reported your current balance as $500. The FICO formula thinks that you are now using 50% of your credit limit instead of your ACTUAL util of 10%. A util figure of 50% WILL lower your scores for that one Cap1 card however the exact loss is based on your total credit profile. Moreover, the FICO formula also takes your total utilization on all of your revolving lines into account, thus likely lowering your scores even further because now you are “overextended†on your Cap1 and possibly overextended overall. Keep in mind that the exact formula is a trade secret so it is an imperfect science.

 

Why do they do this?

That varies by creditor and the card in question. Using Cap1 above, it is generally accepted that it is to purposely keep your scores lower so that they are able to make more money at your expense in higher interest rates because of lower scores. For less sinister reasons, see #6 below.

 

What can I do about this?

There are stopgap solutions to this problem that you can use, in no particular order:

(Do your homework before taking these steps to make sure which is your best option!)

 

1. The cards that do not report limits usually do report your high balance so you can charge up the card to near the limit then pay it off immediately.

2. Balance transfer (BT) from another card over to the non-limit-reporting card and then pay it off immediately.

3. Balance transfer (BT) from another card over to the non-limit-reporting card and then BT back out of the non-limit-reporting card to another card immediately.

4. If you are in a pinch (auto loan credit pulls, for example) you can dispute the non-limit-reporting with the credit bureaus and the limit will be entered. The caveat to this is that disputing a tradeline for anything could result in it being deleted completely. Also, be prepared for the limit reporting to disappear the next time the creditor updates your tradelines.

5. Some cards have limit ceilings where they will only report your limit under a certain amount. Juniper is a perfect example. If you have a Juniper card with a $7000 limit and it is not reporting you can call and request a credit limit decrease (CLD) to under their ceiling of $5000. The limit should then be reported during your next statement cycle.

6. Beware of “Signature†cards. They are usually advertised as such and boast that there is no preset spending limit or that you are allowed to go over your limit as long as you pay the overage before the next statement date. These cards generally do not report a limit because it is technically "flexible". Avoid these cards if you are concerned about non-limit-reporting. Many issuers such as Citi will allow you to convert to a different card at any time. The Citi Premier Pass is a good example of a card you will want to convert to another Citi card such as Platinum Select because the PP does not report your limit.

7. Some store/retail cards do not report your limit but only your high balance (Kay Jewelers and their sister stores, for example). To fix this, simply purchase merchandise from that retailer (if possible, it can be difficult to purchase $3K worth of gas and Cheetos!) and return the merchandise within their return period. The length of time that you had the merchandise does NOT matter, only that the charges posted to your account. To make that even better, if you return it you won't even be charged the interest.

 

Hopefully this will help you boost your scores and not fall victim to the growing lack of credit limit reporting. Feel free to post any known non-limit-reporting cards and experiences with non-reporting-limit cards.

Edited May 11, 2006 by radi8

[stickyfingers]

...(sticky??)

Yes..?

[radi8]

Great post. I'll sticky a link to it until we figure out a good place for the "FAQ" type things.

[Guest CinciJeff]

Devil21: Great Post!!!

I'm sure you have and will help lot's of people!

Good Job!

[ittech]

devil 21 - Great information.....thanks for sharing!!

[Credit Matters]

devil 21 - Great information.....thanks for sharing!!

 

But do remember that some of us do have the US Airways Juniper card that is a Platinum (not the World card, which is a no preset spending limit card). The Platinum card reports the limit every month. My limit is $12,500.

 

Same goes for the Carnival Sea Miles card that I just got from Juniper. Limit is $15,500. It started reporting this week -- and it shows the limit.

 

I'm thinking that the Juniper "signature" cards are the only ones that don't report the limit.

 

But great information, Devil. Thanks for posting.

Edited May 10, 2006 by marcustx

[BBQ123]

Don't convert Citi PP to Platinum Select... convert to DIVIDEND Platinum Select so you get the cash back.

