Understanding FICO® Scoring

[sssick]

Well that stinks. I heard that was the case and I actually called Amex and asked them to report a limit. They denied that it would negatively effect my score and denied to report a limit. I will stop using that card and use my discover. Thanks again.

[llecs]

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sssick wrote:
Well that stinks. I heard that was the case and I actually called Amex and asked them to report a limit. They denied that it would negatively effect my score and denied to report a limit. I will stop using that card and use my discover. Thanks again.

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I have an Amex Green and I hope they never report a limit. I wouldn't stop using it on the basis of a score alone. Again, your lender might pull a newer version of your TU FICO which would ignore the balance anyway. Your score isn't being permanently harmed by carrying a balance. If uber-concerned, you can always time your usage around the statements. Instead of paying it off on the due date, you can pay it off before the statement date to get it to report at or near $0. I personally wouldn't worry about it (well, I don't I should say).

[sssick]

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llecs wrote:

I have an Amex Green and I hope they never report a limit. I wouldn't stop using it on the basis of a score alone. Again, your lender might pull a newer version of your TU FICO which would ignore the balance anyway. Your score isn't being permanently harmed by carrying a balance. If uber-concerned, you can always time your usage around the statements. Instead of paying it off on the due date, you can pay it off before the statement date to get it to report at or near $0. I personally wouldn't worry about it (well, I don't I should say).

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Well I only got the Amex because I got 75,000 bonus points.  I only spend about $20,000 a year on the card, so I would barely break even after the $175 a year.  I don't travel much, and can't see the extended warranty being worth the annual fee.  But then I have to cancel the card and suffer a score hit....ohhhh the madness!!! lol

[llecs]

Why would you suffer a score hit for closing it?

[sssick]

I thought that it would effect my AAoA? No?  I was always told to not close an account once it is open.

[llecs]

Closing a CC has zero impact to AAoA. In FICO-speak, AAoA includes all open and closed OC accounts like your Amex. 

[Mustanglvr2006]

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llecs wrote:

Closing a CC has zero impact to AAoA. In FICO-speak, AAoA includes all open and closed OC accounts like your Amex. 

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+1

[MarineVietVet]

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sssick wrote:

I thought that it would effect my AAoA? No?  I was always told to not close an account once it is open.

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Here is an excellent thread that discusses Closing Credit Cards.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".