Care Credit Charge Card - Card usage being factored into score or not?

[credit8502020]

Hi All,

My Mother used her Care Credit back in January 2020. Apparently it is continuing to update as of August 2021 although she hasn't had a balance since then. I thought because she had not used it in such a long time that it is not being factored into the algorithm for her score. Although she doesn't have to use it, I have an opportunity to potentially use it if it will increase her scores even more, but want to make sure this is the right decision. 

Do charge cards factor differently that regular credit cards when considering scoring, etc.? 

Any advice regarding whether it may be best to use it now or just allow it to continue to not be factored into the scoring model since she will not be using it frequently is greatly appreciated. 

Here FICO 8 scores are:

800 - TU
799 - EXP
804 - EQ

Thanks! 

[RSX]

i wasnt aware that Care Credit was a Charge card - i thought it was Revolving

but - either way - as long as it is reporting $0 balance every month, it is not hurting her score at all - more likely it is helping

some lenders wont report every month if there is no usage - but in my experience more often lenders report every month, regardless of usage

if you want to use it - it will likely affect her score slightly, since there will be some utilization reporting on it - but it wont help here scorewise - it may help keep the card open, since they might close it due to lack of use at some point

[dragontears]

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@RSX wrote:

i wasnt aware that Care Credit was a Charge card - i thought it was Revolving

but - either way - as long as it is reporting $0 balance every month, it is not hurting her score at all - more likely it is helping

some lenders wont report every month if there is no usage - but in my experience more often lenders report every month, regardless of usage

if you want to use it - it will likely affect her score slightly, since there will be some utilization reporting on it - but it wont help here scorewise - it may help keep the card open, since they might close it due to lack of use at some point

---

A "charge" card is an old fashion term for store cards used by the CRAs to define account type as opposed to "true" charge cards such as Amex plat/gold/green. 

There is nothing special about care credit, it is factored into utilization and scores the same way as any other store card.

[credit8502020]

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@RSX wrote:

i wasnt aware that Care Credit was a Charge card - i thought it was Revolving

but - either way - as long as it is reporting $0 balance every month, it is not hurting her score at all - more likely it is helping

some lenders wont report every month if there is no usage - but in my experience more often lenders report every month, regardless of usage

if you want to use it - it will likely affect her score slightly, since there will be some utilization reporting on it - but it wont help here scorewise - it may help keep the card open, since they might close it due to lack of use at some point

---

@RSX Thank you for your feedback. It may actually be a revolving account. On the report it says account type is revolving, but loan type is charge account. I was moreso thinking about it helping keep the card open and the consideration of it being factored into the algorithm. I'm weighing if its even worth trying to keep using it and keep it open or just move forward and know it will eventually be closed. She doesn't have a lot of medical bills at all to use it for and my goal is to have any other small medical charges go on a better card anyway. Weighing pros and cons. It was just opened in 2019 and is a $3,000 credit limit. 

[credit8502020]

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@dragontears wrote:

---

@RSX wrote:

i wasnt aware that Care Credit was a Charge card - i thought it was Revolving

but - either way - as long as it is reporting $0 balance every month, it is not hurting her score at all - more likely it is helping

some lenders wont report every month if there is no usage - but in my experience more often lenders report every month, regardless of usage

if you want to use it - it will likely affect her score slightly, since there will be some utilization reporting on it - but it wont help here scorewise - it may help keep the card open, since they might close it due to lack of use at some point

---

A "charge" card is an old fashion term for store cards used by the CRAs to define account type as opposed to "true" charge cards such as Amex plat/gold/green. 

There is nothing special about care credit, it is factored into utilization and scores the same way as any other store card.

---

@dragontears Thank you for your feedback. Factored into utilization as a store card and not a regular credit card? 

[dragontears]

I am not an expert in store cards as I don't have any but my understanding is that the limit and balance contributes to utilization the same as any other revolving account. 

However, using a store card as the one with a balance when practicing AZEO results in a slightly lower FICO 8 than using a big bank card.

At least that is my understanding 

[credit8502020]

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@dragontears wrote:

I am not an expert in store cards as I don't have any but my understanding is that the limit and balance contributes to utilization the same as any other revolving account. 

However, using a store card as the one with a balance when practicing AZEO results in a slightly lower FICO 8 than using a big bank card.

At least that is my understanding 

---

@dragontears Ok. Thank you

[Iusedtolurk]

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@credit8502020 wrote:

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@RSX wrote:

i wasnt aware that Care Credit was a Charge card - i thought it was Revolving

but - either way - as long as it is reporting $0 balance every month, it is not hurting her score at all - more likely it is helping

some lenders wont report every month if there is no usage - but in my experience more often lenders report every month, regardless of usage

if you want to use it - it will likely affect her score slightly, since there will be some utilization reporting on it - but it wont help here scorewise - it may help keep the card open, since they might close it due to lack of use at some point

---

@RSX Thank you for your feedback. It may actually be a revolving account. On the report it says account type is revolving, but loan type is charge account. I was moreso thinking about it helping keep the card open and the consideration of it being factored into the algorithm. I'm weighing if its even worth trying to keep using it and keep it open or just move forward and know it will eventually be closed. She doesn't have a lot of medical bills at all to use it for and my goal is to have any other small medical charges go on a better card anyway. Weighing pros and cons. It was just opened in 2019 and is a $3,000 credit limit. 

