topic Re: AMEX Platinum - Credit Score Impact in Understanding FICO® Scoring

AMEX Platinum - Credit Score Impact

credit8502020 — Tue, 20 Jun 2023 22:39:52 GMT

Hi All! I know someone that has an AMEX Platinum card that has no limit. Since there is no limit how does the card balance impact the credit score? With cards that have limits, we know to keep it at a certain percentage to improve the utlization and therefore the score. How is this done with the AMEX Platinum. I want to make sure they're not hurting their scores.

Thank you!

Re: AMEX Platinum - Credit Score Impact

sznthescore — Thu, 16 Feb 2023 14:48:31 GMT

That's the point of the card, not to carry a balance, as the balance must be paid in full each month. If a balance is reported, then it "could" negatively effect the overall (aggregate) utilization against the amount of credit being used overall. Hope that makes sense. Others will chime in and probably explain in a better way. But then again this is my understanding of the card and its reporting.

In short, ideally that card should never report a balance. Just it's payment history.

example: (balance/limit)

card #1 - $200/$1,000

card #2 - $0/$1,000

card #3 - $0/$1,000

The above utilization is 6%

amex platinum - $3,000/npsl

Include Amex balance the utilzation is 106%

Re: AMEX Platinum - Credit Score Impact

SouthJamaica — Thu, 16 Feb 2023 20:15:08 GMT

@credit8502020 wrote:
Hi All! I know someone that has an AMEX Platinum card that has no limit. Since there is no limit how does the card balance impact the credit score? With cards that have limits, we know to keep it at a certain pencentage to improve the utlization and therefore the score. How is this done with the AMEX Platinum. I want to make sure they're not hurting their scores.

Thank you!

For most FICO scoring models, the Amex charge cards are not counted at all in percentage revolving utilization. They are merely counted in the computation of 'accounts with balance'.

In one of the old FICO scoring models, EX FICO 2, they do count in percentage utilization, with the largest "high balance" being treated as though it were a credit limit. So if you wanted to optimize your mortgage scores, you would make sure to report a balance in the runup to the application that is way less than your previous "high balance".

Re: AMEX Platinum - Credit Score Impact

sznthescore — Thu, 16 Feb 2023 20:57:23 GMT

@SouthJamaica To clarify, so regardless of the balance; for scoring purposes it would only count towards an account with a balance?

Re: AMEX Platinum - Credit Score Impact

SouthJamaica — Thu, 16 Feb 2023 20:59:05 GMT

@sznthescore wrote:
@SouthJamaica To clarify, so regardless of the balance; for scoring purposes it would only count towards an account with a balance?

Yes. Except in EX FICO 2.

Re: AMEX Platinum - Credit Score Impact

credit8502020 — Thu, 16 Feb 2023 22:01:52 GMT

@SouthJamaica wrote:
@credit8502020 wrote:
Hi All! I know someone that has an AMEX Platinum card that has no limit. Since there is no limit how does the card balance impact the credit score? With cards that have limits, we know to keep it at a certain pencentage to improve the utlization and therefore the score. How is this done with the AMEX Platinum. I want to make sure they're not hurting their scores.

Thank you!
For most FICO scoring models, the Amex charge cards are not counted at all in percentage revolving utilization. They are merely counted in the computation of 'accounts with balance'.

In one of the old FICO scoring models, EX FICO 2, they do count in percentage utilization, with the largest "high balance" being treated as though it were a credit limit. So if you wanted to optimize your mortgage scores, you would make sure to report a balance in the runup to the application that is way less than your previous "high balance".

@SouthJamaica @sznthescore Thank you for your feedback. So essentially a lower balance on that card will not result in a better credit score.

Re: AMEX Platinum - Credit Score Impact

sznthescore — Thu, 16 Feb 2023 22:21:36 GMT

The card has to be paid in full, so "balance" really shouldn't be a word in conversation affiliated with the card. Lower balances in general would increase ones credit scores if less than 8.9% aggregate utilization. An example would be my scores below. Jan had 70% utilization, Feb had 7-8% utilization.

Re: AMEX Platinum - Credit Score Impact

SouthJamaica — Fri, 17 Feb 2023 11:57:58 GMT

@credit8502020 wrote:
@SouthJamaica wrote:
@credit8502020 wrote:
Hi All! I know someone that has an AMEX Platinum card that has no limit. Since there is no limit how does the card balance impact the credit score? With cards that have limits, we know to keep it at a certain pencentage to improve the utlization and therefore the score. How is this done with the AMEX Platinum. I want to make sure they're not hurting their scores.

