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Frequent Contributor
Posts: 443
Registered: ‎10-23-2010
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Flexible spending credit card????

What is up with this? I got my brand new BOA signature visa with a $8000 CL. It shows up on my CR as a "Flexible spending credit card"

 

With a big fat 0 on the CL line?

 

After careful consideration, I have come to the healthy conclusion that this cant be any good for ye ole FICO score.

 

Anyone else ever see this? 

Scores: EQ (FICO) - 730 | EX (FICO) - 722 | TU (FICO) - 713 - 06/25/2014



US Airways MC (5 K) | US Airways World MC (10 K) | Chase United Airlines Sig VISA (5K) | BOA Rewards Sig Visa (10K) Citi Dividend Plat MC (5.6K) | Discover Miles (6.6K) | AMEX BCE (7 K) | AMEX Plat Delta (11 K) | BOA PLAT (7.5K)


Valued Contributor
Posts: 1,413
Registered: ‎04-18-2008
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Re: Flexible spending credit card????

Yeah, many Visa Signature and World Mastercards show up this way. I can't make sense of it either--whether it's helpful or not. I have one that I'd like to transfer a balance to but no one seems to be able to answer the question if it'll kill my scores or not.

Frequent Contributor
Posts: 485
Registered: ‎02-17-2008
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Re: Flexible spending credit card????

mrshush what if you wrote the BT check and max out your CL and pay back the amount you don't need.


Starting Score: 744
Current Score: 744
Goal Score: 800


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Valued Contributor
Posts: 1,413
Registered: ‎04-18-2008
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Re: Flexible spending credit card????

Then it would show the full CL utilized (12500) where i only need 5000 or so. Repay the 7500 and the report would show the high limit as my full CL. My question--as was the OP's is about the reporting. Since it doesn't report as a traditional revolver, how will the reporting of a balance affect the scoring? I actually considered calling the lender to have it "downgraded" to a regular Visa.

Senior Contributor
Posts: 4,224
Registered: ‎02-23-2011
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Re: Flexible spending credit card????

Visa Signature cards will report similar to an Amex charge card now--meaning high balance for the month will get reported on your CR.  On the other hand, on a given month, you can charge up to 2X your limit wihtout a fee, so long as you bring the amount down to your CL by balance closing date.

 

If you charge to the max once, PIF, then the card will show your true limit.  The question is what to buy for 8k, then pay it off?  Ideally, if there are cash equivalents you can purchase to accrue both points and to reflect the high balance on your Fico score.

Frequent Contributor
Posts: 443
Registered: ‎10-23-2010
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I dont want to temp fate asking for a downgrade. This is...

I dont want to temp fate asking for a downgrade. This is my first sort of high limit card, and I have a United Airlines chase 10K on the way in the mail....

 

Guess Ill just use it, and see what happens to the score.

Scores: EQ (FICO) - 730 | EX (FICO) - 722 | TU (FICO) - 713 - 06/25/2014



US Airways MC (5 K) | US Airways World MC (10 K) | Chase United Airlines Sig VISA (5K) | BOA Rewards Sig Visa (10K) Citi Dividend Plat MC (5.6K) | Discover Miles (6.6K) | AMEX BCE (7 K) | AMEX Plat Delta (11 K) | BOA PLAT (7.5K)


Senior Contributor
Posts: 4,224
Registered: ‎02-23-2011
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Re: Flexible spending credit card????

 


MrShush wrote:

Then it would show the full CL utilized (12500) where i only need 5000 or so. Repay the 7500 and the report would show the high limit as my full CL. My question--as was the OP's is about the reporting. Since it doesn't report as a traditional revolver, how will the reporting of a balance affect the scoring? I actually considered calling the lender to have it "downgraded" to a regular Visa.


 

Very good point.  The "revolving" lines showing open usage is more geared towards the CR's vantage score, which is similar to what Amex uses in their proprietary scoring system.

 

For lenders who primarily and only pull Fico scores, you're probably better off with the regular Visa with a hard limit.

Frequent Contributor
Posts: 443
Registered: ‎10-23-2010
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Re: Flexible spending credit card????

Oh thats no problem, I fly international monthly. a couple of first class tickets, will take care of the 8k real easy LOL.

 

So your saying that if I max the 8k PIF at the end of the statement, that on the CL on the report it will say 8k CL?

Scores: EQ (FICO) - 730 | EX (FICO) - 722 | TU (FICO) - 713 - 06/25/2014



US Airways MC (5 K) | US Airways World MC (10 K) | Chase United Airlines Sig VISA (5K) | BOA Rewards Sig Visa (10K) Citi Dividend Plat MC (5.6K) | Discover Miles (6.6K) | AMEX BCE (7 K) | AMEX Plat Delta (11 K) | BOA PLAT (7.5K)


Valued Contributor
Posts: 1,413
Registered: ‎04-18-2008
0

Re: Flexible spending credit card????

:smileymad: stupid card (kicks it across the yard)

Senior Contributor
Posts: 4,224
Registered: ‎02-23-2011
0

Re: Flexible spending credit card????

 


minimock wrote:

Oh thats no problem, I fly international monthly. a couple of first class tickets, will take care of the 8k real easy LOL.

 

So your saying that if I max the 8k PIF at the end of the statement, that on the CL on the report it will say 8k CL?


 

Yes, in terms of utilization, your amount will be based on "high" balance, which in your case will be 8k, or whatever higher amount they raise and you end a balance with in the future.

 

In your case, you're much better off with the Visa Signature, in my view.  It has considerably more rewards/and or perks, especially for the overseas traveller when compared to a "platinum" Visa.  The flexibility of being able to exceed two times your limit comes in handy when unexpected expenses invariably arise when travelling. 

 

I think you'll like the new Signature card much more than a "regular" Visa, especially given the way you're going to use it.

 

Congrats on the card!  Visa Signature is not easy to get.

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