@Anonymous wrote:
That’s thoroughly in-depth! Thank you, thornback. I appreciate all of your informative and educational replies. The “check your spending power” feature, while convenient and feasible in terms of checking for approval prior to usage, is somewhat ambiguous and ‘scary’ in a way. It would prove rather counter-intuitive if I had to use that feature every time prior to making a purchase? There’s still much I have to learn about a charge card and how spending limit is calculated. I’ll keep you posted!
Yeah -- it's not advised to use it all the time for every purchase. It's more so to pre-approve larger-than-normal purchases. So, say you typically don't make purchases over $200 but one day you need to spend $1500 on a single purchase -- you'd use your Spending Power button.
From what I gather from others that have/use the Gold - if you use your card for regular, everyday spend -- gas, groceries, utilities, dining, etc. -- you'll be fine - and this regular activity will build your internal limit. In the event you want to put a large charge on the card, check your spend power first. At some point - as you build a solid history - you won't have to be concerned about it anymore. I know folks that have the card and use it for anything & everything and never give a second thought to whether the charge would be approved -- but they've also had the card for several years.
Congrats on joining the AMEX family, they are a great organization to work with. You should enjoy it! Cheers!
No second chances with charge cards. Do not abuse.
A charge card will always be a charge card. The basic concept of the card is that you don't want to carry around hundreds or thousands of dollars of cash. The charge card is used in place of cash, and then when you get a chance, you pay it off in full. That part will never change. Amex charge cards are Green, Gold, Platinum, and Centurion ("Black"). There are many Amex cards (for example, Blue Cash Everyday) that are traditional credit cards, where you can carry a balance as long as you make a minimum payment.
Charge card spending power will fluctuate. Mine has been as low as $5,000 and as high as $25,000 in the six months I've had my Gold Card. It's hard to pinpoint what factor has what effect sometimes, but I feel like if I "carry a balance" even within a reporting period, before the payment is due, that hurts my spending power. I don't worry about it, because it's unlikely I would use the card for a purchase above $5,000. Anyway, I am the type that makes payments multiple times a month, typically as soon as charges post. If in doubt about spending power for a particular purchase, you can call them to see if the will approve a purchase greater than the spending limit. They probably will if it's a reasonable request.
There is a Pay Over Time feature, referred to here as POT, that may be useful for some situations. I have not used it, but you can find info about it if you look here or elsewhere.
Hope this helps!
It’s a good card for restaurant spend, grocery purchases and travel.
