You need to find out if they will report the CL or not. If they do then nothing will change. If they don't it will depend on what model score is being used.
@Anonymous wrote:I have a BOA Mastercard (had it about 10 years, about $6K line) and they have just sent an offer to "upgrade" my card with a World Points rewards program & services/offers, as well as converting the account to a revolving line with no pre-set spending limit. How would this affect my credit utilization? Overall, any thoughts on whether this is upgrade/good idea or bad idea/hidden hook?
Depends on if your going to miss the 6K reporting or not. I would talk to BOA and see if your CL will be reporting before you accept.
You'll want to see how it is reported to the credit bureaus, get some input from others and ask them how it appears on their credit reports.
For NPSL accounts reporting as revolving, we'll look at an NPSL account having a credit limit of $10,000, a highest balance of $1,000 and a current balance of $500 – with the $500 current balance being the one thing reported consistently in all examples:
- When both credit limit and highest balance are reported: utilization = 5% ($500/$10,000)
- When credit limit is not reported and highest balance is reported: utilization = 50% ($500/$1000)
- When neither credit limit nor highest balance are reported = account excluded from utilization
As you can see, such variations in reporting can easily result in a wide range of utilization percentages – 5% to 50% or higher – which can result in a wide range of FICO scores across the three bureaus for the same person with the same cards. Again, cards reported with the "open" account type are excluded from utilization calculations, and thus have no impact – good or bad – on the most recent versions of the FICO score.