How does NO Limit Credit Cards effect DTI amount and credit balance

[Anonymous]

I am considering applying for a AMEX No Limit Credit card. Can anyone tell me how a NO Limit card scores your overall credit balance.

Example:  I have a BofA for $10,000 and CHASE for $5,000, my total credit is $15,000  with less that 5% DTI.

How will adding NO LIMIT change the $15,000.

This is my first post!  I appreciate all the information this site provides!

[Creditaddict]

I don't believe it will change your total available cl of $15k.  you would be scored on paying on time and having another good standing trade line.  I'm sure others will have a better response to this also

[BabyBlue]

Although I do not have a no credit limit credit card, my understanding is that the highest reported balance may be used in lieu of credit limit when calculating utilization. I think I read some posts here that state that. But, I am sure more knowledgeable people will respond soon.

Good luck  

[Anonymous]

Thanks for the Replies.... New to the community. I searched the forum and found what I needed. It seems to be a little trickey depending on what credit agency. I think I will just apply for a  $50k card to avoid the confusion.

[Creditaddict]

creditors don't usually like to be to far ahead of your highest limit.

but if your not going to carry a balance on your other cards and you are going to use the amex charge card, this is not going to negatively effect your scores at all, in fact if you put a lot through it, it will probably help

[haulingthescoreup]

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@Anonymous wrote:

I am considering applying for a AMEX No Limit Credit card. Can anyone tell me how a NO Limit card scores your overall credit balance.

Example:  I have a BofA for $10,000 and CHASE for $5,000, my total credit is $15,000  with less that 5% DTI.

How will adding NO LIMIT change the $15,000.

This is my first post!  I appreciate all the information this site provides!

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Hi, welcome to the forums!

American Express cards are a bit different from Visa Signature and World MC cards. AmEx charge cards are ignored for util, except in the older version of TU which we're stuck with here. So you should be OK.

Most Signature and many World cards are trickier, in that they report the balance, but not the CL. They use the highest reported balance as the CL, so the first time that high balance reports, it's pretty ugly.

[TangMeister]

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@haulingthescoreup wrote:

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@Anonymous wrote:

I am considering applying for a AMEX No Limit Credit card. Can anyone tell me how a NO Limit card scores your overall credit balance.

Example:  I have a BofA for $10,000 and CHASE for $5,000, my total credit is $15,000  with less that 5% DTI.

How will adding NO LIMIT change the $15,000.

This is my first post!  I appreciate all the information this site provides!

---

Hi, welcome to the forums!

American Express cards are a bit different from Visa Signature and World MC cards. AmEx charge cards are ignored for util, except in the older version of TU which we're stuck with here. So you should be OK.

Most Signature and many World cards are trickier, in that they report the balance, but not the CL. They use the highest reported balance as the CL, so the first time that high balance reports, it's pretty ugly.

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HTSU, are you referring to the effect on TU's FICO scored on classic 98?  I have a world elite, and let a pretty good sized balance report with no effect on EQ's FICO at all. Actually, my EQ FICO went up a little (unrelated to the balance), so it would seem the 2004 FICO version scores these cards correctly.  I have not checked TU's FICO to see how it looks, though.   

[haulingthescoreup]

I was referring to the combo of an AmEx charge card and TU 98. The EQ and EX and the newer TU figured how to deal with AmEx charge cards.

I don't know whether they've gotten a workaround for Signature and MC yet, in other words, learning to ignore them.

I have a World Card from USAA, which fortunately reports the limit on it. And I know that there are isolated instances of other World and Sig cards that report the limit, even though part of the deal is that you're allowed to go over the limit.

Now if all the rest of the lenders would get on board!

That's interesting to know that the balance on your World card is being ignored! Is the CL higher than $30K, by chance?

[TangMeister]

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@haulingthescoreup wrote:

I was referring to the combo of an AmEx charge card and TU 98. The EQ and EX and the newer TU figured how to deal with AmEx charge cards.

I don't know whether they've gotten a workaround for Signature and MC yet, in other words, learning to ignore them.

I have a World Card from USAA, which fortunately reports the limit on it. And I know that there are isolated instances of other World and Sig cards that report the limit, even though part of the deal is that you're allowed to go over the limit.

Now if all the rest of the lenders would get on board!

That's interesting to know that the balance on your World card is being ignored! Is the CL higher than $30K, by chance?

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Ah, ok, thanks for clarifying.  I thought you were probably referring to FICO '98 with TU, but wanted to make sure.  I have some Visa Signatures as well, but have never let them report a balance so far.

No, it's only $10k and (thank goodness) reports correctly on EQ as an "open" rather than "revolving" account.  I rarely let any of my higher limit cards report a balance.  It is interesting though, how FICO handles them.  Has the CL reporting threshold been nailed down as $30k+ for revolving CCs on FICO '04?  I thought it might be $35k+.  I really need to research this more.