Credit Card vs Charge Card

[credit8502020]

Hi All! So I was looking at a credit report for a family member that has the Syncb/Care Credit. Does anyone know if this is a charge card or credit card? On the MyFico report, it shows as a charge card but also has a credit limit.

If it is a charge card, how it is calculated in the FICO scores differently from a credit card? 

Thank you! 

[JoeRockhead]

CareCredit is a credit card (also comes in a MC version) but is considered more like an open ended consumer finance account with a preset SL. Instead of an ongoing, revolving credit line and interest charges, it acts as a short- or long-term loan. You can finance different "purchases" for varying lengths of time at 0% for 6, 12 or 18 months depending on the amount. If you fail to pay the balance off before the 0% term ends you are charged interest on the original amount "borrowed", not the remaining balance.

As for how it's calculated, that's above my pay grade, but hope this bit of info helps understand how it works.

[JoeRockhead]

I should have added that it is included as part of my revolving credit total, but it may be scored differently, and that's what I'm unsure about.

[credit8502020]

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@JoeRockhead wrote:

CareCredit is a credit card (also comes in a MC version) but is considered more like an open ended consumer finance account with a preset SL. Instead of an ongoing, revolving credit line and interest charges, it acts as a short- or long-term loan. You can finance different "purchases" for varying lengths of time at 0% for 6, 12 or 18 months depending on the amount. If you fail to pay the balance off before the 0% term ends you are charged interest on the original amount "borrowed", not the remaining balance.

As for how it's calculated, that's above my pay grade, but hope this bit of info helps understand how it works.

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@JoeRockhead Thank you for your feedback. I'm curious as to why it's listed on MyFico as a charge card if it's actually a credit card. 

[JoeRockhead]

@credit8502020 It's listed that way on my reports as well but also listed with all my other revolving accounts... Since I don't have any Amex charge cards, I wonder if an Amex Charge card with someone utilizing the POT feature would be scored, or treated the same way. Maybe someone who has more experience with all this will chime in, such as @Remedios, @UncleB, @Anonymous or @Aim_High

[Remedios]

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@credit8502020 wrote:

Hi All! So I was looking at a credit report for a family member that has the Syncb/Care Credit. Does anyone know if this is a charge card or credit card? On the MyFico report, it shows as a charge card but also has a credit limit.

If it is a charge card, how it is calculated in the FICO scores differently from a credit card? 

Thank you! 

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That's just a descriptor, it's a revolving line of credit and it's treated as such by scoring algorithm. So, no different than any credit card as far as scoring goes. 

True charge cards report as NPSL not "charge cards" 

[SouthJamaica]

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@credit8502020 wrote:

Hi All! So I was looking at a credit report for a family member that has the Syncb/Care Credit. Does anyone know if this is a charge card or credit card? On the MyFico report, it shows as a charge card but also has a credit limit.

If it is a charge card, how it is calculated in the FICO scores differently from a credit card? 

Thank you! 

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I don't understand that; I had a store card that was referred to as a charge card for some reason. But clearly they are credit cards according to FICO algorithms.

[Thomas_Thumb]

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@Remedios wrote:

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@credit8502020 wrote:

Hi All! So I was looking at a credit report for a family member that has the Syncb/Care Credit. Does anyone know if this is a charge card or credit card? On the MyFico report, it shows as a charge card but also has a credit limit.

If it is a charge card, how it is calculated in the FICO scores differently from a credit card? 

Thank you! 

---

That's just a descriptor, it's a revolving line of credit and it's treated as such by scoring algorithm. So, no different than any credit card as far as scoring goes. 

True charge cards report as NPSL not "charge cards" 

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True charge cards have 1 month terms. It has nothing to do with NPSL. Even if one activates POT on an AMEX, it is still not classified as a true revolver. 

Btw Fico uses balance/high balance as a utilization metric on Fico 98 to calculate amex charge card utilization. AMEX green/gold/platinum charge cards are not considered as part of utilization on newer Fico models.

[credit8502020]

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@Thomas_Thumb wrote:

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@Remedios wrote:

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@credit8502020 wrote:

Hi All! So I was looking at a credit report for a family member that has the Syncb/Care Credit. Does anyone know if this is a charge card or credit card? On the MyFico report, it shows as a charge card but also has a credit limit.

If it is a charge card, how it is calculated in the FICO scores differently from a credit card? 

Thank you! 

---

That's just a descriptor, it's a revolving line of credit and it's treated as such by scoring algorithm. So, no different than any credit card as far as scoring goes. 

True charge cards report as NPSL not "charge cards" 

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True charge cards have 1 month terms. It has nothing to do with NPSL. Even if one activates POT on an AMEX, it is still not classified as a true revolver. 

Btw Fico uses balance/high balance as a utilization metric on Fico 98 to calculate amex charge card utilization. AMEX green/gold/platinum charge cards are not considered as part of utilization on newer Fico models.

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Thank you @Remedios @SouthJamaica & @Thomas_Thumb - 

@Thomas_Thumb You still agree with this statement correct? "That's just a descriptor, it's a revolving line of credit and it's treated as such by scoring algorithm. So, no different than any credit card as far as scoring goes."

[fury1995]

Maybe it reports differently on different bureaus for different people? I have both AMEX and Care Credit Dual Cards. This is how each is reporting for all three bureaus.