How is NPSL calculated in UTIL

[dallasareaguy]

My buddy at work just asked me a question..

He has an AMEX with $35,000 and a NPSL Amex. If he puts say a $20,000 balance on the NPSL card... and it hits statement cut.. how does it calculate his UTIL?

[Anonymous]

It won't count tward your UTLI.

[CreditCuriosity]

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@Anonymous wrote:
It won't count tward your UTLI.

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I believe this varies with the FICO model?  I am also curious about this, I know it doesn't for 08, but not so sure about other models.. Would love to hear someone elses view point on this that is more knowledgeable than myself

[EJMiv]

Yes, it does vary by scoring model. When it's counted as a revolver it hits your utilization. When factored as an open account, it's not supposed to, but I'd still be nervous about it.

[takeshi74]

Be very careful with the use of NPSL.  In this context it's in reference to charge cards but there are NPSL credit cards that report limits and they work differently and impact revolving utilization differently.

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@CreditCuriousity wrote:

I believe this varies with the FICO model?  I am also curious about this, I know it doesn't for 08, but not so sure about other models.. Would love to hear someone elses view point on this that is more knowledgeable than myself

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I don't recall the specifics but the current models do not factor charge cards into revolving utilization where some older models do.

NPSL credit cards are different in that one can exceed the reported limit but one does have to immediately pay at least the balance over the reported limit.  These cards do factor into revolving utiization.  AFAIK there are no longer NPSL credit cards that do not report a limit.

[Revelate]

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@takeshi74 wrote:

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@CreditCuriousity wrote:

I believe this varies with the FICO model?  I am also curious about this, I know it doesn't for 08, but not so sure about other models.. Would love to hear someone elses view point on this that is more knowledgeable than myself

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I don't recall the specifics but the current models do not factor charge cards into revolving utilization where some older models do.

NPSL credit cards are different in that one can exceed the reported limit but one does have to immediately pay at least the balance over the reported limit.  These cards do factor into revolving utiization.  AFAIK there are no longer NPSL credit cards that do not report a limit.

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creditnocash who has this scenario on a regular basis, suggests EQ FICO 8 does actually factor Amex charge cards in and the rest of FICO 8 and FICO 04 do not, explicitly on the Term = 1 month which Amex does report their charge card tradelines as.

FICO 98 does but meh.  In the places it does count, the high balance is used in place of an actual limit for revolving utilization calculation.

Anyway it's a temporary problem, has to be PIF the following month so long term doesn't matter.

[CreditCuriosity]

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@Revelate wrote:

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@takeshi74 wrote:

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@CreditCuriousity wrote:

I believe this varies with the FICO model?  I am also curious about this, I know it doesn't for 08, but not so sure about other models.. Would love to hear someone elses view point on this that is more knowledgeable than myself

---

I don't recall the specifics but the current models do not factor charge cards into revolving utilization where some older models do.

NPSL credit cards are different in that one can exceed the reported limit but one does have to immediately pay at least the balance over the reported limit.  These cards do factor into revolving utiization.  AFAIK there are no longer NPSL credit cards that do not report a limit.

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creditnocash who has this scenario on a regular basis, suggests EQ FICO 8 does actually factor Amex charge cards in and the rest of FICO 8 and FICO 04 do not, explicitly on the Term = 1 month which Amex does report their charge card tradelines as.

FICO 98 does but meh.  In the places it does count, the high balance is used in place of an actual limit for revolving utilization calculation.

Anyway it's a temporary problem, has to be PIF the following month so long term doesn't matter.

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Just a pain trying to figure out everything... EQ Fico 08 does seem to appear to do things a bit different than others being TU/EXP.. You think it would be the EXACT same as you are just feeding FICO the SAME data from either EXP/EQ/TU, but seems to be a difference for whatever reason.  EQ is always my wild card as it has crazy swing in scores of 30 points some months where others are 1 or 2 points..  Why?  Something is different and I just don't know what it is.. Would love to know!