I'm new here.
A few months ago, I applied and received a card with no pre-set credit limit (I found that they all you and freeze the card if you spend X amount of dollars). I'm referring to American Express Green, Gold, Platinum, and others.
I pay this card as agreed, in full when the bill arrives. <-- This is correct, right? Sorry, this is my first time with this type of card.
I was wondering if how this affects my FICO score.
This is how it affects my FAKO score courtesy of freecreditreport.com
They take my total limits from my other credit cards, WITHOUT any additional credit limit from my American Express Gold card. However, they total all the balances from all my cards INCLUDING my American Express Gold card.
I figured this out because, they have an overview which shows "percentage of credit left." You can imagine that number is a lot lower than it should have been. I don't know if that affects my FAKO score.
I haven't figured out how to read it in my FICO report. I'm currently suscribed to ScoreWatch.
I don't know where I got the idea but correct me if I'm wrong.
If I spend X amount (example: $20K) Pay it off in a month as agreed. I had the idea that $20K is the new limit used by the bureaus (since the limit is hidden with the American Express Gold card.)
freecreditreport.com factors the limit as $0. I'm curious what would have happened iff my American Express balance exceeded the limits of all my other cards. Would it show the amount of credit I have as negative? It makes no sense.
Well, that's why I'm here to use see how FICO really works and not the FAKO.
American Express No-Preset Spending Limit. How does FICO Calculate these type of cards?
Message Edited by Holan on 04-16-2009 12:54 PM
Message Edited by Holan on 04-16-2009 12:55 PM
