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AmEx charge card question

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Jazzzy
Valued Contributor

AmEx charge card question

Going through hubby's CR this morning.

 

My husband and I were listed long ago as AUs on our son's AmEx charge card. (Generous son...)

 

We haven't used the cards in many years. Mine does not report on any of my CRs. My husband's reports on his.

 

Apparently our son had a statement balance of approx. $1,900 last month. There is no credit limit listed on the CR. Doubtful there will ever be any derogatories...my son makes more money than both of us put together and uses very little credit.

 

Question: How is this $1,900 calculated into my husband's utilization since there is not a credit limit reported?

 

Also, this was a TL opened in 1990...so we are trying to figure out whether the benefit of the age outweighs the damage done by reported utilization.

 

And...should we decide to leave the AU status in place, why is it reporting on my husband's CR but not on mine?

Message 1 of 11
10 REPLIES 10
Red1Blue
Super Contributor

Re: AmEx charge card question

You should leave the AU card from 1990 in tact. Age definitely help the scores.
Message 2 of 11
fused
Moderator Emeritus

Re: AmEx charge card question


LynetteM wrote:

Going through hubby's CR this morning.

 

My husband and I were listed long ago as AUs on our son's AmEx charge card. (Generous son...)

 

We haven't used the cards in many years. Mine does not report on any of my CRs. My husband's reports on his.

 

Apparently our son had a statement balance of approx. $1,900 last month. There is no credit limit listed on the CR. Doubtful there will ever be any derogatories...my son makes more money than both of us put together and uses very little credit.

 

Question: How is this $1,900 calculated into my husband's utilization since there is not a credit limit reported?

 

Also, this was a TL opened in 1990...so we are trying to figure out whether the benefit of the age outweighs the damage done by reported utilization.

 

And...should we decide to leave the AU status in place, why is it reporting on my husband's CR but not on mine?


Is there a "highest balance" reporting with this Amex account?

Message 3 of 11
Jazzzy
Valued Contributor

Re: AmEx charge card question


Is there a "highest balance" reporting with this Amex account?


Hey fused...yes there is.

 

It shows Largest past balance: $3,663

Current balance: $1,906

 

Do you think utilization is calculated on the basis of this past high balance?

 

I realize the age on this account is GREAT. I just don't know if I want the utilization calculated into our usage as an AU. My son actually uses this card.

 

I pulled the CR from ScoreWatch. So, it's Equifax, and I can't see that they do a utilization calculation. Maybe I'm missing it somewhere.

Message 4 of 11
jackg
Established Contributor

Re: AmEx charge card question

LynetteM,

 

If you are an AU on this card it should be reporting on all 3 CRA's. If you feel comfortable imposing on your son I suggest you ask him to call and inquire as to why it's not showing up on your report. It could be that their policy is to report to only 1 AU 's report. I don't know but your report shoul be the same as your husbands if in fact you have a card in your own name. Thinking about it maybe that's the issue, only your husband is actually an AU, possible? 

 

As an AU neither you or your husband has any responsibility for this account.

 

The reason there is no CL listed is because it's a charge card not a credit card and apparently he was late with his payment last month. The only impact you might see is in regards to utilization because the $1,900could decrease your available credit and increase your utilization but don't worry because when his payment is reported next month things should go back to where they were.

 

A few years ago I was an AU on my wife's WAMU account for the purpose of increasing my available credit and reducing utilization. However, she stopped paying in full each month and I saw the hand writing on the wall. She was going to use most of the $10K CL and I would lose points because of it so I had her remove me during a month when there was a zero balance & I felt much better.

 

I think the answer to your question is to wait a month and see if the balance due zeroes out and if it does you have nothing to worry about. During this waiting period I would talk to your son and ever so subtly inquire about how his business in general is doing and that may give you a clue. It's possible that he's out of work in the worst case scenario, you never know. Another approach might be to ask if he can explain to you how being an AU affects you and your husband.

 

I'm sure I don't have to tell you about the economic climate in our world today and your son may be being effected and is embarresed to say anything to you guys.

 

I hope all is well with your son and wish you Good Luck

FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739
Message 5 of 11
Jazzzy
Valued Contributor

Re: AmEx charge card question


@jackg wrote:

LynetteM,

 

If you are an AU on this card it should be reporting on all 3 CRA's. If you feel comfortable imposing on your son I suggest you ask him to call and inquire as to why it's not showing up on your report. It could be that their policy is to report to only 1 AU 's report. I don't know but your report shoul be the same as your husbands if in fact you have a card in your own name. Thinking about it maybe that's the issue, only your husband is actually an AU, possible? 

 

As an AU neither you or your husband has any responsibility for this account.

 

The reason there is no CL listed is because it's a charge card not a credit card and apparently he was late with his payment last month. The only impact you might see is in regards to utilization because the $1,900could decrease your available credit and increase your utilization but don't worry because when his payment is reported next month things should go back to where they were.

