Role of Charge card (AMEX Zync) in FICO Scores

[rajbansjoshi]

I just recently got an AMEX Card (Zync)  which doesnt have any limit. Now the issue is as it doesnt report any limit to the CRAs, its considering my Amount due as my limit and pushed up my utilization.

What should one do with such a card?

[haulingthescoreup]

It should be only your TU 98 score (the version from here, alas) that does this. The other two ignore charge cards for util, as does the more updated version of TU for which we're (im)patiently waiting.

Can you tell for sure on your FICO EQ that it's including the balance in your total credit limits?

[Anonymous]

Charge cards won't impact your utilization.  On older scoring models, the highest balance was used as a credit limit, but that practice has not been used for 10 years (http://www.creditcards.com/credit-card-news/jeremy-simon-credit-score-charge-card-amex-1508.php).

They'll still help your AAoA, payment history, etc.

[rajbansjoshi]

That was nice to know.. I am supposed to get my next Credit Report in a few days and thats when I can check this.

[rajbansjoshi]

So, I just pulled my EQ FICO Report and I am really confused.

My "Ratio of your revolving balances to your credit limits" shows up as 20% and following are my account details.

BoA - 651 $ (Limit - 5000 dollars)

CapOne - 30 $ ( Limit - 1500 dollars)

AMEX Zync 2300 $ ( no Limit)

Macy's 0 $ (Limit- 250 dollars)

I wasinitially of the opinion that my AMEX balances should not have been included in the Utilization ratio calculation but looking at these details, I thought that they are included.. However a few of the members, say that AMEX balances are not included in Utilization ratio.

Can you help me in understanding, as to where this 20% came from? Again, I got the score from MyFICO.

[Jazzzy]

Was this an EQ score that you got here...or a TU score?

You can get them both here, and they are different scores.

[rajbansjoshi]

As I said, in my last post, I got an EQ score from FICO

[Anonymous]

m...not sure where the 20% came from....

IF they considered your Zinc maxed at that amount (if it were the highest you've ever gone up) --- that would be 32% for a total util between cards....

If you figure it out though let me know....I want to know how best to use the Zync....and it'd be pretty worthless if it doesnt affect the CR in some positive shape or form

[llecs]

As Hauling mentioned, Zync isn't factored into your EQ utilization at all. I have a Green and can vouch for that. Ignore your Macys too. Macys does not report a CL. You may want to double check that. Since there is no reporting CL, the balance and the CL are not a part of utilization for EQ.

That leaves us with only two possible CCs: BofA ($651/$5000) and CapOne ($30/$1500). This would total 10.5% utilization.

Do you have any other CCs reporting, opened or closed? Ignore any closed CCs w/ a $0 balance.

Do you have any LOCs or HELOCs reporting that might be apart of this?

Do you have any charged-off CCs showing a balance as those could likely be factored in?

Finally, are you 100% positive those balances and those CLs for CapOne and BofA show exactly as such? Double check this EQ report. Also, if you slash the BofA CL from $5000 to $2000, you get 19.5% utilization. Since it rounds up, that's 20%. Just an idea, though that may not be the case.

[rajbansjoshi]

All the CCs that I have are listed there...

if we go by the fact that AMEX Zync and Macy's Card are not used for utilization then I can see another thing that might have happened.

So my Capone account is Bal - 30, Limit - 1500

BOFA - Bal - 650, Limit - 5000

But the largest past balance for my BOFA account is 1876 and if I consider the 1876 as my BOFA limit, then the utilisation comes close to 20%.

Can that be the case? Can I call up the Support from MYFICO and get that clarified?