How does a balance on a NPSL card affect credit score?

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ScoreOnTheRise
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How does a balance on a NPSL card affect credit score?

Postby ScoreOnTheRise » Wed Feb 18, 2015 1:13 pm

How does a balance on a NPSL card affect credit score? Or doesn't not matter at all?
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thom02099
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Postby thom02099 » Wed Feb 18, 2015 3:45 pm

ScoreOnTheRise wrote:How does a balance on a NPSL card affect credit score? Or doesn't not matter at all?


Depends on your definition of a "NPSL" card. True NPSL are the AMEX charge cards, though there is an internal limit that AMEX places on them. Some of the cards allow you to pay over time but you have to be approved for that feature with a particular card.

If you're talking about so-called NPSL with cards such as the Chase Sapphire Preferred or JP Morgan Select, there is a limit established, so in that sense, they are not true NPSL cards. Credit limits are set, but one can exceed the limit, usually by 2 or 3 times the credit limit, but the amount over has to be paid within the next billing cycle.

If one is carrying a balance on, say, an AMEX Gold or Platinum card, it will report a high balance and affect score in that respect. How it will affect depends on too many variables, depending on one's file. I've carried a balance on a Gold card and it had absolutely no affect on my score.

If your definition of NPSL card is a flexible spending card, IIRC, those are factored in a bit differently than standard cards that are not flexible spending. Again, I've carried a balance on one of these cards, and it's had no affect; on the other hand, on another card, I've carried a balance and lost a few points. It seems to be a YMMV thing.

I know this is in an AMEX thread, so presumably you are referring to the charge cards from AMEX. However, some folks also refer to some of the AMEX revolvers (and the aforementioned Chase cards) as NPSL. In reality, they are not.
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