topic Re: Charging up AmEx to improve Utilization Ratio? in General Credit Topics

Charging up AmEx to improve Utilization Ratio?

Anonymous — Sat, 28 Dec 2013 04:13:20 GMT

I am an Authorized User on an Amex Platinum card. It is reported on my credit report. My understanding is that since Amex has no pre-defined credit line per se, that FICO uses the highest historical monthly balance in order to determine the available credit which effects my Utilization Ratio. The Amex card has never had a monthly balance of more than $6k.

I have personal bankcards with available credit of about $8k. I don't use them them much...only put about $500 a month and pay in full every month.

I currently have scores of 690 EX/ 676 EQ...I am trying to get to 720 in 6 months.

Question: If we shift all business spending to the Amex Plat card for a month we could run it up to $30k to $40k (Amex's 'Will My Charges Be Approved' says yes.) If I did this, it seems I would beefen up my available credit and enhance my Utilization Ratio which in turn would boost my score. Is this advisable or would the big available credit potentially be seen as a negative and does the fact that I am only an AU on this account come into play?

Thanks for any advise!

Re: Charging up AmEx to improve Utilization Ratio?

irrational — Sat, 28 Dec 2013 06:00:47 GMT

From my understanding, that is only true on TU 98 scores. Other FICO models don't including Amex charge cards in util.

Additionally, such behaviour on an Amex might provoke a FR.

If your util is that low, something else is holding your score back. What is your AAoA, no. INQs, any derogs?

Re: Charging up AmEx to improve Utilization Ratio?

Anonymous — Sat, 28 Dec 2013 09:16:23 GMT

AAoA is 7 years...0 inquiries for past 12 months but had a charge-off with Capital One in 2008. Based on all I have read there isn't much I can do with the CapOne charge-off so I am looking at other options.

Re: Charging up AmEx to improve Utilization Ratio?

lg8302ch — Sat, 28 Dec 2013 09:34:02 GMT

@Anonymous wrote:
I am an Authorized User on an Amex Platinum card. It is reported on my credit report. My understanding is that since Amex has no pre-defined credit line per se, that FICO uses the highest historical monthly balance in order to determine the available credit which effects my Utilization Ratio. The Amex card has never had a monthly balance of more than $6k.

I have personal bankcards with available credit of about $8k. I don't use them them much...only put about $500 a month and pay in full every month.

I currently have scores of 690 EX/ 676 EQ...I am trying to get to 720 in 6 months.

Question: If we shift all business spending to the Amex Plat card for a month we could run it up to $30k to $40k (Amex's 'Will My Charges Be Approved' says yes.) If I did this, it seems I would beefen up my available credit and enhance my Utilization Ratio which in turn would boost my score. Is this advisable or would the big available credit potentially be seen as a negative and does the fact that I am only an AU on this account come into play?

Thanks for any advise!

I would not use a personal Amex for business spend. Rather get an Amex Business card...just my 2cents

Re: Charging up AmEx to improve Utilization Ratio?

jamesdwi — Sat, 28 Dec 2013 19:40:27 GMT

@Anonymous wrote:
I am an Authorized User on an Amex Platinum card. It is reported on my credit report. My understanding is that since Amex has no pre-defined credit line per se, that FICO uses the highest historical monthly balance in order to determine the available credit which effects my Utilization Ratio. The Amex card has never had a monthly balance of more than $6k.

I have personal bankcards with available credit of about $8k. I don't use them them much...only put about $500 a month and pay in full every month.

I currently have scores of 690 EX/ 676 EQ...I am trying to get to 720 in 6 months.

do you pay in full before statement cut? if you PIF after the statement cut, your UTL can still be listed as higher than you expect on your Credit Report, hurting your score. For best score, PIF before statment cut let one card report 1-9% UTL.

Re: Charging up AmEx to improve Utilization Ratio?

LearningMoreAboutCredit — Sat, 28 Dec 2013 21:23:38 GMT

@Anonymous wrote:
AAoA is 7 years...0 inquiries for past 12 months but had a charge-off with Capital One in 2008. Based on all I have read there isn't much I can do with the CapOne charge-off so I am looking at other options.

CO could be holding your scores down especially if it is constantly updated.

Re: Charging up AmEx to improve Utilization Ratio?

Anonymous — Sun, 29 Dec 2013 02:53:49 GMT

We have an Amex Business Gold Rewards also that can be used with the same logic. Just curious, would your concern be tax or an FR in terms of not using a personal card for business-related spend?

Re: Charging up AmEx to improve Utilization Ratio?

Anonymous — Sun, 29 Dec 2013 02:56:01 GMT

Before the statement cuts? You mean literally before the end of the statement period or before its reporting date to the CBs?

