Reply
Regular Contributor
Posts: 196
Registered: ‎04-15-2011
0

Charge card balances affect credit score?

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.

EQ - 724 FICO - ScoreWatch (6/2015) | TU - 732 FICO - Lender Pull (6/2015) | EX - ??
Amazon Store Card - $5000 | Amex BCE - $2k | Barclaycard Ring - $2.5k | Capital One - $1000 | Capital One Quicksilver - $3000 | Capital One Venture - $10,000 | Capital One VentureOne - $7500 | Chase Freedom - $3.5k | Citi Diamond Preferred - $1000 | Discover It - $1900 | Macy's - $1700 | Lowes - $12000
Valued Contributor
Posts: 1,413
Registered: ‎04-18-2008
0

Re: Charge card balances affect credit score?

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.

Established Contributor
Posts: 579
Registered: ‎02-12-2011
0

Re: Charge card balances affect credit score?

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


Take the FICO Fitness Challenge
Highlighted
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Charge card balances affect credit score?


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.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.