topic Re: Charge or Credit? Both? in Credit Cards

Charge or Credit? Both?

Anonymous — Thu, 24 Sep 2015 16:58:46 GMT

Hey folks,

I'm interested in hearing people's opinions about charge cards, as opposed to credit cards.

What are your thoughts? Do you have both credit and charge? Why?

Re: Charge or Credit? Both?

Open123 — Thu, 24 Sep 2015 17:03:58 GMT

I have both.

Why I like Charge cards:

1. Amex NPSL is without peer for large charges static CLs aren't able to accomodate.

2. Doesn't affect Utility.

3. Amex Charges have certain benefits their revolvers do not.

Why I like Revolvers:

1. Some of the best rewards cards and sign up bonuses are offered only in the form of revolvers.

2. 0% promo - love cheap & free money.

3. Fico score maximization.

However, all things equal, I'd rather have a Charge card if it offered similar rewards to, say, an SPG, CSP, or Ink. In general, I just dislike the conept of having a limit.

Re: Charge or Credit? Both?

CreditCuriosity — Thu, 24 Sep 2015 17:08:44 GMT

@Open123 wrote:
I have both.

Why I like Charge cards:

1. Amex NPSL is without peer for large charges static CLs aren't able to accomodate.
2. Doesn't affect Utility.
3. Amex Charges have certain benefits their revolvers do not.

Why I like Revolvers:

1. Some of the best rewards cards and sign up bonuses are offered only in the form of revolvers.
2. 0% promo - love cheap & free money.
3. Fico score maximization.

However, all things equal, I'd rather have a Charge card if it offered similar rewards to, say, an SPG, CSP, or Ink. In general, I just dislike the conept of having a limit.

So basically like the federal government.. Gotcha .. I think our current administration is aiming for 20 trillion before they leave or get kicked out of office . Only if Amex would float that NPSL and not the tax payers, hmm.

Re: Charge or Credit? Both?

Open123 — Thu, 24 Sep 2015 17:09:15 GMT

@CreditCuriousity wrote:
@Open123 wrote:
I have both.

Why I like Charge cards:

1. Amex NPSL is without peer for large charges static CLs aren't able to accomodate.
2. Doesn't affect Utility.
3. Amex Charges have certain benefits their revolvers do not.

Why I like Revolvers:

1. Some of the best rewards cards and sign up bonuses are offered only in the form of revolvers.
2. 0% promo - love cheap & free money.
3. Fico score maximization.

However, all things equal, I'd rather have a Charge card if it offered similar rewards to, say, an SPG, CSP, or Ink. In general, I just dislike the conept of having a limit.
So basically like the federal government.. Gotcha .. I think our current administration is aiming for 20 trillion before they leave or get kicked out of office

LOL...With one major difference, I plan to settle all my debts within 30 days, and in full!

Re: Charge or Credit? Both?

Anonymous — Thu, 24 Sep 2015 17:10:06 GMT

@Open123 wrote:
@CreditCuriousity wrote:
@Open123 wrote:
I have both.

Why I like Charge cards:

1. Amex NPSL is without peer for large charges static CLs aren't able to accomodate.
2. Doesn't affect Utility.
3. Amex Charges have certain benefits their revolvers do not.

Why I like Revolvers:

1. Some of the best rewards cards and sign up bonuses are offered only in the form of revolvers.
2. 0% promo - love cheap & free money.
3. Fico score maximization.

However, all things equal, I'd rather have a Charge card if it offered similar rewards to, say, an SPG, CSP, or Ink. In general, I just dislike the conept of having a limit.
So basically like the federal government.. Gotcha .. I think our current administration is aiming for 20 trillion before they leave or get kicked out of office
LOL...With one major difference, I plan to settle all my debts within 30 days, and in full!

Hahahahah awesome. I like your reasoning, btw.

Re: Charge or Credit? Both?

Themanwhocan — Thu, 24 Sep 2015 17:21:48 GMT

@Open123 wrote:
I have both.

Why I like Charge cards:

1. Amex NPSL is without peer for large charges static CLs aren't able to accomodate.
2. Doesn't affect Utility.
3. Amex Charges have certain benefits their revolvers do not.

Why I like Revolvers:

1. Some of the best rewards cards and sign up bonuses are offered only in the form of revolvers.
2. 0% promo - love cheap & free money.
3. Fico score maximization.

However, all things equal, I'd rather have a Charge card if it offered similar rewards to, say, an SPG, CSP, or Ink. In general, I just dislike the conept of having a limit.

Of course, you DO have a limit. it just changes without you usually knowing...

Personally I prefer having a couple of cards with $30K limits on each.

Re: Charge or Credit? Both?

CreditCuriosity — Thu, 24 Sep 2015 17:29:20 GMT

@Themanwhocan wrote:
@Open123 wrote:
I have both.

Why I like Charge cards:

1. Amex NPSL is without peer for large charges static CLs aren't able to accomodate.
2. Doesn't affect Utility.
3. Amex Charges have certain benefits their revolvers do not.

Why I like Revolvers:

1. Some of the best rewards cards and sign up bonuses are offered only in the form of revolvers.
2. 0% promo - love cheap & free money.
3. Fico score maximization.

