AMEX PRG Balance

[redpat]

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@DoroLucky wrote:
Hmmmm I've been doing this all wrong. I used it a lot when I first got it but ALWAYS paid before statement cut because I thought it affected util. Don't use it as much now but when I do, I usually pay the next day or 2 lol.

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You can let that one fly.

[OmarGB9]

Yea charge cards aren't factored into util. But they ARE factored into overal debt though.

[Anonymous]

what is the reason for letting it post. Wouldn't it just say the amount you spent as High balance but report as zero utilization if you pay by closing date....

[DoroLucky]

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@Anonymous wrote:

It's a charge card... Won't report balance and has no effect on utilization.. Let it show balance and as always PIF. It'll increase your spending power.

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Makes a lot of sense. Had a $20K spend power (was initially $10K but increased when I used it alot). Now it's back to $10K. 

[Berk]

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@Anonymous wrote:

what is the reason for letting it post. Wouldn't it just say the amount you spent as High balance but report as zero utilization if you pay by closing date....

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Letting it post and then paying it by the due date shows the lender that you are responsible enought with their money to pay them back when they expect you to. After all, you are using their money to begin with. Look at it this way - I talk to you and ask you if I can borrow money from you any time I want to and you say yes but that you expect me to pay you back 25 days after I tell you I want my money back. I agree to your terms so you lend me 100 bucks and I come rushing up to you two days later all out of breath with the money I owe you. I then turn right around and borrow 50 bucks from you and three days later, all breathless, I pay that back explaining that I want to make sure I pay you back right away before I get in trouble. Lets say that I do that every time that I borrow money from you. If money is so tight with me that I have to make a whole bunch of small payments instead of one big one at the end of the month, wouldn't you worry that at some point I wouldn't even be able to make the small payments? Now, lets say that I just start borrowing money from you and thirty days later you tell me that you would like me to pay you back in 15 days but you will let it go as far as 25 days and so I pay you in 15 days. And every time I borrow money from you I pay you back 15 days after you bill me like clock work. Wouldn't you be less inclined to worry about my ability to pay you back? Amex, or any bank for that matter, is no different.

It is a charge card. The statement balance must be paid in full on the due date (unless, of course, Amex extends the pay over time option and you utilize it because you like to pay a whole lot of interest). It has no pre set spend limit. In fact, your spend limit can go up or down month to month or even day to day. It doesn't affect utilization because there is no clearly defined ceiling, thus no way to determine a percentage of limit used.

[redpat]

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@Anonymous wrote:

what is the reason for letting it post. Wouldn't it just say the amount you spent as High balance but report as zero utilization if you pay by closing date....

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Amount spent never posts only statement balances post,

[DoroLucky]

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@Berk wrote:

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@Anonymous wrote:

what is the reason for letting it post. Wouldn't it just say the amount you spent as High balance but report as zero utilization if you pay by closing date....

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I agree to your terms so you lend me 100 bucks and I come rushing up to you two days later all out of breath with the money I owe you. I then turn right around and borrow 50 bucks from you and three days later, all breathless, I pay that back explaining that I want to make sure I pay you back right away before I get in trouble.

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This is me every time I use my PRG 

Just checked and the highest balance ever reported was $401. I will use ya'll approach from mow on and see if my spend power changes. 

[Anonymous]

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@DoroLucky wrote:

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@Berk wrote:

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@Anonymous wrote:

what is the reason for letting it post. Wouldn't it just say the amount you spent as High balance but report as zero utilization if you pay by closing date....

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I agree to your terms so you lend me 100 bucks and I come rushing up to you two days later all out of breath with the money I owe you. I then turn right around and borrow 50 bucks from you and three days later, all breathless, I pay that back explaining that I want to make sure I pay you back right away before I get in trouble.

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This is me every time I use my PRG 

Just checked and the highest balance ever reported was $401. I will use ya'll approach from mow on and see if my spend power changes. 

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haha, funny I only run 1500 through my prg every Month on dining and I pay once, 3days before the closing date and wait 3-6 days after the closing date to use the card because with Amex they don't give an exact reporting date. For C1, reporting  is 3 days after the closing date and Macy/Nord/FHB it is 1 day after statement closing. So with those I use my card after 2 days of the closing date and 4 days with Capital one. So no matter what, I am always running less than 1% utilization on 8500 credit being used. Only my FHB is reporting with a 20 dollar balance.

It is okay to let a balance report on the card if you are not applying for anything but I always will be looking for CLI so my scores need to be at its highest no matter what. Further, I have read threads that say, if you let it report. It will report the balance and if you only have, example, 5k credit limit and you let the 3k balance report. You are at 60% utilization.