topic Re: Amex Questions in Credit Cards

Amex Questions

Skye12329 — Fri, 12 Sep 2014 06:54:59 GMT

So i have some questions about the charge cards vs reg. cards.

I guess my biggest questions is why have a charge card if it needs to be paid back in full? Is the biggest purpose points?

Also i know the Amex serve is prepaid but does it report to CB if so could it be used for rebuilding credit or is strictly for prepaid?

Re: Amex Questions

Exonumist — Fri, 12 Sep 2014 06:58:26 GMT

@Skye12329 wrote:
So i have some questions about the charge cards vs reg. cards.

I guess my biggest questions is why have a charge card if it needs to be paid back in full? Is the biggest purpose points?

Also i know the Amex serve is prepaid but does it report to CB if so could it be used for rebuilding credit or is strictly for prepaid?

Charge cards have to be paid in full every month. Some of them have good sign up bonuses/rewards (PRG) others have a lot of perks like airport lounges (Platinum). The way it's factored into utilization can also be beneficial.

Serve does not report at all.

Re: Amex Questions

Kenny — Fri, 12 Sep 2014 06:59:52 GMT

People have charge cards if they want to purchase something large and don't want it affected in your utilization.

Also, some cards require the purchase of whatever item to enjoy the perk related to it. I'm sure there's other stuff to add, but I'll let other people do that. lol as my brain is tired.

Serve does not report to credit bureaus at all... only prepaid.

Re: Amex Questions

SunriseEarth — Fri, 12 Sep 2014 07:46:53 GMT

@Skye12329 wrote:
So i have some questions about the charge cards vs reg. cards.

I guess my biggest questions is why have a charge card if it needs to be paid back in full? Is the biggest purpose points?

Also i know the Amex serve is prepaid but does it report to CB if so could it be used for rebuilding credit or is strictly for prepaid?

Charge cards seem best for those with a high spend and value MR points, which are probably best redeemed for travel purposes. Large purchases won't affect UTIL in the same way that would on a revolving CC. And yes, some do have additional perks, as had been mentioned.

Since the Serve is prepaid and not an extension of credit, it won't help for credit rebuilding purposes. Some have speculated that it might help build a relationship with AMEX, but I really haven't seen much to persuade me of that.

Re: Amex Questions

B335is — Fri, 12 Sep 2014 08:29:58 GMT

I have both for two reasons:

1) When I was rebuilding I made the mistake of applying (and continuously being denied) for the revolvers, which have a higher underwriting criteria. The charge card was my route back in.
2) Backdating. My MSD is 1998 and I am addicted to new card bonuses. As a result my AAoA takes a royal beating. The backdating helps offset the hit. I get about 10 months added to my AAoA for each Amex. I think you can have one of each charge card.