Credit Cards

[CaptKirk]

What exactly does AMEX Charge Card say on your CRs? How much of a boost is it if there is no CL?

[cashnocredit]

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Cdnewmanpac wrote:

I agree with the reasons above. I would also add that disputing a charge on a charge card is MUCH easier than disputing a charge on a debit card. Also, many banks restrict how much you can charge per day on a debit card. So making large purchases, even if you have the cash, is safer if done via a charge card. Think of it like a debit card with huge perks. You also need a credit card for emergencies: they complement each other, but don't replace each other.

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Yup. That's exactly how I think of it and I used a debit card exclusively for 10 years.

[Revelate]

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CaptKirk wrote:

What exactly does AMEX Charge Card say on your CRs? How much of a boost is it if there is no CL?

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There's more to FICO than CL's.  

As Webhopper correctly pointed out, you can "hide" some utilization from FICO for tempoary expenses (like work reimbursing travel expenses 2 weeks later that happens to cross a statement boundary), or if you're in that grey period between your payment, and the statement cutting, just run expenses through the charge card and never have to worry about tracking and making an additional payment which may or may not clear and possibly ruin your pretty utilization setup (I'm being a little tongue-in-cheek here but it is valid).  Underwriting on a loan application will still see it, but it won't affect your FICO negatively unless you get a '98 version which is semi-rare outside of maybe NFCU and a few others.

Anyway it fully counts as a tradeline, both for payment history purposes and for AAoA calculation; it just doesn't get factored in to the revolving utillization metric that almost all of us obsess over on this forum.

Edit: it still reports as revolving, but I think I recall hearing it as revolving - other?  Anyway someone with an Amex tradeline will be able to answer that portion better than I.

[webhopper]

It reports as revolving; charge. With a 1 month term

[Koop10010]

The benefits of an Amex charge card over a debit card or using cash are numerous.  Spend a few minutes looking over the Amex website for all the benefits associated with their charge cards.

[CK_Charles_Lover]

I use my charge card basically instead of a debit card now. Its like getting  paid to use a debit card. I will probably be going to Europe for free just for swiping a card and paying no interest on it. I'd call that a benefit!

[ztnjpv]

I never carry balances....ever. Charge or Credit Revolver is all the same to me. The balance is zero at the end. For me, credit/charge cards are for:

-REWARDS

-convenience

'-REWARDS

-security

'-REWARDS

-perks

-REWARDS

If I need to buy something big enough that I can't pay for within a few weeks, I get a loan. That's it. 

Sure, there are low APR cards to more easily and cheaply live beyond your means but I don't need those cards and many people don't. 

[android01]

Charge cards keep you honest.  Just like a debit card.  You don't spend more than you can afford to pay, which is why a charge card (AMEX) is my primary card.  I use revolvers for emergencies or to float something that is necessary for more than a month, (iike a new heating/air conditioning system, which I had to do for 10K for two months).  As others have mentioned, I'd rather use credit cards for rewards/cash back than debit cards or cash.