how does the utilization work on a platinum Amex charge card?

[Anonymous]

I have had a high limit of 6500 reported but since I generally pay it off before it reports, should I let it run a higher balance to show that I control my spending? (I usually run it up to about 11-12k and pay it before it reports) I was wondering if it would help my utilization in long run if they use the high balance as the limit... even if it shows a short term hit on my credit... 

[redpat]

Amex charge has no affect on utilization.  I never have paid before statement date.

[Anonymous]

I pay my bills straight after the bill arrives. I do PIF for my discover before statement date due to the low limit.

They Amex Platinum card doesn't effect your utilization.

[sjt]

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@Anonymous wrote:
I pay my bills straight after the bill arrives. I do PIF for my discover before statement date due to the low limit.

They Amex Platinum card doesn't effect your utilization.

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Charge Cards are considered "open" accounts and they dont have an effect on utilization on the newer versions of FICO scoring, but I think on the older FICO version it might be considered a "credit card"

[taxi818]

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@redpat wrote:

Amex charge has no affect on utilization.  I never have paid before statement date.

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Well the card itself has not affect on the cards utlization since it is open. But if you let a balance Report. it will have affect on your overall utilization.

Example. I have 3 cards. and i have seen this on my report myself. So it is not hypothetical.

Card #1 5k with a 0 balance.

Card #2 5k with a 0 balance.

Amex Charge with reported of $3500 balance .

In fact my usage would be over 30% on my Report because of the balance on the Charge Card. without any doubt. Best to just PIF before closing date on the amex card and not wait for that extra 2 week suggested date.

[redpat]

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@taxi818 wrote:

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@redpat wrote:

Amex charge has no affect on utilization.  I never have paid before statement date.

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Well the card itself has not affect on the cards utlization since it is open. But if you let a balance Report. it will have affect on your overall utilization.

Example. I have 3 cards. and i have seen this on my report myself. So it is not hypothetical.

Card #1 5k with a 0 balance.

Card #2 5k with a 0 balance.

Amex Charge with reported of $3500 balance .

In fact my usage would be over 30% on my Report because of the balance on the Charge Card. without any doubt. Best to just PIF before closing date on the amex card and not wait for that extra 2 week suggested date.

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That is incorrect, IMO.

Your utilization would be $0.  0/$10,000 is zero not $3,500/$10,000

I had over $5,000 on mine last month and it didn't go against my utilization of my other cards and this month is only a little over $1,000 and it will be the same result.  I always had it cut and never had an effect on my util.  Scores seem flat last two months.