 

A few years ago I was an AU on my wife's WAMU account for the purpose of increasing my available credit and reducing utilization. However, she stopped paying in full each month and I saw the hand writing on the wall. She was going to use most of the $10K CL and I would lose points because of it so I had her remove me during a month when there was a zero balance & I felt much better.

 

I think the answer to your question is to wait a month and see if the balance due zeroes out and if it does you have nothing to worry about. During this waiting period I would talk to your son and ever so subtly inquire about how his business in general is doing and that may give you a clue. It's possible that he's out of work in the worst case scenario, you never know. Another approach might be to ask if he can explain to you how being an AU affects you and your husband.

 

I'm sure I don't have to tell you about the economic climate in our world today and your son may be being effected and is embarresed to say anything to you guys.

 

I hope all is well with your son and wish you Good Luck


 

Hi Jack,

 

I'm confused. Even an AmEx charge card would have a monthly balance, would it not? He gets the statement and then pays the bill. Just because a balance shows on the CR doesn't mean it's past due, does it?

 

I know I'm an authorized user because I have a Gold card in my name. My husband does as well.

 

I'm just not sure I want to show the utilization each month since I'm working hard to keep our own utilization showing as practically nil. We don't use the cards.

 

My son has treated us to a couple of very nice trips, and the AU cards were so that we could charge expenses. We've had the cards ever since.

 

The age on the TL is nice. The utilization I can do without.

Message 6 of 11
fused
Moderator Emeritus

Re: AmEx charge card question


LynetteM wrote:

Is there a "highest balance" reporting with this Amex account?


Hey fused...yes there is.

 

It shows Largest past balance: $3,663

Current balance: $1,906

 

Do you think utilization is calculated on the basis of this past high balance?

 

I realize the age on this account is GREAT. I just don't know if I want the utilization calculated into our usage as an AU. My son actually uses this card.

 

I pulled the CR from ScoreWatch. So, it's Equifax, and I can't see that they do a utilization calculation. Maybe I'm missing it somewhere.


This Amex card is factoring in util calculations with your TU 98 version score, which is the score you get at this site. However, many lenders are using TU 04, this scoring version does not factor charge cards in util. None of the current EQ or EX versions factor charge cards in util calculations. With TU 98, the high balance replaces a credit limit, so util on this card is 52%. Although this card has a lengthy 19 year history, the 52% util will hurt your TU 98 score. A long time go, the util on my Amex Plat card went from around 7% to 18% and I lost almost 30 point on my TU score. 

Message 7 of 11
creditwherecreditisdue
Senior Contributor

Re: AmEx charge card question


@jackg wrote:

LynetteM,

 

If you are an AU on this card it should be reporting on all 3 CRA's. If you feel comfortable imposing on your son I suggest you ask him to call and inquire as to why it's not showing up on your report. It could be that their policy is to report to only 1 AU 's report. I don't know but your report shoul be the same as your husbands if in fact you have a card in your own name. Thinking about it maybe that's the issue, only your husband is actually an AU, possible? 

 

As an AU neither you or your husband has any responsibility for this account.

 

The reason there is no CL listed is because it's a charge card not a credit card and apparently he was late with his payment last month. The only impact you might see is in regards to utilization because the $1,900could decrease your available credit and increase your utilization but don't worry because when his payment is reported next month things should go back to where they were.

 

A few years ago I was an AU on my wife's WAMU account for the purpose of increasing my available credit and reducing utilization. However, she stopped paying in full each month and I saw the hand writing on the wall. She was going to use most of the $10K CL and I would lose points because of it so I had her remove me during a month when there was a zero balance & I felt much better.

 

I think the answer to your question is to wait a month and see if the balance due zeroes out and if it does you have nothing to worry about. During this waiting period I would talk to your son and ever so subtly inquire about how his business in general is doing and that may give you a clue. It's possible that he's out of work in the worst case scenario, you never know. Another approach might be to ask if he can explain to you how being an AU affects you and your husband.

 

I'm sure I don't have to tell you about the economic climate in our world today and your son may be being effected and is embarresed to say anything to you guys.

 

I hope all is well with your son and wish you Good Luck


I believe AMEX does hold AU cardholders responsible for the account.

Message 8 of 11
cobra19
Valued Contributor

Re: AmEx charge card question

IMO, high utility hurts -a lot. An awful lot. It hurts more than having a short cc history..

 

Me? I'd get myself removed as an AU ASAP.

 

 

 

 

 

New York Yankees - 2009 World Series Champions. 27... and counting.....
Message 9 of 11
jackg
Established Contributor

Re: AmEx charge card question

LynetteM,

 

Sorry for the confusion regarding the balance due being reported, of course you are correct.

 

Perhaps my assumptions are incorrect, regarding the responsibility of an AU with AMEX, because it's been about 4 years since I had an AMEX and maybe they have changed policy about how they report and the role af an AU.

 

When I look at your scores I'm not sure the utilization is enough to harm your score. You can figure it out based on available credit.

FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739
Message 10 of 11
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