topic Re: I just don't get the allure of Amex Charge Cards in Credit Cards

I just don't get the allure of Amex Charge Cards

ztnjpv — Thu, 29 Mar 2012 16:12:48 GMT

I just got one a little over a week ago....the Plum....and I haven't even used it yet and I have already fallen out of love with Amex charge cards. Maybe I'm just too used to credit cards and the confidence in knowing what is in front of you at all times. But reading complaints, bad reviews about evolving limits and comments from ticked off customers (often good payers with long histories) about these issues has already turned me off to it all. The dissatifying conversation I had with Amex's apathetic executive office over how the Plum REALLY works in terms of the early-pay discounts has simply made it worse.

With today's options under Visa/MC, what's the point? You most often find equal rewards and values if not better (except maybe business class airfare being paid with Member points) and you get it with no annual fee or a much smaller one. And you know what you can spend at all times through your credit limit so there are no suprises or embarrassments that blindside you at the counter. Not to mention that your FICO will usually score better with credit cards under most circumstances.

Who wants to worry about your "No Preset Spending Limit" evolving for some foggy reason and then getting the rug pulled out from under you when you least expect it? Who wants to have to check if Amex will authorize a larger purchase or even a smaller one depending on circumstances when a credit limit and knowledge of your balance is so much safer?

It all just seems like a big hassle with too many inconveniences leaving one wary about being approved when they swipe the card or worried that less spending over a few months could get your spending ability reduced. With good rewards and defined limits that don't fluctuate or surprise you, there just seem to be too many good credit cards out there that make life much easier....far too easy to be outweighed by some worthless "prestige factor" or nice-but-not-totally-necessary customer service perks. And there's the fact that it's not as readily accepted....

Re: I just don't get the allure of Amex Charge Cards

Anonymous — Thu, 29 Mar 2012 16:14:26 GMT

UTI, Rewards (MR), Backdating. All seem to be the reasons. Protections and benefits are another. You have the 'weird' charge card that is more of a trade term than a charge card. I like mine because of the points and the balance not being factored in.

Re: I just don't get the allure of Amex Charge Cards

pizzadude — Thu, 29 Mar 2012 16:15:05 GMT

There is no single card that meets everyone's needs. Not from AMEX, or Chase or anywhere.....

People who do use AMEX charge cards generally like the fact that it keeps them honest with their spending, since you have to PIF. Also the fact that Charge Card balances aren't included in FICO scoring helps those who run alot through their cards each month.

Re: I just don't get the allure of Amex Charge Cards

navigatethis12 — Thu, 29 Mar 2012 16:33:38 GMT

@ztnjpv wrote:

Who wants to worry about your "No Preset Spending Limit" evolving for some foggy reason and then getting the rug pulled out from under you when you least expect it? Who wants to have to check if Amex will authorize a larger purchase or even a smaller one depending on circumstances when a credit limit and knowledge of your balance is so much safer?

That is why I do not like charge cards. That and they cost an annual fee. If I only charge $30 on a charge card for six months and then try to put $5000 it will probably be declined because it is way out of my spending habits. If I do the same on a card with a $10000 limit it will go through no problem and I always know that I can charge at least $10000. I always pay before the statement closes so utilization is not important to me but I can understand that for people who charge a lot and do no pay it off right way, that would really help with their score.

I do have other cards with better rewards for other things but the 3% for groceries can not be beat. Sallie Mae is 5% but I think it is capped at $500 a month, I am not sure. I have no problem with it being accepted where I want to use it.

I can never see myself with a charge card. Before looking at this site I never knew American Express was thought of so highly, I always thought they were garbage.

Re: I just don't get the allure of Amex Charge Cards

ztnjpv — Thu, 29 Mar 2012 16:49:04 GMT

"If I only charge $30 on a charge card for six months and then try to put $5000 it will probably be declined because it is way out of my spending habits. If I do the same on a card with a $10000 limit it will go through no problem and I always know that I can charge at least $10000."

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Yes. I don't like that Amex tries to judge you. If I charge lightly over a period of time, there isn't necessarily anything to read into and it's kinda creepy that they would do that. If I suddenly decide to make a large purchase a few months later, that's MY business and my choice based on my needs. Just give my limit and leave the rest to me.

Re: I just don't get the allure of Amex Charge Cards

Anonymous — Thu, 29 Mar 2012 17:10:40 GMT

The opposite is true too. I recently got my AMEX back. Initially it wouldn't let me charge over $2500. Two months later, 60k charge is no problem. No way any credit card could do that.

Also, the protections for AMEX are unmatched for the most part. Extended warranties etc. For me, the benefits of Plat Card are really nice. AMEX has credit cards too if that is what you like.

