AMEX Charge Cards: Can I Just PIF All The Time?

mrjohnsonsgoals2 · ‎10-10-2014

Hi everyone!

After six months of building smart credit, I applied for an AMEX Green on Monday and got it today. I'm really excited to use this card (responsibly), but I have a question about using it and utilization since I'm not familiar with charge cards:

So for my Chase Freedom, it has a limit of $1,000 and of course I keep it to under $100 when the statement cuts and then PIF. For my AMEX Green, can I just pay it off after every purchase since it's a charge card and the full amount is always due anyway?

I also have Barclays card coming with a $5,000 limit and a DIscover IT which I don't know the limit of yet. I'm guessing I'm just PIF'ing all but one of my cards and letting it report at the end of the month to show a balance?

Starting Score (March 2014) : EX: 618 EQ: 689 TU: 638
New Scores (October 2014) EX: 685 EQ: 725 TU: 712
NOW In the Garden Until: 04/08/2015

Kenny · ‎10-10-2014

@mrjohnsonsgoals2 wrote:
Hi everyone!

After six months of building smart credit, I applied for an AMEX Green on Monday and got it today. I'm really excited to use this card (responsibly), but I have a question about using it and utilization since I'm not familiar with charge cards:

So for my Chase Freedom, it has a limit of $1,000 and of course I keep it to under $100 when the statement cuts and then PIF. For my AMEX Green, can I just pay it off after every purchase since it's a charge card and the full amount is always due anyway?

I also have Barclays card coming with a $5,000 limit and a DIscover IT which I don't know the limit of yet. I'm guessing I'm just PIF'ing all but one of my cards and letting it report at the end of the month to show a balance?

You can let it report.. it doesn't factor in to your utilization. No need to worry about the charge reporting a balance.

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mrjohnsonsgoals2 · ‎10-10-2014

@Kenny wrote:
@mrjohnsonsgoals2 wrote:
Hi everyone!

After six months of building smart credit, I applied for an AMEX Green on Monday and got it today. I'm really excited to use this card (responsibly), but I have a question about using it and utilization since I'm not familiar with charge cards:

So for my Chase Freedom, it has a limit of $1,000 and of course I keep it to under $100 when the statement cuts and then PIF. For my AMEX Green, can I just pay it off after every purchase since it's a charge card and the full amount is always due anyway?

I also have Barclays card coming with a $5,000 limit and a DIscover IT which I don't know the limit of yet. I'm guessing I'm just PIF'ing all but one of my cards and letting it report at the end of the month to show a balance?
You can let it report.. it doesn't factor in to your utilization. No need to worry about the charge reporting a balance.

Ahh, it doesn't factor into my UTIL at all? So whether I PIF or let it report, it makes no difference?

Starting Score (March 2014) : EX: 618 EQ: 689 TU: 638
New Scores (October 2014) EX: 685 EQ: 725 TU: 712
NOW In the Garden Until: 04/08/2015

AvadaKedavra · ‎10-10-2014

@mrjohnsonsgoals2 wrote:
@Kenny wrote:
@mrjohnsonsgoals2 wrote:
Hi everyone!

After six months of building smart credit, I applied for an AMEX Green on Monday and got it today. I'm really excited to use this card (responsibly), but I have a question about using it and utilization since I'm not familiar with charge cards:

So for my Chase Freedom, it has a limit of $1,000 and of course I keep it to under $100 when the statement cuts and then PIF. For my AMEX Green, can I just pay it off after every purchase since it's a charge card and the full amount is always due anyway?

I also have Barclays card coming with a $5,000 limit and a DIscover IT which I don't know the limit of yet. I'm guessing I'm just PIF'ing all but one of my cards and letting it report at the end of the month to show a balance?
You can let it report.. it doesn't factor in to your utilization. No need to worry about the charge reporting a balance.
Ahh, it doesn't factor into my UTIL at all? So whether I PIF or let it report, it makes no difference?

Excatly. Balance will show but since there is no limit to contribite to your utilization, it doesn't effect it. As long as you pay it off by the pay off date, you're good.

mrjohnsonsgoals2 · ‎10-10-2014

AvadaKedavra wrote:

Excatly. Balance will show but since there is no limit to contribite to your utilization, it doesn't effect it. As long as you pay it off by the pay off date, you're good.

Ahh, I think I understand now. But AMEX charge cards help my overall score just by being another account that is open, current? And of course it's contributed to AAoA?

Starting Score (March 2014) : EX: 618 EQ: 689 TU: 638
New Scores (October 2014) EX: 685 EQ: 725 TU: 712
NOW In the Garden Until: 04/08/2015

AvadaKedavra · ‎10-10-2014

@mrjohnsonsgoals2 wrote:
@AvadaKedavra wrote:

Excatly. Balance will show but since there is no limit to contribite to your utilization, it doesn't effect it. As long as you pay it off by the pay off date, you're good.
Ahh, I think I understand now. But AMEX charge cards help my overall score just by being another account that is open, current? And of course it's contributed to AAoA?

Sure, once it ages it adds to your portfolio and thickens your CR. Usage on a charge card and being able to PIF certainly looks good.

Your AAoA may take a slight dip depening on your current collection/new accounts but once it ages, it'll go back up. In the future, AMEX's backdating will help boost your AAoA if you decide to open up another card it'll backdate to your original MSD.