Thank you!
For most FICO scoring models, the Amex charge cards are not counted at all in percentage revolving utilization. They are merely counted in the computation of 'accounts with balance'.

In one of the old FICO scoring models, EX FICO 2, they do count in percentage utilization, with the largest "high balance" being treated as though it were a credit limit. So if you wanted to optimize your mortgage scores, you would make sure to report a balance in the runup to the application that is way less than your previous "high balance".
@SouthJamaica @sznthescore Thank you for your feedback. So essentially a lower balance on that card will not result in a better credit score.

Except with EX FICO 2.

Re: AMEX Platinum - Credit Score Impact

credit8502020 — Sat, 18 Feb 2023 01:18:20 GMT

@SouthJamaica wrote:
@credit8502020 wrote:
@SouthJamaica wrote:
@credit8502020 wrote:
Hi All! I know someone that has an AMEX Platinum card that has no limit. Since there is no limit how does the card balance impact the credit score? With cards that have limits, we know to keep it at a certain pencentage to improve the utlization and therefore the score. How is this done with the AMEX Platinum. I want to make sure they're not hurting their scores.

Thank you!
For most FICO scoring models, the Amex charge cards are not counted at all in percentage revolving utilization. They are merely counted in the computation of 'accounts with balance'.

In one of the old FICO scoring models, EX FICO 2, they do count in percentage utilization, with the largest "high balance" being treated as though it were a credit limit. So if you wanted to optimize your mortgage scores, you would make sure to report a balance in the runup to the application that is way less than your previous "high balance".
@SouthJamaica @sznthescore Thank you for your feedback. So essentially a lower balance on that card will not result in a better credit score.
Except with EX FICO 2.

@SouthJamaica Ok. Thank you!

Re: AMEX Platinum - Credit Score Impact

privacyadvocate69 — Sat, 18 Feb 2023 06:36:10 GMT

@credit8502020 wrote:
Hi All! I know someone that has an AMEX Platinum card that has no limit. Since there is no limit how does the card balance impact the credit score? With cards that have limits, we know to keep it at a certain pencentage to improve the utlization and therefore the score. How is this done with the AMEX Platinum. I want to make sure they're not hurting their scores.

Thank you!

A person with a no-limit AmEx Platinum card does not need you to worry about their scores. Relax. Go shopping or something (;

Re: AMEX Platinum - Credit Score Impact

polscigeek — Mon, 20 Mar 2023 22:23:48 GMT

That's not how the Amex platinum works re your utilization. Since there is no credit limit, it isn't factored into your utilization at all. It looks and feels like a loan credit line. It's not treated like a credit card. I've had a Amex Platinum since 2020 and it has never factored into my utilization %. And you CAN carry a balance on your Amex platinum! As long as your under the pay over time limit, your minimum payment won't be for the entire balance.

Re: AMEX Platinum - Credit Score Impact

Thomas_Thumb — Tue, 21 Mar 2023 14:52:59 GMT

True - except with the older Fico 98 model of which the EX score 2 "mortgage" Fico is part of.

Current balance divided by high balance (HB) is used to calculate a utilization for AMEX green/gold/platinum cards for Fico 98 only. The charge cards have 1 month terms and are listed as such even if POT is activated. I have an AMEX charge card (since 1984) and observed how the card is scored among the various Fico algorithms on 3B reports. A few times EX score 2 dropped when B/HB reported at 100% but no score drop on the newer Fico models.

Due to the score drops on EX2, I charged a lot on AMEX one month to crank up HB on the card. The higher HB has mitigated score drops associated with EX score 2 when using AMEX. Fico 4, 8, 9 and 10 algorithms ignore AMEX charge cards when evaluating individual and aggregate utilization metrics

Re: AMEX Platinum - Credit Score Impact

credit8502020 — Tue, 20 Jun 2023 22:42:42 GMT

@polscigeek wrote:
That's not how the Amex platinum works re your utilization. Since there is no credit limit, it isn't factored into your utilization at all. It looks and feels like a loan credit line. It's not treated like a credit card. I've had a Amex Platinum since 2020 and it has never factored into my utilization %. And you CAN carry a balance on your Amex platinum! As long as your under the pay over time limit, your minimum payment won't be for the entire balance.

