How does personal charge card affect FICO scores?

[SouthJamaica]

I've had a business charge card for a couple of years, but no personal charge card, so I have no idea how a personal charge card with no fixed credit limit affects your FICO scores.

Can anyone give me some insight into that?

[RobertEG]

Revolvng cards with no set credit limits are scored under % util by using the prior highest balance on the account as the denominator ("credit limit").

[SouthJamaica]

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@RobertEG wrote:

Revolvng cards with no set credit limits are scored under % util by using the prior highest balance on the account as the denominator ("credit limit").

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Is the "prior highest balance" necessarily a reported balance, or might it be an intra-statement balance?

I.e., if I make a $10,000 expenditure, but pay it off before the statement cuts, will my credit report treat 10k as my limit and 0% as my utilization?

Or must I allow the 10k to report before it's counted?

[Revelate]

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@SouthJamaica wrote:

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@RobertEG wrote:

Revolvng cards with no set credit limits are scored under % util by using the prior highest balance on the account as the denominator ("credit limit").

---

Is the "prior highest balance" necessarily a reported balance, or might it be an intra-statement balance?

I.e., if I make a $10,000 expenditure, but pay it off before the statement cuts, will my credit report treat 10k as my limit and 0% as my utilization?

Or must I allow the 10k to report before it's counted?

---

Like all credit cards that varies per lender.

Also under FICO 04 and later, any charge card (Amex is the typical example) with a Term of 1 month is excluded from the revolving utilization calculation (may still count number of cards w/balances) though we've had a pretty clear report that EQ 08 does indeed still factor them, but that might be due to the amounts falling north of some breakpoint.

[SouthJamaica]

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@Revelate wrote:

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@SouthJamaica wrote:

---

@RobertEG wrote:

Revolvng cards with no set credit limits are scored under % util by using the prior highest balance on the account as the denominator ("credit limit").

---

Is the "prior highest balance" necessarily a reported balance, or might it be an intra-statement balance?

I.e., if I make a $10,000 expenditure, but pay it off before the statement cuts, will my credit report treat 10k as my limit and 0% as my utilization?

Or must I allow the 10k to report before it's counted?

---

Like all credit cards that varies per lender.

I haven't found a difference among credit card issuers. In each and every case on all cards I've had the statement balance is the reported balance, and the credit limit is the credit limit.

Also under FICO 04 and later, any charge card (Amex is the typical example)

Yeah I'm talking Amex

with a Term of 1 month is excluded from the revolving utilization calculation (may still count number of cards w/balances) though we've had a pretty clear report that EQ 08 does indeed still factor them, but that might be due to the amounts falling north of some breakpoint.

So it doesn't count for utilization, one way or the other, except with respect to FICO 8 EQ?  And what does FICO 8 EQ say? Is the credit limit the high statement balance, or the high intrastatement balance?

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[NRB525]

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@SouthJamaica wrote:

---

@Revelate wrote:

---

@SouthJamaica wrote:

---

@RobertEG wrote:

Revolvng cards with no set credit limits are scored under % util by using the prior highest balance on the account as the denominator ("credit limit").

---

Is the "prior highest balance" necessarily a reported balance, or might it be an intra-statement balance?

I.e., if I make a $10,000 expenditure, but pay it off before the statement cuts, will my credit report treat 10k as my limit and 0% as my utilization?

Or must I allow the 10k to report before it's counted?

---

Like all credit cards that varies per lender.

I haven't found a difference among credit card issuers. In each and every case on all cards I've had the statement balance is the reported balance, and the credit limit is the credit limit.

---

---

US Bank reports all cards as of the end of the calendar month, without regard to statement date.

Chase will update your balance as zero if it goes to zero during the statement period, prior to statement issue.

[SouthJamaica]

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@NRB525 wrote:

---

@SouthJamaica wrote:

---

@Revelate wrote:

---

@SouthJamaica wrote:

---

@RobertEG wrote:

Revolvng cards with no set credit limits are scored under % util by using the prior highest balance on the account as the denominator ("credit limit").

