Author Topic: FSA on credit report?  (Read 722 times)

NoStacheOhio

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FSA on credit report?
« on: April 06, 2018, 08:41:54 AM »
I was going through our credit reports just as a matter of practice, and I just came across an account on my wife's report that I sort of didn't recognize.

It says it's a Flexible Spending Credit Card, and the dates and amounts sort of match up with the FSA I have through work. It appears to be reporting as a credit card, with balances and limits, which is totally insane to me. It's not a credit card. It sort of resembles a debit card, and definitely shouldn't count toward utilization. Does it count toward utilization? Who knows!

Does anyone else have an FSA show up on their credit report?

robartsd

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Re: FSA on credit report?
« Reply #1 on: April 06, 2018, 10:55:02 AM »
I think some FSAs allow claims against the entire expected contributions from the beginning of the plan year, so technically these would be credit lines. I don't see why money borrowed for medical expenses with a plan to pay off using future payroll deductions shouldn't be reported as credit. Credit limit would be total of future contributions for the year and utilization would be the balance of claims paid that are not covered by contributions already collected.

If the account limits the payment of claims based on the contributions that have been received, then it would be a deposit account and I agree there would be no reason for it to be on a credit report.

NoStacheOhio

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Re: FSA on credit report?
« Reply #2 on: April 06, 2018, 10:59:57 AM »
I think some FSAs allow claims against the entire expected contributions from the beginning of the plan year, so technically these would be credit lines. I don't see why money borrowed for medical expenses with a plan to pay off using future payroll deductions shouldn't be reported as credit. Credit limit would be total of future contributions for the year and utilization would be the balance of claims paid that are not covered by contributions already collected.

If the account limits the payment of claims based on the contributions that have been received, then it would be a deposit account and I agree there would be no reason for it to be on a credit report.

So there's a little of both.

The dependent FSA is deposited biweekly, the medical FSA is available up front. BUT it's showing $5,500 limit, and we elected $1,600 for 2018, less in 2017. AND it's through my employer and in my name, not hers.

Mgmny

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Re: FSA on credit report?
« Reply #3 on: April 06, 2018, 02:35:03 PM »
I'm in the FSA business, and we only issue debit cards... Even if you have the total annual contribution available to you at the beginning of the plan year, you aren't borrowing money on credit - it comes out of your employer's pocket. Very odd...

If you don't mind me asking, what does the back of your card say? There should be small print near the bottom on the back - usually the issuing bank and more info.

NoStacheOhio

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Re: FSA on credit report?
« Reply #4 on: April 06, 2018, 04:37:31 PM »
I'm in the FSA business, and we only issue debit cards... Even if you have the total annual contribution available to you at the beginning of the plan year, you aren't borrowing money on credit - it comes out of your employer's pocket. Very odd...

If you don't mind me asking, what does the back of your card say? There should be small print near the bottom on the back - usually the issuing bank and more info.

Card issuer doesn't match up with the credit report. Stupid me didn't save the report to follow up with the phone number listed.

I checked my report, and the account doesn't show up (different bureau, I should check Trans Union, which is where we pulled hers).