topic Amex uses in Credit Cards

Amex uses

Anonymous — Mon, 19 Jul 2010 11:44:09 GMT

I'm using Amex green and gold cards to buy groceries, pick up meds at the pharmacy, shop at Barnes & Nobles, etc. In fact, you get extra points from Amex for buying stuff like gas and groceries. There are some that have suggested that it is not a good idea to do this (using an Amex charge card at Wal Mart for example or for everyday errands like the dry cleaners, filling up the gas tank, lunch at McDonalds or Burger King, groceries, etc. ) because it may indicate you are somehow stressed for cash and on the road to default. Other posters on other sites feel that Amex might prefer you shop at some sites and not others and they blame their other problems with Amex on this. My guess is that if Amex encourages this on their website, then it's okay. Does anyone have any experience doing this and/or comments? I would particularly welcome hearing from folks who have been using their Amex cards for years on this stuff without a problem.

Re: Amex uses

Anonymous — Mon, 19 Jul 2010 14:29:44 GMT

Use your card wherever u like. I don't believe u can't use it here or there if so amex would have a big lawsuit on there hand.

Re: Amex uses

jdsays — Mon, 19 Jul 2010 14:37:07 GMT

With AMEX charge cards, I think they prefer to see the usage. Since you have to pay in full each month I dont see why they wouldnt like you to use it everywhere. They make money everytime you swipe, whether the charge is for $3 or $100. Though they might cut you off if you get too high with your spending. I use my Zync everywhere like a debit card and then pay in full with my checking account each month.

Its very different from a credit card where you pay over time. That is a different story.

Re: Amex uses

Anonymous — Mon, 19 Jul 2010 14:45:58 GMT

I had one for many years and used it everywhere. I don't believe it matters where you use it.

Why do you have both Gold and Green with 2 annual fees?

Re: Amex uses

Anonymous — Mon, 19 Jul 2010 15:08:00 GMT

Because the annual fees were waived for the first year and I couldn't make up my mind. I love Amex--Except for the annual fee it's like getting free money until the statement closes instead of having the charges come out of your checking account immediately. Of course, that's true of regular credit cards as well if you PIF each month.

Re: Amex uses

vanillabean — Mon, 19 Jul 2010 16:46:53 GMT

gangof4 wrote:

"love Amex--Except for the annual fee it's like getting free money until the statement closes instead of having the charges come out of your checking account immediately. Of course, that's true of regular credit cards as well if you PIF each month."

Credit in itself is a funny thing. It's only really needed if your checking doesn't have enough stored away for flexibility. And as interest on checking accounts is practically non-existent, paying later is no gain in that scenario (of course you can invest if you know about those things).

So I pay sooner than later to lower my reported balances, which lowers my utils and increases my credit score. I have noticed this approach works extremely well for me, and it has a very tangible impact on my financial well-being. Can look forward to lower loan rates and better cards.

I use my Amex card whenever and wherever I can.

Re: Amex uses

bakalao2k — Mon, 19 Jul 2010 18:25:16 GMT

I used my AMEX Blue at a McDonalds last Friday and I use the card to pay for groceries. No AA with my account.

Re: Amex uses

Anonymous — Mon, 19 Jul 2010 18:53:37 GMT

From what I read, it sounded like the risk of AA was if you normally shop at high end retailers and then all of a sudden you are just shopping at Walmart and Taco Bell. That could show financial problems. But if those are your regular spending habits I don't think it's a problem.

Re: Amex uses

vanillabean — Mon, 19 Jul 2010 19:42:22 GMT

"From what I read, it sounded like the risk of AA was if you normally shop at high end retailers and then all of a sudden you are just shopping at Walmart and Taco Bell. That could show financial problems. But if those are your regular spending habits I don't think it's a problem."

Haha, I should watch out then. I have only been each of those places once in my life. A deluxe Walmart in Palm Springs, late at night because I had forgotten my shorts for the pool. A Taco Bell because a friend of my wife is obsessive at the place and a new location nearby had opened. I don't think I used my Amex at either visit.

Re: Amex uses

getmycreditright — Mon, 19 Jul 2010 19:49:17 GMT

@Anonymous wrote:
From what I read, it sounded like the risk of AA was if you normally shop at high end retailers and then all of a sudden you are just shopping at Walmart and Taco Bell. That could show financial problems. But if those are your regular spending habits I don't think it's a problem.

I chuckled.

Re: Amex uses

llecs — Mon, 19 Jul 2010 20:23:04 GMT

OP, I got FR'd on my 9-10 month old Green after trying to charge $2700 in legal fees when forming a new biz. While that month had my largest balance, a call to an Amex CSR revealed that the legal transaction resulted in the FR. Moments prior to the charge, I checked the spending availablility on Amex's website and there was enough to support a $2700 charge.

Re: Amex uses

Anonymous — Mon, 19 Jul 2010 20:58:18 GMT

I say just spend it anywhere and everywhere. This paranoia of getting in trouble with American Express is crazy. I use my amex everywhere. If they did AA on me one day I'll just move elsewhere.

Re: Amex uses

Watchmann — Mon, 19 Jul 2010 23:47:49 GMT

I'm the 'use it as you need it' type individual .... but if you go nuts right after you get the card and use it at pawn shops, brothels (where it is legal), the horse track, and other such places you might raise their eyebrows. I've had AMEX for 30 years now and have never had any issues or problems worldwide, but I don't use it for day to day stuff like McDonalds, that's what cash is for. Use it with a bit of sense and you'll have no problems.