07-22-2009 05:31 AM
07-22-2009 06:17 AM
NPSL cards typically report the highest past balance, which is then substituted for the CL when calculating util percentages. So, the first time it reports, it will appear maxed out.
07-22-2009 07:11 AM - edited 07-22-2009 07:13 AM
"EQ: Open account, a balance does not factor in revolving utilization calculations.
EX: Revolving, terms 1 month, balance does not factor in revolving utilization calculations even though it reports as a revolving account.
TU: Open account, a balance will factor in utilization calculations if the FICO scoring model TU98 (the one currently in use at myFICO when TU scores are pulled) is used to generate your score. If TU04 is used to pull your score, open accounts do not factor in revolving util calculations.
Keep in mind if a balance is reporting, especially a big balance, this might have a negative impact on scores. This is not because of util, it's the mere fact that you owe money. It doesn't seem you lose a ton of points for this, but this is where FICO scoring gets very complicated, so I will leave it at that.
Basically the only CRA that uses the high balance as the limit in calculating utilization is TransUnion, and only if the TU98 calculation is being used.
07-22-2009 07:57 AM
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