Zero Credit Limit?

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A reader asks:

Both Chase and Bank of America have upgraded me to Visa Signature Credit Cards.  The information that came with both cards and the customer service people tell me that I have credit limits of over $10,000.00 on both cards.

My Credit Reports from Experian, Equifax, and Trans Union, all listed these cards as having a Zero credit limit.  I filed disputes again with both Chase and Bank of America to no avail.  They say that the credit limit on my Credit Report should say Zero.  However, they still contend that I have a credit limit of over $10,000.00 on both cards.

So, this brings up several questions.

How are these credit cards affecting my credit score?

Apparently, they are listed as a credit limit of Zero.  So, they do nothing to raise my available credit amount?

So, I guess that canceling these cards, as long as I owe nothing on them, will not affect my credit score?

Thank you for your time.

I am of the opinion that if you always pay your bills on time, you have nothing to worry about when it comes to your credit.   That said, mistakes do happen too often, and that should be your primary concern if you have a strong history otherwise.   Fortunately, this is not the kind of mistake you should be concerned about.    Your total available credit is a very small component of your score.    Hopefully, you should have other lines of credit and a good credit history, so this mistake should not matter much, if at all.

If you are rebuilding your credit, than it is important to you that you are given credit for your credit, so to say.   I am surprised that the credit reporting agencies did not side with you on your disputes.   Documentation is key here.   You should have a copy of your last statement showing your credit limit.   You could also download statements from your bank’s web site.  I would recommend resubmitting your dispute with a copy of your statement clearly showing your credit limit.

If the reporting agencies truly believe you have a zero credit limit on those  cards, canceling them should be inconsequential.   Finally, one other possibility that you might consider is that the zero limit is for the old card, and a new account number was created for the Signature cards.   That would explain why your limit is zero and the dispute failed.   Verify that the account numbers for the reported accounts match the account numbers for the new cards that you received.   Be sure to reference the actual account number, which can be different than the number on the credit card itself.

Good Luck!


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Albert


3 Responses to “Zero Credit Limit?”

  1. Credit Card Mosaic Says:

    The other possibility here Jason is that these cards are No Preset Spending Limit products (NPSL). Visa Signature is a NPSL product.

    http://usa.visa.com/personal/visa-signature/benefits/no-preset-spending-limit.jsp

    NPSL product credit lines frequently are reported as zero or the high balance to date of the product. While customer service “sees” a credit limit that’s high, it will in fact not be reported to the bureau this way since there is no “stated” credit limit. NPSL means that the issuer is authorizing and reevaluating the line on each transaction and is not constrained by the limit set at card opening thus zero or the highest balance to date (that’s what the issuer let you borrow) is reported. This can be both a good and bad thing as you can imagine.

  2. Jason Says:

    That is a interesting idea. I know about NPSL cards, but I was unaware of how they are reported.

    I think the basic idea that the reader should not be concerned is still valid.

  3. Ryan Says:

    I have this problem with mine. My credit report is showing over 100% utilization because I have a balance on my card and no other credit lines. I sent in a dispute but that didn’t work. I imagine this is killing my credit score.

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