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Hello everyone. Long time lurker, learning a lot, thanks. First time poster.
I have a total CL of $12.20K (Venture $5K, WF 4.2K, QuickSilver $3K) and AMEX pay-over-time limit on my Platinum card of $30K. (not using it) If I would use, say $3K with the AMEX would they report the limit? $3K is 24.59% of CL's but it would be only 7.1% out of $42.2K if AMEX's limit is also reported?
The Experian FICO 98 score family is affected by charge card balances. The classic Experian FICO 98 is one of your mortgage scores. Other FICO models ignore charge card balances when computing utilization.
Normally, when computing utilization, a charge card's highest balance is used as one's limit. I don't see how that can change for POT simply because AMEX gives you a limit, but I'd love to hear from someone that it does.
Thanks guys. I think I should try and carry a $1K as pay-over-time and see in order to be 100% sure. Once and if I do that I will report it here.
I carried a 5,000 balance for a couple months and it had zero effect on my scores. It is not counted against your utility.
@Anonymous, which scores did you look at?
You know, I don't think I looked at my older versions while carrying a balance. Only my Fico 8 and 9s which were not affected..
@HeavenOhio wrote:Normally, when computing utilization, a charge card's highest balance is used as one's limit. I don't see how that can change for POT simply because AMEX gives you a limit, but I'd love to hear from someone that it does.
At the very least this is what would likely happen, they certainly aren't going count the $30K POT limit.
I have a feeling they are only going to consider the OP's $12K CL from the 3 revolvers though.
If the balance didn't go towards utilization total. I would have utilized POT instead of just letting the charge ride out the 0% APR on my ED card.
@Anonymous wrote:You know, I don't think I looked at my older versions while carrying a balance. Only my Fico 8 and 9s which were not affected..
The older Fico 98 version reported by Experian looks at charge card current balance (B) divided by high balance (HB) for individual card utilization. For my AMEX green card high balance is the highest reported statement balance. I have an approved $50k "hidden limit" for the card. However, this limit is not used in any calculations -after all, it's hidden.
I was not putting much spend on my AMEX green card and had a low HB of $1200. A couple years ago I decided to report more spend on the card to bump up HB. I did this to give provide more spend room without negatively impacting my EX mortgage Fico score. [best to keep individual card UT % under 29% from a Fico score perspective - IMO]. Here's what I did.
a) One month put $1997 on card => UT = 100%, 1997/1997 for that month
b) Subsequently put $2803 on card => UT = 100%, 2803/2803 for that month.
With a $1200 HB I hit 29% UT at a $348 statement balance. With a $2803 HB I now won't hit 29% until statement balance reaches $812. Sure, I took a EX Fico 98 hit for having B/HB report at 100% a couple times. However, I wasn't looking for new credit then. Now I have more flexibility.