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Does "high balance" entry affect long term FICO?


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Well guys it's getting near the end of the summer, and summer is really hard for students who live most of the year on loans, SO... despite knowing better, my credit cards are basically maxed out like to within $10 of their limits at this point. Now this isn't a huge deal financially since it's just a $300 gas card and a $500 JCPenney (which unfortunately is also accepted at walgreen's and CVS where I work!), small limits which I will pay in full when I get my August disbursement.

I know I take a FICO hit this month, but does that high balance line hurt my fico long term even after utilization drops back down to 0%?

Thanks!

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"...fico long term..."

There is no such thing.

Credit scores result from a calculation that is only performed upon request. It's not a number that gets added to and subtracted from as things change.

Anytime a score is requested, the factoring is performed based on the data in your file at that moment. That's why the # changes depending on when it's calculated and which scoring program does the math.

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Your scores will jump because from my experience when I tranferred a portion of a blance to another card so they were both at like 30% my scores went up about avg. 50 points. It was hard to lock down exactly by how much but my eq score went from 643 to 751 but I also del a med collection for $46 around the same time.

Ahntara, pardon my ignorance but ".....Credit scores result from a calculation that is only performed upon request....." and "Anytime a score is requested,...." You mean when th cra makes the request or the consumer?

But I think I dig what you are saying about the adding and subtracting thing.

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Not quite sure what the purpose of that line is for then...

The "high balance" amount is just a piece of data that can be seen by lenders doing a manual review. Its only other purpose is to be a surrogate CL for accounts (such as CapOne) that don't report a true CL.

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"...when th cra makes the request or the consumer..."

When a score is ordered, either by a consumer or by a subscriber, the calculations are performed and a sum is produced. You can track this number, of course. But each time it is calculated it's a different math equation. It's not rising and lowering daily like the Dow Jones.

CRA's don't care about scores except as another product to sell to consumers. All the current buzz about "What's your score" is marketing. Everyone and their brother is trying to sell them these days. But your score doesn't matter until you need that number for borrowing or insurance.

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