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Regular Contributor
Viper786
Posts: 190
Registered: ‎04-15-2011

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 - 689 FICO - ScoreWatch (6/14) | TU - 701 FICO - Lender Pull (5/14) | EX - 708 - FICO Lender Pull (6/14)
Amazon Store Card - $4000 | Amex BCE - $2k | Barclaycard Ring - $2.5k | Capital One - $500 | Capital One - $3000 | Chase Freedom - $3.5k | Citi Diamond Preferred - $1000 | Discover It - $1500 | Macy's - $1500
Valued Contributor
MrShush
Posts: 1,412
Registered: ‎04-18-2008

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
sphinx313
Posts: 567
Registered: ‎02-12-2011

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: 532/564 10/21/12
Current Score: TU: 594 EQ: 628 EX: 617 BoA Credit Pull Denial Letter 2/20/2013
Goal Score: 700


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Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

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.


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