topic Re: New to Charge Cards in Credit Cards

New to Charge Cards

citymunky — Fri, 09 Dec 2022 03:15:25 GMT

So recently, I was approved for the AMEX Gold, but after reading this thread (https://ficoforums.myfico.com/t5/Credit-Cards/Having-terrible-luck-with-Amex-customer-support/td-p/6621869), I want to make sure I'm going to mess my internal limit by making silly mistakes. My 1st statement date will be on Dec 25th, and I was planning on spending a lot with my card and PIF after my statement posted (way before the due date). Just want to make sure I'm not crazy.

Re: New to Charge Cards

FinStar — Fri, 09 Dec 2022 03:35:06 GMT

@citymunky wrote:
So recently, I was approved for the AMEX Gold, but after reading this thread (https://ficoforums.myfico.com/t5/Credit-Cards/Having-terrible-luck-with-Amex-customer-support/td-p/6621869), I want to make sure I'm going to mess my internal limit by making silly mistakes. My 1st statement date will be on Dec 25th, and I was planning on spending a lot with my card and PIF after my statement posted (way before the due date). Just want to make sure I'm not crazy.

I would set or bury that thread aside, honestly.

Use your card as you would any ordinary card, meaning don't go buying a giraffe you can't afford. Just keep in mind the income you reported to AmEx and your expected monthly charges. In other words, if you reported AGI of $60K, don't expect AmEx to approve a charge of $5K-$10K from the get-go. Give it time and be sure to get in a habit of PIF with the card.

Also, don't overuse the Check Spending Power button like it's Candy Crush. Only use it in cases where you want to see whether an out of the ordinary charge or amount is likely to be approved. Over time, the algorithm will learn your usage and payments patterns to adjust so that larger purchases can be approved.

Re: New to Charge Cards

citymunky — Fri, 09 Dec 2022 03:46:40 GMT

Normally, with my other cards, I PIF before the statement date, or if I had heavy spending on a card I pay down to 9% of the limit to report, then immediately pay down the balance to zero. I aware of not checking the spending power often as that will spoke AMEX especially with a new account, but I did check once was 'approved' to spend $5k, however, I would never get that close to amonth of spent in a month, not even if I come somehow pay my mortgage with my card.

Re: New to Charge Cards

FinStar — Fri, 09 Dec 2022 03:54:36 GMT

@citymunky wrote:
Normally, with my other cards, I PIF before the statement date, or if I had heavy spending on a card I pay down to 9% of the limit to report, then immediately pay down the balance to zero. I aware of not checking the spending power often as that will spoke AMEX especially with a new account, but I did check once was 'approved' to spend $5k, however, I would never get that close to amonth of spent in a month, not even if I come somehow pay my mortgage with my card.

You can definitely PIF before the statement cycles or once it generates depending on your budget considerations. Just never be late or bounce a payment. Other than that you should be fine.

Re: New to Charge Cards

wasCB14 — Fri, 09 Dec 2022 04:05:13 GMT

@FinStar wrote:
@citymunky wrote:
Normally, with my other cards, I PIF before the statement date, or if I had heavy spending on a card I pay down to 9% of the limit to report, then immediately pay down the balance to zero. I aware of not checking the spending power often as that will spoke AMEX especially with a new account, but I did check once was 'approved' to spend $5k, however, I would never get that close to amonth of spent in a month, not even if I come somehow pay my mortgage with my card.
You can definitely PIF before the statement cycles or once it generates depending on your budget considerations. Just never be late or bounce a payment. Other than that you should be fine.

Keep in mind that first statement will (usually? always?) have an annual fee added when the statement closes. So don't spend $3k, make a $3k payment a week later, and then forget about the card for a while.

Re: New to Charge Cards

citymunky — Fri, 09 Dec 2022 04:53:52 GMT

AMEX annually fee is waived for me.

Re: New to Charge Cards

OmarGB9 — Fri, 09 Dec 2022 06:37:42 GMT

@citymunky wrote:
AMEX annually fee is waived for me.

