American express gold card

[Anonymous]

I just received a pre-approval letter from american express gold card. If i sign up, what will be the initial credit limit? For an annual fee of $125 (waived the first yr) is it worth it?
If i charge for example, $5000 in card but i wasnt able to pay it on the same month, what will be the effects in my credit score and my nxt purchase?

Thank you all.

[webhopper]

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@Anonymous wrote:
I just received a pre-approval letter from american express gold card. If i sign up, what will be the initial credit limit? For an annual fee of $125 (waived the first yr) is it worth it?
If i charge for example, $5000 in card but i wasnt able to pay it on the same month, what will be the effects in my credit score and my nxt purchase?

Thank you all.

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Hi! Welcome to myFICO forums!

The Gold card is required to be paid in full by the Please pay by date. You won't automatically start getting late payment reported, but if you go 60 days without paying the minimum payment, you can expect that 60 day lates will start appearing.  The charge card should only be used for everyday purchases that you want to pay in full each month.

[p-]

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@Anonymous wrote:
I just received a pre-approval letter from american express gold card. If i sign up, what will be the initial credit limit? For an annual fee of $125 (waived the first yr) is it worth it?
If i charge for example, $5000 in card but i wasnt able to pay it on the same month, what will be the effects in my credit score and my nxt purchase?

Thank you all.

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The gold card is a "no preset limit" charge card.  This means you can put what you want on it, but have to pay it in full every month.  If you have expenses that you might have to pay over time, you should get a revolver, or a traditional credit card.  The Amex website has a feature where you can compare the benefits and costs of various card types.

One thing to watch out for is the annual fee - if you don't use the card benefits enough to justify it, it is a waste of money.

[Anonymous]

Since i was pre-approved for Amex gold card, will i be also have a good chance to get approve for a Amex credit card? Any recommendations? I just brought a house and i am in need of $10k credit limit? Does Amex give high credit limit?

[jamesdwi]

depends on your relationship with AMEX, do that the first month you can expect an Financial Review. Best to tread litely and PIF on or before the due date. If you are going to apply its better to AP for the AMEX Prefered Gold card, first year AF waived, then $175 but if the fee isn't worth it to you, you can down grade before your year is up,  to Gold, Green or even Senior Green with a $35 fee and no rewards.

[Anonymous]

Amex gives good credit limits over time.

You ought to check out cards that gives you a 0% apr promo, or check out personal loans instead.

Charge cards are meant to be paid in full. Not sure what happens if you pay late. It might just be marked as a late payment if you are late for a certain numbers of day. I can't know what that exact number is. Beyond that you are essentially considered as defaulting on your debt.

A pre-approval is by no means an accurate indicator of approval.

Can you tell us more about your scores and report?

[ninjacookies]

I got an initial 10k limit on my Amex blue sky cc with ~750+ on all my 3 cr's and  the highest CL of $2k on any of my other cards.

Not sure how they are on charge cards, but I've read that the more you spend in the intial month or two and pay off before the due date, the higher they increase your spending limit.  You can go from a $3500 initial limit to $25-30k+ in just a period of months if you spend a lot and are prompt with your payments, or overpay your balance.

[ztnjpv]

There's no preset limit but there is a ceiling in there somewhere. I have read that on business accounts, the NPSL is somewhere above $30k and then it adjusts from there depending on your spending habits. Personal would probably be lower but I am sure it's not too low. They leave you room in the beginning to feel you out. 

Regardless, this is not a card for balance-carrying....obviously. If your goal is to charge a lot and pay it over time, you'd be better off applying for something with a long-term 0% APR....something like 18 to 24 months. That will suit you better and be more useful. However, keep in mind that the high reported balance from charging a lot and then paying over time interest free will hurt your score for a little while.

[webhopper]

If you are looking at a 10k purchase that you want to pay over time, I highly advise you to look at a personal loan, as carrying a large balance such as that will drastically drop your scores until the balance is less than 10% of your total credit limits. A personal loan can be had with very competitive rates... Check with a local bank or credit union.

If you have a discover card currently, look at the Discover Personal loan option

[thom02099]

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@Anonymous wrote:
I just received a pre-approval letter from american express gold card. If i sign up, what will be the initial credit limit? For an annual fee of $125 (waived the first yr) is it worth it?
If i charge for example, $5000 in card but i wasnt able to pay it on the same month, what will be the effects in my credit score and my nxt purchase?

Thank you all.

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AMEX does offer an "extended pay" or pay over time feature on certain cards, and I think you have to check to see if you're elligble.  Not everyone is.  This differs from AMEX Sign and Travel, which allows for spread out payments for travel expenses.  If you're elligible, you're extended an invitation to join.  I did, but I haven't (and won't) use the feature unless I have absolutely no other alternative. 

https://www.americanexpress.com/us/content/pay-over-time/loc.html

That said, I don't recommend the extended pay.  I've used Sign and Travel before and it's a wonderful feature, but you don't want to carry a balance for very long, either with Sign and Travel or Extended Pay.  Even though AMEX offers it, they really don't like to see this on the CHARGE cards.  Revolvers are somewhat different.