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I thought that being a charge card, it had no effect on util for FICO. But I've read some posts that say that it is factored in. I'd really appreciate some clarity on this.
Thank you.
@bichonmom wrote:I thought that being a charge card, it had no effect on util for FICO. But I've read some posts that say that it is factored in. I'd really appreciate some clarity on this.
Thank you.
I believe it's factored in from your highest bal. reporting which becomes your limit, may be wrong on this so I hope an existing cardholder can chime in here!
Ive read it doesnt help. Similar to a Visa sig or MC world, theres no balance to compare your charges to for uti calculation.
Any Zync holders out there? I'd really love to know if the Zync charge is counted towards util on FICO.
@bichonmom wrote:Any Zync holders out there? I'd really love to know if the Zync charge is counted towards util on FICO.
My understanding is that it does not count on the newer scoring models. The EQ that you get from here does not factor it in for util. But, the TU from here does; however, it's not the latest model.
If I'm wrong, then I hope that someone will correct me. But, this seems to hold true for the way usage on my Green affects my util.
@tinuviel wrote:
@bichonmom wrote:Any Zync holders out there? I'd really love to know if the Zync charge is counted towards util on FICO.
My understanding is that it does not count on the newer scoring models. The EQ that you get from here does not factor it in for util. But, the TU from here does; however, it's not the latest model.
If I'm wrong, then I hope that someone will correct me. But, this seems to hold true for the way usage on my Green affects my util.
I would think if the green is how you described it the Zync should be the same way because it's in the same family.
Thanks! That is what I thought, but then I read that it was helping with util, so wasn't quite sure.
Platinum is the same way.
@bichonmom wrote:Thanks! That is what I thought, but then I read that it was helping with util, so wasn't quite sure.
Well, only in the sense that it's "absorbing" the util from cards that would otherwise count. For instance, if I allowed a balance to report on my MC or Visa, that would count towards my util. But, if I use my Amex charge card (Zync, Green, Gold, Plat), then that's so many charges that are NOT sitting on my MC or Visa. So, if I have a Visa with a $5000 CL and that's all (for simplicity's sake), and I allow $4500 worth of charges to report, I'm at 90% util -- not good! But, if I have a NPSL Amex along with the Visa, and I allow $500 to report on the Visa and put the remaining $4000 on my Amex, then I'm only at 10%, because the Amex balance doesn't factor in -- much better!
Does that make sense?
Wow! That's cool! Thank you.
Fortunately, my util isn't an issue, but that's because I pre-pay before the stmt cuts. It would be nice to not have to do that. Definite perk to having a charge card.