mariobey

This message appears on Citi Identity Monitor:

You are currently using at least 50% of your credit limit on 2 open bankcard(s). (This only includes accounts for which the credit limit or highest balance is reported. This is because if the credit limit is not reported, your highest balance is used instead. Lost, stolen, transferred, or sold accounts may be excluded from this factor.)

I have two accounts reporting at 100% and 98% utilization with balances reporting as the credit limit (both Chase).

This has negatively affected my score and I'm looking for the best way to fix this.

Can I correct this somehow? What are your strategies for dealing with this problem? I'm going to hold off on applying for any cc's until I get this straightened out next month when the utilization will drop back down to normal levels, but one of them only has a $88 (100% utilization) on a 16,500 credit line because that was the balance for its first month. Should I charge a high amount on this card to increase its utilization next month?

/Frustration

crosbyk88

PIF before the statment date.

mariobey

Will do in the future. I have been doing this for the most part but I didn't think an $80 balance would hurt so much, but since it's 100% utilization, it does.

That the only way around this? Any time I spend more than $80 on that card now, for at least one month, it will report it as 100% utilization right? Even if I pay in full before the statement, it will then revert back to the $80 balance I'm guessing since it would be a $0 balance even if I charged 10k on it.

annerj

The pull isn't real time. They send the data to the credit companies usually once/month. So if you pay in full, your utilization will still show 100% until the next time they send to the credit company.

Once you've paid in full (prior to statement) and they send 0, your util will stay 0% until the next time they send.

ffI

Chase takes paying balances in full before date of bill as a security risk.
I used to do that and always got a call asking why.

chemist661

Send a secure e-mail requesting that the card company reports the actual credit limit on your credit cards.

I did that with a Chase card & they reported the credit limit after that.

johndeere19

Good to know. I just signed up for the Chase 50k CO card and will get right on this!

darwin76

You have a card which isn't reporting its true limit.

Order a bunch of Mint coins in one statement cycle to set a new high balance for the card. After that, periodic spending won't cause the usage to look so high.

mainbill

I had Bank of America Amex card that allowed payment into other credit card companies and even mortgages that I have used to pay off other accounts every month for free.
So my utilization was always over 50% every month even after I paid in full.

The only way to bring down the rate is to not use it for a month or use business credit cards and pay in full each month.

UA Fan

Sorry if I missed something obvious, how is $88 out of a 16.5K cl 100% utilization?

Mabuk dan gila

Because Chase does not report the true limit on "Signature" or "World" cards. They only report the high balance. So if $88 is the highest balance you ever had on the card and $88 is your current balance, then you are at 100% utilization. It's really a rotten, underhanded move by Chase.

UA Fan

How could this be a risk?

Out of my Element

To their bottom line.

dweick

It's a normal practice by other credit card companies for cards that don't really have a credit limit. It isn't rotten or underhanded and it is merely a poor job of reporting by whatever service OP is using that makes it seem bad.

FICO knows the difference and doesn't consider those cards to be at 100% utilization and neither do creditors that pull your report.

For those who pay their balance off in full, some credit cards have started reporting mid-cycle and paying off your balance in full prior to your statement date is no longer a sure way to reduce your apparent utilization.

euromannn

The CC you have are most likely No Pre Set Spending Limit(NPSL) cards which report NO credit limit to the credit bureaus. the bank Chase has given you an internal credit limit but this is not reported.

Simple solution to lower the utilization:
Buy an expensive airline ticket online let it post through the billing period and once the period is complete cancel it which will be credit to your CC account.

Now, Chase will report the full statement value which will be become you're new credit limit.

EX: 1. Buy business call fundable ticket Sea-Munich
COst: $10,000
Wait until billing period closes then cancel to get credit on CC.

Chase will report $9900 to Experian/TU/Equifax(one of them) and you're new credit limit is $10,000.

NOw when you do the utilization it will be the average monthly balance divided by credit limit.....

$88/$10,000====0.88%