- How does that show up on your CR's?
- Does it show a credit limit even though it's a charge card?
- Does it report as a revolving TL?
DH is looking to get one as he's pre-quailified through the site, but curious if he should pay his UTI down which is probably around 40% total across 6 TL's. My thought process - if you're approved, then you're approved. Paying down UTI isn't going to decrease an APR since there is none, or increase a SL, since it's NPSL. Since he's never owned an AmEx, I'm assuming he'll have to prove his buying power regardless, no?
TIA!
@Hut1 wrote:
- How does that show up on your CR's? My card doesn't show up unless I have a balance due when the statement cuts.
- Does it show a credit limit even though it's a charge card? Charge cards don't have credit limits though they may have a limit cap for your spending.
- Does it report as a revolving TL? It's a charge card. It doesn't have a set credit limit nor does it have a revolving TL - In General but YMMV for their POT program.
DH is looking to get one as he's pre-quailified through the site, but curious if he should pay his UTI down which is probably around 40% total across 6 TL's. My thought process - if you're approved, then you're approved. Paying down UTI isn't going to decrease an APR since there is none, or increase a SL, since it's NPSL. Since he's never owned an AmEx, I'm assuming he'll have to prove his buying power regardless, no?
TIA!
Lowering your UTL % is never a bad idea. Under 30% UTI shows a bump up in score as well as under 8.9% UTI shows a bump up in score.
If AMEX likes you, they may offer NPSL and possibly POT (a high APR% - IMO). I didn't have either untill I put a few months usage on the card. 4X back @ Grocery and Resurants aren't bad catagories plus the other perks.
Good Luck!
Older versions of fico will use the highest charged amount as the limit for the card. Newer versions don't.
Thanks gents. Can either of you tell me how this card affects your FICO?
I have the Gold and the Platinum. They report as charge cards/revolving with a term of one month.
As mentioned above-there is no limit disclosed on the credit report (although older FICO models do use the highest reported balance as a “limit”).
Any balance reported is not factored into my utilization for current scoring models.
The account IS factored into the number of accounts with a balance. So having a balance on the card could impact your FICO if this puts your % of accounts with a balance over a threshold.
Your internal spending limit (not reported anywhere) will be determined by your spending and payment patterns over time.
Where a lower utilization figure at approval time MAY make a difference is in the pay over time option terms. This is unrelated to your internal spending limit and carries pretty high interest-but you may get more favorable terms with a better profile at the time of approval. This will only matter if you intend to use the feature.
I’m guessing my internal limit is in the $5k neighborhood? My POT limit is $25k or something. I’m unsure how i would reach that limit with a much lower internal spending cap. I’ve never used POT so maybe someone else can offer more info. But that’s the only variable for the card terms - so you’re approved or you’re not- but a more favorable profile might give you more favorable POT terms.
I don’t think the card does much for my FICO one way or another except counting for an account (with or without a balance) and account aging/payment history. Whether my balance reports and $2 or $2000 makes no difference to my score.
As mentioned above-there is no limit disclosed on the credit report (although older FICO models do use the highest reported balance as a “limit”).
Any balance reported is not factored into my utilization for current scoring models.
The account IS factored into the number of accounts with a balance. So having a balance on the card could impact your FICO if this puts your % of accounts with a balance over a threshold.
Your internal spending limit (not reported anywhere) will be determined by your spending and payment patterns over time.
Where a lower utilization figure at approval time MAY make a difference is in the pay over time option terms. This is unrelated to your internal spending limit and carries pretty high interest-but you may get more favorable terms with a better profile at the time of approval. This will only matter if you intend to use the feature.
I’m guessing my internal limit is in the $5k neighborhood? My POT limit is $25k or something. I’m unsure how i would reach that limit with a much lower internal spending cap. I’ve never used POT so maybe someone else can offer more info. But that’s the only variable for the card terms - so you’re approved or you’re not- but a more favorable profile might give you more favorable POT terms.
I don’t think the card does much for my FICO one way or another except counting for an account (with or without a balance) and account aging/payment history. Whether my balance reports and $2 or $2000 makes no difference to my score.
@I_Love_Cards wrote:
I have the Gold and the Platinum. They report as charge cards/revolving with a term of one month.
As mentioned above-there is no limit disclosed on the credit report (although older FICO models do use the highest reported balance as a “limit”).
Any balance reported is not factored into my utilization for current scoring models.
The account IS factored into the number of accounts with a balance. So having a balance on the card could impact your FICO if this puts your % of accounts with a balance over a threshold.
Your internal spending limit (not reported anywhere) will be determined by your spending and payment patterns over time.
Where a lower utilization figure at approval time MAY make a difference is in the pay over time option terms. This is unrelated to your internal spending limit and carries pretty high interest-but you may get more favorable terms with a better profile at the time of approval. This will only matter if you intend to use the feature.
I’m guessing my internal limit is in the $5k neighborhood? My POT limit is $25k or something. I’m unsure how i would reach that limit with a much lower internal spending cap. I’ve never used POT so maybe someone else can offer more info. But that’s the only variable for the card terms - so you’re approved or you’re not- but a more favorable profile might give you more favorable POT terms.
I don’t think the card does much for my FICO one way or another except counting for an account (with or without a balance) and account aging/payment history. Whether my balance reports and $2 or $2000 makes no difference to my score.
This is exactly what I was looking for. Thank you!
@Techgirlie wrote:I've been searching for this info everywhere. I really appreciate this detailed information!
We ask the hard questions in here and wait for smarter people to respond. 😆