topic Re: Charge card vs. Credit Card in Credit Cards

Charge card vs. Credit Card

Anonymous — Sat, 28 Jun 2014 02:09:16 GMT

Is the only point of a charge card to get rewards? Why would you not get a credit card? Can someone enlighten me on the benefits?

Re: Charge card vs. Credit Card

Membersince2013 — Sat, 28 Jun 2014 02:30:36 GMT

I'd like to know too...You can still pay the full amount with a credit card. I guess it forces you to have self control....Apart from the Amex Platinum, i don't understand why you'd want to get any other charge card.

Re: Charge card vs. Credit Card

SevenNEW — Sat, 28 Jun 2014 02:35:15 GMT

@Anonymous wrote:
Is the only point of a charge card to get rewards? Why would you not get a credit card? Can someone enlighten me on the benefits?

Some charge cards have no pre-set spending limit and very good rewards system (Amex). They give certain kinds of customers more spending flexibility, I suppose.

Re: Charge card vs. Credit Card

Anonymous — Sat, 28 Jun 2014 02:40:43 GMT

From what I have read, charge cards also don't factor into utilization due to their NPSL.

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.

Re: Charge card vs. Credit Card

eagle2013 — Sat, 28 Jun 2014 03:24:51 GMT

@Anonymous wrote:
From what I have read, charge cards also don't factor into utilization due to their NPSL.

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.

+1. I think I will eventually get a charge card for this very reason.

Re: Charge card vs. Credit Card

myjourney — Sat, 28 Jun 2014 03:27:25 GMT

@eagle2013 wrote:
@Anonymous wrote:
From what I have read, charge cards also don't factor into utilization due to their NPSL.

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.
+1. I think I will eventually get a charge card for this very reason.

Cant remember which one but one of the Fico scoring algorithms factors NPSL cards and a lot of NPSL cards are now reporting a limit which also factors in UTL

Re: Charge card vs. Credit Card

Anonymous — Sat, 28 Jun 2014 03:28:32 GMT

@Anonymous wrote:
From what I have read, charge cards also don't factor into utilization due to their NPSL.

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.

To the wealthy but also those with reinbursed expenses for example. If your employer suddenly requires you to fly to Asia and spend 2 weeks there (and will reimburse you once you provide receipts) you can put this on all on your NPSL charge card and between reporting and getting reimbursed, the high charge doesn't impact your utilization, decreasing your credit score.

The other major reasons:

1) Amex charge cards easier to get than many credit cards

2) As mentioned by someone, some people like the discipline of having to pay off each month. Yes, they should be able to do this with a credit card, but the extra pressure helps.

Re: Charge card vs. Credit Card

E150GT — Sat, 28 Jun 2014 04:44:30 GMT

@Anonymous wrote:
@Anonymous wrote:
From what I have read, charge cards also don't factor into utilization due to their NPSL.

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.
To the wealthy but also those with reinbursed expenses for example. If your employer suddenly requires you to fly to Asia and spend 2 weeks there (and will reimburse you once you provide receipts) you can put this on all on your NPSL charge card and between reporting and getting reimbursed, the high charge doesn't impact your utilization, decreasing your credit score.

The other major reasons:

1) Amex charge cards easier to get than many credit cards
2) As mentioned by someone, some people like the discipline of having to pay off each month. Yes, they should be able to do this with a credit card, but the extra pressure helps.

Yeah I never understood why people were willing to pay for a charge card just because it was a PIF every month. I can have discipline for free,

Re: Charge card vs. Credit Card

takeshi74 — Sat, 28 Jun 2014 05:19:03 GMT

You can't rely on your own preferences to understand the preferences of others. If those people could rely on free self discipline then they wouldn't see the benefit from the external pressure.

In any case, not everyone pays the AF for a charge card simply for discipline. There are the reasons cited above plus specific benefits provided by given charge cards.

@Membersince2013 wrote:
Apart from the Amex Platinum, i don't understand why you'd want to get any other charge card.

Why do you think only the Platinum makes sense? Even the Platinum isn't one size fits all. One who values UR points more than MR points and needs a business cahrge card could find the Ink Bold to be beneficial, just as one example. Again, don't assume that your situation an preferences are universal. People select different charge cards for similar reasons to why people select different credit cards.

