AMEX Balance Payoff?

[Anonymous]

Thanks for taking a look & giving your input from past personal experiences on this topic.

Personal AMEX Platinum.

I'm looking for input on letting the monthly statement close WITH a balance vs paying it off a few days before the statement closes and showing as close to $0.00 as possible owed on the monthy statement. 

I manage all my credit cards with the latter strategy, thereby showing no balance owed and obviously effecting my scores in a positive manner.

I've read on the forums that AMEX likes to see a balance on the statement along with your payment in full so they can better assess your financial patterns and assign your "Purchasing Power".

I received an email from AMEX member services stating that my current purchasing power is "at least $20,000" and don't really want that reduced if they see me making a payment before the statement closes. Personally I don't know what difference it would make as long as they get paid but I also know they are finnicky and we now live in a different world than we did just a few months ago.

Text copy of email below;

Your Platinum Card ® comes with No Preset Spending Limit. That means your purchasing power adjusts with your use of the Card, your payment history, credit record and financial resources known to us, and other factors. Although your Card has No Preset Spending Limit, we wanted to let you know that in recognition of your credit history, you will be able to spend at least $20,000.00 on your Card.

This is effective immediately and, unless we notify you otherwise, will continue for the next six months. This means that you can have a total of at least $20,000.00 outstanding at any given time on this account. If you have more than one personal American Express Card with No Preset Spending Limit, this is the cumulative amount you can have across all of those Cards.

You will be able to enjoy this spending ability as long as:

• You pay your account on time
• There are no returned payments on your account
• You abide by the terms and conditions of your account
• There is no suspected fraud on your account

Thanks for the input!!!

[K-in-Boston]

For Amex, I don't think it matters when you pay as long as you are paying on time, and preferably in full.

For scoring purposes, it's a charge card so any balances will have very minimal if any impact on modern scoring models, and none when it comes to revolving credit utilization.

[NRB525]

The Platinum is a charge card. You aren't positively affecting your score by paying before statement cut because... most scores just don't care what that charge card balance is. There may be a minuscule impact as it relates to Proportion of Cards with any reported balance, but good luck measuring that. 

I don't recall seeing a letter or email from AMEX telling me what my spend limit is. Have you been running anywhere near $20,000 through the Platinum in a month?

[elixerin]

@NRB525 a charge card reporting $0 (for purposes of number of accounts with balances) would have minimal effect on FICO? 

i thought you could squeeze like 5-7 points out of a 5 card setup one being charge for example with this "tactic" 

[Anonymous]

Hi NRB525,

l spend between $6K-$11K per month on the AMEX Platinum. 

Thanks!

[K-in-Boston]

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@elixerin wrote:

@NRB525 a charge card reporting $0 (for purposes of number of accounts with balances) would have minimal effect on FICO? 

i thought you could squeeze like 5-7 points out of a 5 card setup one being charge for example with this "tactic" 

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Charge cards don't factor into utilization, except for old scoring models where they (and other NPSL cards like the original Visa Signature cards) use the highest ever reported balance as the credit "limit," which was murder on the scores of those who regularly charged say $5,000 each month and never had an exceptionally high month since it would appear maxed out perpetually.

[elixerin]

true, the 5-7 points i meant were on the "number of accounts reporting balances" vs the "utilization" side of the equation

basically no balance report vs balance on charge cards and the boost/loss from either or if significant at all

Thanks, @K-in-Boston, NVM just re-read your first post (: