Amex reports net-30 charge card bill?

Anonymous · ‎11-11-2014

I just started with an Amex Gold, and within a month Equifax said that Amex had reported a balance (not late) and my FICO score fell 11 points. I asked for an inquiry because I didn't think net-30 debt should have an effec tlike that. Equifax didn't give me a written reply to my inquiry (marked it closed, but no reply), although evidently they checked, determined that I had indeed paid my bill and the balnce was zero again, and my score came back up... by 9 points, not 11. There were no other increases (all balances the same or less in my credit file). So is net-30 charge card debt supposed to be reported by AmEx? Or did Amex make a mistake? Any why did I lose points in the deal?

TrueGeminiNC · ‎11-11-2014

@Anonymous wrote:
I just started with an Amex Gold, and within a month Equifax said that Amex had reported a balance (not late) and my FICO score fell 11 points. I asked for an inquiry because I didn't think net-30 debt should have an effec tlike that. Equifax didn't give me a written reply to my inquiry (marked it closed, but no reply), although evidently they checked, determined that I had indeed paid my bill and the balnce was zero again, and my score came back up... by 9 points, not 11. There were no other increases (all balances the same or less in my credit file). So is net-30 charge card debt supposed to be reported by AmEx? Or did Amex make a mistake? Any why did I lose points in the deal?

I don't believe charge cards are factored into your utilization. However, the drop may be attribtued to a change in the average age of your accounts with the new card now reporting.

lhcole77 · ‎11-11-2014

Welcome to the forms. Charge cards are not factored into utilization. They do, however, factor into how many accounts are reporting with the balance. The more accounts that report with Balance, the more chance your score will be affected.

JediNeo · ‎11-11-2014

Greetings and welcome to the forum. Your credit score can change for a number of reasons, utl%, inquiry added/removed, AAoA. For optimum scoring you'd only want one card to report a balance. Preferably under 30% utl, ideally under 10%. You'll have to play with your file to find your sweet spot.

You state your other card balances stayed the same or were lowered. Now a new balance (AMEX) was reported to the CRAs. This new card reporting could lower your score. Personally I think it's a combo of an additional card reporting a balance plus the AAoA hit of the new card.

Anonymous · ‎11-12-2014

Thank you for the useful and informative responses.

Just to close the loop and to be fair (since I said they hadn't) Equifax did issue a report on my inquiry. That happened after I posted this thread. There was a one-day lag between when they marked it complete and when the report became available. I'm kind of annoyed that my explanatory remarks filed with the complaint are not present (so why should I think my remarks were even seen). It just says "balance correctly reportred."

Some months ago I used the US Mail to send a dispute to Equifax .Back then I was buying repoerting services only from Experian which only gives me FAKO. I told Equifax that things were showing up on the Equifax portion of my Experian report that looked wrong. The reply I eventually received literally said "next time buy the Equifax reporting service" and nothing else.

takeshi74 · ‎11-12-2014

@Anonymous wrote:
There were no other increases (all balances the same or less in my credit file). So is net-30 charge card debt supposed to be reported by AmEx? Or did Amex make a mistake? Any why did I lose points in the deal?

Sounds like you're overlooking other changes. 11 points really isn't much of a change and I wouldn't suggest fretting over it. If you want to understand the cause(s) then you need to very carefully compare reports before and after the score change. You need to consider not only reported balances but all other factors as well.

Involver · ‎11-12-2014

Charge cards are included in the 08 algorithm as an account with a balance. While it doesn't count towards your utilization, crossing certain thresholds on # of accounts with balances will cause changes in scoring.

peaceonearth · ‎11-12-2014

@Anonymous wrote:
I just started with an Amex Gold, and within a month Equifax said that Amex had reported a balance (not late) and my FICO score fell 11 points. I asked for an inquiry because I didn't think net-30 debt should have an effec tlike that. Equifax didn't give me a written reply to my inquiry (marked it closed, but no reply), although evidently they checked, determined that I had indeed paid my bill and the balnce was zero again, and my score came back up... by 9 points, not 11. There were no other increases (all balances the same or less in my credit file). So is net-30 charge card debt supposed to be reported by AmEx? Or did Amex make a mistake? Any why did I lose points in the deal?
American Express has no such Net-30.
You supposed to pay the bill as soon as you receive it or on the statment closing date..
Most AMEX charge cards are due within 15 days after statment but, American express charge Cards need to be paid Upon Receipt.

lhcole77 · ‎11-12-2014

@peaceonearth wrote:
American Express has no such Net-30.
You supposed to pay the bill as soon as you receive it or on the statment closing date..
Most AMEX charge cards are due within 15 days after statment but, American express charge Cards need to be paid Upon Receipt.

This is not accurate. Payment due date is 30 days after the end of the billing period.

There is a suggested "please pay by" date, but this is suggested only. This may be what you are referring to when you say "Most AMEX charge cards are due within 15 days after statment".

peaceonearth · ‎11-12-2014

@lhcole77 wrote:
@peaceonearth wrote:
American Express has no such Net-30.
You supposed to pay the bill as soon as you receive it or on the statment closing date..
Most AMEX charge cards are due within 15 days after statment but, American express charge Cards need to be paid Upon Receipt.
This is not accurate. Payment due date is 30 days after the end of the billing period.

There is a suggested "please pay by" date, but this is suggested only. This may be what you are referring to when you say "Most AMEX charge cards are due within 15 days after statment".

One more time, All American Express Charge Cards are: “DUE UPON RECEIPT”

Let's say, your statement closing date is on 11/12/2014 American Express Suggests that you pay by 11/27/2014 that gives you 15 days.

You can still pay by 12/11/2014 almost 30 days time to pay, if that's what you want but; what AMEX wants is “DUE UPON RECEIPT”.