I would think only paying before they report to the CBs would be key. However, I don't know how to determine which day they report to the CBs? Anyone know how to do this or is your point to pay even before that?

Re: Charging up AmEx to improve Utilization Ratio?

Anonymous — Sun, 29 Dec 2013 02:57:10 GMT

I don't know about 'constantly updated' but it is definitely on my report...being reported by CapOne not by any CA. I have had no contact with them regarding it in years.

Re: Charging up AmEx to improve Utilization Ratio?

Anonymous — Sun, 29 Dec 2013 02:58:40 GMT

By the way, if I could settle for a PFD (settle, i.e. pay half the amount they claim) I would do it for sure. But, based on reading the experiences of others that seems like a no-go.

Re: Charging up AmEx to improve Utilization Ratio?

Anonymous — Sun, 29 Dec 2013 03:04:05 GMT

@Anonymous wrote:
We have an Amex Business Gold Rewards also that can be used with the same logic. Just curious, would your concern be tax or an FR in terms of not using a personal card for business-related spend?

There are various threads on this forum that talk about the FR issue with Amex business/personal.

There's also the issue of keeping business/personal expenses separate for tax and accounting purposes.

If you use your business CC for this purpose, how will that help your personal utilization, given that Amex business CCs don't report to personal?

If your utilization is below 10% already, I don't see much of a boost in this area.

Re: Charging up AmEx to improve Utilization Ratio?

09Lexie — Sun, 29 Dec 2013 03:09:07 GMT

I noticed that you are having difficulty quoting replies. For detailed steps, please review this thread:

http://ficoforums.myfico.com/t5/Community-Feature-FAQ-s/How-to-Quote-a-Post/td-p/2603189

Re: Charging up AmEx to improve Utilization Ratio?

FinStar — Sun, 29 Dec 2013 17:37:48 GMT

@LearningMoreAboutCredit wrote:
@Anonymous wrote:
AAoA is 7 years...0 inquiries for past 12 months but had a charge-off with Capital One in 2008. Based on all I have read there isn't much I can do with the CapOne charge-off so I am looking at other options.
CO could be holding your scores down especially if it is constantly updated.

Re: Charging up AmEx to improve Utilization Ratio?

FinStar — Sun, 29 Dec 2013 17:38:49 GMT

@Anonymous wrote:
@Anonymous wrote:
We have an Amex Business Gold Rewards also that can be used with the same logic. Just curious, would your concern be tax or an FR in terms of not using a personal card for business-related spend?
There are various threads on this forum that talk about the FR issue with Amex business/personal.

There's also the issue of keeping business/personal expenses separate for tax and accounting purposes.

If you use your business CC for this purpose, how will that help your personal utilization, given that Amex business CCs don't report to personal?

If your utilization is below 10% already, I don't see much of a boost in this area.

Exactly.

Re: Charging up AmEx to improve Utilization Ratio?

Anonymous — Wed, 18 Jun 2014 22:16:54 GMT

@FinStar wrote:
@LearningMoreAboutCredit wrote:
@Anonymous wrote:
AAoA is 7 years...0 inquiries for past 12 months but had a charge-off with Capital One in 2008. Based on all I have read there isn't much I can do with the CapOne charge-off so I am looking at other options.
CO could be holding your scores down especially if it is constantly updated.
+1

It is being constantly updated...5 years now. I believe I am out of the SOL in my state (Arkansas). Is their anyway to stop the constant monthly updating by Capital One?

Re: Charging up AmEx to improve Utilization Ratio?

09Lexie — Wed, 18 Jun 2014 22:44:05 GMT

@Anonymous wrote:
@FinStar wrote:
@LearningMoreAboutCredit wrote:
@Anonymous wrote:
AAoA is 7 years...0 inquiries for past 12 months but had a charge-off with Capital One in 2008. Based on all I have read there isn't much I can do with the CapOne charge-off so I am looking at other options.
CO could be holding your scores down especially if it is constantly updated.
+1

It is being constantly updated...5 years now. I believe I am out of the SOL in my state (Arkansas). Is their anyway to stop the constant monthly updating by Capital One?

It can update until it's pif or in 2-2-1/2 years (7-7-1/2 yrs from DOFD).

Moving to Gen Cred

Re: Charging up AmEx to improve Utilization Ratio?

takeshi74 — Thu, 19 Jun 2014 13:08:32 GMT

@Anonymous wrote:
But, based on reading the experiences of others that seems like a no-go.

I'd suggest attempting to address the derogs versus relying solely on the experiences of others. Definitely be sure to carefully research before taking action though. As others have said, utilization isn't your issue. Derogs are always a major bottleneck.