03-09-2013 09:56 PM - edited 03-09-2013 09:57 PM
what is the point of a AMEX charge card? if it doesn't report a CL? is it just so you can get your foot in with them and then get a revolver? Havent quite gotten the point of having one. Thanks
People seem to use charge cards as a foot hold with AMEX but it's actually a great product to carry even if you ignore the rewards. Why? It's a NPSL card (no preset spending limit) and even though it has some internal limit (that you will never know) it adapts to your spending. If you are spend heavy but always PIF it's a great product as it allows you to keep spending above and beyond a limit that your other cards might have. I have put nearly $50,000 on a charge card in one month (all work related) but my highest credit card limit is about $18,000. They never batted an eye and when the bill posted I paid it in full. I have two of them, one business and one personal and I would guess they have the greatest ability to spend compared to all of my other cards - combined. Also have the advantage of no reporting on limits or utilization and that can be a big help if you spend a lot.
With huge spends like that monthly even a lowly green or plain gold AMEX will net you a ton of points.
03-09-2013 10:08 PM
Thanks for all the info guys. I think I'm going to wait for the year mark just to be extra careful, I've already waited this long so I don't see a point in not being able to wait another month. For those of you asking about AMEX I've always really wanted to carry a gold card, It's kind of a personal achievement I've set for myself. Nothing really more to it than that.
03-10-2013 12:41 PM - edited 03-10-2013 12:42 PM
what is the point of a AMEX charge card? if it doesnt report a CL? is it just so you can get your foot in with them and then get a revolver? Havent quite gotten the point of having one. Thanks
Bears, I think Amex Green is probably the best card for someone with over 6 months and under 18 months of credit history whose file is in good shape with regard to util and inquiries.
Amex is widely considered to be amoung if not the top tier credit card issuer. When other issuers see a Amex card, I think they add a certain validity to that person's application.
The Green card (and the other charge ones as well) help a "newish" to credit person to develop the pattern of PIF each month, which we all know is great for your file and score in the long run. By developing that habit, folks learn not to overextend which leads to hopefully better credit management once they get into cards which can carry a balance.
I personally use the Amex green to pay all monthly bills such as Cell phone, electricity, gas, cable tv and anything else which I would normally pay with cash. Then at the end of the month I pay Amex right before the statement date cuts so it reports a 0 or very low balance. I pick up the points (sometimes even a bonus) and as the pattern continues, I never have to worry about falling into the "let's use a revolver to pay our bills" trap.
An amex green after 24 months is a great help to a score if its been managed correctly.
03-10-2013 12:51 PM
If your looking for just an AMEX charge card I think you would be fine now to app if you like.
I agree with this logic, app now
03-11-2013 08:37 AM - edited 03-11-2013 09:43 AM
Well after reading the advice I received on here, I couldn't' hold my urge and decided to apply for the AMEX Green card, and I was denied...I have no idea why, but as soon as I get the details I'll report them on here.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO