topic Suggestion for you in Credit Cards

Visa Signature Account Type: Open Account

Anonymous — Fri, 05 Dec 2008 15:30:48 GMT

Recently, Chase "upgraded" my BP Visa to Visa Signature. I took advantage of 2.99 BT about 5 months ago, so my High Balance is very close to CL of 15k. That's not a big problem.

My question: I got the first credit report and find that its account type is defined as "Open Account," not revolving. Which category does an open account belong to? Is it still considered as revolving or kind of LOC?

As far as my credit scores are concerned, TU killed me dropping from 757 (July) to 714 (October, after 14.5k BT) because of high overall UTIL (>20%) and individual UTIL (>95%). However, EQ gave me the similar score even after the BT at 765 (ex ante, it was 766). I have reduced the balance around 12k(~80% individual UTIL and 16% overall UTIL), and find my mid score which a mortgage lender checked is 766 (He didn't give me all three scores). I am just curious how CRAs views this account. Please shed some lights on me.

JSK

Re: Visa Signature Account Type: Open Account

Anonymous — Fri, 05 Dec 2008 15:39:51 GMT

Well your chase account will still be a revolving account, however since you have a no pre-set spending limit, you do not have a limt being reported I am assuming. So only your highest balance will be reported and as well, your payment history.

Re: Visa Signature Account Type: Open Account

Anonymous — Fri, 05 Dec 2008 23:57:45 GMT

@Anonymous wrote:
Well your chase account will still be a revolving account, however since you have a no pre-set spending limit, you do not have a limt being reported I am assuming. So only your highest balance will be reported and as well, your payment history.

Misconception... you do have a limit assigned to a signature card.

Re: Visa Signature Account Type: Open Account

Anonymous — Sat, 06 Dec 2008 00:09:33 GMT

@Anonymous wrote:
@Anonymous wrote:
Well your chase account will still be a revolving account, however since you have a no pre-set spending limit, you do not have a limt being reported I am assuming. So only your highest balance will be reported and as well, your payment history.
Misconception... you do have a limit assigned to a signature card.

He has an internal exposure limit, however it is not being reported to the CRA's. Notice I said "No Pre-Set." I did not say no limit, I said "No Pre-Set."

Message Edited by Chopbrocoli on 12-05-2008 06:09 PM

Re: Visa Signature Account Type: Open Account

Anonymous — Sat, 06 Dec 2008 00:33:47 GMT

I had a Visa signature card with BofA. Mine was reported as MAXED out every month. My visa signature card had a CL of $11,800 , however, it only reported my BALANCE as of the date my statement closed each month so it appeared that I was maxed out. It never showed my actual CL.

So if I owed $400 for the month, it looked MAXED out even though the credit line was $11,800. I ended up calling BofA and I closed the account and my FICO scores increased approx 20 points that month.

Re: Visa Signature Account Type: Open Account

Anonymous — Sat, 06 Dec 2008 00:52:38 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Well your chase account will still be a revolving account, however since you have a no pre-set spending limit, you do not have a limt being reported I am assuming. So only your highest balance will be reported and as well, your payment history.
Misconception... you do have a limit assigned to a signature card.
He has an internal exposure limit, however it is not being reported to the CRA's. Notice I said "No Pre-Set." I did not say no limit, I said "No Pre-Set."
Message Edited by Chopbrocoli on 12-05-2008 06:09 PM

..... no..... there is a limit assigned to the card. As with any card (Amex excluded), when you are approved you have a pre-determined credit limit and you are advised as to the limit. No different than a signature card, with the exception I can spend over my limit without penalty.

Message Edited by FaircreditguyFL on 12-05-2008 04:52 PM

Re: Visa Signature Account Type: Open Account

Anonymous — Sat, 06 Dec 2008 03:56:51 GMT

You are right in that I do have a credit limit of $15,000, but Chase won't charge an over-the-limit fee since it has a no-preset limit feature. Beside, Chase it will report my High Balance of $14,5xx instead of my CL of 15k. It seems to be still considered as a revolving account.

Re: Visa Signature Account Type: Open Account

Anonymous — Sat, 06 Dec 2008 04:09:06 GMT

@Anonymous wrote:
You are right in that I do have a credit limit of $15,000, but Chase won't charge an over-the-limit fee since it has a no-preset limit feature. Beside, Chase it will report my High Balance of $14,5xx instead of my CL of 15k. It seems to be still considered as a revolving account.

Usually, this is called a "Credit Access Line."

Re: Visa Signature Account Type: Open Account

Anonymous — Sat, 06 Dec 2008 04:13:42 GMT

@Anonymous wrote:
@Anonymous wrote:
You are right in that I do have a credit limit of $15,000, but Chase won't charge an over-the-limit fee since it has a no-preset limit feature. Beside, Chase it will report my High Balance of $14,5xx instead of my CL of 15k. It seems to be still considered as a revolving account.

Usually, this is called a "Credit Access Line."

So, it is still a part of Revolving accounts, isn't it? Not considered as an installment loan.

Suggestion for you

Anonymous — Sat, 06 Dec 2008 04:17:10 GMT

Move that money into an installment account and eat the interest rate until you can pay it off. Your scores will jump higher than what they are right now.

If you cannot do this then move it to another card that reports a credit limit.

TheTaxMan

Re: Visa Signature Account Type: Open Account

Anonymous — Sat, 06 Dec 2008 04:19:44 GMT

When I was an AU on DW's sig Visa it reported in the "other" section of my CR's along with my utility accounts. It reported the highest balance as the CL. Although I was never 100% sure, it seemed like it wasn't being used to calculate utility.

Re: Visa Signature Account Type: Open Account

Anonymous — Sat, 06 Dec 2008 04:26:38 GMT

krystofur:

While your here, could you look at my thread:

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&message.id=127508 ?

If you have any thoughts, please reply to that thread.

I apologize for the threadjack!!

Re: Visa Signature Account Type: Open Account

Anonymous — Sat, 06 Dec 2008 04:27:40 GMT

@Anonymous wrote:
When I was an AU on DW's sig Visa it reported in the "other" section of my CR's along with my utility accounts. It reported the highest balance as the CL. Although I was never 100% sure, it seemed like it wasn't being used to calculate utility.

That's exactly what I am looking for. If it is not included in calculating, my revolving UTIL will be below 9%. I am not sure either. I may have some idea when my WaMu reports December PFICO. My lender confirmed my MID FICO score is 766, so it might be the reason.

Re: Visa Signature Account Type: Open Account

PRILEY — Sat, 24 Apr 2010 18:52:26 GMT

BoA gave me a CLI and my score dropped by 15 points. Little did I know that they changed my World Points with a $12,000 line to a Signature card with an $18,000 line. I hate this credit thing, seems once I think I have something figured out ,it changes! What do I do? Charge a bunch on this card and pay it off? Bet Discover would love that.

Re: Visa Signature Account Type: Open Account

bobtail — Sat, 24 Apr 2010 23:31:01 GMT

HELLO,

Just hashed this out with my accountant. Reviewed all three Credit Reports. EX and EQ reported my utilization at 28%. TU reported at 48%. All three reports had the same credit limits and balances . EX and EQ ignore signature cards when calculating utilization. TU factors Sig cards using the highest balance for credit limit. All reported the Sig card balance for total debt.