Charge card balances affect credit score?

Viper786 · ‎12-02-2012

I was always under the impression that balances on charge cards do not count toward Fico score calculation. That myth was busted today. I got a score watch alert that my score dropped 2 points do to a balance increase on my American Express Zync.

MrShush · ‎12-02-2012

Happens/Happened to me every time I let a balance report on my Green. I'd lose anywhere from 5 - 25 points on EQ. Oddly enough, when my Platinum AF came due this past July, I don't recall any drop at all. There is no way to avoid the AF reporting unless you force a payment to create a credit, but those games I won't play nor will I endorse.

sphinx313 · ‎12-02-2012

Yep, gotta love it. The model doesn't necessarily favor the working class. You work so hard to get some credit to buy the things you normally can't afford and pay monthly on it, or buy it today, and in 28 days when you do have the cash you pay off the balance. The whole system is a fraud really. If it wasn't, they would consider your rent/electric/cable/cell phones etc. Funny how if you pay a cell phone bill for 20 years nobody cares, but the second you don't pay it.....NOW it gets to go on there. Makes me sick.

Starting Score: EQ: 383 2/2011
Current Score: TU: 644 EQ: 648 EX: 6?? 2/2015
Goal Score: 700

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llecs · ‎12-02-2012

@Viper786 wrote:
I was always under the impression that balances on charge cards do not count toward Fico score calculation. That myth was busted today. I got a score watch alert that my score dropped 2 points do to a balance increase on my American Express Zync.

The balance can come into play for the $$$ total of your balances, whether or not all TLs carry a balance, and so on, though it doesn't factor into util. Know also that credit alerts via SW are guess as to why the score changed and doesn't always point to a reason why that score changed. It's a net change when any number of factors could have increased or decreased the score (or no change at all). For example, I got a SW alert for +20 because I added an inquiry. The inquiry didn't give me 20, but a dropped baddie that week, along with the inquiry, that resulted in a net gain of 20.