Senior Contributor
bichonmom
Posts: 3,318
Registered: ‎05-05-2011
Re: What are the benefits of having a charge card? Am I missing something?

Another benefit that no one has mentioned is how it reports on your CR. Since there's no CL, it doesn't affect your util. So, yes, you do have to PIF. But the balance reporting doesn't ding your FICO like it would w/a regular CC.

 

I do think that the older TU FICO 98 may factor it in and uses your highest prior balance as your CL. But the more recent versions don't do that.

 

And the "in" with Amex isn't to be diminished. Plus, you'll now get backdating. So any future Amex cards you get will HELP your AAoA instead of lowering it, like a new CC can do.

 

 

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EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!