@polscigeek Thank you for your feedback.

Re: AMEX Platinum - Credit Score Impact

credit8502020 — Tue, 20 Jun 2023 22:42:57 GMT

@Thomas_Thumb wrote:
True - except with the older Fico 98 model of which the EX score 2 "mortgage" Fico is part of.

Current balance divided by high balance (HB) is used to calculate a utilization for AMEX green/gold/platinum cards for Fico 98 only. The charge cards have 1 month terms and are listed as such even if POT is activated. I have an AMEX charge card (since 1984) and observed how the card is scored among the various Fico algorithms on 3B reports. A few times EX score 2 dropped when B/HB reported at 100% but no score drop on the newer Fico models.

Due to the score drops on EX2, I charged a lot on AMEX one month to crank up HB on the card. The higher HB has mitigated score drops associated with EX score 2 when using AMEX. Fico 4, 8, 9 and 10 algorithms ignore AMEX charge cards when evaluating individual and aggregate utilization metrics

@Thomas_Thumb Thank you for your feedback.

Re: AMEX Platinum - Credit Score Impact

NYC_Fella — Sat, 24 Jun 2023 01:42:00 GMT

I never pay my Amex Platinum before the statement cutoff, so I always have a balance reported. Some months it's been as high as $17K and other months as low as $2K. My scores have not changed at all despite the variations.

Re: AMEX Platinum - Credit Score Impact

credit8502020 — Tue, 05 Sep 2023 20:19:59 GMT

@NYC_Fella wrote:
I never pay my Amex Platinum before the statement cutoff, so I always have a balance reported. Some months it's been as high as $17K and other months as low as $2K. My scores have not changed at all despite the variations.

@NYC_Fella Thank you for your feedback.

Re: AMEX Platinum - Credit Score Impact

credit8502020 — Tue, 05 Sep 2023 20:22:10 GMT

@polscigeek wrote:
That's not how the Amex platinum works re your utilization. Since there is no credit limit, it isn't factored into your utilization at all. It looks and feels like a loan credit line. It's not treated like a credit card. I've had a Amex Platinum since 2020 and it has never factored into my utilization %. And you CAN carry a balance on your Amex platinum! As long as your under the pay over time limit, your minimum payment won't be for the entire balance.

@polscigeek @SouthJamaica In order to achieve AZEO, you should still have another card with a balance if you have a balance on the AMEX Platinum, correct?

Re: AMEX Platinum - Credit Score Impact

SouthJamaica — Tue, 05 Sep 2023 21:59:25 GMT

@credit8502020 wrote:
......
@polscigeek @SouthJamaica In order to achieve AZEO, you should still have another card with a balance if you have a balance on the AMEX Platinum, correct?

I don't know.

Re: AMEX Platinum - Credit Score Impact

Thomas_Thumb — Tue, 05 Sep 2023 22:00:02 GMT

That is correct. An Amex charge card (one month terms) is not considered a revolving credit account. Therefore, if it is your only card reporting a balance, you will receive the "no recent revolving activity" penalty.

In addition, AU accounts generally don't count toward your revolving credit. I had 2 cards - my Amex and an AU visa report balances but still received the penalty on Fico 8 and Fico 9. Note: AU accounts are included as activity on the older Fico mortgage models.

Re: AMEX Platinum - Credit Score Impact

markbeiser — Tue, 05 Sep 2023 22:29:18 GMT

@Thomas_Thumb wrote:
True - except with the older Fico 98 model of which the EX score 2 "mortgage" Fico is part of.

Current balance divided by high balance (HB) is used to calculate a utilization for AMEX green/gold/platinum cards for Fico 98 only. The charge cards have 1 month terms and are listed as such even if POT is activated. I have an AMEX charge card (since 1984) and observed how the card is scored among the various Fico algorithms on 3B reports. A few times EX score 2 dropped when B/HB reported at 100% but no score drop on the newer Fico models.

Due to the score drops on EX2, I charged a lot on AMEX one month to crank up HB on the card. The higher HB has mitigated score drops associated with EX score 2 when using AMEX. Fico 4, 8, 9 and 10 algorithms ignore AMEX charge cards when evaluating individual and aggregate utilization metrics

So if I decide to get an AmEx Platinum, do it before I do something like replace my roof, and charge it to the card, then pay it off after the statement cuts.
Set that maximum statement balance good and high!