Help with AMEX

[Anonymous]

Just wanting to clarify something here...

The Green, Gold, and Platinum cards all have 0% interest because they are not credit cards, rather they are charge cards.  Big difference.

If you get a charge card, you will have to pay the entire statement balance in full upon the due date - You cannot carry any balance.

All of the other American Express cards are revolving credit cards that do allow you to carry a balance.

I just wanted to maked sure you knew what you were applying for before getting into trouble.

[Aprile421]

I applied for an amex BCP the other day. Before I applied I went to the pre qual site and it said it could not find any offers for me even though amex had been sending me mailers for the Platinum Delta Amex and BCE. I went ahead and applied anyway and I was approved for a BCP. Your scores are quite a bit better than mine so I would think you would have no problem. They pulled Experian for my application.

[06GTS197]

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@Anonymous wrote:
How many inquiries do you have?

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EQ:2

TU:4

EX: 5

All a year old from previous app spree.

[06GTS197]

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@Anonymous wrote:

Just wanting to clarify something here...

The Green, Gold, and Platinum cards all have 0% interest because they are not credit cards, rather they are charge cards.  Big difference.

If you get a charge card, you will have to pay the entire statement balance in full upon the due date - You cannot carry any balance.

All of the other American Express cards are revolving credit cards that do allow you to carry a balance.

I just wanted to maked sure you knew what you were applying for before getting into trouble.

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Did not know that such a thing existed as charge cards.   How do they factor into FICO?  Still caterogized as revolving or what?

[JamP]

Just a data point here.

Both my ED and BCE were approved from Mailers received a week apart with a specific APR, both 12.99%.

Your scores are much better the mine are/were but I began with toy limits and still trying to get my BCE over 5k.

[Anonymous]

On my latest MyFico credit report it shows up under the "Revolving Accounts" section - Probably just because there's not really a good other place to stick it.

These types of cards are what you will see most people refer to as "NPSL" cards or "No Preset Spending Limit".  It's also why you hear people say "He can buy a private jet on his Platinum card because there's no limit"  or something along those lines.

The reality is you do have a spending limit, but you don't really know what that limit is from month to month.  For example:

I got my Premier Rewards Gold card in March - I didn't really put much spend on the card and at the end of the month I used the "Check my spending power" tool and they would only approve me for up to $500.   Fast forward several months after spending quit a bit on that card and paying it off before statements cut and everything, I just checked it and they will approve me for $15,000.  So your "limit" will vary from time-to-time as they gague your usage on the card. 

As for how it factors in your FICO scores, it reports no credit limit, so this is sometimes a henderance in how your overal utilization is factored in because it would appear that you are using more credit than you actually are.  

I hope all this made some sort of sense, I'll let anyone else clarify anything I missed or anything.

[Anonymous]

They have no limit and are ideal. You pay in full each month and may not carry debt. Amex adjusts your soft limit whenever needed.

[CreditDunce]

FICO used to factor in Amex Charge cards in your revolving utilization.  They used the highest usage field in place of the credit limit.   In current FICO models, Amex charge cards are still considered revolving, but they do not factor into utilization.  Letting a large balance report does not hurt your utilization.  Amex charge cards are only counted in the number of revolving trade lines with a balance. 

I should add revolving utilization and number of cards reporting a balance do not have memory.  You do not need to have perfect utilization / only one card reporting a balance every month.  You only need to optimize your credit report before you app.  Of course, you should always PIF all of your cards regardless of the FICO consideration.   There is no credit mix benefit with FICO for having charge cards.  They count the same as any other revolving credit line.

Not to complicate matters... but Amex may approve you for Pay Over Time (POT).  It is a feature where Amex allows you to not pay if full some charges.   I would not use it since it is at a very high interest rate.  Amex occasionally will offer some MR points if you add the feature.  You can add the feature but not use it.

Note: The above applies to any charge card, not just Amex.  Amex charge cards are reported as credit cards on your credit report.  Most store cards are reported as charge cards on your credit report.