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Valued Contributor
Posts: 2,656
Registered: ‎06-05-2008
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How exactly do charge cards impact utilization?

I have a Amex Zync NPSL, and it reports on my CR as a revolving account.  Last report I pulled showed limit as blank, high credit as 1,017, and balance as 25.

 

Is this total balance included in my utilization calculation?

 

I have 30,820 in credit, and typically post a balance on one or two cards between expense reimbursements.  I update my utilization percentage anytime a statement posts so I know where I stand if applying for credit, but I'm looking for some clarification in how to calc the Zync.  Is the high credit used as the CL, or is the card not considered at all?

 

I've heard several answers on thsi topic and would like some clarification.

 

Thanks,

12-15-14: FICO EXP: 813 - EQU:802 - TRAN: 756 - AVG: 790 +240 points from JUN 2008 - MY CREDIT JOURNAL

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Posts: 32,869
Registered: ‎08-04-2007
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Re: How exactly do charge cards impact utilization?

It will only impact TU98. Other used FICO versions, including the EQ FICO on here, will ignore it for util calcs. For TU98, it is factored into util via the balance and high balance.

Valued Contributor
Posts: 2,656
Registered: ‎06-05-2008
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Re: How exactly do charge cards impact utilization?


llecs wrote:

It will only impact TU98. Other used FICO versions, including the EQ FICO on here, will ignore it for util calcs. For TU98, it is factored into util via the balance and high balance.


Ah...  so if I allow a high balance statement on that card one month, it will improve my TU 98 utilization going forward...  But for the other scoring models I can let whatever balance I want post and it doesn't matter.

 

Well, I guess I know which card I'll be using for my next Tuition payment. 

 

Now, the question is "who still uses TU 98?"

12-15-14: FICO EXP: 813 - EQU:802 - TRAN: 756 - AVG: 790 +240 points from JUN 2008 - MY CREDIT JOURNAL

Valued Contributor
Posts: 1,411
Registered: ‎01-05-2010
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Re: How exactly do charge cards impact utilization?

At this time I have two credit card balances reporting. A small balance on a card that both EQ and TU use for util. And a large balance on a card that TU doesn't use for util. The TU util is 1% and the EQ util is 10%. But the two scores are the same, which indicates that just because a card isn't used for util doesn't mean that its balance goes unnoticed.

Are you living within your means?
Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: How exactly do charge cards impact utilization?


p- wrote:

llecs wrote:

It will only impact TU98. Other used FICO versions, including the EQ FICO on here, will ignore it for util calcs. For TU98, it is factored into util via the balance and high balance.


Ah...  so if I allow a high balance statement on that card one month, it will improve my TU 98 utilization going forward...  But for the other scoring models I can let whatever balance I want post and it doesn't matter.

 

Well, I guess I know which card I'll be using for my next Tuition payment. 

 

Now, the question is "who still uses TU 98?"


The only impact a balance would post would be that it counts towards the number of TLs reporting a balance and it could count towards amount of debt (revolving debt I think the FICO code says...can't remember). Both are minor compared to util IME.

 

Who uses it? Not many. My Lending Club lender used/still uses it. There are a seldom few straglers in Mortgage Loans who say their TU98 matched their lenders. There are not many out there though.

Valued Contributor
Posts: 2,656
Registered: ‎06-05-2008
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Re: How exactly do charge cards impact utilization?


llecs wrote:

The only impact a balance would post would be that it counts towards the number of TLs reporting a balance and it could count towards amount of debt (revolving debt I think the FICO code says...can't remember). Both are minor compared to util IME.

 

Who uses it? Not many. My Lending Club lender used/still uses it. There are a seldom few straglers in Mortgage Loans who say their TU98 matched their lenders. There are not many out there though.


Hmm.  So the answer seems to be the same as always - stay under 10%, pay on time, and the scores will come...

12-15-14: FICO EXP: 813 - EQU:802 - TRAN: 756 - AVG: 790 +240 points from JUN 2008 - MY CREDIT JOURNAL

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