[devil21]

Don't convert Citi PP to Platinum Select... convert to DIVIDEND Platinum Select so you get the cash back.

 

Very true points. Allow me add a:

 

HUGE YMMV

 

Also, I have made the Juniper reporting stuff a pet project and I WILL figure out their exact pattern. I will update when I have figured it out for sure.

Edited May 10, 2006 by devil21

[Curious]

Kay Jewelers does not report the credit limit and does not report the high balance either. I made a $256 purchase from Kay and paid 1/2 before it reported. When they reported they only reported a balance of $128, not my high balance of $256 so it looks like I'm maxed out.

[devil21]

Kay Jewelers does not report the credit limit and does not report the high balance either. I made a $256 purchase from Kay and paid 1/2 before it reported. When they reported they only reported a balance of $128, not my high balance of $256 so it looks like I'm maxed out.

 

Interesting because they DO report my high balance but not the limit. Theres an addendum to my post regarding store cards. I will have it updated accordingly. Thanks for reminding me!

[tcufroggie]

My Citi AAdvantage CC does the same thing. (Its got a $7k, no preset spending limit on it.) I fought with them about it and finally gave up. I didn't want to switch cards as I really want the miles, so I just put as much as I could on the card on the last statement while still ensuring that I would be able to PIF at the end of the month to at least have the high balance be in the $3-$4k range.

[Curious]

Kay Jewelers does not report the credit limit and does not report the high balance either. I made a $256 purchase from Kay and paid 1/2 before it reported. When they reported they only reported a balance of $128, not my high balance of $256 so it looks like I'm maxed out.

 

Interesting because they DO report my high balance but not the limit. Theres an addendum to my post regarding store cards. I will have it updated accordingly. Thanks for reminding me!

 

Did you make any payment before it reported the first time?

[devil21]

Kay Jewelers does not report the credit limit and does not report the high balance either. I made a $256 purchase from Kay and paid 1/2 before it reported. When they reported they only reported a balance of $128, not my high balance of $256 so it looks like I'm maxed out.

 

Interesting because they DO report my high balance but not the limit. Theres an addendum to my post regarding store cards. I will have it updated accordingly. Thanks for reminding me!

 

Did you make any payment before it reported the first time?

 

I dont recall exactly but I dont believe I did. That's not really my style. I did purchase a very expensive gold chain with the intent to return it a week later to bump up the high balance. It worked.

[Curious]

Kay Jewelers does not report the credit limit and does not report the high balance either. I made a $256 purchase from Kay and paid 1/2 before it reported. When they reported they only reported a balance of $128, not my high balance of $256 so it looks like I'm maxed out.

 

Interesting because they DO report my high balance but not the limit. Theres an addendum to my post regarding store cards. I will have it updated accordingly. Thanks for reminding me!

 

Did you make any payment before it reported the first time?

 

I dont recall exactly but I dont believe I did. That's not really my style. I did purchase a very expensive gold chain with the intent to return it a week later to bump up the high balance. It worked.

 

If you didn't a make paymemt before they reported that explains it, your balance and high balance would be the same when it reported.. On my report my balance and high balance shows $128 when my high balance should be $256.

Edited May 10, 2006 by Curious

[devil21]

Kay Jewelers does not report the credit limit and does not report the high balance either. I made a $256 purchase from Kay and paid 1/2 before it reported. When they reported they only reported a balance of $128, not my high balance of $256 so it looks like I'm maxed out.

 

Interesting because they DO report my high balance but not the limit. Theres an addendum to my post regarding store cards. I will have it updated accordingly. Thanks for reminding me!

 

Did you make any payment before it reported the first time?

 

I dont recall exactly but I dont believe I did. That's not really my style. I did purchase a very expensive gold chain with the intent to return it a week later to bump up the high balance. It worked.

 

If you didn't a make paymemt before they reported that explains it, your balance and high balance would be the same when it reported.. On my report my balance and high balance shows $128 when my high balance should be $256.

