Charging up AmEx to improve Utilization Ratio?

SlowRebuild · ‎12-27-2013

I am an Authorized User on an Amex Platinum card. It is reported on my credit report. My understanding is that since Amex has no pre-defined credit line per se, that FICO uses the highest historical monthly balance in order to determine the available credit which effects my Utilization Ratio. The Amex card has never had a monthly balance of more than $6k.

I have personal bankcards with available credit of about $8k. I don't use them them much...only put about $500 a month and pay in full every month.

I currently have scores of 690 EX/ 676 EQ...I am trying to get to 720 in 6 months.

Question: If we shift all business spending to the Amex Plat card for a month we could run it up to $30k to $40k (Amex's 'Will My Charges Be Approved' says yes.) If I did this, it seems I would beefen up my available credit and enhance my Utilization Ratio which in turn would boost my score. Is this advisable or would the big available credit potentially be seen as a negative and does the fact that I am only an AU on this account come into play?

Thanks for any advise!

irrational · ‎12-27-2013

From my understanding, that is only true on TU 98 scores. Other FICO models don't including Amex charge cards in util.

Additionally, such behaviour on an Amex might provoke a FR.

If your util is that low, something else is holding your score back. What is your AAoA, no. INQs, any derogs?

Current Score: TU (discover) 720 - 6/29/14 | EQ (score watch) 777 - 7/19/14 - Last App 7/21/14

NPSL | $27,600 | $15,000 | $7,000 | $2,800 | $11,000 | $13,530 | $5,200

SlowRebuild · ‎12-28-2013

AAoA is 7 years...0 inquiries for past 12 months but had a charge-off with Capital One in 2008. Based on all I have read there isn't much I can do with the CapOne charge-off so I am looking at other options.

lg8302ch · ‎12-28-2013

@SlowRebuild wrote:
I am an Authorized User on an Amex Platinum card. It is reported on my credit report. My understanding is that since Amex has no pre-defined credit line per se, that FICO uses the highest historical monthly balance in order to determine the available credit which effects my Utilization Ratio. The Amex card has never had a monthly balance of more than $6k.

I have personal bankcards with available credit of about $8k. I don't use them them much...only put about $500 a month and pay in full every month.

I currently have scores of 690 EX/ 676 EQ...I am trying to get to 720 in 6 months.

Question: If we shift all business spending to the Amex Plat card for a month we could run it up to $30k to $40k (Amex's 'Will My Charges Be Approved' says yes.) If I did this, it seems I would beefen up my available credit and enhance my Utilization Ratio which in turn would boost my score. Is this advisable or would the big available credit potentially be seen as a negative and does the fact that I am only an AU on this account come into play?

Thanks for any advise!

I would not use a personal Amex for business spend. Rather get an Amex Business card...just my 2cents

jamesdwi · ‎12-28-2013

@SlowRebuild wrote:
I am an Authorized User on an Amex Platinum card. It is reported on my credit report. My understanding is that since Amex has no pre-defined credit line per se, that FICO uses the highest historical monthly balance in order to determine the available credit which effects my Utilization Ratio. The Amex card has never had a monthly balance of more than $6k.

I have personal bankcards with available credit of about $8k. I don't use them them much...only put about $500 a month and pay in full every month.

I currently have scores of 690 EX/ 676 EQ...I am trying to get to 720 in 6 months.

do you pay in full before statement cut? if you PIF after the statement cut, your UTL can still be listed as higher than you expect on your Credit Report, hurting your score. For best score, PIF before statment cut let one card report 1-9% UTL.

Cards: Chase Southwest 20k & CSR 17k & CSP 10k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Landmarkcu Personal Loan 10k

LearningMoreAboutCredit · ‎12-28-2013

@SlowRebuild wrote:
AAoA is 7 years...0 inquiries for past 12 months but had a charge-off with Capital One in 2008. Based on all I have read there isn't much I can do with the CapOne charge-off so I am looking at other options.

CO could be holding your scores down especially if it is constantly updated.

SlowRebuild · ‎12-28-2013

We have an Amex Business Gold Rewards also that can be used with the same logic. Just curious, would your concern be tax or an FR in terms of not using a personal card for business-related spend?

SlowRebuild · ‎12-28-2013

Before the statement cuts? You mean literally before the end of the statement period or before its reporting date to the CBs?

I would think only paying before they report to the CBs would be key. However, I don't know how to determine which day they report to the CBs? Anyone know how to do this or is your point to pay even before that?

SlowRebuild · ‎12-28-2013

I don't know about 'constantly updated' but it is definitely on my report...being reported by CapOne not by any CA. I have had no contact with them regarding it in years.

SlowRebuild · ‎12-28-2013

By the way, if I could settle for a PFD (settle, i.e. pay half the amount they claim) I would do it for sure. But, based on reading the experiences of others that seems like a no-go.