Amex Charge Bal. Affects EQ but not EX FICO 8's

[cashnocredit]

Executive summary: Amex Charge card balances affect EQ FICO 8 score and are counted in overall utilization. Amex charge card balances do not affect EX FICO 8 scores.

 

Some time back I noticed EQ FICOs would fluctuate with my Amex plat balances. The evidence grew fairly strong over the months but I wanted to run a clear test. When I first noticed that EQ FICO 8 was appeared to utilize AMEX balances I posted this thread as it appeared to be something the new FICO 8 model had changed:

 

http://creditboards.com/forums/index.php?showtopic=530000&hl=

 

Over time it became clear EQ's FICO 8 was using Amex balances but it looked like EX and TU didn't though the evidence was limited due to the difficulty of getting EX FICOs synced with balance changes. I decided to conduct a specific experiment so I zeroed out all my cards except one which is running about 10% of the card's CL. I had the opportunity need to charge a larger than normal amount which I put on Amex. This makes my overall utilization 3% (2% including Amex high balance) and around 40% when adding in the Amex balance which is now 40k. Last month it was 2k.

 

The result: EX FICO 8 went up a few points to 785 from a slight decrease in balances (except Amex) and zeroing all but one CC balance. OTOH, EQ FICO 8 dropped 19 points from 782 to 763.

 

This seems entirely consistent with Amex balances being used in overall utilization though but w/o a penalty for maxing the card. At lease as far as EQ FICO 8's are concerned. EX FICO 8's are not affected. TU FICO 8's are probably not affected but it will be clear once Wally reports in Jan.

 

It was well established that EQ FICO 4 did not respond to Amex balances so this change in behavior was surprising. It's also surprising that the FICO 8 algorithm should exhibit this difference as they are the same generation.

 

 

A side note. Amex Charge cards do not report your complete history's high balance but the highest balance within the prior 18 months under "High Balance." My high balance had declined from 60k to 20k about 6 months ago as I hadn't a reason to use it as much as a few years ago. So the other change that occurred is that the high balance now reports 40k instead of 20k.

 

[JayB27]

Very interesting, and good info cash.

 

Odd that it only affects EQ though.

[althes]

Thanks and good info.

[cashnocredit]

I now have enough data from MyFICO to verify that TU, like EX but unlike EQ, does not factor in Amex charge card balances in FICO 08 scores.

[moosetracks]

Thanks for the find

[m3jasper]

http://creditboards.com/forums/index.php?showtopic=532720

[cashnocredit]

Summarizing an old thread:

EQ FICO 8 factored in high balance on Amex Charge cards in lieu of CLs and current balance for overall utilization. All the FICO 4's and the other two CRA's FICO 8 scores do not include Amex balances or high balance in their score calculations.

 

However, once my high balance went close to 60k EQ FICO 8 also stopped including both high balance and current balance in the scoring. So somewhere between 40k and 60k on the current high balance EQ drops Amex Charge cards from FICO utilization. Note that Amex updates the "current" high balance to be the highest balance within the prior 18 months. I'll have to wait until next year before Amex counts again - unless I get spend happy.