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Established Member
BornSupercharged
Posts: 85
Registered: ‎02-08-2013
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Which is better for credit score? AMEX Charge or Credit?

My wife has been an AMEX member since 1988. She has an AMEX Green charge card now with MS 88. I applied for/received an AMEX BCE with MS 08 (my name only).

 

If I add her as an AU to my AMEX BCE, will it display her MS 88, my MS 08, or will it say the date she was added as an AU - MS 13?

 

If adding an AU to an AMEX does not use the AU's MS and it uses the date the AU was added to the account (i.e. MS 13), then it would make sense for me to keep my AMEX BCE and either have her keep her Green OR have her open her own BCE. Then the question becomes is a charge card weighted better (more points) than a credit card, or are they equal? Or should she keep her Green AND open her own BCE? Then she'd have two cards reporting as 88 right?

 

But if adding an AU to an AMEX does use the AU's MS, then I could just add her on my AMEX BCE, and add me to her Green, and close my Green (thus paying a single AF for Green vs. paying for both Green AF's). 

 

Any insight?


Total CL $179k | Budget Management | FICO Scores (TU 693) (EX 718) (EQ 729) | EIDT Me+Spouse Plan
Valued Contributor
navigatethis12
Posts: 1,923
Registered: ‎01-24-2012
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Re: Which is better for credit score? AMEX Charge or Credit?

Cards that do not report limits do not count against utilisation and could benefit a credit score. A charge card still counts as an account with a balance and the balance is still looked at when calculating debt to income. Other than that, scoring models do not differentiate between credit and charge cards.

Established Member
BornSupercharged
Posts: 85
Registered: ‎02-08-2013
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Re: Which is better for credit score? AMEX Charge or Credit?


navigatethis12 wrote:

Cards that do not report limits do not count against utilisation and could benefit a credit score. A charge card still counts as an account with a balance and the balance is still looked at when calculating debt to income. Other than that, scoring models do not differentiate between credit and charge cards.


Thanks for the response.

 

I did some more searching on the forum and from what I've read, it seems like we should keep both of our Greens and I'll keep my BCE, and she should open her own BCE which would give her two accounts reporting as 88.  I imagine that'd help her AAoA to have another card reporting as 25 years old. 


Total CL $179k | Budget Management | FICO Scores (TU 693) (EX 718) (EQ 729) | EIDT Me+Spouse Plan
Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
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Re: Which is better for credit score? AMEX Charge or Credit?

And another possible advantage in her getting her own BCE applies a) if your grocery bills are above 6K per year, and b) BCE is the best card you have for groceries.

Then you each have your own 6K cap.

Established Member
BornSupercharged
Posts: 85
Registered: ‎02-08-2013
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Re: Which is better for credit score? AMEX Charge or Credit?

If by groceries you mean any purchase at Target (surely they don't break down the receipt itemizing it), we have a 8mo old and a soon-to-be 4yr old so we have diapers/forumla/baby expenses. We spend about 11k/yr at Target alone, so you're right that could be beneficial.


Total CL $179k | Budget Management | FICO Scores (TU 693) (EX 718) (EQ 729) | EIDT Me+Spouse Plan
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bs6054
Posts: 1,673
Registered: ‎11-11-2012
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Re: Which is better for credit score? AMEX Charge or Credit?


BornSupercharged wrote:

If by groceries you mean any purchase at Target (surely they don't break down the receipt itemizing it), we have a 8mo old and a soon-to-be 4yr old so we have diapers/forumla/baby expenses. We spend about 11k/yr at Target alone, so you're right that could be beneficial.


Well, by groceries I mean what Amex counts as groceries for BCE.   No, they don't itemize (or the BCP gift card buyers would be upset!) but go by their coding of the store.  Are you getting 3% back on your BCE Target purchases? 

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snowkitty
Posts: 985
Registered: ‎09-10-2012
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Re: Which is better for credit score? AMEX Charge or Credit?

I was told by Amex that you only get the grocery store cash back from stand alone grocery stores....so target, walmart, etc. does not count.
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Established Member
BornSupercharged
Posts: 85
Registered: ‎02-08-2013
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Re: Which is better for credit score? AMEX Charge or Credit?

Haven't used my BCE at Target yet, so not sure.


Total CL $179k | Budget Management | FICO Scores (TU 693) (EX 718) (EQ 729) | EIDT Me+Spouse Plan
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koalablue
Posts: 345
Registered: ‎05-23-2012
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Re: Which is better for credit score? AMEX Charge or Credit?

Actually, the BCP is better than the BCE for groceries.  You get 6% cash back up to the $6,000 cap, and you get 3% back on gas and department stores with no cap.  I don't think Target counts as a grocery store - you'd have to ask Amex.

Established Member
BornSupercharged
Posts: 85
Registered: ‎02-08-2013
0

Re: Which is better for credit score? AMEX Charge or Credit?


snowkitty wrote:
I was told by Amex that you only get the grocery store cash back from stand alone grocery stores....so target, walmart, etc. does not count.

Makes sense. Well we would just be getting the BCE to boost her AAoA and score in general. No AF so it doesn't really cost us anything but a hard inquiry if she's approved.


Total CL $179k | Budget Management | FICO Scores (TU 693) (EX 718) (EQ 729) | EIDT Me+Spouse Plan

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