Reply
Regular Contributor
flyingmd
Posts: 219
Registered: ‎06-17-2011

Signature VISA - revisited

Question for the group. If a signature or NPSL type card does not report the credit line, is the balance on that account counted towards utilization or does the trade line just not figure into the FICO from a utilization standpoint. Did I ask this clearly? In other words, if I am only using my card which is a signature, (and all my other cards have a 0 balance) and this card doesnt report the credit limit,  does the balance reported at the time the statement cuts affect FICO in a significant way. 

Regular Contributor
stefanc
Posts: 220
Registered: ‎11-16-2007

Re: Signature VISA - revisited

I have a BofA Visa siggy (in addition to the BofA Amex etc. from the other thread). It reports Highest limit on all three and (a few year old) CL on EX only. Anyway I thought I'd test what would happen, so I cranked my balance way up and didn't pay it down before the statement cut (within 85-90% of the highest balance reporting). My scores TANKED 20-30 points when it reported (notation was a card was at or near it's limit). Payed it back down to around 10% of it's High balance all the point magically came back. So from my experience it seems to me that they count towards FICO (at least if they show as maxed out).
Regular Contributor
bobebob
Posts: 244
Registered: ‎08-14-2011

Re: Signature VISA - revisited


stefanc wrote:
I have a BofA Visa siggy (in addition to the BofA Amex etc. from the other thread). It reports Highest limit on all three and (a few year old) CL on EX only. Anyway I thought I'd test what would happen, so I cranked my balance way up and didn't pay it down before the statement cut (within 85-90% of the highest balance reporting). My scores TANKED 20-30 points when it reported (notation was a card was at or near it's limit). Payed it back down to around 10% of it's High balance all the point magically came back. So from my experience it seems to me that they count towards FICO (at least if they show as maxed out).

While temporarily maxing out the signature card hurt your score for a reporting period or two, it should help your util in the long run (assuming you pay it back down to where it was). 

 

When the Signature line reports your balance, the highest reported balance then becomes the de-facto CL for that account.  I did the math on one of my credit pulls and it was using my highest balance of $5400 as the credit limit when calculating my overal util.

 

In answer to the OP's question, yes the balance on signature lines does count in the util calculation.  But as mentioned above, the CL for the line is whatever the max reported balance for the account was.

 

I would consider maxing my BOA Signature Visa to "force" the CL to be reported approximately right.  But I can't think of a reasonable way to do it with a 17k limit that wouldn't be expensive.

 

bobebob

 

FICO - EQ=789

bobebob || June: My FICO SW EQ(Upgraded Version) = 821 ||June: Walmart TU Fico=834Goal = FICO's>800 || In my wallet: CostcoAmEx(20k), DCU Visa Platinum (10k), BoA Visa Signature (17.1k), Walmart Discover (7.5k), AmEx Corporate (5k). All PIF every month.
New Contributor
longhorn11
Posts: 92
Registered: ‎08-04-2011

Re: Signature VISA - revisited

It depends on who issues the card. Chase reports mine as "open" therefore it does not count in my utilization. I experimented with my score this past month, ran my balance up to a new high balance and it did not change my percentage or score. It also depends on which scoring model is used.
Established Contributor
Ulan
Posts: 790
Registered: ‎09-09-2008

Re: Signature VISA - revisited


stefanc wrote:
Payed it back down to around 10% of it's High balance all the point magically came back. So from my experience it seems to me that they count towards FICO (at least if they show as maxed out).

It also depends on which FICO you look at. Only the EQ FICO you can buy here handles Signature cards correctly, and you can more or less ignore the TU FICO from here.

New Contributor
longhorn11
Posts: 92
Registered: ‎08-04-2011

Re: Signature VISA - revisited

I've heard that Experian reports it correctly as well, as long as the card is reported as an "open" card by the issuer.  I could be mistaken though.

Established Contributor
Ulan
Posts: 790
Registered: ‎09-09-2008

Re: Signature VISA - revisited


longhorn11 wrote:

I've heard that Experian reports it correctly as well, as long as the card is reported as an "open" card by the issuer.  I could be mistaken though.


No, you are right. I should have worded that differently: Of the two FICO scores you can buy here, only the EQ FICO reports Signature cards correctly, whereas the TU FICO is an outdated model that doesn't handle these cards properly and is not really relevant.

Valued Contributor
GregB
Posts: 1,670
Registered: ‎05-24-2007

Re: Signature VISA - revisited

EQ FICO Beacon 5 includes the balance and the highest past balance in utilization calculation. TU seems to exclude both from utilization calculations. They include the balance in the Revolving Total but completely exclude the account when calculating utilization.

 

The exact same is true of my business accounts that now report to the CRAs.

 

This seems to be true in all TU based scores, FICO or not. I'm guessing it has something to do with the way TU catagorizes accounts instead of FICO.

 

I don't know how EX works since the last time I could get an EX FICO my Signature card was a normal card and my business accounts didn't report on personal reports.

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

Re: Signature VISA - revisited

Thanks to all. Longhorn. Since the card I am referring to is a Chase card, your info is very helpful. I geuss I will run the balance up one month to max (20K) and let it report then pay it down and continue to pif prior to statement balance date.

Frequent Contributor
minimock
Posts: 443
Registered: ‎10-23-2010

Re: Signature VISA - revisited

Bank Of America Rewards Siggy, you dont even have to let it report. Just run it up and pay it off before it reports, and even though the balance reported for the month is 0, it will still increase the highest balance on the account reported.

 

I havent had the chance to try it with the Chase United siggy yet.

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)



myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+