I have read on the forum that the NPSL cards aren't taken into consideration when calculating utilization ALTHOUGH when my platinum and gold card report balances I am seeing a slight (minimal) ding to my report. Is there a certain formula used in FICO scoring for these NPSL cards? I was thinking of only using my NPSL cards for everyday spending as my other SUB for spending have been met. Reason being I want to strengthen my relationship with Amex. Before doing that I need to know how it works exactly.
@learningcredit54 wrote:I have read on the forum that the NPSL cards aren't taken into consideration when calculating utilization ALTHOUGH when my platinum and gold card report balances I am seeing a slight (minimal) ding to my report. Is there a certain formula used in FICO scoring for these NPSL cards? I was thinking of only using my NPSL cards for everyday spending as my other SUB for spending have been met. Reason being I want to strengthen my relationship with Amex. Before doing that I need to know how it works exactly.
It's not factored into percentage utilization, but I believe it is counted as an 'account with balance'.
I believe there is a single scoring model that does count it in percentage utilization... EX FICO 2. In that model I believe the highest historical balance is treated as though it were a credit limit, and the current reported balance is measured against that.
@Ricky_D wrote:Yeah, same happend to me. All cards are always paid promptly when charges post. I'm always AZEO. But in early June when my plat and gold cards posted their annual fees in the same week, I paid the same day each posted. Amex still reported balances and my score took a 16 point hit. Just yesterday Aug 8 did my score recover. Never happend like that before.
@Ricky_D Might have been number of accounts reporting a balance went over 50%. Was this the case? As @SouthJamaica posted. Util isnt taken into account due to no credit limit or the catagory NSPL.
@learningcredit54 wrote:I have read on the forum that the NPSL cards aren't taken into consideration when calculating utilization ALTHOUGH when my platinum and gold card report balances I am seeing a slight (minimal) ding to my report. Is there a certain formula used in FICO scoring for these NPSL cards? I was thinking of only using my NPSL cards for everyday spending as my other SUB for spending have been met. Reason being I want to strengthen my relationship with Amex. Before doing that I need to know how it works exactly.
NPSL works 2 ways. Charge Card vs Credit Credit. There is no credit limit on AMEX charge cards. Not that you can go charge a new Lear Jet. Same applies to credit cards that have the same NSPL label. Difference is. You can charge over the limit on your credit card. But have to pay the amount to get below the credit limit again come statement date. And AMEX always has to be PIF as we know come statement date. If a balance is reported. It isnt factured into your util %'s. So no score drop. It comes down to number of accounts reporting a balance more than likely. If you passed more than 50%+ reporting. Theres your score ding. I'm still new to the AMEX family. Others can chime in on what makes your relationship with AMEX stronger. I'm still learning now.
@FireMedic1 wrote:
@learningcredit54 wrote:I have read on the forum that the NPSL cards aren't taken into consideration when calculating utilization ALTHOUGH when my platinum and gold card report balances I am seeing a slight (minimal) ding to my report. Is there a certain formula used in FICO scoring for these NPSL cards? I was thinking of only using my NPSL cards for everyday spending as my other SUB for spending have been met. Reason being I want to strengthen my relationship with Amex. Before doing that I need to know how it works exactly.
NPSL works 2 ways. Charge Card vs Credit Credit. There is no credit limit on AMEX charge cards. Not that you can go charge a new Lear Jet. Same applies to credit cards that have the same NSPL label. Difference is. You can charge over the limit on your credit card. But have to pay the amount to get below the credit limit again come statement date. And AMEX always has to be PIF as we know come statement date. If a balance is reported. It isnt factured into your util %'s. So no score drop. It comes down to number of accounts reporting a balance more than likely. If you passed more than 50%+ reporting. Theres your score ding. I'm still new to the AMEX family. Others can chime in on what makes your relationship with AMEX stronger. I'm still learning now.
I did a 'plan it ' on my BCP. A few months ago I had a big (from the bad ol days) bill come up. I spread out over a few cards. I lost a few points the first month. I paid 3/4 on my plan it the following month but it still reported. My scores went up higher than ever. The next monthvAMEX - this week- Amex gave me to new cards with a SP: business plat and business gold for my 2 businesses. So long story short, I agree with you that it depends on all cards snd their balances. And that Amex is super happy with me.
12/22 : 