Re: I just don't get the allure of Amex Charge Cards

drsmith — Thu, 29 Mar 2012 17:14:42 GMT

Oh look this thread again

Re: I just don't get the allure of Amex Charge Cards

cashnocredit — Thu, 29 Mar 2012 17:48:31 GMT

Now that I'm retired charge cards work the best for me though I really don't like the NPSL. As a retired person I look at carrying a balance as, well, not a real option. It was when I was working mid career but not now. Thus, there is no practical difference between a charge card and credit card for my situation.

So why Amex?

1. Airport lounges

2. Costco

3. No ForEx fees

4. Possible use to charge infrequent but expensive flings costing >50k

Re: I just don't get the allure of Amex Charge Cards

namvet — Thu, 29 Mar 2012 18:07:25 GMT

Amex is old school and your history with them will make you or break you. The "allure" is their history of taking care of customers that take care of them. Amex loves new to credit but they will watch you like a hawk. You can establish your own credit limit with time. Proud to be a member since 1971.

Re: I just don't get the allure of Amex Charge Cards

Anonymous — Thu, 29 Mar 2012 18:15:18 GMT

It's just another company that extends credit.

It's kinda like white chocolate and me. A lot of people don't understand why I'm so fascinated by it, but I can't understand why so many people aren't.

Re: I just don't get the allure of Amex Charge Cards

Anonymous — Thu, 29 Mar 2012 18:32:08 GMT

@navigatethis12 wrote:
That is why I do not like charge cards. That and they cost an annual fee. If I only charge $30 on a charge card for six months and then try to put $5000 it will probably be declined because it is way out of my spending habits. If I do the same on a card with a $10000 limit it will go through no problem and I always know that I can charge at least $10000. I always pay before the statement closes so utilization is not important to me but I can understand that for people who charge a lot and do no pay it off right way, that would really help with their score.

I do have other cards with better rewards for other things but the 3% for groceries can not be beat. Sallie Mae is 5% but I think it is capped at $500 a month, I am not sure. I have no problem with it being accepted where I want to use it.

I can never see myself with a charge card. Before looking at this site I never knew American Express was thought of so highly, I always thought they were garbage.

That's not the best way to utilize a charge card but I understand where you coming from. Most Amex users who are not on these boards and use the card for everyday expenditures. They have no idea how Fico scores are calculated but they have great credit probably because of the way charge cards are not factored into utilization. Charge cards are not for everybody (neither are credit cards for that matter), and if you don't want one that's okay.

One thing that Amex does that is still unique to any other CCC is the fact that the always side with the customer regarding charge disputes. It sucks to be a merchant in this regard but looking back I can certainly think of a few instances this feature could have been used to my advantage as opposed to my being screwed.

Also CCC just recently (with exception to Discover) got on the bandwagon with all the cash back, point rewards, etc benefits that are flooding the market today. They would not be doing this if their was no Amex to pioneer such a program. Amex has been doing this for decades while other CC issuers have been doing this for a short period of time. We have no idea what the fallout will be regarding other CCC. Look at PenFed sure they still give 5% CB for gas but they cut their 1% everything else category to .25. That may happen with others (Amex included) if profit margins begin to diminish.

Re: I just don't get the allure of Amex Charge Cards

namvet — Thu, 29 Mar 2012 18:32:21 GMT

@Anonymous wrote:
It's just another company that extends credit.

It's kinda like white chocolate and me. A lot of people don't understand why I'm so fascinated by it, but I can't understand why so many people aren't.

You have to develope a taste for white chocalate! No it's not just another company that extends credit my friend. Amex is the best company that extends credit to those that qualify.

Re: I just don't get the allure of Amex Charge Cards

Anonymous — Thu, 29 Mar 2012 18:34:33 GMT

@namvet wrote:
@Anonymous wrote:
It's just another company that extends credit.

It's kinda like white chocolate and me. A lot of people don't understand why I'm so fascinated by it, but I can't understand why so many people aren't.
You have to develope a taste for white chocalate! No it's not just another company that extends credit my friend. Amex is the best company that extends credit to those that qualify.

I'm inclined to agree with you, but in the eyes of the uninformed or to those who haven't fully enjoyed their services, AMEX is just another company that extends credit.

We give AMEX that perceived value.

Re: I just don't get the allure of Amex Charge Cards

pipeguy — Thu, 29 Mar 2012 18:35:57 GMT

@namvet wrote:
@Anonymous wrote:
It's just another company that extends credit.

It's kinda like white chocolate and me. A lot of people don't understand why I'm so fascinated by it, but I can't understand why so many people aren't.
You have to develope a taste for white chocalate! No it's not just another company that extends credit my friend. Amex is the best company that extends credit to those that qualify.

LOL ! Spoken like a true fan

Re: I just don't get the allure of Amex Charge Cards

android01 — Thu, 29 Mar 2012 18:35:33 GMT

I know that my Business AMEX is invaluable because of the NPSL. There have been many many times when I've had to drop $50,000+ on buying new equipment or had crew's travelling all over the country at the same time incurring substantial expenses. The NPSL has been invaluable that way. PLUS, AMEX Business cards do not report on your personal credit file (unless you default). Every business Visa/MC I've ever had reports on my personal credit report, which I really don't like, and I have yet to find any Visa/MC that will give me a high enough limit to effectively run my business.

