topic Re: Will using a charge card reduce util %? in Credit Cards

Will using a charge card reduce util %?

Anonymous — Sat, 11 Apr 2015 01:56:45 GMT

If that is the case, does that mean spending more on my Charge card will keep my util % down?

My current util is 17% based off the AU card, none of the cards below are reporting yet. When they do my total credit line would increase from 15k to 32.5k!

Re: Will using a charge card reduce util %?

gdale6 — Sat, 11 Apr 2015 02:21:54 GMT

@Anonymous wrote:
If that is the case, does that mean spending more on my Charge card will keep my util % down?

My current util is 17% based off the AU card, none of the cards below are reporting yet. When they do my total credit line would increase from 15k to 32.5k!

AFAIK if it reports a balance its going to be calculated into your utilization percentage.

Re: Will using a charge card reduce util %?

Anonymous — Sat, 11 Apr 2015 02:27:43 GMT

I can tell you from my experience it doesn't. When I let my Amex green report $4k vs when I pay it to $0 my score doesn't move. Since my cl's were only $15k on revolvers (and none had reported balances) the only explanation is that charge cards aren't counted in utilization.

Re: Will using a charge card reduce util %?

Anonymous — Sat, 11 Apr 2015 02:27:51 GMT

@gdale6 wrote:
@Anonymous wrote:
If that is the case, does that mean spending more on my Charge card will keep my util % down?

My current util is 17% based off the AU card, none of the cards below are reporting yet. When they do my total credit line would increase from 15k to 32.5k!
AFAIK if it reports a balance its going to be calculated into your utilization percentage.

But a charge card doesn't have a reported max CL, so wouldn't that penalise you compared to a normal CC?

Re: Will using a charge card reduce util %?

Anonymous — Sat, 11 Apr 2015 02:34:01 GMT

@Anonymous wrote:
If that is the case, does that mean spending more on my Charge card will keep my util % down?

My current util is 17% based off the AU card, none of the cards below are reporting yet. When they do my total credit line would increase from 15k to 32.5k!

No, it will actually raise it if it reports a balance.

Re: Will using a charge card reduce util %?

Stralem — Sat, 11 Apr 2015 02:36:27 GMT

Charge cards don't factor into utility.

They'll only "reduce" it in the sense that the balances they report won't add to any current revolver debt (which is one reason why some people like using charge cards).