topic One More Amex Question in Credit Cards

One More Amex Question

Anonymous — Sun, 15 Jul 2012 00:39:21 GMT

This is a Zync question

If you don't have a pre-set limit, how does it report to the CRA? Does it show a balance and not a limit? If so doesn't that hurt your score?

Thank you in advance.

Re: One More Amex Question

Anonymous — Sun, 15 Jul 2012 00:42:53 GMT

I was actually wondering the same thing. Please help!!

Re: One More Amex Question

Anonymous — Sun, 15 Jul 2012 00:48:20 GMT

The Zync is a charge card, not a credit card. So, it reports both your current balance as well as what was recorded as the highest balance that you ever had on the account. Under EQ and TU04 FICO scoring models, even if your balance posts, it does not factor into your utilization. Therefore, posting a balance and paying after the statement cuts doesn't hurt your scores, which is one of the things that I like about Amex charge cards.

Re: One More Amex Question

pizzadude — Sun, 15 Jul 2012 14:30:03 GMT

+1 to Tinu's comments above, and just to add the Credit Limit field reports as N/A on your CR.

Re: One More Amex Question

LS2982 — Sun, 15 Jul 2012 14:33:56 GMT

@Anonymous wrote:
This is a Zync question

If you don't have a pre-set limit, how does it report to the CRA? Does it show a balance and not a limit? If so doesn't that hurt your score?

Thank you in advance.

It justs reports your high balance. It will show up in current/high balance in the TL. Any balance that you have on an AMEX charge card will NOT affect your overall utilizatiob because it is not factored in FICO scoring. However, it is factored in TU 98 (myFICO). If you pull your reports from this site from TU do not pay much attention to the score, it is not accurate. The newer verson TU 08 (Walmart) does not factor it in. If you have a GE walmart credit card you can get your TU 08 scofre for free every month.

Re: One More Amex Question

Anonymous — Sun, 15 Jul 2012 16:42:52 GMT

@LS2982 wrote:
@Anonymous wrote:
This is a Zync question

If you don't have a pre-set limit, how does it report to the CRA? Does it show a balance and not a limit? If so doesn't that hurt your score?

Thank you in advance.
It justs reports your high balance. It will show up in current/high balance in the TL. Any balance that you have on an AMEX charge card will NOT affect your overall utilizatiob because it is not factored in FICO scoring. However, it is factored in TU 98 (myFICO). If you pull your reports from this site from TU do not pay much attention to the score, it is not accurate. The newer verson TU 08 (Walmart) does not factor it in. If you have a GE walmart credit card you can get your TU 08 scofre for free every month.

Thanks for the clarification. Which TU report do lenders generally use? (Im assuming the new model?)

Re: One More Amex Question

webhopper — Sun, 15 Jul 2012 16:45:12 GMT

It reports your highest balance ever and it reports your current balance. There is nothing in the limit box and it doesn't count against utilization.

Re: One More Amex Question

Anonymous — Sun, 15 Jul 2012 16:48:46 GMT

One point is that having any balance showing on Amex charge card is small ding on fico for having a card with balance. $1 or $1 million is same ding and is small.

Re: One More Amex Question

LS2982 — Sun, 15 Jul 2012 16:48:58 GMT

@Anonymous wrote:
@LS2982 wrote:
@Anonymous wrote:
This is a Zync question

If you don't have a pre-set limit, how does it report to the CRA? Does it show a balance and not a limit? If so doesn't that hurt your score?

Thank you in advance.
It justs reports your high balance. It will show up in current/high balance in the TL. Any balance that you have on an AMEX charge card will NOT affect your overall utilizatiob because it is not factored in FICO scoring. However, it is factored in TU 98 (myFICO). If you pull your reports from this site from TU do not pay much attention to the score, it is not accurate. The newer verson TU 08 (Walmart) does not factor it in. If you have a GE walmart credit card you can get your TU 08 scofre for free every month.
Thanks for the clarification. Which TU report do lenders generally use? (Im assuming the new model?)

Either 04 or 08. 98 is more of an educational score.

Re: One More Amex Question

pizzadude — Sun, 15 Jul 2012 17:34:41 GMT

There are still lenders that pull TU98, like NFCU. For mortgage pulls its almost always 04. Just do some checking around on the boards here if you want to search for a specific creditor.