Credit Cards Center Credit cards from our partners
Reply
Established Member
Posts: 19
Registered: ‎05-06-2011
0

credit limit versus no pre set spending limit credit card

I’m posting this in case it helps someone else figure out their credit report.

 

My husband and I are buying a house. We obtained our free credit reports and I saw that his reports seemed to be clean. So we didn’t buy his FICO scores.

 

We got pre-approved for a mortgage and the loan officer sent us a copy of the credit report they pulled for him with the FICO scores from the 3 agencies. His scores are high, but I was puzzled because each agency listed “no recent revolving balances” as a factor for his score (I assume a negative factor). It was puzzling because we use a credit card for almost all our purchases, the Chase Amazon.com Visa.

 

This account is listed on the free credit reports as a credit card, and only on closer inspection did I see that no credit limit is listed. On the credit report from the lender, the Chase card has listed under “MOP” (method of payment) the term “O-1.” I googled this and found out it means “open line of credit” also known as a NPSL (no pre-set spending limit) card. On the lender credit report, the amount we charge on this card is listed as “other” under account type and not under “revolving.” So he had $0 considered for a revolving account balance. I’m thinking this put his utilization ratio at 0%.

 

Maybe if we had bought his FICO score from this site, we could have used the score simulator to figure this out, but because his free report looked pristine, we didn’t bother. I probably would have made sure to charge at least a small amount on one of our other credit cards, one that actually is reported as a revolving account with a credit limit, prior to applying for the mortgage.

Regular Contributor
Posts: 217
Registered: ‎04-17-2007
0

Re: credit limit versus no pre set spending limit credit card

I dont know about the Amazon card, but I know the Sapphire is no pre set spending limit, similar to an Amex charge. These arent typically used in the revolving catagory, and it normal.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.