Well that's nice. I wish mine was.

Anyway, I think you have a good plan. Just spend a reasonable amount that fits with what your reported monthly income is, PIF quickly, rinse and repeat. Over time they'll be more lax and (probably) approve larger one time purchases.

BTW, the "Check Spend Power" feature is meant to see if a one-time purchase for $X would be approved. It's not saying you can only spend $X amount in a month. Also, if you do use the tool, I've seen DPs around here stating that Amex will kind of be on the lookout for said purchase in the near future, and will be expecting an actual transaction for $X, so keep that in mind.

Re: New to Charge Cards

FireMedic1 — Fri, 09 Dec 2022 10:19:57 GMT

@citymunky wrote:
AMEX annually fee is waived for me.

How or where did you get fee waived? Site says $250. Only had mine 2 months. No such offer. Just the 60,000 for 4k spend 6 months.

Re: New to Charge Cards

citymunky — Fri, 09 Dec 2022 10:28:55 GMT

@OmarGB9. Yup, I watched a few YouTube videos about AMEXs "Check Spend Power" feature, and its purpose was fully explained, I was just curious. @FireMedic1, I got the same Sub, which I learned 3 days late that Resy.com offers 75k MR sign on bonus for the same about of Spend in 4 months. But to answer your question the annual fee is waived for active duty military.

Re: New to Charge Cards

Anonymous — Fri, 09 Dec 2022 11:25:08 GMT

@OmarGB9 wrote:

BTW, the "Check Spend Power" feature is meant to see if a one-time purchase for $X would be approved. It's not saying you can only spend $X amount in a month. Also, if you do use the tool, I've seen DPs around here stating that Amex will kind of be on the lookout for said purchase in the near future, and will be expecting an actual transaction for $X, so keep that in mind.

Right, it's the online equivalent of calling up a CSR to see if a transaction would be approved. If that was the only option, pretty sure that even the most hard core MyFico wouldn't call several times a day/week to check the max available! (Well, come to think of it, not at all sure they wouldn't). But since it is click, it's being used in a way unintended

Re: New to Charge Cards

BronzeTrader — Fri, 09 Dec 2022 13:10:06 GMT

@citymunky wrote:
So recently, I was approved for the AMEX Gold, but after reading this thread (https://ficoforums.myfico.com/t5/Credit-Cards/Having-terrible-luck-with-Amex-customer-support/td-p/6621869), I want to make sure I'm going to mess my internal limit by making silly mistakes. My 1st statement date will be on Dec 25th, and I was planning on spending a lot with my card and PIF after my statement posted (way before the due date). Just want to make sure I'm not crazy.

Here the question is: what is "spending a lot". The "lot" is $10,000, $30,000 or $50,000?

Your first charge card spending power depends on your existing relationship with AmEx. If you over-board trying to max out and get your new card bonus within the first month, you'll probably fail and get charges declined. Go easy with the first month charges. Ramp up the spending month by month, not big jump.

If you do plan to have a large purchase, like a diamond ring, expensive art painting or a new card, chat with AmEx rep and seek out their opinion. I do not think there is anything wrong with checking "buying power". But it will time out after 3-4 tries.

Just use common sense. I was able to put on like $18,000 charges on my Business Platinum card to get the new card bonus within the first month. But those are all consistent and legit spends with big stores like Walmart and Amazon etc. And I have a long history with AmEx.

Re: New to Charge Cards

BronzeTrader — Fri, 09 Dec 2022 13:20:47 GMT

@Anonymous wrote:
@OmarGB9 wrote:

BTW, the "Check Spend Power" feature is meant to see if a one-time purchase for $X would be approved. It's not saying you can only spend $X amount in a month. Also, if you do use the tool, I've seen DPs around here stating that Amex will kind of be on the lookout for said purchase in the near future, and will be expecting an actual transaction for $X, so keep that in mind.
Right, it's the online equivalent of calling up a CSR to see if a transaction would be approved. If that was the only option, pretty sure that even the most hard core MyFico wouldn't call several times a day/week to check the max available! (Well, come to think of it, not at all sure they wouldn't). But since it is click, it's being used in a way unintended

Well, I just do not know if the above is true. Or just a myth.

