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AMEX Pay-over-time and Credit Utilization

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Super Contributor

Re: AMEX Pay-over-time and Credit Utilization


@Thomas_Thumb wrote:

@Scuderia 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.

 

 


Question, @Thomas_Thumb 

 

When you say "high balance" is it the highest reported balance, or the highest internal balance.

 

The reason I ask is that I always thought it referred to the internal, intra-cycle, balance without regard to what balance was being reported by the time the statement cut. But now that I actually have a personal charge card for the first time, I see that it reported zero balance -- which is the statement balance -- as the highest balance even though I had been using the card for the past 2 months.



FICO8 EQ 749 TU 779 EX 744 Total revolving limits 671300 (560300 reporting)
Message 11 of 13
Senior Contributor

Re: AMEX Pay-over-time and Credit Utilization


@SouthJamaica wrote:

@Thomas_Thumb wrote:

@Scuderia 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.

 

 


Question, @Thomas_Thumb 

 

When you say "high balance" is it the highest reported balance, or the highest internal balance.

 

The reason I ask is that I always thought it referred to the internal, intra-cycle, balance without regard to what balance was being reported by the time the statement cut. But now that I actually have a personal charge card for the first time, I see that it reported zero balance -- which is the statement balance -- as the highest balance even though I had been using the card for the past 2 months.


It depends on the card issuer.

a. For my Best Buy store card; HB is the highest balance on the card. I PIF all cards after statement received. In the case of Best Buy another charge (or two) posted before due date but after statement was cut. The reported HB was greater than my highest statement balance.

b. For my AMEX charge card; HB has always been equal to highest statement balance.

Fico 8: .......EQ 850 TU 850 EX 850
Fico 9: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
VS 3.0:...... EQ 835 TU 835 EX 835
Fico 8 BC:. EQ 892 TU 900 EX 900
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 12 of 13
Super Contributor

Re: AMEX Pay-over-time and Credit Utilization


@Thomas_Thumb wrote:

@SouthJamaica wrote:

@Thomas_Thumb wrote:

@Scuderia 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.

 

 


Question, @Thomas_Thumb 

 

When you say "high balance" is it the highest reported balance, or the highest internal balance.

 

The reason I ask is that I always thought it referred to the internal, intra-cycle, balance without regard to what balance was being reported by the time the statement cut. But now that I actually have a personal charge card for the first time, I see that it reported zero balance -- which is the statement balance -- as the highest balance even though I had been using the card for the past 2 months.


It depends on the card issuer.

a. For my Best Buy store card; HB is the highest balance on the card. I PIF all cards after statement received. In the case of Best Buy another charge (or two) posted before due date but after statement was cut. The reported HB was greater than my highest statement balance.

b. For my AMEX charge card; HB has always been equal to highest statement balance.


Great. Thanks for the information. I was thinking Amex. I thought those were the only charge cards.



FICO8 EQ 749 TU 779 EX 744 Total revolving limits 671300 (560300 reporting)
Message 13 of 13