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Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
0

Re: any benefits to hidden TL?

[ Edited ]

creditwherecreditisdue wrote:

Uborrow-Upay wrote:

DI wrote:
No benefits.  It's just like the rich hiding money overseas.  It's so deceptive which only hurts the consumers when the account isn't reported to the CRA's.  Luckily one doesn't have to worry about the IRS coming after them for the deceptive practice.

I dunno, DI....I've got to pay a med bill today, and it's a hefty one.  If I had this hidden TL, I could put most of it on that, and not worry that my score would take a hit from that balance reporting, and possibly cause AA from other creditors.  This particular balance might make them nervous.  And, although it will probably take 2 months to pay this charge off, with a "no interest for 90 days" scenario (like on the OP's card), I could've made it a bit easier on my checkbook and my nerves if I had the non-reporting card.

 

I think the hidden tradeline only really hurts if there's not much else in the credit file, or if there's utilization issues that the tradeline could have helped if it reported.  I would love to have this card, but that's just me, I guess.


No, it's me, too! Sounds like a great deal to me. You can pay your med bills over time with 0% APR and no UTIL-jacking? Sounds like heaven to me.

 

DI - 1) WTH does the IRS have to do with this? 2) Reporting to the CRB's is neither free or manditory.


Hehe-  I just thought I'll throw that in to make a comparison.  IRS has nothing to do with hidden tradelines. :smileyvery-happy:

Message Edited by DI on 10-31-2009 07:54 AM
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: any benefits to hidden TL?


score_building wrote:

cwcid- is 'UTIL-jacking' when a current issuer spots high uti reporting and RJ?


UTIL-jacking is a multifaceted phenomena:

     1) Card issuer notices high UTIL on another TL and takes AA, and/or

     2) Increased UTIL "jacks" your FICO down and other issuer takes AA.

Both forms are bad news. An unreported TL, specially for medical costs, is great for avoiding this.

Senior Contributor
score_building
Posts: 3,578
Registered: ‎01-10-2008
0

Re: any benefits to hidden TL?


creditwherecreditisdue wrote:

score_building wrote:

cwcid- is 'UTIL-jacking' when a current issuer spots high uti reporting and RJ?


UTIL-jacking is a multifaceted phenomena:

     1) Card issuer notices high UTIL on another TL and takes AA, and/or

     2) Increased UTIL "jacks" your FICO down and other issuer takes AA.

Both forms are bad news. An unreported TL, specially for medical costs, is great for avoiding this.


Thanks!

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06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: any benefits to hidden TL?


DI wrote:
No benefits.  It's just like the rich hiding money overseas.  It's so deceptive which only hurts the consumers when the account isn't reported to the CRA's.  Luckily one doesn't have to worry about the IRS coming after them for the deceptive practice.

 

Unreported loans or credit is not deceptive.  Reporting to CRA's is not mandatory.  I could borrow $5000 from a friend or family member, having an obligation to pay them back.  They could sue me or turn it over to collection if I don't pay.  That would end up derogatory on my credit.  But I don't expect my friend or family to report it to CRA's.

 

Now, if you are obtaining a mortgage or loan which requires you to disclose all debt or obligations and you fail to disclose a debt, this is deceptive and actually constitutes fraud subject to fine and imprisonment...so in that case I completely agree.  If a lender wishes to analyze your total DTI and asks you for your total debt as a part of their decision in making the loan, and you fail to disclose merely because it is "hidden" so to speak....this is a no-no morally and legally.

 

:0

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Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
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Re: any benefits to hidden TL?

Credit decisions and limits are based on data from the consumer's credit reports.  If a tradeline isn't reporting, lenders are getting a false picture of you, and may make a decision they wouldn't have made if the tradeline appeared. 
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: any benefits to hidden TL?


DI wrote:
Credit decisions and limits are based on data from the consumer's credit reports.  If a tradeline isn't reporting, lenders are getting a false picture of you, and may make a decision they wouldn't have made if the tradeline appeared. 

 

So? This is a nonstarter. As both txjohn and myself have stated credit reporting is not mandatory. It does cost the issuer money. There is no legal implication here whatsoever. Don't make out like there is one.
New Contributor
LustForTheMoment
Posts: 65
Registered: ‎03-24-2007
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Re: any benefits to hidden TL?

I've never had a non-reporting card. I'm into CASH BACK. Regardless of the amount of the expenditure, I want it on one of my two cash back cards. I want all of my available CLs to report to minimize my overall utilization.

 

Good Luck,

-------------------------------------------------

EQ FICO...816
Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
0

Re: any benefits to hidden TL?


LustForTheMoment wrote:

I've never had a non-reporting card. I'm into CASH BACK. Regardless of the amount of the expenditure, I want it on one of my two cash back cards. I want all of my available CLs to report to minimize my overall utilization.

 

Good Luck,


+1

Regular Contributor
QueenBean
Posts: 128
Registered: ‎12-21-2008
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Re: any benefits to hidden TL?

I can see the benefit of not having everything you owe calculated in your utili:smileywink:t

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Established Contributor
mt2va
Posts: 532
Registered: ‎03-20-2009
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Re: any benefits to hidden TL?

Actually it would help me out a lot if it would report as my utilization is a little high right now as we are doing some major remodeling projects.

 

Also I found out another great benefit on the Medkey card that if you pay the balance in full during any given month they will give you a 10% discount on the amount due.   

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