AmEx "checking spending power" is just a tool. We do not need to get so religious about this tool. I've used this tool to check my spending power several times until the tool timed out after 3-4 tries. I've done with P2, P3 and P4. I just do not see adverse effects at all. I was just curious to see how "high" that spending power could be. I certainly see $50,000 ro $60,000 range. I did not use that spending power anyhow.

If I do want to charge a $40,000 new card to my Platinum card, I'll just call up AmEx and make sure that is allowed. Same with a $15,000 diamond purchase. That is very different than 15 purchases of $1,000 laptops over 30 day period.

Re: New to Charge Cards

citymunky — Fri, 09 Dec 2022 14:35:26 GMT

@BronzeTrader @A lot, as I would use this card as my primary everyday card, instead of using my other rewards cards this billing cycle especially for the holiday season (coupled with Rakuten) to maximize MR points from my normal spending. There is no way I can support $10K or higher in one billing cycle. I'm make a decent pay, but no where close to justify $10K a month.

Re: New to Charge Cards

BronzeTrader — Fri, 09 Dec 2022 15:41:34 GMT

@citymunky wrote:
@BronzeTrader@A lot, as I would use this card as my primary everyday card, instead of using my other rewards cards this billing cycle especially for the holiday season (coupled with Rakuten) to maximize MR points from my normal spending. There is no way I can support $10K or higher in one billing cycle. I'm make a decent pay, but no where close to justify $10K a month.

If you are not close to $10k a month, then you should be fine. Just do not do like $4,000 in grocery and another $5,000 in dining. When we stretch and game AmEx, AmEx does not like it.

It is a different story when we get a business card. Then it is common for AmEx to see some $2,000 charges at Lowe's and $5,000 charges at Dell and Best Buy.

Re: New to Charge Cards

FinStar — Fri, 09 Dec 2022 17:15:28 GMT

@BronzeTrader wrote:
@Anonymous wrote:
@OmarGB9 wrote:

BTW, the "Check Spend Power" feature is meant to see if a one-time purchase for $X would be approved. It's not saying you can only spend $X amount in a month. Also, if you do use the tool, I've seen DPs around here stating that Amex will kind of be on the lookout for said purchase in the near future, and will be expecting an actual transaction for $X, so keep that in mind.
Right, it's the online equivalent of calling up a CSR to see if a transaction would be approved. If that was the only option, pretty sure that even the most hard core MyFico wouldn't call several times a day/week to check the max available! (Well, come to think of it, not at all sure they wouldn't). But since it is click, it's being used in a way unintended
Well, I just do not know if the above is true. Or just a myth.

AmEx "checking spending power" is just a tool. I've used this tool to check my spending power several times until the tool timed out after 3-4 tries. I've done with P2, P3 and P4. I just do not see adverse effects at all. I was just curious to see how "high" that spending power could be. I certainly see $50,000 ro $60,000 range. I did not use that spending power anyhow.

If I do want to charge a $40,000 new card to my Platinum card, I'll just call up AmEx and make sure that is allowed. Same with a $15,000 diamond purchase. That is very different than 15 purchases of $1,000 laptops over 30 day period.

While any outcome for overusing the tool can vary, intel has been confirmed in the past by an AmEx employee. So, this isn't coming out of a vacuum.

Re: New to Charge Cards

Remedios — Fri, 09 Dec 2022 20:06:09 GMT

I've pushed that dang button every time someone says it shouldn't be for the last 3 years.

I've never used it before large purchase because I honestly don't care, if Amex was to decline it, plenty of other fish that wouldn't, but Amex never declined anything.

Also, after I hit $25,000 on Reserve, I may or may not use it for the rest of that year. That didn't change anything, either.

I don't know if Button Stories are true or not, but if they ever shut Reserve for "no reason", I'll be sure to update everyone.

