Philosophuer wrote:nice, thanks for your your help. one last thing, does the gold card report similar to ever other card. ive been getting mixed answers. if there is no limit, does it hurt or help my score?
The Gold card is a charge card so it will report as an Open account instead of a Revolving account. It will not report a limit but instead will report the high balance (the highest balance ever on the account). It is my understanding that all of the newer FICO score models take into account Open accounts and their balances are removed from the debt to credit ratio. It could help your credit if you have high utilization on other cards (say from balance transfers or just high balances) because any new balances on the Gold card wouldn't be calculated against the debt to credit ratio. It would only "hurt" your score if all you had was the one charge card with nothing else. But even then, having an Amex charge card won't really hurt at all as long as it is not in default.
It reports the highest balance ever on the account sort of as the credit line. Debit to credit ratio you mean? Because it is an Open account, it is not factored into your Revolving credit ratio. So if you have two credit cards with $500 limit each ($1000 total) with combined balances of $250 and you have an Amex Gold with a $300 balance, your Revolving debt to credit ratio would be 25% or if your Amex was at $0 it would still be 25%. It is confusing but it seems to be the case that the balance on the Open accounts don't seem to count against you.
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