topic Re: What happens if you don't pay charge card in full? in Credit Cards

What happens if you don't pay charge card in full?

Anonymous — Sat, 20 Dec 2014 15:36:56 GMT

Just curious...What happens if you dont pay a chargecard in full and dont have any special offer to carry a balance on it?

Re: What happens if you don't pay charge card in full?

Anonymous — Sat, 20 Dec 2014 15:38:23 GMT

@Anonymous wrote:
Just curious...What happens if you dont pay a chargecard in full and dont have any special offer to carry a balance on it?

They charge you a late fee.

Re: What happens if you don't pay charge card in full?

jsucool76 — Sat, 20 Dec 2014 15:39:52 GMT

And they go Liam Neeson on you. They call you and go "I don't know who you are, but I will find you... And charge you"

Re: What happens if you don't pay charge card in full?

Anonymous — Sat, 20 Dec 2014 15:39:53 GMT

Beheadings

Re: What happens if you don't pay charge card in full?

Anonymous — Sat, 20 Dec 2014 15:45:05 GMT

@Anonymous wrote:
Beheadings

French style.

Re: What happens if you don't pay charge card in full?

Anonymous — Sat, 20 Dec 2014 15:49:08 GMT

Why would one pay a $95/$175/$450/$2500 for a charge when you can get credit cards at $0 and carry a balance anytime you want?

Even the SPG is $0 then $65....go figure......

Re: What happens if you don't pay charge card in full?

Anonymous — Sat, 20 Dec 2014 15:51:12 GMT

@Anonymous wrote:
Why would one pay a $95/$175/$450/$2500 for a charge when you can get credit cards at $0 and carry a balance anytime you want?
Even the SPG is $0 then $65....go figure......

Distinguishment, Spend bonus.

You can always BT your Charge card balance to another card.

Re: What happens if you don't pay charge card in full?

Anonymous — Sat, 20 Dec 2014 15:55:06 GMT

@Anonymous wrote:
@Anonymous wrote:
Why would one pay a $95/$175/$450/$2500 for a charge when you can get credit cards at $0 and carry a balance anytime you want?
Even the SPG is $0 then $65....go figure......

Distinguishment, Spend bonus.

You can always BT your Charge card balance to another card.

Point taken, Nixon.

Re: What happens if you don't pay charge card in full?

Anonymous — Sat, 20 Dec 2014 15:58:05 GMT

A bud of mine had an Amex charge card (Green I think) and he missed a payment on it so Amex closed the account...

On my Platinum card latest statement there is a note that starting January 1 if you miss the pay in full they will charge a late fee. So this must be new.

Re: What happens if you don't pay charge card in full?

NRB525 — Sat, 20 Dec 2014 16:15:21 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Why would one pay a $95/$175/$450/$2500 for a charge when you can get credit cards at $0 and carry a balance anytime you want?
Even the SPG is $0 then $65....go figure......

Distinguishment, Spend bonus.

You can always BT your Charge card balance to another card.
Point taken, Nixon.

The charge card is also no pre-set spending limit. The cardholder uses the card to show a pattern of spend behavior and payment within ~25 days of statement printing for all those charges, to build a history with that card. Thus the available spend is more dynamic, can be modified and allowed to balloon if the user shows or discusses the charge intentions.

And if not paid, then the next charges are quickly disallowed.

The largest component of charge card use is related to business expense spend, where a company or large corporation sets up employees to charge on the same semi-related charge company (AMEX) arrangement. The corporation is backing the charges, does not need to micro-manage each employee other than keeping controls on authorization to travel, or auditing the charges on a purchasing card issued to the employee. The card company (AMEX) processes the charges, and sends those charges electronically to the corporate expense reporting application for the company books. The company then has a payment system that issues a check to AMEX to pay all those charges. Cards are often dormant for months or years, then are already in the employee's hands when it is time to travel again.