@myjourney wrote:
Cant remember which one but one of the Fico scoring algorithms factors NPSL cards and a lot of NPSL cards are now reporting a limit which also factors in UTL

IIRC it's the older FICO models that factor charge cards into utilization. NPSL credit cards reporting limits isn't really relevant to charge cards in this context.

Re: Charge card vs. Credit Card

lg8302ch — Sat, 28 Jun 2014 08:17:18 GMT

The only difference I could see between charge cards and revolver NPSL (Siggy/WMC) is the reported util for the NPSL Siggy and WMCs ...but IMO a price to pay is the rather high AF for the charge cards just to avoid to report util. That is why I decided against a charge card and use my revolving cards in the same way as a charge card and can avoid the high AF for most of my cards. I am not at all interested in charge cards as long as they have the AF but to each and everyone his/her own preference

Re: Charge card vs. Credit Card

Anonymous — Sat, 28 Jun 2014 08:38:21 GMT

lg8302ch - great card collection with excellent CLs and Aprs!

Re: Charge card vs. Credit Card

lg8302ch — Sat, 28 Jun 2014 08:56:06 GMT

@Anonymous wrote:
lg8302ch - great card collection with excellent CLs and Aprs!

Thanks...there is room for improvement on my APRs (fully satisfied with the limits) and I am on a mission to find out if I can get all cards to their best terms before Chase Freedom will step down a tiny bit from their horrible 22,99% APR..I love challenges! ..still some cards on my wishlist for next year: Fidelity Amex, US Bank Cash+ and SPG but strongly gardening until next year and who knows if something new will appear on the credit card market until then.

Re: Charge card vs. Credit Card

Membersince2013 — Sat, 28 Jun 2014 10:29:14 GMT

@takeshi74 wrote:
You can't rely on your own preferences to understand the preferences of others. If those people could rely on free self discipline then they wouldn't see the benefit from the external pressure.
In any case, not everyone pays the AF for a charge card simply for discipline. There are the reasons cited above plus specific benefits provided by given charge cards.
@Membersince2013 wrote:
Apart from the Amex Platinum, i don't understand why you'd want to get any other charge card.
Why do you think only the Platinum makes sense? Even the Platinum isn't one size fits all. One who values UR points more than MR points and needs a business cahrge card could find the Ink Bold to be beneficial, just as one example. Again, don't assume that your situation an preferences are universal. People select different charge cards for similar reasons to why people select different credit cards.

I made reference to the Platinum charge card because i thought Amex was the only company supplying charge cards that are worth getting. I didn't know there were others. I do understand you point thought. I haven't had to deal with MR points (maybe till i get a PRG for the bonus alone), but UR points are pretty valuable. You get a couple of bucks off if you use them for travel activities.

Re: Charge card vs. Credit Card

SMDLiquid — Sat, 28 Jun 2014 15:18:08 GMT

What happens if you don't pay your full balance in any given month?

Re: Charge card vs. Credit Card

09Lexie — Sat, 28 Jun 2014 15:48:57 GMT

@SMDLiquid wrote:
What happens if you don't pay your full balance in any given month?

Like any cc, failure to pay will result in AA. Charge cards are not revolvers -technically payment is due in full upon receipt.

Re: Charge card vs. Credit Card

core — Sat, 28 Jun 2014 15:52:48 GMT

@SMDLiquid wrote:
What happens if you don't pay your full balance in any given month?

First time, they charge you interest and send you a nice letter.

Second time, they charge you interest/fees and send you a nasty letter.

Third time, 3 strikes and you're outta there. You might find your account canceled.

Also you will go to the bad place after you pass away.

Re: Charge card vs. Credit Card

Anonymous — Sat, 28 Jun 2014 16:11:11 GMT

@E150GT wrote:
@Anonymous wrote:
@Anonymous wrote:
From what I have read, charge cards also don't factor into utilization due to their NPSL.

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.
To the wealthy but also those with reinbursed expenses for example. If your employer suddenly requires you to fly to Asia and spend 2 weeks there (and will reimburse you once you provide receipts) you can put this on all on your NPSL charge card and between reporting and getting reimbursed, the high charge doesn't impact your utilization, decreasing your credit score.

