Charge card vs. Credit Card

[Anonymous]

lg8302ch - great card collection with excellent CLs and Aprs!

[lg8302ch]

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@Anonymous wrote:
lg8302ch - great card collection with excellent CLs and Aprs!

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Thanks...there is room for improvement on my APRs (fully satisfied with the limits)  and I am on a mission to find out if I can get all cards to their best terms before Chase Freedom will step down a tiny bit from their horrible 22,99% APR..I love challenges! ..still some cards on my wishlist for next year: Fidelity Amex, US Bank Cash+ and SPG but strongly gardening until next year and who knows if something new will appear on the credit card market until then.

[Membersince2013]

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@takeshi74 wrote:

You can't rely on your own preferences to understand the preferences of others.  If those people could rely on free self discipline then they wouldn't see the benefit from the external pressure.

In any case, not everyone pays the AF for a charge card simply for discipline.  There are the reasons cited above plus specific benefits provided by given charge cards.

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@Membersince2013 wrote:

Apart from the Amex Platinum, i don't understand why you'd want to get any other charge card.

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Why do you think only the Platinum makes sense?  Even the Platinum isn't one size fits all.  One who values UR points more than MR points and needs a business cahrge card could find the Ink Bold to be beneficial, just as one example.  Again, don't assume that your situation an preferences are universal.  People select different charge cards for similar reasons to why people select different credit cards.

I made reference to the Platinum charge card because i thought Amex was the only company supplying charge cards that are worth getting. I didn't know there were others. I do understand you point thought. I haven't had to deal with MR points (maybe till i get a PRG for the bonus alone), but UR points are pretty valuable. You get a couple of bucks off if you use them for travel activities.

[SMDLiquid]

What happens if you don't pay your full balance in any given month? 

[09Lexie]

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@SMDLiquid wrote:

What happens if you don't pay your full balance in any given month? 

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Like any cc, failure to pay will result in AA. Charge cards are not revolvers -technically payment is due in full upon receipt. 

[core]

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@SMDLiquid wrote:

What happens if you don't pay your full balance in any given month? 

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First time, they charge you interest and send you a nice letter.

Second time, they charge you interest/fees and send you a nasty letter.

Third time, 3 strikes and you're outta there.  You might find your account canceled.

Also you will go to the bad place after you pass away.

[jd352]

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@E150GT wrote:

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@longtimelurker wrote:

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@jd352 wrote:

From what I have read, charge cards also don't factor into utilization due to their NPSL. 

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.

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To the wealthy but also those with reinbursed expenses for example.   If your employer suddenly requires you to fly to Asia and spend 2 weeks there (and will reimburse you once you provide receipts) you can put this on all on your NPSL charge card and between reporting and getting reimbursed, the high charge doesn't impact your utilization, decreasing your credit score.

The other major reasons:

1) Amex charge cards easier to get than many credit cards

2) As mentioned by someone, some people like the discipline of having to pay off each month.  Yes, they should be able to do this with a credit card, but the extra pressure helps.

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Yeah I never understood why people were willing to pay for  a charge card just because it was a PIF every month. I can have discipline for free, 

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I believe charge cards have annual fees because of the lack of interest income - at least that was the original idea. With swipe fees, they make some money. But, still not as much as those that pay interest on revolving CC balances. I think an Amex swipe fee is around 5% while revolving interest on balances is 12%+. Depending on the charge account type, the AF increases as benefits increase (other than the Green and regular Gold). 

They do "things" that make your membership worthwhile. They also refunded me for a cell phone when it stopped working after the manufacturers warranty - which was a super easy process. 

[E150GT]

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@jd352 wrote:

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@E150GT wrote:

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@longtimelurker wrote:

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@jd352 wrote:

From what I have read, charge cards also don't factor into utilization due to their NPSL. 

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.

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To the wealthy but also those with reinbursed expenses for example.   If your employer suddenly requires you to fly to Asia and spend 2 weeks there (and will reimburse you once you provide receipts) you can put this on all on your NPSL charge card and between reporting and getting reimbursed, the high charge doesn't impact your utilization, decreasing your credit score.

The other major reasons:

1) Amex charge cards easier to get than many credit cards

2) As mentioned by someone, some people like the discipline of having to pay off each month.  Yes, they should be able to do this with a credit card, but the extra pressure helps.

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Yeah I never understood why people were willing to pay for  a charge card just because it was a PIF every month. I can have discipline for free, 

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I believe charge cards have annual fees because of the lack of interest income - at least that was the original idea. With swipe fees, they make some money. But, still not as much as those that pay interest on revolving CC balances. I think an Amex swipe fee is around 5% while revolving interest on balances is 12%+. Depending on the charge account type, the AF increases as benefits increase (other than the Green and regular Gold). 

They do "things" that make your membership worthwhile. They also refunded me for a cell phone when it stopped working after the manufacturers warranty - which was a super easy process. 

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Right. Everyone here seems to use them for the benefits, including myself Whenever amex comes up on other non cc forums like the car forums I frequent, they always mention only the fact that they need to be paid off every month and that keeps them from incurring debt. Tey never mention the points or perks. 

[lg8302ch]

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@E150GT wrote:

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@jd352 wrote:

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@E150GT wrote:

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@longtimelurker wrote:

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@jd352 wrote:

From what I have read, charge cards also don't factor into utilization due to their NPSL. 

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.

---

To the wealthy but also those with reinbursed expenses for example.   If your employer suddenly requires you to fly to Asia and spend 2 weeks there (and will reimburse you once you provide receipts) you can put this on all on your NPSL charge card and between reporting and getting reimbursed, the high charge doesn't impact your utilization, decreasing your credit score.

The other major reasons:

1) Amex charge cards easier to get than many credit cards

2) As mentioned by someone, some people like the discipline of having to pay off each month.  Yes, they should be able to do this with a credit card, but the extra pressure helps.

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Yeah I never understood why people were willing to pay for  a charge card just because it was a PIF every month. I can have discipline for free, 

---

I believe charge cards have annual fees because of the lack of interest income - at least that was the original idea. With swipe fees, they make some money. But, still not as much as those that pay interest on revolving CC balances. I think an Amex swipe fee is around 5% while revolving interest on balances is 12%+. Depending on the charge account type, the AF increases as benefits increase (other than the Green and regular Gold). 

They do "things" that make your membership worthwhile. They also refunded me for a cell phone when it stopped working after the manufacturers warranty - which was a super easy process. 

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Right. Everyone here seems to use them for the benefits, including myself Whenever amex comes up on other non cc forums like the car forums I frequent, they always mention only the fact that they need to be paid off every month and that keeps them from incurring debt. Tey never mention the points or perks. 

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Yes but I do not see how the green offers any more than the Amex revolvers with much lower AF. For a PIF strategy I do not need to pay a higher AF ..I can do this on revolvers too and pay less