Re: What happens if you don't pay charge card in full?

jamesdwi — Sat, 20 Dec 2014 16:31:36 GMT

@Anonymous wrote:
Why would one pay a $95/$175/$450/$2500 for a charge when you can get credit cards at $0 and carry a balance anytime you want?
Even the SPG is $0 then $65....go figure......

Freedom, and flexibility, with less headaches. With a charge card you can get a substanial CL on the card with just an average credit score, AMEX approves charge cards with just a 650 EX score. If your income and resources support it they will give you an internal limit in the 10's of thousands when no other card will give you a 2k CL. Because of the way its reported any balance that does get reported on your CR won't impact your credit score. So no more oh crap I have pay my credit card before the statement cuts or I will lose 20pts for having my card maxed out. If you travel you could consider getting a platinum that has a lot of benefits linked to the card and will get you special treatment and prestige which some people say is worth $450, really its a lot less because of travel credits, etc

Re: What happens if you don't pay charge card in full?

red259 — Sat, 20 Dec 2014 17:33:53 GMT

@NRB525 wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Why would one pay a $95/$175/$450/$2500 for a charge when you can get credit cards at $0 and carry a balance anytime you want?
Even the SPG is $0 then $65....go figure......

Distinguishment, Spend bonus.

You can always BT your Charge card balance to another card.
Point taken, Nixon.
The charge card is also no pre-set spending limit. The cardholder uses the card to show a pattern of spend behavior and payment within ~25 days of statement printing for all those charges, to build a history with that card. Thus the available spend is more dynamic, can be modified and allowed to balloon if the user shows or discusses the charge intentions.

And if not paid, then the next charges are quickly disallowed.

The largest component of charge card use is related to business expense spend, where a company or large corporation sets up employees to charge on the same semi-related charge company (AMEX) arrangement. The corporation is backing the charges, does not need to micro-manage each employee other than keeping controls on authorization to travel, or auditing the charges on a purchasing card issued to the employee. The card company (AMEX) processes the charges, and sends those charges electronically to the corporate expense reporting application for the company books. The company then has a payment system that issues a check to AMEX to pay all those charges. Cards are often dormant for months or years, then are already in the employee's hands when it is time to travel again.

While companies may also internally audit the charge cards I have seen situations where Amex will flag odd behavior with corporate cards, shut down specific charge cards and notify the company so that they can take additional action if applicable.

Re: What happens if you don't pay charge card in full?

Anonymous — Sat, 20 Dec 2014 19:41:37 GMT

@Anonymous wrote:
@Anonymous wrote:
Why would one pay a $95/$175/$450/$2500 for a charge when you can get credit cards at $0 and carry a balance anytime you want?
Even the SPG is $0 then $65....go figure......

Distinguishment, Spend bonus.

You can always BT your Charge card balance to another card.

And for benefits such as lounge access, airline credits, Global entry reimbursement etc. Really a very similar question as to why pay an AF on a credit card when there are free credit cards. If the additional benefits - AF gives you more than a free card (or another AF card) then it may be worth it.

Re: What happens if you don't pay charge card in full?

takeshi74 — Sat, 20 Dec 2014 21:23:42 GMT

@Anonymous wrote:
Why would one pay a $95/$175/$450/$2500 for a charge when you can get credit cards at $0 and carry a balance anytime you want?
Even the SPG is $0 then $65....go figure......

Charge card doesn't affect revolving utilization. Card benefits vary as well.

Not sure why you're mentioning the ability to revolve. If one is looking at a charge card as a solution then revolving isn't a priority.

Re: What happens if you don't pay charge card in full?

Anonymous — Sat, 20 Dec 2014 23:59:16 GMT

@jsucool76 wrote:
And they go Liam Neeson on you. They call you and go "I don't know who you are, but I will find you... And charge you"

hilarious.

Re: What happens if you don't pay charge card in full?

juggalo9er — Sun, 21 Dec 2014 01:03:20 GMT

it turns into a credit one card, with all the fees and honors to go with it!