This may come as a surprise, but some credit cards don't report a credit limit to the credit bureaus. Charge cards and other credit cards with a "No Preset Spending Limit" feature may not report credit limits. This means that, although your monthly balance is reported, the credit limit is usually reported as blank, open, "not reported" or something along those lines.
Why does this matter?
One of the key components of most credit scores is your open credit card utilization rate, or the ratio of the amount of credit you're using on your cards to the credit you have available. It's generally recommended that you keep your credit card balances less than 30 percent of your total available credit limits. If you have a credit card not that does not report a limit, it could artificially inflate your credit card utilization rate as typically only reported credit limits are taken into account for the calculation. This may lower your credit score and paint you as a riskier borrower to lenders.
What can you do about it?
If you have an unreported credit limit, here are a few options to consider:
- Request that a credit limit be reported. Call up your credit card issuer's customer service to find out if the issuer might change how it reports your card's credit limit. Some issuers may comply.
- Open a new credit card account. If your credit card that isn't reporting a limit is one of the few credit accounts in your credit file and you're in a position to take on some additional credit, consider opening a new credit card. Make sure you find the best credit card for you, and research whether the issuer reports your credit limit to the credit bureaus.
- Decrease usage of the card. While you shouldn't necessarily close your credit card account, it may be wise to use your card less often while still keeping it active in order to lower your overall credit card utilization rate.
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