Amex charge cards vs credit cards?

[iMacDrew]

For those of you that have both, im curious what the benefit is of having a charge card through american express, and the benefit of having both. The blue card seems pretty great with all the rewards from gas, groceries and restaurants. Yes charge cards may offer the same rewards but you have to pay in full at the end of the month. thanks. Im thinkin of a charge card but i just wanna know how it can benefit me more than my credit card.

[Repo-ed]

Depending on your file and spending habits, either 1 or both may suit your needs.

I have the zync charge card, because I do not like to carry balances.  Charge cards remove any/all tempation to buy things that I can not afford to payoff in that billing cycle.

I also have the delta skymiles plat (AU) to buy my delta tickets with, for priority boarding, free checked bag, and to access lounges if time permits.

[pizzadude]

As Ed mentioned one of the main benefits is managing your spending since you know that you have to PIF.

Another benefit of charge cards is that balances are ignored by FICO scoring ( except for TU 98 sold here at MyFICO  ), so it allows you to not have to worry so much about the timing of your payments if you are trying to optimize your revolving utilization.

[LS2982]

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@iMacDrew wrote:

For those of you that have both, im curious what the benefit is of having a charge card through american express, and the benefit of having both. The blue card seems pretty great with all the rewards from gas, groceries and restaurants. Yes charge cards may offer the same rewards but you have to pay in full at the end of the month. thanks. Im thinkin of a charge card but i just wanna know how it can benefit me more than my credit card.

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Charge cards do not affect your overall utilization in FICO scoring (i.e: You have 10K in CL's, your overall utilization is 26%, 1 card is reporting a balance of 2,600. With an AMEX charge card, no matter what you spend on it, it does not factor into your utilization, it would stay at 26%)

Utilization is critical in FICO scoring.

[laboi_22]

Also rewards structures vary from AMEX products. For example the charge cards earn MR points and are versatile especially for travel redemptions. Credit cards carry just cash back or cobranded rewards for travel such as airlines and hotels. Bottom line is everyone's needs are different. Some people only want a Blue product for cash back because that is what they need/desire most. Others might enjoy free stays at the Hilton and prefer to put spending on that card in order to enjoy those benefits.

[Cdnewmanpac]

Also, the charge cards have no preset limit. For people like me whose limits are still in the under 10k range, this allows me to make large purchases with a card (thus invoking the various card member protections) without pushing or exceeding my limits. I know my visa sig and world mc theoretically offer the same benefit, but I had to recon like crazy to get them and want to appear as conservative as possible. Amex, otoh, seems to reward episodic spending.

[webhopper]

The main benefit is knowing that what you buy with it has to be paid in full. No chance to acccumulate growing balances if you're paying in full. Also; NPSL lets you spend higher than limits on credit cards. Ive charged up to 5167 in one month and as you can see ive only got one other card that could handle that amount without going over some hard limit.

[iMacDrew]

NFCU.. im assuming that means Navy Federal Credit Union, does that mean youre in the military. Jw because that is who I bank with aswell.

[jamesdwi]

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@iMacDrew wrote:

For those of you that have both, im curious what the benefit is of having a charge card through american express, and the benefit of having both. The blue card seems pretty great with all the rewards from gas, groceries and restaurants. Yes charge cards may offer the same rewards but you have to pay in full at the end of the month. thanks. Im thinkin of a charge card but i just wanna know how it can benefit me more than my credit card.

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I have a AMEX Zync so far the best features are Zync packs that give better rewards, then in addition it allows me to stop worrying about cash flow issues, I pay my Cellphone and Cable bills when they are due, I just pay the bill. and let it sit on the card and the cash sits in the bank collecting interest ( which in my case is 7.5% for the first $500). Since I got the card I earned in $2.91 a month in interest. Plus double points on cell phone bills, and cable bills. Of course having $500 sitting in my account that wont be needed untill my AMEX bill is due is great for covering life little issues that come up like math screwups in the check register. I take all charges on the card as serious things so I only use it for things that are planned. Of course the card grows with you so no more asking for CLI, just use the card respondisbly and it grows with you, if you need to pick up something for work no more tying up availible credit limit while the office processes you expense report. 

Money earned by having ZYNC,  $2.91 a month bank interest, 600 extra AMEX points, which equals $6 in resturant gift cards. I have had the card 6 months. $53.41 and the costs for the card was $25 (AF) + $15 (Communication pack)  = $40 so after six months, I have earned $13.41 for having a charge card, and add in another $53 for doing what I normally do. Of course learning better financially responsibility is priceless.  

Yes all of this can be done with a credit card with a good limit but for some here that isn't an option of course the UTL enhancing features mention by others also helps at lot as well, and a foot in the door with AMEX is never a bad thing. 

All in All its just another step to financial freedom, where you control your money and money doesn't control you. 

[iMacDrew]

Thanks all for the information. Yesterday I was approved for the AMEX blue pref. and didnt consider Zync because i didnt know too much about charge cards. Since I am in the process of improving my wifes credit aswell , She was approved for the Zync and I still get the sleek white card aswell. All of your insight has been most helpful though. Im learning a lot. I was under the influence that 1 cc would build credit and thats that. Since we recently purchased a new car I have been trying to reinforce my credit history with Amex, possibly discover and a strong Visa to go with My nfcu cash rewards.