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Benefit of a Charge Card???

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Benefit of a Charge Card???

Ok, so I still consider myself relatively new to the postings here, and have a quick question; I received an offer for the AMEX Green Card in the mail the other day. I've never been to thrilled about a charge card to be honest. And maybe it's because I don't fully understand the benefit to having one on my CR being that there is no limit being reported to help your utilization. I DO know that Amex would be considered one of the cream of the crop, which makes me REALLY want one... (sad I know LOL), but I just need to understand what it can do to help my report? (Aside from just being an Amex). What are the interest rates if you dont PIF every month? Are the charge cards "easier" to get than the standard credit cards? Any assistance would be greatly appreciated :-) You guys are awesome!!

Starting Score: 08/01/2009 584
Current Score: 08/01/2011 EQ 684 EX (Lender Pull) 702 TU 712
Goal Score: 780+


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Message 1 of 17
16 REPLIES 16
Frequent Contributor

Re: Benefit of a Charge Card???


@Switch2007 wrote:
Ok, so I still consider myself relatively new to the postings here, and have a quick question; I received an offer for the AMEX Green Card in the mail the other day. I've never been to thrilled about a charge card to be honest. And maybe it's because I don't fully understand the benefit to having one on my CR being that there is no limit being reported to help your utilization. I DO know that Amex would be considered one of the cream of the crop, which makes me REALLY want one... (sad I know LOL), but I just need to understand what it can do to help my report? (Aside from just being an Amex). What are the interest rates if you dont PIF every month? Are the charge cards "easier" to get than the standard credit cards? Any assistance would be greatly appreciated :-) You guys are awesome!!

1. It doesn't do anything different to your report than any credit card other than it reports your CL as your highest ever balance.

2. You are required to PIF every month on a charge card, so if you don't, you will get a late fee and a late reported to your CRs.

3. The charge cards (especially Zync) are easier to get than the standard cards since you are required to PIF and they have an AF.

Message 2 of 17
Established Member

Re: Benefit of a Charge Card???

The advantage is the reward points. Amex offers some of the best rewards out there IMO. I don't have one to help my credit score. You pif every month. No interest rate because Amex will just drop you if you don't pif.
Message 3 of 17
Contributor

Re: Benefit of a Charge Card???

Ok, I see... those were all of my basic assumptions for them. I wanted the Amex Blue Cash for the rewards, but I think I'll stay in my garden mode for a while :-) Thanks so much for your responses!

Starting Score: 08/01/2009 584
Current Score: 08/01/2011 EQ 684 EX (Lender Pull) 702 TU 712
Goal Score: 780+


Take the FICO Fitness Challenge
Message 4 of 17
Established Member

Re: Benefit of a Charge Card???

You're aware that blue cash is credit, not charge, correct?
Message 5 of 17
Contributor

Re: Benefit of a Charge Card???

Yes... thats why I wanted that one. I think that after spending so much time to rebuild my credit, I look at the credit benefits of the cards that I have more-so than anything else (may not be the right way, but it's just my way). I think the credit card would be more helpful to me as it's reporting a limit and utilization.

Starting Score: 08/01/2009 584
Current Score: 08/01/2011 EQ 684 EX (Lender Pull) 702 TU 712
Goal Score: 780+


Take the FICO Fitness Challenge
Message 6 of 17
Regular Contributor

Re: Benefit of a Charge Card???

As others have said, rewards are the best reason. I mean, its money youre going to spend anyway, right? Why would pass on an opportunity to earn bennies on top of it? The other benny is you can float all your purchases. Many times you may be in a situation where you want to buy something, or need to pay some bills and wont have the money for another couple of weeks. A charge card allows you to be flexible like that.

Message 7 of 17
Contributor

Re: Benefit of a Charge Card???

Hmmm... didn't look at it like that... Something like a debit card in a sense... I'll consider this one. Thanks again :-)

Starting Score: 08/01/2009 584
Current Score: 08/01/2011 EQ 684 EX (Lender Pull) 702 TU 712
Goal Score: 780+


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Message 8 of 17
Frequent Contributor

Re: Benefit of a Charge Card???

All the charge cards have an annual fee, although many of them are waived the first year. The question you have to ask yourself in the long run is - will the benefits outweigh the fees? And are the Membership Rewards points going to be more useful to you than cash back? If so the charge card is for you, if not you're better off sticking with a Blue or Clear.


Starting Score: 690
Current Score: EQ 780 EX 814 TU 783
Goal Score: 800

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Message 9 of 17
Established Member

Re: Benefit of a Charge Card???

I use mine for two main purposes: monthly bills that I pay online (cable, utilities, some monthly subscriptions) so that my debit card number is not floating out there randomly; and work expenses and travel.  I do a lot of work-related traveling as well as taking clients out for dinner and drinkts, etc., and it's extremely rare for me not to be reimbursed within the 30-day payment period.  So basically, on work-related expenses I get free rewards.  I'm going to get reimbursed with the cash anyway; now I just have bunches of points to use as well.  I consider it payback for all the time I spend in airports.  Smiley Happy

Message 10 of 17
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