11-17-2012 12:53 PM - edited 11-17-2012 01:10 PM
I have these "flexible spending" cards and they report CL/high balance. I noticed that the CL and high balance are combined when these report. What happens if you post a balance > CL? I presume if the high balance exceeded the CL that it would be reported instead of the CL. Once paid down does the high balance continue to report instead of the CL and does that affect FICO util or does FICO use the CL which it presumably has access to even though the numbers are combined on the credit report.
Has anyone delved into the FICO impact of these hybrid (NPSL charge type combined with revolving credit) cards?
CRs from MyFICO seem to report either CL or high balance. I presume flex cards don't report high balance but just CLs. I suppose the most likely scoring would be to treat flex cards exactly the same as regular revolvers. Anyone know what happens to FICO scores the month a card reports, say if you exceed your CL by 100% or so?
I'm curious because one of the reasons for flex cards is the occasional really large charge perhaps for a vacation or unsusual expense. I haven't needed to do that yet as my limits are pretty high for most purposes but am curious what it would do.
11-17-2012 05:41 PM
Different lenders report Flexible Spending Accounts differently. Some report the CL (I think cap1 does, I think chase does) some don't (I don't think BoA does..)
On the ones that DO report the CL, if your high balance goes above your limit it isn't really a big deal because they usually report as a "flexible spending account" as opposed to someone who just goes over their limit frantically.
If it doesn't report your limit, then I guess it would make your limit look higher than it really is...