The other major reasons:

1) Amex charge cards easier to get than many credit cards
2) As mentioned by someone, some people like the discipline of having to pay off each month. Yes, they should be able to do this with a credit card, but the extra pressure helps.
Yeah I never understood why people were willing to pay for a charge card just because it was a PIF every month. I can have discipline for free,

I believe charge cards have annual fees because of the lack of interest income - at least that was the original idea. With swipe fees, they make some money. But, still not as much as those that pay interest on revolving CC balances. I think an Amex swipe fee is around 5% while revolving interest on balances is 12%+. Depending on the charge account type, the AF increases as benefits increase (other than the Green and regular Gold).

They do "things" that make your membership worthwhile. They also refunded me for a cell phone when it stopped working after the manufacturers warranty - which was a super easy process.

Re: Charge card vs. Credit Card

E150GT — Sat, 28 Jun 2014 19:46:28 GMT

@Anonymous wrote:
@E150GT wrote:
@Anonymous wrote:
@Anonymous wrote:
From what I have read, charge cards also don't factor into utilization due to their NPSL.

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.
To the wealthy but also those with reinbursed expenses for example. If your employer suddenly requires you to fly to Asia and spend 2 weeks there (and will reimburse you once you provide receipts) you can put this on all on your NPSL charge card and between reporting and getting reimbursed, the high charge doesn't impact your utilization, decreasing your credit score.

The other major reasons:

1) Amex charge cards easier to get than many credit cards
2) As mentioned by someone, some people like the discipline of having to pay off each month. Yes, they should be able to do this with a credit card, but the extra pressure helps.
Yeah I never understood why people were willing to pay for a charge card just because it was a PIF every month. I can have discipline for free,
I believe charge cards have annual fees because of the lack of interest income - at least that was the original idea. With swipe fees, they make some money. But, still not as much as those that pay interest on revolving CC balances. I think an Amex swipe fee is around 5% while revolving interest on balances is 12%+. Depending on the charge account type, the AF increases as benefits increase (other than the Green and regular Gold).

They do "things" that make your membership worthwhile. They also refunded me for a cell phone when it stopped working after the manufacturers warranty - which was a super easy process.

Right. Everyone here seems to use them for the benefits, including myself Whenever amex comes up on other non cc forums like the car forums I frequent, they always mention only the fact that they need to be paid off every month and that keeps them from incurring debt. Tey never mention the points or perks.

Re: Charge card vs. Credit Card

lg8302ch — Sun, 29 Jun 2014 08:50:52 GMT

@E150GT wrote:
@Anonymous wrote:
@E150GT wrote:
@Anonymous wrote:
@Anonymous wrote:
From what I have read, charge cards also don't factor into utilization due to their NPSL.

Charge cards are really beneficial to the wealthy. They can charge tens of thousands of dollars at a time with no need to worry about credit limits.
To the wealthy but also those with reinbursed expenses for example. If your employer suddenly requires you to fly to Asia and spend 2 weeks there (and will reimburse you once you provide receipts) you can put this on all on your NPSL charge card and between reporting and getting reimbursed, the high charge doesn't impact your utilization, decreasing your credit score.

The other major reasons:

1) Amex charge cards easier to get than many credit cards
2) As mentioned by someone, some people like the discipline of having to pay off each month. Yes, they should be able to do this with a credit card, but the extra pressure helps.
Yeah I never understood why people were willing to pay for a charge card just because it was a PIF every month. I can have discipline for free,
I believe charge cards have annual fees because of the lack of interest income - at least that was the original idea. With swipe fees, they make some money. But, still not as much as those that pay interest on revolving CC balances. I think an Amex swipe fee is around 5% while revolving interest on balances is 12%+. Depending on the charge account type, the AF increases as benefits increase (other than the Green and regular Gold).

They do "things" that make your membership worthwhile. They also refunded me for a cell phone when it stopped working after the manufacturers warranty - which was a super easy process.
Right. Everyone here seems to use them for the benefits, including myself Whenever amex comes up on other non cc forums like the car forums I frequent, they always mention only the fact that they need to be paid off every month and that keeps them from incurring debt. Tey never mention the points or perks.

Yes but I do not see how the green offers any more than the Amex revolvers with much lower AF. For a PIF strategy I do not need to pay a higher AF ..I can do this on revolvers too and pay less