---

Is the "prior highest balance" necessarily a reported balance, or might it be an intra-statement balance?

I.e., if I make a $10,000 expenditure, but pay it off before the statement cuts, will my credit report treat 10k as my limit and 0% as my utilization?

Or must I allow the 10k to report before it's counted?

---

Like all credit cards that varies per lender.

I haven't found a difference among credit card issuers. In each and every case on all cards I've had the statement balance is the reported balance, and the credit limit is the credit limit.

---

---

US Bank reports all cards as of the end of the calendar month, without regard to statement date.

Chase will update your balance as zero if it goes to zero during the statement period, prior to statement issue.

---

Thanks for that info; didn't know that. Obviously I have neither a Chase card nor a US Bank card

[Revelate]

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@SouthJamaica wrote:

---

@NRB525 wrote:

---

@SouthJamaica wrote:

---

@Revelate wrote:

---

@SouthJamaica wrote:

---

@RobertEG wrote:

Revolvng cards with no set credit limits are scored under % util by using the prior highest balance on the account as the denominator ("credit limit").

---

Is the "prior highest balance" necessarily a reported balance, or might it be an intra-statement balance?

I.e., if I make a $10,000 expenditure, but pay it off before the statement cuts, will my credit report treat 10k as my limit and 0% as my utilization?

Or must I allow the 10k to report before it's counted?

---

Like all credit cards that varies per lender.

I haven't found a difference among credit card issuers. In each and every case on all cards I've had the statement balance is the reported balance, and the credit limit is the credit limit.

---

---

US Bank reports all cards as of the end of the calendar month, without regard to statement date.

Chase will update your balance as zero if it goes to zero during the statement period, prior to statement issue.

---

Thanks for that info; didn't know that. Obviously I have neither a Chase card nor a US Bank card

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The question you asked was whether high balance was the highest statement balance, or highest intra-statement balance.  That varies by lender, my apologies if I was not clear.

[SouthJamaica]

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@Revelate wrote:

---

@SouthJamaica wrote:

---

@NRB525 wrote:

---

@SouthJamaica wrote:

---

@Revelate wrote:

---

@SouthJamaica wrote:

---

@RobertEG wrote:

Revolvng cards with no set credit limits are scored under % util by using the prior highest balance on the account as the denominator ("credit limit").

---

Is the "prior highest balance" necessarily a reported balance, or might it be an intra-statement balance?

I.e., if I make a $10,000 expenditure, but pay it off before the statement cuts, will my credit report treat 10k as my limit and 0% as my utilization?

Or must I allow the 10k to report before it's counted?

---

Like all credit cards that varies per lender.

I haven't found a difference among credit card issuers. In each and every case on all cards I've had the statement balance is the reported balance, and the credit limit is the credit limit.

---

---

US Bank reports all cards as of the end of the calendar month, without regard to statement date.

Chase will update your balance as zero if it goes to zero during the statement period, prior to statement issue.

---

Thanks for that info; didn't know that. Obviously I have neither a Chase card nor a US Bank card

---

The question you asked was whether high balance was the highest statement balance, or highest intra-statement balance.  That varies by lender, my apologies if I was not clear.

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The lender would be Amex

[CreditDunce]

Amex reports your highest statement balance in the last X months/years as your highest balance.  I don't remember how long the look back period is.  In general, Amex doesn't report that much balance history information.  While I do not have any inside information, I would guess they will eventually start reporting more balance information.  The CRA's would like to use the information for future FICO/VS models.

I remember a thread with fairly strong evidence showing EQ may handle charge cards differently than the other CRA's.  However, it was only one data point.  I don't remember if the poster had POT enabled on the account or not.  Personally, I wouldn't it.  If the Charge card makes sense financially for you, get it. Test it to see how it affects your FICO scores with different balances.  Worst case scenario, just make the charge card a zero balance card when it is time to maximize your FICO score.