Re: I just don't get the allure of Amex Charge Cards

namvet — Thu, 29 Mar 2012 18:39:08 GMT

@Anonymous wrote:
@namvet wrote:
@Anonymous wrote:
It's just another company that extends credit.

It's kinda like white chocolate and me. A lot of people don't understand why I'm so fascinated by it, but I can't understand why so many people aren't.
You have to develope a taste for white chocalate! No it's not just another company that extends credit my friend. Amex is the best company that extends credit to those that qualify.
I'm inclined to agree with you, but in the eyes of the uninformed or to those who haven't fully enjoyed their services, AMEX is just another company that extends credit.
We give AMEX that perceived value.

Agreed! Perception is the better part of Reality!

Re: I just don't get the allure of Amex Charge Cards

Anonymous — Thu, 29 Mar 2012 18:39:35 GMT

It sounds like you have three issues:

1. You don't like charge cards

2. You don't like AMEX

3. You don't understand the prestige of the AMEX card

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

1. That's totally fine, but there are many people who--as other members have mentioned--really benefit from charge cards because they use them as their debit cards and PIF every month. It keeps their finances on track and they rack up the rewards points.

2. As for not liking AMEX, that is fine too. They are a rigid company, but they treat their customers well. And by customers, I do mean those that use the cards regularly, pay on time and preferably in full, and respect the credit they are given. Many other cards are now offering the same benefits and I hear Discover has better customer service than AMEX, so you may wish to try business with them.

3. Personally, I didn't know AMEX was such a big deal until I started this forum. To me, it was the first credit card I ever owned and I like them because they have great CSRs that don't have accents. I have so much difficulty with accents on the phone, it's sad. I think this was more a grandfathered effect. AMEX had a lot of prestige in our parents' generation and that has carried over to some of us today. In the end, a credit card is a credit card. They all swipe the same; for the most part spend the same; and as long as you pay in full and never have a problem that will require you to call in; there is no real difference in what you carry in your wallet.

I'm sorry you had a bad experience with a company I love so much, but that's the way it goes.

Re: I just don't get the allure of Amex Charge Cards

namvet — Thu, 29 Mar 2012 18:47:58 GMT

@Anonymous wrote:
It sounds like you have three issues:

1. You don't like charge cards

2. You don't like AMEX

3. You don't understand the prestige of the AMEX card
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1. That's totally fine, but there are many people who--as other members have mentioned--really benefit from charge cards because they use them as their debit cards and PIF every month. It keeps their finances on track and they rack up the rewards points.

2. As for not liking AMEX, that is fine too. They are a rigid company, but they treat their customers well. And by customers, I do mean those that use the cards regularly, pay on time and preferably in full, and respect the credit they are given. Many other cards are now offering the same benefits and I hear Discover has better customer service than AMEX, so you may wish to try business with them.

3. Personally, I didn't know AMEX was such a big deal until I started this forum. To me, it was the first credit card I ever owned and I like them because they have great CSRs that don't have accents. I have so much difficulty with accents on the phone, it's sad. I think this was more a grandfathered effect. AMEX had a lot of prestige in our parents' generation and that has carried over to some of us today. In the end, a credit card is a credit card. They all swipe the same; for the most part spend the same; and as long as you pay in full and never have a problem that will require you to call in; there is no real difference in what you carry in your wallet.

I'm sorry you had a bad experience with a company I love so much, but that's the way it goes.
Oorah, roger that! You have figured it out. Pay it forward.

Re: I just don't get the allure of Amex Charge Cards

namvet — Thu, 29 Mar 2012 18:51:32 GMT

@android01 wrote:
I know that my Business AMEX is invaluable because of the NPSL. There have been many many times when I've had to drop $50,000+ on buying new equipment or had crew's travelling all over the country at the same time incurring substantial expenses. The NPSL has been invaluable that way. PLUS, AMEX Business cards do not report on your personal credit file (unless you default). Every business Visa/MC I've ever had reports on my personal credit report, which I really don't like, and I have yet to find any Visa/MC that will give me a high enough limit to effectively run my business.

My thoughts as well. Amex was with me all the way when i was building a business. Never had a second thought about the amount i was charging. Neither did Amex.

Re: I just don't get the allure of Amex Charge Cards

LS2982 — Thu, 29 Mar 2012 18:53:30 GMT

@pizzadude wrote:

There is no single card that meets everyone's needs. Not from AMEX, or Chase or anywhere.....

People who do use AMEX charge cards generally like the fact that it keeps them honest with their spending, since you have to PIF. Also the fact that Charge Card balances aren't included in FICO scoring helps those who run alot through their cards each month.