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How Charge Cards vs Credit Cards Report

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Anonymous
Not applicable

How Charge Cards vs Credit Cards Report

Please forgive me in advance if this is posted in the wrong thread. I know with credit cards I pay the balance down a couple of days before the statement so that it reports a low utilization. What's the best strategy with charge cards? Do i do the same thing in paying down balance before statement date??

Message 1 of 12
11 REPLIES 11
CS800
Super Contributor

Re: How Charge Cards vs Credit Cards Report

I would think the same logic would work. Although since charge cards don't have a CL, the high balance could be interpreted as you CL I believe.

 

How does it affect the scredit score, i dont know. Im hoping someone would pitch in on this one.




Message 2 of 12
Anonymous
Not applicable

Re: How Charge Cards vs Credit Cards Report

I agree... I'm wondering how they do UTIL then since there is no real limit.. Any help would be greatly appreciated.

Message 3 of 12
flyingmd
Frequent Contributor

Re: How Charge Cards vs Credit Cards Report

Depends on the Bank. Some banks report the "limit" on their NPSL cards and some dont. I believe there was a thread about which ones report and which dont in the last few weeks.

Message 4 of 12
Anonymous
Not applicable

Re: How Charge Cards vs Credit Cards Report

hmm i'll look into it.. its amex

Message 5 of 12
CS800
Super Contributor

Re: How Charge Cards vs Credit Cards Report

Balances on charge cards are not factored into a person’s revolving utilization ratio I believe.




Message 6 of 12
Anonymous
Not applicable

Re: How Charge Cards vs Credit Cards Report

That'd be great if that's the case

Message 7 of 12
CS800
Super Contributor

Re: How Charge Cards vs Credit Cards Report

But every other thing apply to FICO scoring i.e.

 

Age of account

Payment History

Credit Mix

 

 

 




Message 8 of 12
HoldingOntoHope
Valued Contributor

Re: How Charge Cards vs Credit Cards Report

Actually a charge card is figured in the utilization totals in the TU 98 score format which we can buy on MyFICO. It is not calculated in the newer versions of the TU scoring (TU04, etc.). I have no idea how it is handled in the specialized scoring categories such as auto and credit card versions.

 

A charge card is not factored in utilization on the EQ scoring available here (Beacon 5.0?) and on the commonly used EX scoring. You are correct in that it does affect all other FICO scoring categories such as age and payment history.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
Goal Score: 760 ALL


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Message 9 of 12
CS800
Super Contributor

Re: How Charge Cards vs Credit Cards Report

Yikes on the TU98. If I charge $5000 on my charge card,and if my balance is factored in my utilization, then my util will be 160%. Smiley Sad

 

Am I right to assume this?




Message 10 of 12
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