10-03-2011 07:07 AM
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??
10-03-2011 07:22 AM
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.
10-03-2011 10:58 AM
I agree... I'm wondering how they do UTIL then since there is no real limit.. Any help would be greatly appreciated.
10-03-2011 12:13 PM
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.
10-03-2011 12:18 PM
hmm i'll look into it.. its amex
10-03-2011 12:24 PM
That'd be great if that's the case
10-04-2011 08:22 AM
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.
10-04-2011 11:35 AM - edited 10-04-2011 11:36 AM
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%.
Am I right to assume this?
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