Amex new feature: Pay over time is like credit card

[FinStar]

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@Walt_K wrote:

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@CreditDrama85 wrote:

i also had the idea of letting the high credit amount show and then pay it off but my experience with Amex was that it wouldn't remain indefinately. They always used the last month's high credit. So for example I had i high credit of $5k, then paid it down to zero. then the next month my high credit would be reported as $5k against my balance if it didnt exceed that- but the following month say i only charged $1,500 and then the next month $1,000. for the month i charged $1,000 the $1,500 would be my high credit/limit. seems shady. 

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That is odd.  That is not my experience.  My charge cards all show the highest amount I ever let report on them.  I haven't used my Platinum card for any significant purchases in probably a year, but it still shows the previous high charge amount.

But I have never heard that creditors will look at your high balance amount on an Amex charge card when setting your CL.  I know that Amex will pay attention to your internal history with them, but I'm not sure about this as a tactic to get other lenders to set your CL high.

Also, to Fico2Go, remember that open accounts like Amex charge cards don't count for utilization purposes except on TU98.  The other versions of FICO ignore your Amex charge cards when calculating your utlization.  

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+1

[Fico2Go]

Walterk, are u sayinf that for amex, the highest balance becomes your cl on the cr??  or it just shows only your highest balance ?thx

[Fico2Go]

WhiteSOL, thx for clarifying.  I got it now. 

Just trying to find the best use in terms of rewards and credit building.

[FinStar]

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@Fico2Go wrote:

Walterk, are u sayinf that for amex, the highest balance becomes your cl on the cr??  or it just shows only your highest balance ?thx

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For AMEX charge cards, High Balance, not CL.

[09Lexie]

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@FinStar wrote:

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@Fico2Go wrote:

Walterk, are u sayinf that for amex, the highest balance becomes your cl on the cr??  or it just shows only your highest balance ?thx

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For AMEX charge cards, High Balance, not CL.

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Correct

[Walt_K]

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@Fico2Go wrote:

Walterk, are u sayinf that for amex, the highest balance becomes your cl on the cr??  or it just shows only your highest balance ?thx

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The highest balance you have let report on the card will be noted on your credit report.  For TU98, that will be treated as your effective credit limit when trying to calculate your utilization for that card.  Other FICO versions will ignore the card for utilization.

But I thought I read you to say earlier that you were trying to let a high balance report so that when you apply for other cards, you can use that high balance number to your advantage for setting initial CLs and for getting CLIs.  I have not heard that any lender will look at your highest reported balance in that way.  That said, you could fill a book with things that I have never heard of that are nevertheless true. 

[Pat94108]

Like others have said the PoT feature has been around forever. I was offered that feature when I got  my green, I was signing up for online access and a page appeared offering me to sign up for it. I passed but I might sign up for it if they offer it again especially if there's a bonus. 

[Fico2Go]

Pat, me too. If POT is offered it'd be a great option when attached to reward.

Walterk, yes u read correctly. My goal is to come with a strategy for high limits with only a few active cards.