How does a charge card affect my overall line of credit?

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Hepsta
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Joined: Fri Mar 16, 2012 12:14 pm
Location: FL

How does a charge card affect my overall line of credit?

Postby Hepsta » Fri Jun 08, 2012 1:11 pm

Hello all,

I was just approved for the AMEX Gold card and am excited to start utilizing it for work and pleasure to earn rewards points, insurance, etc.

Question; I have three credit cards with the following limits:
Discover More - $10k 01/00
Capital One Venture - $7.5k 03/12
Citi Platinum Select - $500 04/12

With the addition to of the AMEX Gold, how will that affect my overall revolving credit?

I understand AMEX Gold is a charge card and I will pay in full monthly, but since there is no personal spending limit (within my qualified means) will my FICO score potentially go up, down, or be unaffected by this addition as long as I make my standard full monthly payments to AMEX?

I guess might just need to do some research between revolving and open debt accounts.

Any quick thoughts are apprecited.

Hep

I've added three more lines of credit in the past 6 months because not having a car payment or mortgage for the time being I want to create greater credit history for my future mortgage consideration. My current credit score is 773, Experian.
American Express Gold Card - NPSL (05/12)
Discover More. 10k (01/01)
Bank Americard Cash Rewards MC 10k 12/12
Capital One Venture Visa. 7.5k (03/12)
Chase Freedom Visa 6k (5/12)
MC Citi Platinum Select. 500 [I]03/12

RTG GE 3.5k 07/12


thomaswhitehall
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Joined: Thu May 24, 2012 5:36 pm
Location: NY

Postby thomaswhitehall » Fri Jun 08, 2012 2:50 pm

The highest monthly balance on your Amex would be considered your "credit limit" on your credit report.

Seems like you have some pretty decent limits on your cards already. Not sure how that would affect your score short term

FutureBillionaire
Centurion Member
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Posts: 1589
Joined: Sun Jun 19, 2011 2:37 pm
Location: Down South

Postby FutureBillionaire » Fri Jun 08, 2012 4:27 pm

The amex doesn't impact your utilization. It impacts your overall debt though. I think it is a great tool to have. I love my PRG Amex.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

bmw1990Z
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Posts: 341
Joined: Sun Mar 18, 2012 10:08 am
Location: USA

Postby bmw1990Z » Sat Jun 09, 2012 7:55 am

so if you only spend say 1,000 a month, wouldn't that look bad when all your other credit limits are much higher?
Cards in my wallet:
-Citi Forward Card for College Students-July 2011
-American Express Platinum Delta Skymiles--July 2013

Crashem
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Location: San Francisco, CA

Postby Crashem » Sat Jun 09, 2012 11:38 am

Except for FICO 98 scoring models (which are hardly used anymore), charge card utilization is not used in util calculations. However, any balance on charge card however counts towards raw count of accounts with balances. With FICO 98 scores, charge cards do figure into util calculations and the high balance is used as the limit.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

Hepsta
Green Member
Green Member
 
Posts: 23
Joined: Fri Mar 16, 2012 12:14 pm
Location: FL

Postby Hepsta » Mon Jun 11, 2012 9:54 am

Thank you all for replying. I appreciate you knowledge.
American Express Gold Card - NPSL (05/12)

Discover More. 10k (01/01)

Bank Americard Cash Rewards MC 10k 12/12

Capital One Venture Visa. 7.5k (03/12)

Chase Freedom Visa 6k (5/12)
MC Citi Platinum Select. 500 [I]03/12


RTG GE 3.5k 07/12



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