08-25-2012 07:16 PM
I've read about the high balance reported factoring into how your monthly charges stack up against the high balance - affecting FICO. Any truth to this? Or any guidance on how to properly use a charge (other than obviously PIF monthly) that will help me avoid any negative impact to my score?
Utility would only be affected under Fico TU 08 (I think), but ignored in all other Fico scores.
The great thing about a charge card is that you can use it to your heart's content without having to fret over utility, paying early to keep it from reporting, and all of that other stuff. If you're new to Amex, treat the initial charge card as you would a new car. Break in slowly with a variety of everyday charges, and stay away from "outlier" type of transactions, such as amazon payments or any kind of cash-like transactions.
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