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Frequent Contributor
IWOL
Posts: 466
Registered: ‎12-17-2012

Balance reporting on charge cards?

I was wondering, how does the reporting on charge cards like AMEX gold work?

 

Since these cards have to be paid in full every month, why do they report a balance?

 

I was added as an AU to a Platinum card by my sister and this month it reported a high blance of $26K and a balance of $26K.  I know the TU version used on here includes those numbers in util, so on there its killing my util.

 

Since the full balance reported does that mean she pays after the reporting date but before due date?

 

I also managed to get my AU card backdated to 2009 and when I log in at amex.com now it shows member since date 2009. That was changed on 6/24 and AMEX reported on 6/30 but the date stayed the same as 5/2013. Does it take several reporting cycles for the date to change? I havent received and activated the new card they sent out yet, so pehaps it will update corr4ectly once I do that.

 

Amny input on this is much appreciated. Im trying to figure out if this AU account is going to help or hurt my score in the long run.

 

 

 

 

Established Contributor
cashnocredit
Posts: 959
Registered: ‎07-18-2009

Re: Balance reporting on charge cards?


IWOL wrote:

I was wondering, how does the reporting on charge cards like AMEX gold work?

 

Since these cards have to be paid in full every month, why do they report a balance?

 

I was added as an AU to a Platinum card by my sister and this month it reported a high blance of $26K and a balance of $26K.  I know the TU version used on here includes those numbers in util, so on there its killing my util.

 

Since the full balance reported does that mean she pays after the reporting date but before due date?

 

I also managed to get my AU card backdated to 2009 and when I log in at amex.com now it shows member since date 2009. That was changed on 6/24 and AMEX reported on 6/30 but the date stayed the same as 5/2013. Does it take several reporting cycles for the date to change? I havent received and activated the new card they sent out yet, so pehaps it will update corr4ectly once I do that.

 

Amny input on this is much appreciated. Im trying to figure out if this AU account is going to help or hurt my score in the long run.

 

 

 

 


It has been reported that it can take time to change on the reports. Likely it will change on the next report.

 

As to the balance reporting, it is the same as credit cards but it isn't counted for FICO purposes on any score except the oold TU98. I have had my balance range between 0 and 60k without any change in the other FICOs. Since the high balance would have exceeded my other CLs combined my util would have been through the roof  were it included in FICO calcs.

 

This is one of the features of charge cards. They are ideal for people that pif each month and provide high spend ability without damaging credit or taking extraordinary steps like prepaying.

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k
Valued Contributor
takeshi74
Posts: 2,329
Registered: ‎06-05-2013

Re: Balance reporting on charge cards?

[ Edited ]

IWOL wrote:

 

Since the full balance reported does that mean she pays after the reporting date but before due date?

 


That's not possible.  It means she paid on the due date and it was reported.  Report date is typically a few days after the due date.  If she paid in full prior to the due date it would have reported no balance.

 


IWOL wrote:

Does it take several reporting cycles for the date to change? 

 


You may need to contact AmEx about that.

Community Leader
Valued Contributor
DaveSignal
Posts: 2,051
Registered: ‎07-29-2011

Re: Balance reporting on charge cards?

[ Edited ]

takeshi74 wrote:

That's not possible.  It means she paid on the due date and it was reported.  Report date is typically a few days after the due date.  If she paid in full prior to the due date it would have reported no balance.

I don't think this is right.  A charge card requires that the full statement balance be paid by the due date.  If the statement balance is paid by the due date, then any charges for the current month will be reported on the next statement.

This doesn't matter, though, because charge cards don't affect utilization.

EX:694 TU:744 EQ:701
Barclays Arrival $6.5k - BoA Travel Rewards $15k - SDFCU EMV $15k - NFCU goRewards $20k - CSP $5k - Amex ED $19.5k
Moderator
09Lexie
Posts: 24,521
Registered: ‎09-13-2012

Re: Balance reporting on charge cards?

Let me give you my example:

Last week it took Amex days to post pending charges. My statement was due to cut on the 26th at that time, I had $765 posted. I paid the $765 while patiently waiting for the others to finalize. Sure enough 3 days after my 'alleged' statement date an additional $347 posted and is due on July 11- this is what's on my cr and it does not affected my util.

Established Contributor
cashnocredit
Posts: 959
Registered: ‎07-18-2009

Re: Balance reporting on charge cards?

It's worth reading the Amex T&Cs.

 

Amex Charge cards don't have a normal due date. The charges are "due" on the day your recieve your bill. You are allowed to pay anytime before the next statement cuts without penalty and the penalties, if any, for missing that depend on how many times and how much later than that you are.

 

Instead of a "due date" there is a "please pay by" date on your bill, about 2 weeks after it cuts, but that is a suggestion and is not mentioned anywere in the Amex T&Cs.

 

Amex anomolies aside, the balance show when a statement cuts is what gets reported to CRAs and does not affect FICO scores with the exception of TU98 which virtually no one uses.

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k
Moderator
09Lexie
Posts: 24,521
Registered: ‎09-13-2012

Re: Balance reporting on charge cards?

[ Edited ]
@cashnocredit

You are correct...'please pay by' $ is what's reported to CRAs
Senior Contributor
Open123
Posts: 4,020
Registered: ‎02-23-2011

Re: Balance reporting on charge cards?

Cashnocredit is absolutely correct on the Amex charge billing format.

 

The Amex charge was initiall and still is basically a Net 30 account.  As with all such accounts, whatever your bill is when received, you have 30 days to pay in full.  The due date is more accurately the suggested date whereby if payment is placed in the mail, it will be received to pay within the 30 day period.  Unlike a credit card's due date, if you pass the "due" date on the charge, you're not late nor are there any fees or penalties.

 

You simply must pay *BEFORE* you receive the invoice (bill), which is always 30 days (give or take a day).  


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