 

They should report whatever your highest balance EVER was, not just at the statement date. Unfortunately I dont remember the specifics of how I dealt with the Kay account so I can't offer much more help than just try again with a higher dollar item and return it a week later.

Edited May 10, 2006 by devil21

[Curious]

Kay Jewelers does not report the credit limit and does not report the high balance either. I made a $256 purchase from Kay and paid 1/2 before it reported. When they reported they only reported a balance of $128, not my high balance of $256 so it looks like I'm maxed out.

 

Interesting because they DO report my high balance but not the limit. Theres an addendum to my post regarding store cards. I will have it updated accordingly. Thanks for reminding me!

 

Did you make any payment before it reported the first time?

 

I dont recall exactly but I dont believe I did. That's not really my style. I did purchase a very expensive gold chain with the intent to return it a week later to bump up the high balance. It worked.

 

If you didn't a make paymemt before they reported that explains it, your balance and high balance would be the same when it reported.. On my report my balance and high balance shows $128 when my high balance should be $256.

 

They should report whatever your highest balance EVER was, not just at the statement date. Unfortunately I dont remember the specifics of how I dealt with the Kay account so I can't offer much more help than just try again with a higher dollar item and return it a week later.

 

Thanks for the suggestion but I wasn't looking for advice, just sharing my experience on my CL not being reported. I know the solution...in my sockdrawer it goes, I may even close it as I'm not really that impressed with their jewelry.

[devil21]

There's nothing wrong with getting the scores you DESERVE based on your TRUE credit profile!

 

That was a big part of why I put this thing together in the first place. Im irked that I have a $6K limit with Kay yet my scores don't reflect it.

[shorty]

Are people having this problem across the board? EQ seems to be the only bureau that doesn't report my CL'S. EX and TU are reporting fine.

[MarvBear]

There's nothing wrong with getting the scores you DESERVE based on your TRUE credit profile!

 

That was a big part of why I put this thing together in the first place. Im irked that I have a $6K limit with Kay yet my scores don't reflect it.

 

 

You would be surprised with Kay's backhanded explanation of their reporting standards. I've argued with them till I turned blue to no avail.

 

They actually regard each transaction as a secured transaction and that limit is reported on a transaction basis. You have a preset limit that you are approved up to, however to my knowledge they refuse to report your preset approved credit limit due to their internal policy.

 

IMO that would be a predatory lending practice.

[LadyT]

devil 21 - Great information.....thanks for sharing!!

 

But do remember that some of us do have the US Airways Juniper card that is a Platinum (not the World card, which is a no preset spending limit card). The Platinum card reports the limit every month. My limit is $12,500.

 

Same goes for the Carnival Sea Miles card that I just got from Juniper. Limit is $15,500. It started reporting this week -- and it shows the limit.

 

I'm thinking that the Juniper "signature" cards are the only ones that don't report the limit.

 

 

I've been having problems with Juniper for the last two months. They are not reporting my CL on my USAir, but are reporting DH's on his carnival. they refuse to fix it and simply tell me to contact the CRA's which I've done twice. The CRA's verify and correct it, and then when Juniper updates, its back to the same old stuff, card constanltly looks maxed out. My limit is $7500, and it reporting as $2321.05

[Credit Matters]

devil 21 - Great information.....thanks for sharing!!

 

But do remember that some of us do have the US Airways Juniper card that is a Platinum (not the World card, which is a no preset spending limit card). The Platinum card reports the limit every month. My limit is $12,500.

 

Same goes for the Carnival Sea Miles card that I just got from Juniper. Limit is $15,500. It started reporting this week -- and it shows the limit.

 

I'm thinking that the Juniper "signature" cards are the only ones that don't report the limit.

 

 

I've been having problems with Juniper for the last two months. They are not reporting my CL on my USAir, but are reporting DH's on his carnival. they refuse to fix it and simply tell me to contact the CRA's which I've done twice. The CRA's verify and correct it, and then when Juniper updates, its back to the same old stuff, card constanltly looks maxed out. My limit is $7500, and it reporting as $2321.05

 

Lady, do you have the World card or the Platinum card?

