American Express PRG Utilization question??

[re383209]

I had a question since this is just a charge card and just reports a balance does this count towards my utilization?? Or does it just count as a balance and 0 limit??

[titanofold]

I believe it reports your latest balance as its limit, but it's utilization handled differently from CCs.

Edit: Give this article a read.

Since it has no credit limit, for example, your charge card won't figure into your credit utilization rate. That's the portion of credit you have available from revolving accounts, and it's a key ingredient to your credit score. So, even if you rack up a huge amount of debt on your charge card, it won't impact your utilization rate.

Those debts will, however, affect your credit score in other ways. Anthony Sprauve, myFICO.com spokesman, says the balances on charge cards are used in adding up the total debt you owe across all of your accounts, just like the balances on credit cards.

[bmwman3241]

I have a similar question so thought I would ask in here.

Should I pay my charge card balance before or after my statement posts? Does it make a difference reporting a 0 balance on a charge card when it posts, or letting it post then PIF?

[Kenny]

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@bmwman3241 wrote:

I have a similar question so thought I would ask in here.

Should I pay my charge card balance before or after my statement posts? Does it make a difference reporting a 0 balance on a charge card when it posts, or letting it post then PIF?

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Interesting question -- since I'm new to a charge card.. I also would love to know the answer to this. Thanks everyone!

[09Lexie]

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@KennyS2006 wrote:

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@bmwman3241 wrote:

I have a similar question so thought I would ask in here.

Should I pay my charge card balance before or after my statement posts? Does it make a difference reporting a 0 balance on a charge card when it posts, or letting it post then PIF?

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Interesting question -- since I'm new to a charge card.. I also would love to know the answer to this. Thanks everyone!

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It does not make a difference as charge cards are not factored into your util. Some like to let the high bal report -to show they are capable of paying large balances.  

I rather keep my money in the bank as long as possible and pay when the bill is due. 

[Kenny]

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@09Lexie wrote:

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@KennyS2006 wrote:

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@bmwman3241 wrote:

I have a similar question so thought I would ask in here.

Should I pay my charge card balance before or after my statement posts? Does it make a difference reporting a 0 balance on a charge card when it posts, or letting it post then PIF?

---

Interesting question -- since I'm new to a charge card.. I also would love to know the answer to this. Thanks everyone!

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It does not make a difference as charge cards are not factored into your util. Some like to let the high bal report -to show they are capable of paying large balances.  

I rather keep my money in the bank as long as possible and pay when the bill is due. 

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Cool.. thank you Lexie for that response!

[webhopper]

For me, it does not affect my utilization so I never worry about if it reports a balance or not

[re383209]

Yeah my bill cycle rolls over tomorrow Ill let it report and pay it off and see if theres any difference current balance is $3700

[FinStar]

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@webhopper wrote:

For me, it does not affect my utilization so I never worry about if it reports a balance or not

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+1

Same for me.  There's no right or wrong method OP, just a matter of preference.