However, all things equal, I'd rather have a Charge card if it offered similar rewards to, say, an SPG, CSP, or Ink. In general, I just dislike the conept of having a limit.
Of course, you DO have a limit. it just changes without you usually knowing...

Personally I prefer having a couple of cards with $30K limits on each.

This will change as well before you get to the 30k as well depending on how long it takes you to reach those limits.. No limits are set in stone and evolve constantly depending on circumstances .

Say you make 50k and you are approaching a 30k limit, my money is on the lender is starting to shake and will act accordingly and cut the limit then start to balance chase you most likely.

Re: Charge or Credit? Both?

Open123 — Thu, 24 Sep 2015 17:29:04 GMT

@Themanwhocan wrote:
Of course, you DO have a limit. it just changes without you usually knowing...

Personally I prefer having a couple of cards with $30K limits on each.

True, but whatever that NPSL happens to be, it's way larger than any static lines I have or Amex would be willing to give me.

Re: Charge or Credit? Both?

Anonymous — Thu, 24 Sep 2015 17:56:59 GMT

When would a NPSL hurt one's score? Improve?

Re: Charge or Credit? Both?

Open123 — Thu, 24 Sep 2015 18:00:15 GMT

@Anonymous wrote:
When would a NPSL hurt one's score? Improve?

When backdating existed, a Charge card addition enhanced AAOA. With the new Fico scoring models, NPSL charges have ZERO bearing on Utility, which is helpful for one whose sensitive to short term score volatility.

Re: Charge or Credit? Both?

Anonymous — Thu, 24 Sep 2015 18:52:53 GMT

No charge cards for me. They have annual fees, and my spending habits don't justify it.

Re: Charge or Credit? Both?

UncleB — Thu, 24 Sep 2015 22:55:50 GMT

@Anonymous wrote:
No charge cards for me. They have annual fees, and my spending habits don't justify it.

I got my Amex Green really as a 'fluke', and since the AF is waived the first year I figured I'd see how it would fit in with my spending.

The truth is, it doesn't.

My revolvers are all rewards cards, and they all have a 'purpose', so to speak. Anytime I use the Green card, I feel like I'm literally leaving "money on the table" in the form of lost rewards. My spending is modest compared to most, and my revolving credit lines are more than sufficient for my day-to-day expenses, and even if I wanted/needed to let a balance float for a few months, my current credit lines are sufficient for that, too (again, my needs are modest compared to most folks on here).

Also, with my revolvers I don't have to be concerned with bumping up against an arbitrary/constantly moving spending limit that's only visible to Amex. I know there's the "spending ability" function on the website, but who wants to be concerned with checking with that just to make a purchase? With my revolvers, if I want to charge $1000, I know I can, no questions asked. With a charge card, I "probably" can (and I have), but again, there's always that little bit of uncertainty, at least for me.

Many of the reasons listed above might not apply to many/most people, but they apply to me at this time in my life. I can see how it would benefit a traveler to have a NPSL card to take care of hotels and rental cars since you don't have to be as concerned with the infamous credit card 'hold', but I don't get around much, so for me it's just not a fit

Other folks will feel exactly the opposite from me, and will have as many good reasons for their opinion as I have for mine - and since it's subjective we're all 'correct'. It's really a personal thing... you just have to figure out what the right fit is for you.

Re: Charge or Credit? Both?

Sharingan — Fri, 25 Sep 2015 01:46:20 GMT

I have both charge and credit cards, but my AmEx Zync will be my only charge card after this year. I agree with earlier comments that NPSL charge cards tend to have a higher exposure limit than revolving credit cards, at least in my experience. My Zync has at least twice the buying power of my highest credit card limit. For $25/year, it is a fantastic value over the AmEx Green and Gold (not PRG) for my purposes. I'd have a hard time paying anymore than that for charge cards with few relevant benefits over no-AF credit cards currently in my possession, however. The Platinum and PRG are obvious exceptions, and I do feel as though I've gotten my money's worth with the former.

I prefer to have credit cards and treat them as charge cards.

Re: Charge or Credit? Both?

kdm31091 — Thu, 24 Sep 2015 23:29:09 GMT

I see no reason (for myself, anyway) to get a charge card. I don't travel or spend enough for a PRG or Platinum or anything like that to make sense. Unless you spend a lot and are really into travel transfers, and are going to do that faithfully, they don't tend to make a lot of sense long term. (But for those who can spend/travel enough, they can be great).

But as far as charge vs revolving, just don't see any advantage. I PIF anyway, unless I'm using 0% promos or occasionally when stuff has hit the fan. But that's the problem. With a charge card, you are 100% committed to paying that thing in full (I know there is sometimes an option to float the balance, but you aren't expected to use it much). I dunno. Just don't see any real advantage, especially in 2015 with so many compelling revolving options available. While PRG and Platinum etc have their place, it is a niche place IMO (for the long term).

Re: Charge or Credit? Both?

bengalikejenga — Fri, 25 Sep 2015 01:22:04 GMT

i prefer a Revolving Credit card than Charge cards.