---

@credit8502020   Care Credit is a pretty decent card and it doesn't have an annual fee so it's not hurting her at all by keeping it open.  In fact even though her scores are impressive the extra utilization buffering is always nice.

Additonally they are pretty good at granting CLIs. I bet if she clicked the luv button she would get an increase right now.

You can also use it at Walmart in certain depts. and Walgreens *(as well as other stores shown on website) for personal items we purchase everyday it doesn't have to be for medical bills only.

Great for pets and other family members who may need a teeth cleaning or what have you.

*One thing to note is that with most CCs you stand the chance of losing it for non-usage so that's something to keep in mind.

[credit8502020]

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@Iusedtolurk wrote:

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@credit8502020 wrote:

---

@RSX wrote:

i wasnt aware that Care Credit was a Charge card - i thought it was Revolving

but - either way - as long as it is reporting $0 balance every month, it is not hurting her score at all - more likely it is helping

some lenders wont report every month if there is no usage - but in my experience more often lenders report every month, regardless of usage

if you want to use it - it will likely affect her score slightly, since there will be some utilization reporting on it - but it wont help here scorewise - it may help keep the card open, since they might close it due to lack of use at some point

---

@RSX Thank you for your feedback. It may actually be a revolving account. On the report it says account type is revolving, but loan type is charge account. I was moreso thinking about it helping keep the card open and the consideration of it being factored into the algorithm. I'm weighing if its even worth trying to keep using it and keep it open or just move forward and know it will eventually be closed. She doesn't have a lot of medical bills at all to use it for and my goal is to have any other small medical charges go on a better card anyway. Weighing pros and cons. It was just opened in 2019 and is a $3,000 credit limit. 

---

@credit8502020   Care Credit is a pretty decent card and it doesn't have an annual fee so it's not hurting her at all by keeping it open.  In fact even though her scores are impressive the extra utilization buffering is always nice.

Additonally they are pretty good at granting CLIs. I bet if she clicked the luv button she would get an increase right now.

You can also use it at Walmart in certain depts. and Walgreens *(as well as other stores shown on website) for personal items we purchase everyday it doesn't have to be for medical bills only.

Great for pets and other family members who may need a teeth cleaning or what have you.

*One thing to note is that with most CCs you stand the chance of losing it for non-usage so that's something to keep in mind.

---

@Iusedtolurk Thank you for sharing these details. What's the "luv botton"? Do they do a Hard Inquiry for CLI increase requests?

 And yes, I agree regarding non-usage. That was actually my main concern. I wasn't aware of all the everyday items she could use it for so I need to go to the website and look for these options at Walgreens and Walmart.

[Iusedtolurk]

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@credit8502020 wrote:

---

@Iusedtolurk wrote:

---

@credit8502020 wrote:

---

@RSX wrote:

i wasnt aware that Care Credit was a Charge card - i thought it was Revolving

but - either way - as long as it is reporting $0 balance every month, it is not hurting her score at all - more likely it is helping

some lenders wont report every month if there is no usage - but in my experience more often lenders report every month, regardless of usage

if you want to use it - it will likely affect her score slightly, since there will be some utilization reporting on it - but it wont help here scorewise - it may help keep the card open, since they might close it due to lack of use at some point

---

@RSX Thank you for your feedback. It may actually be a revolving account. On the report it says account type is revolving, but loan type is charge account. I was moreso thinking about it helping keep the card open and the consideration of it being factored into the algorithm. I'm weighing if its even worth trying to keep using it and keep it open or just move forward and know it will eventually be closed. She doesn't have a lot of medical bills at all to use it for and my goal is to have any other small medical charges go on a better card anyway. Weighing pros and cons. It was just opened in 2019 and is a $3,000 credit limit. 

---

@credit8502020   Care Credit is a pretty decent card and it doesn't have an annual fee so it's not hurting her at all by keeping it open.  In fact even though her scores are impressive the extra utilization buffering is always nice.

Additonally they are pretty good at granting CLIs. I bet if she clicked the luv button she would get an increase right now.

You can also use it at Walmart in certain depts. and Walgreens *(as well as other stores shown on website) for personal items we purchase everyday it doesn't have to be for medical bills only.

Great for pets and other family members who may need a teeth cleaning or what have you.

*One thing to note is that with most CCs you stand the chance of losing it for non-usage so that's something to keep in mind.

---

@Iusedtolurk Thank you for sharing these details. What's the "luv botton"? Do they do a Hard Inquiry for CLI increase requests?

 And yes, I agree regarding non-usage. That was actually my main concern. I wasn't aware of all the everyday items she could use it for so I need to go to the website and look for these options at Walgreens and Walmart.

---

@credit8502020  When I was new to the forum and it came to CLIs I would always see posts referring to hitting the LUV button for the request. LOL So I would look all over for a red button something like this....(but never could find it)

Finally I realized that the LUV button "LUV Button" is the generic term that is used for credit cards that offer the option of requesting a CLI via their website.

On Care Credit account website it looks like this...

I have requested twice and it has always been a SP. I always have my Credit reports locked  just to make sure since it does state they may or may not pull your credit.

When you press the LUV button (request more button) it asks you to update income and HOW MUCH you want. People generally request 1 to 2 times their current limit. First time I requested I asked for 1500 got 3000 second time I requested asked for 2000 got 5000.

Good luck and let us know what happens if you decide to hit the LUV button.