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Regular Contributor
Drew
Posts: 209
Registered: ‎03-27-2007
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Are charge cards considered credit cards?

I was looking at the FICO algorithm and comparing it to my current credit profile.  I see that FICO is more forgiving on thin credit files with 6+ credit cards versus 3-5.  I, however, only have 5 credit cards and 4 charge cards.  Are charge cards considered credit cards according to FICO or are they not taken into consideration?

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pizzadude
Posts: 9,669
Registered: ‎01-28-2010
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Re: Are charge cards considered credit cards?

 

Yes, both credit cards and charge cards are considered to be revolving credit.    However FICO scoring doesn't include the balance on charge cards in your revolving utilization calculations.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Regular Contributor
Drew
Posts: 209
Registered: ‎03-27-2007
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Re: Are charge cards considered credit cards?


pizzadude wrote:

 

Yes, both credit cards and charge cards are considered to be revolving credit.    However FICO scoring doesn't include the balance on charge cards in your revolving utilization calculations.


Would a Visa Signature (or Flexible Spending Credit Card) be considered a charge card then?

 

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pizzadude
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Re: Are charge cards considered credit cards?


Drew wrote:

Would a Visa Signature (or Flexible Spending Credit Card) be considered a charge card then?

 


Yes, assuming that the card doesn't display a credit limit on your reports.   I believe that most Signature cards are like this.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Regular Contributor
Drew
Posts: 209
Registered: ‎03-27-2007
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Re: Are charge cards considered credit cards?


pizzadude wrote:

Drew wrote:

Would a Visa Signature (or Flexible Spending Credit Card) be considered a charge card then?

 


Yes, assuming that the card doesn't display a credit limit on your reports.   I believe that most Signature cards are like this.


Well, these specific cards actually do show a credit limit.

 

American Express Blue Cash Everyday $25000
Capital One Venture World MasterCard $10000
Chase Freedom Visa Signature $10000
Chase Sapphire Visa Signature $15000
Discover IT $8000
GEMB Old Navy Visa $25000

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pizzadude
Posts: 9,669
Registered: ‎01-28-2010
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Re: Are charge cards considered credit cards?


Drew wrote:

Well, these specific cards actually do show a credit limit.

 


If that's the case then any balances reported will be included in FICO revolving utliization.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Established Contributor
sjt
Posts: 683
Registered: ‎05-05-2010
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Re: Are charge cards considered credit cards?


pizzadude wrote:

 

Yes, both credit cards and charge cards are considered to be revolving credit.    However FICO scoring doesn't include the balance on charge cards in your revolving utilization calculations.


Hi,

 

Clarifiying question: I was told charge cards are considered "open" accounts and that the balance is not considered in utilization like you mention on certain FICO scoring models like FICO 08. Previous scoring models use the balances on a charge card in their utilization ratio.

 

 

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pizzadude
Posts: 9,669
Registered: ‎01-28-2010
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Re: Are charge cards considered credit cards?

That's correct ~ the earlier TU98 version includes the charge card balances in utilization, whereas the 04 and 08 FICO models do not.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
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mtrsprt
Posts: 307
Registered: ‎07-27-2011
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Re: Are charge cards considered credit cards?

Still trying to figure out why anyone would want a "Charge card"....  Unless you have a TON of income, and just need it for convienence.  Or just having an AMEX name on a card......


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DaveSignal
Posts: 2,096
Registered: ‎07-29-2011
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Re: Are charge cards considered credit cards?


mtrsprt wrote:

Still trying to figure out why anyone would want a "Charge card"....  Unless you have a TON of income, and just need it for convienence.  Or just having an AMEX name on a card......


Because most people don't carry balances on their credit cards anyway and just use them for the benefits of using a credit card + the great rewards for spending. 

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