I've read about people saying cards that don't report your limit hurt your score. Is this true with Amex charge cards? It says OPEN, not revolving, so if I have a big balance, will that hurt my score? Discover doesn't report my limit, only the highest I've charged with them...
It is death to your score depending on the scoring method. The balance is included in your total debt, but you don't have any corresponding increase in your total CL, so you're total debt ratio goes up every tiem a balance reports. Second, the card will look like it is maxed out any time there is a balance and the credit line is 0. So you get screwed on the total d/c ratio and you get screwed because the card looks maxed out.
Say you have a credit limit of $5000 and they report a high credit of $1000 instead. If you have a $600 balance on the account, it looks like you are at 60% of available credit. Being over 50% of available credit hurts your score. HTH Gib
Part of the F.I.C.O. score is DEBT TO CREDIT LIMIT RATIO... SCENARIO... 3) CAPITAL ONE CARDS...credit limit N/A (limits $5,000 each) owe $1,000 on each. 1) FLEET...credit limit $5,000...owe $4,000 1) CHASE...credit limit $10,000...owe $8,000 YOU ARE AT 100%!!! $15,000 OWED OF $15,000 CREDIT LIMIT THE "TRUE" RATIO IS 50%!!! $15,000 OF $30,000...
