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Does the balance on charge cards impact your credit score?

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Does the balance on charge cards impact your credit score?

 
Message 1 of 9
8 REPLIES 8
Established Contributor

Re: Does the balance on charge cards impact your credit score?

Welcome. Yes it can, if your overall utilization is high. Take your total balances and divide that figure by what your total limits are. What % are you at?

CH7 BK 05/2011
279k Revolving
Scores as of 04/08/2016: 691 /730 / 722
No Hard Pulls in 2016
Not Credit Seeking in 2016
Message 2 of 9
New Member

Re: Does the balance on charge cards impact your credit score?

Thanks, but I am talking about a charge card such as American Express Gold. These don't have a limit. 

Message 3 of 9
Established Contributor

Re: Does the balance on charge cards impact your credit score?

I don't believe will have an effect, if paid in full before the next statement cuts.

CH7 BK 05/2011
279k Revolving
Scores as of 04/08/2016: 691 /730 / 722
No Hard Pulls in 2016
Not Credit Seeking in 2016
Message 4 of 9
Established Contributor

Re: Does the balance on charge cards impact your credit score?

A charge card doesn't factor into your utilization.

Its balance does, however, factor into your overall "amounts owed." As well, its payment history affects your credit score, as does its age.

CURRENT FICO 08: EQ: 751 / TU: 772 / EX: 771
Message 5 of 9
Valued Contributor

Re: Does the balance on charge cards impact your credit score?

A charge card balance of any amount doesn't affect

EX FICO 4

EQ FICO 4

TU FICO 4

EX FICO 8

TU FICO 8

 

It affects:

EQ FICO 8.

TU FICO 98 (obsolete)

 

For the EQ FICO 8 score it appears to be calculated into the overall utilization level but not the individual card utilization. The charge card "High Balance" field is used in lieu of a credit limit. This field is the highest card balance during the prior 18 months.


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Message 6 of 9
New Member

Re: Does the balance on charge cards impact your credit score?

Thanks, where do you get this kind of information? Everything I can find about this topic online is really vague.

Message 7 of 9
Super Contributor

Re: Does the balance on charge cards impact your credit score?

I have an Amex charge card and it doesn't report any balance on FICO 8 or anywhere else.

 

The credit reporting agencies seem to have no record of its existence.

 

I'm sure it would show up if heaven forbid I didn't live up to the terms, but it reports nothing of a positive nature at all.


FICO 8: EQ 735 TU 760 EX 729 Total revolving limits 719k (592500 reporting)
Message 8 of 9
Valued Contributor

Re: Does the balance on charge cards impact your credit score?


@SouthJamaica wrote:

I have an Amex charge card and it doesn't report any balance on FICO 8 or anywhere else.

 

The credit reporting agencies seem to have no record of its existence.

 

I'm sure it would show up if heaven forbid I didn't live up to the terms, but it reports nothing of a positive nature at all.


That's called a hidden trade line. Business/corporate Amex cards and a few consumer cards like JMP's Select and Palladium cards are hidden. They don't show up on consumer credit files and hence have no affect on any score as they are limited to reported information.  They are ghosts - unless you default.

 

EtoA:

For countries outside of the USA YMMV.


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Message 9 of 9
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