Credit Cards

[Romeoo47]

Quick question, I have read a few threads on the topic of how a visa signature card reports to the credit agency.  However, I'm getting conflicting information on whether a balance on a visa signature card affects your utilization.  So I was wondering if anyone knew if a reported balance on a visa signature affects your UTIL?

[FretlessMayhem]

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.

[jaybird201]

"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.

-Fused"

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. 

Message Edited by jaybird201 on 07-22-2009 10:13 AM

[Romeoo47]

jaybird201, that is one of the post that I remember reading.  However this morning I get an update from my Experian monitoring service that there has been a change to my credit report.  I pulled a new credit report and it shows my new Visa Signature Card with a balance (which I knew would happen).  When I go to my UTIL, it is factored into my overall UTIL.  It reports as Revolving but 1 term.  Nonetheless, I'm trying to determine if this affects my score in terms of UTIL or is this just something else I should ignore like the score for FAKOs.  My report was pulled from freecreditreport.com.