Definition
High credit is the maximum debt balance that a consumer has incurred on a credit account.
Analysis
Credit reports list the high credit for each credit account that is reported by creditors. The purpose is to provide a measure of how much debt a consumer has successfully repaid on an account.
An account that is in good standing may not necessarily affect credit scores in a positive manner. One example is a mortgage loan in which the reported balance is very near the high credit. Credit bureaus may require that a substantial portion of the high credit be repaid before the account positively affects the credit score. High credit normally is the initial loan balance on a mortgage, although some negatively amortizing loans could show high credit as the current balance.
The high credit may also indicate situations in which a consumer exceeded their credit limit on an account. An account with a $1,000 credit limit but a $1125 high credit amount may reflect that either the consumer went over-the-limit in violation of their cardholder agreement, or that the credit limit has been lowered on the account. The impact of this on credit scoring is publicly unknown, since consumers and creditors both have the right to lower the credit limit.
