Large transaction on AMEX and credit report

Tomdarkness

Hey,

I recently put a large five figure sum through my AMEX charge card (I had used their spending power checker and I was approved for the amount) for the points as there was no fee for doing so over a debit card (i.e I have the money in the bank)

However, this has caused my credit scores to tank. My experian has dropped over 200 points and my call credit via noddle has gone from 5/5 Excellent to 2/5 Poor. I'm not sure why as it's not revolving credit.

Now obviously I'm not too worried specifically about these scores as they are meaningless but I'm concerned that this is going to cause a negative impact on any future credit applications, especially a mortgage which I'm looking for apply for later this year.

Was it a mistake putting this payment through my amex?

Thanks.

[Deleted User]

Only potentially if you plan to leave it there for a long time and only make minimum payments.

Tomdarkness

That's the thing though - it's a charge card, you have to pay off the full amount every month. I could understand the drop if I suddenly maxed out a credit card or something.

Deleted_User wrote: »

Only potentially if you plan to leave it there for a long time and only make minimum payments.

[Deleted User]

Good point. Then it's not an issue.

The score is there to get you to pay for the added score monitoring tools and other such nonsense. That's why it needs to drop a regular intervals.

Ben8282

This is probably a temporary problem due to the sudden appearance of a large balance. Everything should return to normal as soon as the payment is reported. If you hold an Amex charge card and they authorise 5 figure amounts then I doubt you are in the 'bad credit' category so stop worrying about such things.
The only effect that this could have on your credit status is to demonstrate that Amex have allowed you to charge a 5 figure amount to your charge card and you have repaid it on time.

KoshB5

Whilst a CRA scorecard for their consumer products will be a fairly basic credit risk score designed to show how standard criteria could impact you, a large balance on an account would show negatively on a debt to ratio score, more so if there is no history of similar amounts / payment histories. Affordability scoring could negate this impact.