Re: New to Charge Cards

BronzeTrader — Fri, 09 Dec 2022 20:58:21 GMT

@FinStar wrote:
@BronzeTrader wrote:
@Anonymous wrote:
@OmarGB9 wrote:

BTW, the "Check Spend Power" feature is meant to see if a one-time purchase for $X would be approved. It's not saying you can only spend $X amount in a month. Also, if you do use the tool, I've seen DPs around here stating that Amex will kind of be on the lookout for said purchase in the near future, and will be expecting an actual transaction for $X, so keep that in mind.
Right, it's the online equivalent of calling up a CSR to see if a transaction would be approved. If that was the only option, pretty sure that even the most hard core MyFico wouldn't call several times a day/week to check the max available! (Well, come to think of it, not at all sure they wouldn't). But since it is click, it's being used in a way unintended
Well, I just do not know if the above is true. Or just a myth.

AmEx "checking spending power" is just a tool. I've used this tool to check my spending power several times until the tool timed out after 3-4 tries. I've done with P2, P3 and P4. I just do not see adverse effects at all. I was just curious to see how "high" that spending power could be. I certainly see $50,000 ro $60,000 range. I did not use that spending power anyhow.

If I do want to charge a $40,000 new card to my Platinum card, I'll just call up AmEx and make sure that is allowed. Same with a $15,000 diamond purchase. That is very different than 15 purchases of $1,000 laptops over 30 day period.

While any outcome for overusing the tool can vary, intel has been confirmed in the past by an AmEx employee. So, this isn't coming out of a vacuum.

Well, I have a family member who works for AmEx. Not aware of such thing.

I've been with AmEx for decades. Never have any issue checking that "spending power" tool.

I think some people are just so obsessed with those small things. They believe they know more than others. So they write articles and write some blogs of those things thay may not even exist.

For most people, there is not really any need to use that tool. We know our own spending power and AmEx and many CC banks know too. If we put on charges like 5x our monthly gross income, then we all know that is extradinary. Then we may need to make sure CC banks are ok with that. That could be some home modeling. Or upgrade to two AC systems and most home appliances.

I do not recall the last time that I used that "spending power" tool before I charge anything to my AmEx cards. AmEx won't blink if I charge a $2,000 computer.

Re: New to Charge Cards

FinStar — Fri, 09 Dec 2022 21:29:23 GMT

@BronzeTrader wrote:
@FinStar wrote:
@BronzeTrader wrote:
@Anonymous wrote:
@OmarGB9 wrote:

BTW, the "Check Spend Power" feature is meant to see if a one-time purchase for $X would be approved. It's not saying you can only spend $X amount in a month. Also, if you do use the tool, I've seen DPs around here stating that Amex will kind of be on the lookout for said purchase in the near future, and will be expecting an actual transaction for $X, so keep that in mind.
Right, it's the online equivalent of calling up a CSR to see if a transaction would be approved. If that was the only option, pretty sure that even the most hard core MyFico wouldn't call several times a day/week to check the max available! (Well, come to think of it, not at all sure they wouldn't). But since it is click, it's being used in a way unintended
Well, I just do not know if the above is true. Or just a myth.

AmEx "checking spending power" is just a tool. I've used this tool to check my spending power several times until the tool timed out after 3-4 tries. I've done with P2, P3 and P4. I just do not see adverse effects at all. I was just curious to see how "high" that spending power could be. I certainly see $50,000 ro $60,000 range. I did not use that spending power anyhow.

If I do want to charge a $40,000 new card to my Platinum card, I'll just call up AmEx and make sure that is allowed. Same with a $15,000 diamond purchase. That is very different than 15 purchases of $1,000 laptops over 30 day period.

While any outcome for overusing the tool can vary, intel has been confirmed in the past by an AmEx employee. So, this isn't coming out of a vacuum.
Well, I have a family member who works for AmEx. Not aware of such thing.

I've been with AmEx for decades. Never have any issue checking that "spending power" tool.