[bilbo]

Glad you came over from AoC devil!

[cmorris]

With signature cards, you might be able to request the CL to be reported. I did with Chase, and about a week later it reported to all three.

[theman2006andforever]

WHY ISNT MY CREDIT LIMIT BEING REPORTED?

 

There is a problem in credit reporting that is becoming more widespread by the day and unfortunately most consumers are not aware of the problem and the negative impact that it has on their credit scores. The problem is the non-reporting of your credit limit on your credit reports by the creditor.

 

Why is not reporting my limit a problem?

Simply put, your utilization percentage (commonly referred to as “utilâ€) is 35% of your FICO score. What this means is that the FICO formula takes your total revolving credit limits into account, then your outstanding balances, and then determines the percentage of limits that you are currently using. When a creditor such a CapitalOne reports only your highest balance and your current balance your actual credit limit is not being considered, resulting in a false “util†for that card.

 

EXAMPLE: Your Cap1 card has a $5000 limit but you have only charged a maximum of $1000 in a single statement period. Cap1 will not report your $5000 limit but instead will report your $1000 high balance. In the absence of a limit entry the FICO formula defaults to your high balance entry. This past statement period you charged $500 and Cap1 reported your current balance as $500. The FICO formula thinks that you are now using 50% of your credit limit instead of your ACTUAL util of 10%. A util figure of 50% WILL lower your scores for that one Cap1 card however the exact loss is based on your total credit profile. Moreover, the FICO formula also takes your total utilization on all of your revolving lines into account, thus likely lowering your scores even further because now you are “overextended†on your Cap1 and possibly overextended overall. Keep in mind that the exact formula is a trade secret so it is an imperfect science.

 

Why do they do this?

That varies by creditor and the card in question. Using Cap1 above, it is generally accepted that it is to purposely keep your scores lower so that they are able to make more money at your expense in higher interest rates because of lower scores. For less sinister reasons, see #6 below.

 

What can I do about this?

There are stopgap solutions to this problem that you can use, in no particular order:

(Do your homework before taking these steps to make sure which is your best option!)

 

1. The cards that do not report limits usually do report your high balance so you can charge up the card to near the limit then pay it off immediately.

2. Balance transfer (BT) from another card over to the non-limit-reporting card and then pay it off immediately.

3. Balance transfer (BT) from another card over to the non-limit-reporting card and then BT back out of the non-limit-reporting card to another card immediately.

4. If you are in a pinch (auto loan credit pulls, for example) you can dispute the non-limit-reporting with the credit bureaus and the limit will be entered. The caveat to this is that disputing a tradeline for anything could result in it being deleted completely. Also, be prepared for the limit reporting to disappear the next time the creditor updates your tradelines.

5. Some cards have limit ceilings where they will only report your limit under a certain amount. Juniper is a perfect example. If you have a Juniper card with a $7000 limit and it is not reporting you can call and request a credit limit decrease (CLD) to under their ceiling of $5000. The limit should then be reported during your next statement cycle.

6. Beware of “Signature†cards. They are usually advertised as such and boast that there is no preset spending limit or that you are allowed to go over your limit as long as you pay the overage before the next statement date. These cards generally do not report a limit because it is technically "flexible". Avoid these cards if you are concerned about non-limit-reporting. Many issuers such as Citi will allow you to convert to a different card at any time. The Citi Premier Pass is a good example of a card you will want to convert to another Citi card such as Platinum Select because the PP does not report your limit.

 

Hopefully this will help you boost your scores and not fall victim to the growing lack of credit limit reporting. Feel free to post any known non-limit-reporting cards and experiences with non-reporting-limit cards.

 

Are you kidding me??

 

Dude, step away from the merlot

[ouray]

Chase Visa Signiture report CL after a phone call, at first it did not.