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Tjent1

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How are card accounts with "Zero set limit" treated by FICO?
Since credit utilization (revolving debt/credit limit) is key to credit scores, how does FICO figure in accounts like my Amex that have a "Zero set limit" and have to be paid off monthly in full. It does appear on my TRWs (and Credi Karma) with a monthly balance even though paid off monthly.

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Amex charge cards or NPSL are reported differently then regular credit cards. They don't affect your utilization at all unless you are pulling a TU98 report. TU98 takes charge cards into consideration. Only the high balance will be reported. The best part about Amex is the backdating. Even though your utilization is not taken into consideration everything else is.

Reply by
Tjent1

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Thank you. That was helpful. But what is backdating?

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Backdating can be useful for future inquires. For example, if you happen to open an Amex cc now 2013 and decide to open another cc from them say 2016, you will get the 'backdating' history from 2013 thus helping your AAoA (Average of Account). Or if you were ever an AU (Authorized User) of an Amex card then you will get backdated all the way to that year it was open.

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