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.
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.
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.
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.