What myFICO says about amex charge card credit utilization

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DaftMonk
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What myFICO says about amex charge card credit utilization

Postby DaftMonk » Wed Mar 27, 2013 8:35 pm

I spoke with a customer support rep. at myFICO.com, and I asked the following question:

"I have an AMEX Gold Preferred Rewards charge card...How does this charge card impact my overall credit utilization if there's "no preset spending limit"?

The rep didn't know, but asked his manager and this was the manager's response:

"ANY BALANCE on a charge card is considered 100% utilization.

Therefore, a $10,000 balance = 100% utilization, just as a $500 balance would = 100% utilization."


In order to optimize my credit score (over time) the rep recommended to ensure that the balance is completely paid off to Zero dollars on the date that AMEX reports the balance to the credit bureaus.

He also said that, in general, it takes a minimum of 6 months of consistent behavior/activity to indicate a pattern...so it may take a while before this behavior has any affect on my credit score.

Can you guys verify if this information is accurate?


exdoll
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Postby exdoll » Wed Mar 27, 2013 10:51 pm

He right, I pay off my amex account bal. every month so that they can report a zero bal. I even stop charging three days before my close out date. Sometime I even pay my pending charges if there to near to the close out date. In the past when amex hit me with the $450 annually dues and it got reported (amex posted it exactly on my close out date) I watch my fico score drop 24 points . The following month when I had a zero bal. reported my score shot back up

Robrus1
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Postby Robrus1 » Thu Mar 28, 2013 8:06 am

That's true, but as long as it keeps reporting paid on time as agreed, that's the most important thing. In my case, I have enough available credit on my other cards so even if my charge card reports a balance, my overall utilization is still very low.
Amex Platinum
Amex BCP 21K
Amex SPG 5K
Barclaycard Arrival Plus WEMC 5K
Chase Sapphire Preferred 23.5K
Credit Union 10K
Discover IT 7.75K

Robrus1
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Postby Robrus1 » Thu Mar 28, 2013 10:29 am

Also, a charge card doesn't report as a credit card, it reports as a charge card, which does help diversify your credit portfolio. If you let a balance report, I don't see the utilization helping your score, but I don't see it hurting it either.
Amex Platinum
Amex BCP 21K
Amex SPG 5K
Barclaycard Arrival Plus WEMC 5K
Chase Sapphire Preferred 23.5K
Credit Union 10K
Discover IT 7.75K

AMEXPlatino86
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Postby AMEXPlatino86 » Thu Mar 28, 2013 10:42 am

Thank you Robrus for all the information. Been hearing conflicting stories about what my gold card can do for me credit wise.
Wells Fargo Platinum 2.100 (5/2011-cld 7/12/14)
AmEx Platinum (6/12)
Barclays Apple (6/12)
AMEX Gold Delta (5/13)
Marriott Rewards (7/14)

My credit score :cool:
EQ: unknown
EX: 762
TU: 752

FutureBillionaire
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Location: Down South

Postby FutureBillionaire » Thu Mar 28, 2013 11:33 am

Overall usage is good, but I think you want to keep individual usage down to less than 10% as well. This is good info. Thanks for sharing.
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



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