topic Re: any benefits to hidden TL? in Credit Cards

any benefits to hidden TL?

mt2va — Wed, 28 Oct 2009 13:59:37 GMT

Are there any benefits to having/keeping a hidden TL? I have one for medical bills (kind of like Care Credit) that is about $6,000 CL but does not report to any CRA. However, they will report if you are delinquent. (it seems kind of unfair they won’t report if you do pay on time though) There is a $20 AF for this account but frequently there is 0% interest charged for 90 days etc to pay a bill off and even if you do pay interest it is only 5.99%.

Re: any benefits to hidden TL?

Anonymous — Wed, 28 Oct 2009 14:04:52 GMT

Definitely keep it. You never know.

Re: any benefits to hidden TL?

Anonymous — Wed, 28 Oct 2009 17:28:59 GMT

Keep it. I have a UMB CC that is a hidden tradeline. I like the fact that I can make large purchases, pay when the statement cuts, and not worry about the charges factoring into my utilization. I don't carry a balance, but if I had to, this would be the card I would use.

Re: any benefits to hidden TL?

Anonymous — Wed, 28 Oct 2009 19:52:50 GMT

Where is that from, and how do I get one?

Re: any benefits to hidden TL?

mt2va — Wed, 28 Oct 2009 19:59:31 GMT

Its called Medkey. (http://www.medkeyinc.com) Its for providers in the Roanoke, VA area that are with Carilion Clinic. There was no credit check so I’m assuming it was based on income. I was approved early this year before I started any re-building/clean up of reports. I almost wish it would report as it would help a lot with my current utilization. Even though it’s a $20 AF I think I will keep it. Looking at my benefits for next year our co-pays are increasing drastically as well as coinsurance due for outpatient services & I don’t have any CC with this high a CL to charge to if I needed it plus the interest is so low.

Re: any benefits to hidden TL?

Anonymous — Wed, 28 Oct 2009 20:12:02 GMT

It's a good deal all right, mt2va. At $20 AF, that's pretty cheap.

Unfortunately, I don't have time to move to Roanoke right now, but I hear it's a nice place!

Thanks for the info.

Re: any benefits to hidden TL?

DI — Thu, 29 Oct 2009 00:15:56 GMT

No benefits. It's just like the rich hiding money overseas. It's so deceptive which only hurts the consumers when the account isn't reported to the CRA's. Luckily one doesn't have to worry about the IRS coming after them for the deceptive practice.

Re: any benefits to hidden TL?

Anonymous — Fri, 30 Oct 2009 11:54:06 GMT

@DI wrote:
No benefits. It's just like the rich hiding money overseas. It's so deceptive which only hurts the consumers when the account isn't reported to the CRA's. Luckily one doesn't have to worry about the IRS coming after them for the deceptive practice.

I dunno, DI....I've got to pay a med bill today, and it's a hefty one. If I had this hidden TL, I could put most of it on that, and not worry that my score would take a hit from that balance reporting, and possibly cause AA from other creditors. This particular balance might make them nervous. And, although it will probably take 2 months to pay this charge off, with a "no interest for 90 days" scenario (like on the OP's card), I could've made it a bit easier on my checkbook and my nerves if I had the non-reporting card.

I think the hidden tradeline only really hurts if there's not much else in the credit file, or if there's utilization issues that the tradeline could have helped if it reported. I would love to have this card, but that's just me, I guess.

Re: any benefits to hidden TL?

Anonymous — Sat, 31 Oct 2009 01:48:17 GMT

@Anonymous wrote:
@DI wrote:
No benefits. It's just like the rich hiding money overseas. It's so deceptive which only hurts the consumers when the account isn't reported to the CRA's. Luckily one doesn't have to worry about the IRS coming after them for the deceptive practice.
I dunno, DI....I've got to pay a med bill today, and it's a hefty one. If I had this hidden TL, I could put most of it on that, and not worry that my score would take a hit from that balance reporting, and possibly cause AA from other creditors. This particular balance might make them nervous. And, although it will probably take 2 months to pay this charge off, with a "no interest for 90 days" scenario (like on the OP's card), I could've made it a bit easier on my checkbook and my nerves if I had the non-reporting card.

I think the hidden tradeline only really hurts if there's not much else in the credit file, or if there's utilization issues that the tradeline could have helped if it reported. I would love to have this card, but that's just me, I guess.

No, it's me, too! Sounds like a great deal to me. You can pay your med bills over time with 0% APR and no UTIL-jacking? Sounds like heaven to me.

DI - 1) WTH does the IRS have to do with this? 2) Reporting to the CRB's is neither free or manditory.

Re: any benefits to hidden TL?

score_building — Sat, 31 Oct 2009 07:10:42 GMT

OP -sounds like a good credit resource that offers significant value added beyond the cost of AF.

Dl- pristine debt management is one good predictor of ability to manage a combo of hidden and reporting TL efficiently.

cwcid- is 'UTIL-jacking' when a current issuer spots high uti reporting and RJ?

btw, it seems BML has stepped up the utility of their hidden TL, when it was introduced as a payment source via Paypal.

Re: any benefits to hidden TL?

DI — Sat, 31 Oct 2009 12:54:35 GMT

@Anonymous wrote:
@Anonymous wrote:
@DI wrote:
No benefits. It's just like the rich hiding money overseas. It's so deceptive which only hurts the consumers when the account isn't reported to the CRA's. Luckily one doesn't have to worry about the IRS coming after them for the deceptive practice.
I dunno, DI....I've got to pay a med bill today, and it's a hefty one. If I had this hidden TL, I could put most of it on that, and not worry that my score would take a hit from that balance reporting, and possibly cause AA from other creditors. This particular balance might make them nervous. And, although it will probably take 2 months to pay this charge off, with a "no interest for 90 days" scenario (like on the OP's card), I could've made it a bit easier on my checkbook and my nerves if I had the non-reporting card.

I think the hidden tradeline only really hurts if there's not much else in the credit file, or if there's utilization issues that the tradeline could have helped if it reported. I would love to have this card, but that's just me, I guess.
No, it's me, too! Sounds like a great deal to me. You can pay your med bills over time with 0% APR and no UTIL-jacking? Sounds like heaven to me.

DI - 1) WTH does the IRS have to do with this? 2) Reporting to the CRB's is neither free or manditory.

Hehe- I just thought I'll throw that in to make a comparison. IRS has nothing to do with hidden tradelines.

Message Edited by DI on 10-31-2009 07:54 AM

Re: any benefits to hidden TL?

Anonymous — Sat, 31 Oct 2009 13:53:37 GMT

@score_building wrote:
cwcid- is 'UTIL-jacking' when a current issuer spots high uti reporting and RJ?

UTIL-jacking is a multifaceted phenomena:

1) Card issuer notices high UTIL on another TL and takes AA, and/or

2) Increased UTIL "jacks" your FICO down and other issuer takes AA.

Both forms are bad news. An unreported TL, specially for medical costs, is great for avoiding this.

Re: any benefits to hidden TL?

score_building — Sat, 31 Oct 2009 14:07:54 GMT

@Anonymous wrote:
@score_building wrote:
cwcid- is 'UTIL-jacking' when a current issuer spots high uti reporting and RJ?
UTIL-jacking is a multifaceted phenomena:
1) Card issuer notices high UTIL on another TL and takes AA, and/or
2) Increased UTIL "jacks" your FICO down and other issuer takes AA.
Both forms are bad news. An unreported TL, specially for medical costs, is great for avoiding this.

Thanks!

Re: any benefits to hidden TL?

Anonymous — Sat, 31 Oct 2009 14:36:41 GMT

@DI wrote:
No benefits. It's just like the rich hiding money overseas. It's so deceptive which only hurts the consumers when the account isn't reported to the CRA's. Luckily one doesn't have to worry about the IRS coming after them for the deceptive practice.

Unreported loans or credit is not deceptive. Reporting to CRA's is not mandatory. I could borrow $5000 from a friend or family member, having an obligation to pay them back. They could sue me or turn it over to collection if I don't pay. That would end up derogatory on my credit. But I don't expect my friend or family to report it to CRA's.

Now, if you are obtaining a mortgage or loan which requires you to disclose all debt or obligations and you fail to disclose a debt, this is deceptive and actually constitutes fraud subject to fine and imprisonment...so in that case I completely agree. If a lender wishes to analyze your total DTI and asks you for your total debt as a part of their decision in making the loan, and you fail to disclose merely because it is "hidden" so to speak....this is a no-no morally and legally.

Re: any benefits to hidden TL?

DI — Sat, 31 Oct 2009 15:35:39 GMT

Credit decisions and limits are based on data from the consumer's credit reports. If a tradeline isn't reporting, lenders are getting a false picture of you, and may make a decision they wouldn't have made if the tradeline appeared.

Re: any benefits to hidden TL?

Anonymous — Sat, 31 Oct 2009 15:47:22 GMT

@DI wrote:
Credit decisions and limits are based on data from the consumer's credit reports. If a tradeline isn't reporting, lenders are getting a false picture of you, and may make a decision they wouldn't have made if the tradeline appeared.

So? This is a nonstarter. As both txjohn and myself have stated credit reporting is not mandatory. It does cost the issuer money. There is no legal implication here whatsoever. Don't make out like there is one.

Re: any benefits to hidden TL?

Anonymous — Sat, 31 Oct 2009 16:38:47 GMT

I've never had a non-reporting card. I'm into CASH BACK. Regardless of the amount of the expenditure, I want it on one of my two cash back cards. I want all of my available CLs to report to minimize my overall utilization.

Good Luck,

Re: any benefits to hidden TL?

DI — Sat, 31 Oct 2009 16:59:52 GMT

@Anonymous wrote:
I've never had a non-reporting card. I'm into CASH BACK. Regardless of the amount of the expenditure, I want it on one of my two cash back cards. I want all of my available CLs to report to minimize my overall utilization.

Good Luck,

Re: any benefits to hidden TL?

QueenBean — Sat, 31 Oct 2009 20:48:20 GMT

I can see the benefit of not having everything you owe calculated in your utilit

Re: any benefits to hidden TL?

mt2va — Tue, 03 Nov 2009 19:58:48 GMT

Actually it would help me out a lot if it would report as my utilization is a little high right now as we are doing some major remodeling projects.

Also I found out another great benefit on the Medkey card that if you pay the balance in full during any given month they will give you a 10% discount on the amount due.