I think some people are just so obsessed with those small things. They believe they know more than others. So they write articles and write some blogs of those things thay may not even exist.

For most people, there is not really any need to use that tool. We know our own spending power and AmEx and many CC banks know too. If we put on charges like 5x our monthly gross income, then we all know that is extradinary. Then we may need to make sure CC banks are ok with that. That could be some home modeling. Or upgrade to two AC systems and most home appliances.

I do not recall the last time that I used that "spending power" tool before I charge anything to my AmEx cards. AmEx won't blink if I charge a $2,000 computer.

Except you cannot dismiss customers who have experienced those instances as AmEx is a fairly large entity with millions of customers and have reported it here and elsewhere. I've been with AmEx for decades as well so. And, what your family member may know or not know is also true for someone who may be in the know in another department...fairly large and global entity.

Regardless, the OP appears to be on the right track for how they intend to use their account and sufficient input have been provided.

Re: New to Charge Cards

Remedios — Fri, 09 Dec 2022 21:38:08 GMT

@BronzeTrader wrote:
@FinStar wrote:
@BronzeTrader wrote:
@Anonymous wrote:
@OmarGB9 wrote:

BTW, the "Check Spend Power" feature is meant to see if a one-time purchase for $X would be approved. It's not saying you can only spend $X amount in a month. Also, if you do use the tool, I've seen DPs around here stating that Amex will kind of be on the lookout for said purchase in the near future, and will be expecting an actual transaction for $X, so keep that in mind.
Right, it's the online equivalent of calling up a CSR to see if a transaction would be approved. If that was the only option, pretty sure that even the most hard core MyFico wouldn't call several times a day/week to check the max available! (Well, come to think of it, not at all sure they wouldn't). But since it is click, it's being used in a way unintended
Well, I just do not know if the above is true. Or just a myth.

AmEx "checking spending power" is just a tool. I've used this tool to check my spending power several times until the tool timed out after 3-4 tries. I've done with P2, P3 and P4. I just do not see adverse effects at all. I was just curious to see how "high" that spending power could be. I certainly see $50,000 ro $60,000 range. I did not use that spending power anyhow.

If I do want to charge a $40,000 new card to my Platinum card, I'll just call up AmEx and make sure that is allowed. Same with a $15,000 diamond purchase. That is very different than 15 purchases of $1,000 laptops over 30 day period.

While any outcome for overusing the tool can vary, intel has been confirmed in the past by an AmEx employee. So, this isn't coming out of a vacuum.
Well, I have a family member who works for AmEx. Not aware of such thing.

I've been with AmEx for decades. Never have any issue checking that "spending power" tool.

I think some people are just so obsessed with those small things. They believe they know more than others. So they write articles and write some blogs of those things thay may not even exist.

For most people, there is not really any need to use that tool. We know our own spending power and AmEx and many CC banks know too. If we put on charges like 5x our monthly gross income, then we all know that is extradinary. Then we may need to make sure CC banks are ok with that. That could be some home modeling. Or upgrade to two AC systems and most home appliances.

I do not recall the last time that I used that "spending power" tool before I charge anything to my AmEx cards. AmEx won't blink if I charge a $2,000 computer.

Well, that may be the case for you (but only because you said it) however Amex blinks for a lot of people.

For them, tool is valuable and in absence of proof that is/isn't harmful, it's better to excercise some caution if card means something to them.

Re: New to Charge Cards

BronzeTrader — Fri, 09 Dec 2022 21:43:39 GMT

Just go to back to OP's question. Just use common sense. Charge card is just a financial tool, or asset for some people.

The only difference of charge card vs credit card is that, it does not set a "hard" credit line. But sets a "soft" internal credit line that is floating. That invisible "spending power" will float depending your overall credit worth, income and your credit history with AmEx. It is a combination of those factors. But I do not have the formula.

You are expected to pay back. Do not get fooled by the AmEx "pay over time" offer. It is never a good idea keeping balance in a charge card.