One More Amex Question

[Anonymous]

This is a Zync question

If you don't have a pre-set limit, how does it report to the CRA? Does it show a balance and not a limit? If so doesn't that hurt your score?

Thank you in advance.

[cmthomas06]

I was actually wondering the same thing. Please help!!

[tinuviel]

The Zync is a charge card, not a credit card. So, it reports both your current balance as well as what was recorded as the highest balance that you ever had on the account. Under EQ and TU04 FICO  scoring models, even if your balance posts, it does not factor into your utilization. Therefore, posting a balance and paying after the statement cuts doesn't hurt your scores, which is one of the things that I like about Amex charge cards.

[pizzadude]

+1 to Tinu's comments above, and just to add the Credit Limit field reports as N/A on your CR.

[LS2982]

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@Anonymous wrote:

This is a Zync question

If you don't have a pre-set limit, how does it report to the CRA? Does it show a balance and not a limit? If so doesn't that hurt your score?

Thank you in advance.

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It justs reports your high balance. It will show up in current/high balance in the TL. Any balance that you have on an AMEX charge card will NOT affect your overall utilizatiob because it is not factored in FICO scoring. However, it is factored in TU 98 (myFICO). If you pull your reports from this site from TU do not pay much attention to the score, it is not accurate. The newer verson TU 08 (Walmart) does not factor it in. If you have a GE walmart credit card you can get your TU 08 scofre for free every month.

[cmthomas06]

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@LS2982 wrote:

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@Anonymous wrote:

This is a Zync question

If you don't have a pre-set limit, how does it report to the CRA? Does it show a balance and not a limit? If so doesn't that hurt your score?

Thank you in advance.

---

It justs reports your high balance. It will show up in current/high balance in the TL. Any balance that you have on an AMEX charge card will NOT affect your overall utilizatiob because it is not factored in FICO scoring. However, it is factored in TU 98 (myFICO). If you pull your reports from this site from TU do not pay much attention to the score, it is not accurate. The newer verson TU 08 (Walmart) does not factor it in. If you have a GE walmart credit card you can get your TU 08 scofre for free every month.

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Thanks for the clarification. Which TU report do lenders generally use? (Im assuming the new model?)

[webhopper]

It reports your highest balance ever and it reports your current balance. There is nothing in the limit box and it doesn't count against utilization.

[Crashem]

One point is that having any balance showing on Amex charge card is small ding on fico for having a card with balance. $1 or $1 million is same ding and is small.

[LS2982]

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@cmthomas06 wrote:

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@LS2982 wrote:

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@Anonymous wrote:

This is a Zync question

If you don't have a pre-set limit, how does it report to the CRA? Does it show a balance and not a limit? If so doesn't that hurt your score?

Thank you in advance.

---

It justs reports your high balance. It will show up in current/high balance in the TL. Any balance that you have on an AMEX charge card will NOT affect your overall utilizatiob because it is not factored in FICO scoring. However, it is factored in TU 98 (myFICO). If you pull your reports from this site from TU do not pay much attention to the score, it is not accurate. The newer verson TU 08 (Walmart) does not factor it in. If you have a GE walmart credit card you can get your TU 08 scofre for free every month.

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Thanks for the clarification. Which TU report do lenders generally use? (Im assuming the new model?)

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Either 04 or 08. 98 is more of an educational score.

[pizzadude]

There are still lenders that pull TU98, like NFCU. For mortgage pulls its almost always 04. Just do some checking around on the boards here if you want to search for a specific creditor.