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Established Member
NhanNguyen
Posts: 14
Registered: ‎10-10-2012

Flexible spending credit card

I got BOA flexible spending credit card.they never report CL. My question is:

If I carry balance so how much my score normally drop?

Valued Contributor
jsucool76
Posts: 2,769
Registered: ‎12-11-2011

Re: Flexible spending credit card

Basically...consider any balance you carry just like you would in any other card. The only difference is, you have no additional "Available Credit" from this card to count into your utilization. 

 

One thing I have heard you can do is report a high balance on it one month to get a good "High Balance" on your reports, and under a manual review, some UWs may use this as your limit. 

Wallet: Capital One Cash Rewards 3500CL, Wells Fargo Cash Back College Visa: 900CL, Paypal Smart Connect: 1286CL, Walmart Discover: 2000CL, UPromise Mastercard: 1000CL, Chase Slate: 500CL, Discover IT: 1500CL, Citi Forward: 1500CL, Bank Of America Student Travel Rewards: 700CL
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Flexible spending credit card

I wouldn't be too concerned. It's my understanding that if there's no CL reported, then newer versions of your FICO won't even factor it into utilization. There might be an issue on the TU98 version on here, but the TU versions used most, along with EQ and EX, will ignore it. The only two considerations to think about are the number of TLs reporting a balance and overall balance totals.

 

Established Contributor
TrishN
Posts: 505
Registered: ‎11-05-2012

Re: Flexible spending credit card

Is it better t downgrade for them to report credit limit? 

10/2012 Started with 588 EQ Fico score and 20+ CA and CO
1750$ total CL
10/2013 in 700 Club
Personal :Total CL 196K
Business : Total CL 200K
Business LOC : 1M
Garden From 10/13/2013
Valued Contributor
jsucool76
Posts: 2,769
Registered: ‎12-11-2011

Re: Flexible spending credit card


TrishN wrote:

Is it better t downgrade for them to report credit limit? 


I would say no. The benefits of a visa sig/ world MC imho are worth it. Plus the NPSL feature of your card comes in handy sometimes. 

Wallet: Capital One Cash Rewards 3500CL, Wells Fargo Cash Back College Visa: 900CL, Paypal Smart Connect: 1286CL, Walmart Discover: 2000CL, UPromise Mastercard: 1000CL, Chase Slate: 500CL, Discover IT: 1500CL, Citi Forward: 1500CL, Bank Of America Student Travel Rewards: 700CL
Blogger
HiLine
Posts: 2,737
Registered: ‎10-19-2012

Re: Flexible spending credit card

[ Edited ]

Having a Visa signature will not help your utilization unless you intentionally stack a high balance for once. However, a Visa signature is a very reputable card. Under manual review, underwriters know that the limit on the card is at least 5,000, and that the credit quality of the borrower is at least very good.

Moderator
Revelate
Posts: 6,882
Registered: ‎12-30-2011

Re: Flexible spending credit card

[ Edited ]

llecs wrote:

I wouldn't be too concerned. It's my understanding that if there's no CL reported, then newer versions of your FICO won't even factor it into utilization. There might be an issue on the TU98 version on here, but the TU versions used most, along with EQ and EX, will ignore it. The only two considerations to think about are the number of TLs reporting a balance and overall balance totals.

 


Could you enlighten me what the source is on that?  The common non-counting for utilization is on charge cards which are term one-month under FICO '04 / '08, not FSA's to my knowledge; the traditional method of scoring any sort of FSA was high balance vs. current balance is my understanding of it (and admittedly it might have changed) which lead to the old wisdom of simply running one's entire financial life through the card while keeping the money you would've paid in either cash or payments in a slush fund... and then writing the check (or electronic funds transfer these days) for the balance on the card when it's close to max.

 

Edit: I suppose that's easily testable by anyone with access to a newer FICO model by simply letting a large amount report for any given month and seeing whether it made a difference or not.

 


Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 672, Wally TU 686, EX 702 (04/14)
Goal Score: 700 in all three (01/01/15)


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Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Flexible spending credit card

I figured it would be like an Amex charge, where a balances shows but no CL. Only TU98 factored that in. Certainly could be wrong though.

 

OP, you can always cross-check with your FICO report if util is listed as a pos/neg reason.

Established Contributor
my-own-fico
Posts: 1,032
Registered: ‎01-05-2010

Re: Flexible spending credit card

[ Edited ]

llecs wrote:

It's my understanding that if there's no CL reported, then newer versions of your FICO won't even factor it into utilization.


 

I have a card, also Bank of America, whose Largest past balance is reported and whose Credit limit is not. The Account type is Revolving, and the Descriptions field says Flexible spending credit card. The Ratio of your revolving balances to your credit limits in a myFICO report shows that EQ uses that card for util.

A balance increase on that card for that report made the overall util go up from 2% to 14%, while the score decreased by only 3 points. But perhaps it's not the actual FICO formula commenting on the util, maybe it's simply a parallel layer of educational guesses which may include stuff such as the score simulator.

That jump in util by the way crosses the often suggested cutoffs of 9% and 10% (and much more, including the 0% baseline and other zero stuff), which given the few points supports that something else is going on. So it would appear that OP's question is far from easy to answer.

Have you visited myFICO's Retirement Topics forum? ... Confessions of a Credit Junkie ... In the credit card garden since 2010
Frequent Contributor
youngman1234
Posts: 421
Registered: ‎02-27-2012

Re: Flexible spending credit card

How does the NPSL feature work with BOA I got a cash rewards sig card 10k limit, will it allow me charge 20k if I pay in full the 10k I'm over limit ???

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