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Hi,
My wife and I had been trying to boost our FICO scores, and now it has crossed the 700 limit. While trying to raise our scores to the mid 700s, it occurred to us (we use Amex extensively to gain points for trips) that as a charge card with no limit, the FICO model sees our spending pattern as maximizing the utilization of that account.
Although we pay it in full each month without a credit limit the FICO model uses the highest previous balance as a limit. Would it be better if we reduce our monthly charges to less than that of 50% or should we ask Amex to provide a credit line?
card with no limit
Hi Corday,
Charge cards do not have a preset credit limit. However, can I know if this problem is on all three credit reports? I mean is all the three credit bureaus reporting this as a maxed out card? Actually Equifax and Experian do not take into account Amex charge card while calculating your FICO score. TransUnion may or may not. So, I don't think it will be much of a problem.
Thanks,
Aaron