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Contributor
Posts: 298
Registered: ‎08-16-2011
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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??


Starting Score 8/16/11: TU:552 EQ:575 EX:480 via State Farm
Current Score: TU:608 EQ:601 EX:580 via AMEX
Goal Score: EQ:650 TU:650


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Super Contributor
Posts: 6,677
Registered: ‎04-07-2008
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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.




Contributor
Posts: 298
Registered: ‎08-16-2011
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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.


Starting Score 8/16/11: TU:552 EQ:575 EX:480 via State Farm
Current Score: TU:608 EQ:601 EX:580 via AMEX
Goal Score: EQ:650 TU:650


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Regular Contributor
Posts: 219
Registered: ‎06-17-2011
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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.

Contributor
Posts: 298
Registered: ‎08-16-2011
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Re: How Charge Cards vs Credit Cards Report

hmm i'll look into it.. its amex


Starting Score 8/16/11: TU:552 EQ:575 EX:480 via State Farm
Current Score: TU:608 EQ:601 EX:580 via AMEX
Goal Score: EQ:650 TU:650


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Super Contributor
Posts: 6,677
Registered: ‎04-07-2008
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Re: How Charge Cards vs Credit Cards Report

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




Contributor
Posts: 298
Registered: ‎08-16-2011
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Re: How Charge Cards vs Credit Cards Report

That'd be great if that's the case


Starting Score 8/16/11: TU:552 EQ:575 EX:480 via State Farm
Current Score: TU:608 EQ:601 EX:580 via AMEX
Goal Score: EQ:650 TU:650


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Super Contributor
Posts: 6,677
Registered: ‎04-07-2008
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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

 

 

 




Valued Contributor
Posts: 1,057
Registered: ‎09-29-2009
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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)
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Super Contributor
Posts: 6,677
Registered: ‎04-07-2008
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Re: How Charge Cards vs Credit Cards Report

[ Edited ]

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?




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