Or, consider other cards for 50,000 more miles or points that transfer into United miles with additional flexibility for your everyday spending.
$1,000 toward travel or transfer to United, Southwest, and more.
No annual fee, Hilton Honors™ Card from American Express. Terms apply.
Premium credit cards such as the Chase Sapphire Preferred® Card and United Explorer are Visa Signature branded cards. That means they have a ‘flexible’ spending option which lets you exceed your credit line for purchases on a temporary basis, assuming you pay it down within the month.
However, on these cards many credit card companies, Chase included until now, report the cards to the credit bureaus without your full credit line. They would just report the closing balance of your statement as the credit line.
Why does this matter? Well, part of your credit score is based on the % of available credit used. So if you have more total credit lines (which = available credit), you’re less likely to be using a high % of available credit lines (bad as it looks like you’re maxing out your cards).
Here’s an example for someone with one credit card…
In this case the reported available credit used is $1,000 / $1,000 = 100%.
However, now Chase is correctly reporting the lines as your actual full credit line, rather than your statement balance.
With the new, *corrected* reporting Chase is using, you’ll show a lower (better) utilization rate of: $1,000 / $5,000 = 20%.
Thanks to FlyerTalk readers for reporting this improvement. Let’s hope others take notice.
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