Capital One Cardholders Might See A Credit Score Boost
Saturday August 4, 2007
It's a happy day for Capital One credit card holders. The company recently announced it will start reporting its customers' credit limits to the credit bureaus.
For years, Capital One hasn't been reporting credit limits to credit bureaus, an action that's likely hurting credit scores.
You see, 30% of your credit score considers your credit utilization - how much of your credit limits you're actually using. The FICO score calculation views lower credit utilization ratios more favorably because it demonstrates responsible use of credit.
When there's no credit limit reported, the scoring system will do one of two things. It will either exclude that account from your credit score. Or, it will use your most recent or highest ever balance as the credit limit. Both methods cost precious credit score points.
There's no word on when Capital One will actually start reporting the credit limits.
For years, Capital One hasn't been reporting credit limits to credit bureaus, an action that's likely hurting credit scores.
You see, 30% of your credit score considers your credit utilization - how much of your credit limits you're actually using. The FICO score calculation views lower credit utilization ratios more favorably because it demonstrates responsible use of credit.
When there's no credit limit reported, the scoring system will do one of two things. It will either exclude that account from your credit score. Or, it will use your most recent or highest ever balance as the credit limit. Both methods cost precious credit score points.
There's no word on when Capital One will actually start reporting the credit limits.
Comments
8/04-9/04 CAP ONE 1282 WAS LAID OFF YET WAS ABLE TO PAY FULL BALANCE ON 10/04… COULD YOU HELP? I WILL PAY ANY PROCESSING CHARGES.
ALSO 5/08 CAP ONE 7945 I HAVE A 30 DAY PAST DUE I PAID FULL BALANCE AFTER A CONFUSION… I WAS SENT A COLLECTION LETTER AND A REG BILL??? I WAS VERY SUPRISED AND SENT FULL PAYMENT, MY BILLS WERE SENT TO ME LATE AND I SHOULD HAVE CALLED AND MADE AN OVER THE PHONE PAYMENT BUT DID NOT BECAUSE I DID NOT REALIZE THEY WOULD BE RECIEVED LATE. IS THEIR ANYTHING THAT COULD BE DONE? PLEASE LET ME KNOW, THANK YOU, IVETT