"Charge " card reports as revolving? Fico confused?? Help!

[pizza1]

I have a store retail card that is a charge card, $0 interest. But was told today by their credit department that it reports as a revolving account to the credit bureaus, and it reports lbalance and not limit! How does Fico respond to this as it factoring util etc.... I'm confused and I'm sure Fico will be too! Lol!!!

[pizza1]

Meant to say that the acct reports balance at the time of statement, but NOT credit limit.

[starry1]

I'm interested in the answer to this as well. I have a Von Maur card that does this. I never noticed any score fluctuation when this card reported a balance, so I'm not sure if it is scored at all.

[vanillabean]

I suppose it depends on the definition or context of the term revolving. Some say it means "a different payment each month depending on your current balance", others that you are free to carry over a balance. Another thing, and I may not remember this correctly, is that when a credit limit is not reported, FICO uses the high balance instead, except for when the account type is revolving in which case the card is ignored for util. You may want to consult your lawyer for a fuller interpretation.

[pizza1]

Stary1..... That's the card I'm talking about !! Lmao!! I'm wondering if I use the card, and pif BEFORE statement cuts, then they have to report a $0 balance right?? Cause there was activity in the card, then a payment that resulted in a $0 balance.

Since there is no credit limit reported, only balance that month at statement time, I would think that Fico wouldn't factor that acct in into total util??!' This is what I'm unsure of, lol!!!

[RobertEG]

It's a revolving line of credit, in that they extend to you the discretionary use of an approved line of credit, you decide how much credit to use, and your monthly payments then revolve around its usage.

Whether or not you have a speciic credit limit, or they choose to report a CL to the CRAs, it is revolving credit.

FICO handles the absence of reporting of a specific CL on revolving accounts by using its highest prior balance as a pseudo "credit limit" for purposes of calcualtion of percent utilization of the line of credit.

[Revelate]

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@pizza1 wrote:
Stary1..... That's the card I'm talking about !! Lmao!! I'm wondering if I use the card, and pif BEFORE statement cuts, then they have to report a $0 balance right?? Cause there was activity in the card, then a payment that resulted in a $0 balance.

Since there is no credit limit reported, only balance that month at statement time, I would think that Fico wouldn't factor that acct in into total util??!' This is what I'm unsure of, lol!!!

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I believe if the tradeline has a term of One Month that it'll be discounted in the 04/08 model; however, if it's not, all bets are off to my knowledge.  I do know that none of the FICO's I track (EQ '04, TU '08) blinked when 11.5K was reported on my Zync for November.  

Beyond that +1 to everything REG stated.

[pizza1]

Wow... Thank you RobertEG, and Revelate!!!

So from what you said, this is now how I understand it. Lets say for example I have the following reporting:

Visa1- $0/$500
Visa2- $0/$500
MC. - $9/$1k
Chg - $50/ -

So would my balance be $59/$2k = 2.9% util??? If Fico doesn't see a CL and uses "balance" instead, is the balance factored into the util or is the balance act as a CL ? Thanks for your help so I understand better!
Is it just better for me to pif before statement cuts so I don't have to worry about it and it report $0?? Lol

[Anonymous]

It will use the highest balance ever reported on the card for utilization.

If your current balance is $200 but at one time it was $7000, it will use the $7000 as the CL for utilization purposes.

[pizza1]

Ooooooo..... Ok ... Sooo if Fico will use the highest balance ever reported and plug it in as CL. then the same senerio above would then be $9/$2059= 0.44% util ??