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09-06-2011 04:33 PM
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.
09-06-2011 04:45 PM
09-06-2011 04:58 PM
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.
FICO - EQ=789
09-06-2011 05:06 PM
09-06-2011 05:13 PM
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.
09-06-2011 07:47 PM
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.
09-06-2011 08:01 PM
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.
09-07-2011 02:25 AM
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.
09-07-2011 03:28 AM
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)