Hello All,
From what I've read, typical charge cards paid in full every month don't affect FICO utilization ratios. However what about an Amex Platinum with a carryover balance of $10,000 that falls under Pay Over Time and no real credit limit to speak of? How does this affect my utilization ratio? I've read some say that the ratio gets blown up because the Pay Over Time balance is a) Considered a payment that must be made in full at the end of the month and b) blows up the credit utilization ratio because there is no credit limit on the Amex Plat to offset the balance (the balance therefore goes against the credit limits of the other cards in one's portfolio).
And a follow up question to this:
Say I have $10,000 in my checking to pay on my credit/charge/charge w/ Pay Over Time cards at the end of the month. Let's also say that I have a $10k balance on my Chase Sappire Reserve (CSR) and a $10k balance on my Amex Platinum that is amassed in the Pay Over Time bucket. Would it be best to simply pay the minimum on the Amex and place all the rest on the CSR? For the sake of argument, let's just say that both cards carry an equal interest rate.
Many thanks in advance!
Edzo
