AMEX Charge Card question

[Anonymous]

I remember reading awhile back here that one way to handle an AMEX charge card is to PIF before the statement cuts every month, therefore reporting a 0 balance. I noted this as something to try out on my own, but I've been wondering how that would affect your spending ability on the card! Since I've read from several of you guys here that AMEX is averaging the past 12-18 months or so for the 'limit' (off the top of my head.. not sure if that's correct), I'm not quite sure how reporting a 0 balance would affect that. Or am I overthinking it? Anyone with any personal experience on this?

[laz98]

amex has its own records of how much you use (or don't use) your card.  they're not checking your reports to see how much you are spending.

[Tazman81]

---

@laz98 wrote:

amex has its own records of how much you use (or don't use) your card.  they're not checking your reports to see how much you are spending.

---

+1 -- AMEX looks at the total of your charges verses what your balance is when your statement cuts.  Remember, AMEX loves to see those zero balances with a lot of card activity.  That means they are getting paid (by the merchant) without assuming the risk of you defaulting via a revolving balance.

[Anonymous]

Thanks for the feedback! It was exactly what I was wondering

[haulingthescoreup]

Also, AmEx charge card util is only an issue on TU98, the older version we have here. (Or at any rate, it should only be an issue there.) TU04 and EQ and EX exclude these balances from revolving util.

[vanillabean]

---

@haulingthescoreup wrote:

Also, AmEx charge card util is only an issue on TU98, the older version we have here. (Or at any rate, it should only be an issue there.) TU04 and EQ and EX exclude these balances from revolving util.

---

Incorporating your equally delightful post last month, it's my impression that it mostly boils down to account type. Either it's revolving or it's not.

I don't have a charge/store card, but it makes sense, as someone noted, that Amex loves to see those zero balances with a lot of card activity.

I treat my Amex the same way and am not concerned about spending as long as I can bring it down reasonably before the statement cutoff.

[haulingthescoreup]

There's keeping AmEx happy, and keeping FICO's happy.

AmEx is easy: use it a lot, and pay it off promptly.

FICO's are actually easy, too: Equifax and Experian ignore card types that say Open for Type of account for calculating util, which means AmEx charge cards. TU98, oh well, it does still calculate them in. For most of us, the impact isn't that bad, and frankly, TU98 isn't pulled by that many lenders any more. Who knows, maybe one day we'll have TU04, and we can find things to complain about with it.

[haulingthescoreup]

whoops, double post

I wish I knew how that happens!