topic Re: Paying AMEX Charge Card Before Statement Cuts? in Credit Cards

Paying AMEX Charge Card Before Statement Cuts?

shane82388 — Thu, 15 Mar 2012 08:54:50 GMT

Does it even matter if you let the statment cut before you pay off the balance? Im asking because i know its supposed to not really count in your utilization, but does it hurt you or effect you in any other way?

or is that a card i can just worry about paying by the due date?

Re: Paying AMEX Charge Card Before Statement Cuts?

LS2982 — Thu, 15 Mar 2012 09:30:40 GMT

@shane82388 wrote:
Does it even matter if you let the statment cut before you pay off the balance? Im asking because i know its supposed to not really count in your utilization, but does it hurt you or effect you in any other way?

or is that a card i can just worry about paying by the due date?

Even though it does not factor it's util. in your overall util., It still will report your highest balance and your current balance. Not sure if it effects your FICO, i'm sure a myFICO cardholder will chime in on that!

Re: Paying AMEX Charge Card Before Statement Cuts?

boomhower — Thu, 15 Mar 2012 10:26:19 GMT

Other than TU98(the score you can buy here) it isn't counted in your UT. Since most lenders have moved on to TU04 or TU08 it doesn't matter if you pay before or not.

Re: Paying AMEX Charge Card Before Statement Cuts?

shane82388 — Thu, 15 Mar 2012 10:28:13 GMT

@boomhower wrote:
Other than TU98(the score you can buy here) it isn't counted in your UT. Since most lenders have moved on to TU04 or TU08 it doesn't matter if you pay before or not.

ok thats what i figured but just wanted to check...

Re: Paying AMEX Charge Card Before Statement Cuts?

Anonymous — Thu, 15 Mar 2012 10:54:11 GMT

i believe it may have an effect. part of the scoring is based on how many accounts have a balance.

Re: Paying AMEX Charge Card Before Statement Cuts?

konabill — Thu, 15 Mar 2012 11:54:54 GMT

I use my Amex green regularly and in December I had $1200 balance reported by Amex. My other card balances were zero. I pull daily from USAAs credit monitoring and my Fico did not change. If my overall utilization was higher it may have some effect but from my personal experience it isnt an issue.

Re: Paying AMEX Charge Card Before Statement Cuts?

Anonymous — Thu, 15 Mar 2012 12:23:39 GMT

@konabill wrote:
I use my Amex green regularly and in December I had $1200 balance reported by Amex. My other card balances were zero. I pull daily from USAAs credit monitoring and my Fico did not change. If my overall utilization was higher it may have some effect but from my personal experience it isnt an issue.

USAA credit monitoring uses EX FAKOs, not actual FICOs.

Re: Paying AMEX Charge Card Before Statement Cuts?

haulingthescoreup — Thu, 15 Mar 2012 14:03:48 GMT

@Anonymous wrote:
i believe it may have an effect. part of the scoring is based on how many accounts have a balance.

It will be scored as an additional account with a balance, which may (or may not) affect your scores.

Re: Paying AMEX Charge Card Before Statement Cuts?

Anonymous — Thu, 15 Mar 2012 14:34:46 GMT

@LS2982 wrote:
@shane82388 wrote:
Does it even matter if you let the statment cut before you pay off the balance? Im asking because i know its supposed to not really count in your utilization, but does it hurt you or effect you in any other way?

or is that a card i can just worry about paying by the due date?
Even though it does not factor it's util. in your overall util., It still will report your highest balance and your current balance. Not sure if it effects your FICO, i'm sure a myFICO cardholder will chime in on that!

IME only the *reported* high balance is shown on my CRs. For instance I have a charge account that list a high balance of $1400. However, I had a high balance of over $3k in Demeber but paid it off prior to the statement closing date. I would recommend letting a high balance report to the CR. Then pay off prior to the statement closing date in subsequent months just in case you run into a creditor that pulls a TU98 FICO.

Re: Paying AMEX Charge Card Before Statement Cuts?

Anonymous — Thu, 15 Mar 2012 16:35:05 GMT

it would only count against you if say you were buying a house. They would look at all outstanding liabilities. It makes no difference on a month to month basis on your credit report or for applying for new credit. we typically carry $10 - $20k on AMEX per month, and its never penalized us.

Re: Paying AMEX Charge Card Before Statement Cuts?

stefanc — Thu, 15 Mar 2012 17:17:37 GMT

@haulingthescoreup wrote:
@Anonymous wrote:
i believe it may have an effect. part of the scoring is based on how many accounts have a balance.
+1

It will be scored as an additional account with a balance, which may (or may not) affect your scores.

Everytime I let my Plat report with a balance I take a hit on my scores (guess I'm right on the edge of too many accounts with a balance - about 30%ish of them - all promo - 0% stuff). Anyway I always pay my Amex's to 0 before the statement cuts, the CSR's have even mentioned that - so I think Amex likes it!

Re: Paying AMEX Charge Card Before Statement Cuts?

Anonymous — Fri, 16 Mar 2012 15:39:33 GMT

Remember for Score optimization all non Mortgage TL's need to total under 5K (I think ). However Total owed to creditors is a small portion of your FICO score.

Re: Paying AMEX Charge Card Before Statement Cuts?

konabill — Tue, 27 Mar 2012 10:58:24 GMT

@Anonymous wrote:
Remember for Score optimization all non Mortgage TL's need to total under 5K (I think ). However Total owed to creditors is a small portion of your FICO score.

When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school, they asked me what I wanted to be when I grew up. I wrote down ‘happy’. They told me I didn’t understand the assignment, and I told them they didn’t understand life.”― John Lennon

Awesome siggy.

Re: Paying AMEX Charge Card Before Statement Cuts?

crunching_numbers — Tue, 27 Mar 2012 11:36:27 GMT

It will affect your overall debt (balances owed on non-mortgage accounts). This can affect your FICO. It does mine, but I have a large debt load at the moment. YMMV

Re: Paying AMEX Charge Card Before Statement Cuts?

Anonymous — Tue, 27 Mar 2012 12:30:54 GMT

@konabill wrote:
When I was 5 years old, my mother always told me that happiness was the key to life. When I went to school, they asked me what I wanted to be when I grew up. I wrote down ‘happy’. They told me I didn’t understand the assignment, and I told them they didn’t understand life.”― John Lennon

Awesome siggy.

Thanks