07-27-2013 10:12 AM
Will this hurt my score in any way? They're the only one that doesn't report the limit since they categorized it as "flexible spending account" and not a charge card. The only thing they report is the balance on the account and I don't want my util to be over 10%.
Sorry if this has been asked already.
07-27-2013 10:16 AM
07-27-2013 12:17 PM
It may hurt a little bit. What gets reported instead of the credit limit is the high daily balance, which is usually smaller than the credit limit. FICO uses high daily balance to substitute for credit limit in calculating credit scores if the card is a flexible limit account. As a result, utilization will be higher than if the credit limit were reported. If you want to minimize or eliminate the disadvantage, you should charge a lot to the card until the balance reaches the credit limit, then pay down the balance. This is what I did with my BofA BankAmericard Travel Rewards Visa Signature card.
07-27-2013 01:54 PM
Thanks for the input. I was thinking just that (use it until it almost maxed out and then pay it off).
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