Charge Cards Vs Credit Cards

[The-Credit-Disciple]

This is probably a very Dumb question but does the Charge cards help build credit like the Credit Card? Or are they treated differently with the Fico scoring system? Thanks in advance

[The-Credit-Disciple]

Im thinking of going for the Amex Green charge card. Just trying to learn as much as i can about charge cards vs Credit Cards. Everyone here is full of Wisdom on both so please Chime in. Thanks

[Anonymous]

They report the highest balance as the limit, so yes, they should help you rebuild credit much the same way that credit cards do.

[Anonymous]

... and on time and late payments are reported on an ongoing basis, so yes.. it should help you.

[Cred4All]

I believe that has changed...FICO previously used the highest reported balance on a charge account as a proxy credit limit, but that no longer occurs.  The charges on that card do not affect your utilization ratio, so that's something to think about.  If you want to charge things but keep utilization low, that's great news.  If however you are looking to increase your available credit, this won't help you as it won't report as an available credit line.

[Anonymous]

Amex charge cards most definitely help you to build credit.  While they do not contribute to your overall credit limit/utilization they do report on-time payments as someone else has mentioned.  On time payments is one of the biggest components of your FICO Score.  They also will contribute, as they age, to your AAoA, another FICO Score component.  In short, other than not being reflected in your overall credit limit, they help build your credit just like any other credit card.

[The-Credit-Disciple]

Thanks for the wisdom Fico Family!! I also just found out by reading a lot about the POT on charge cards is that your not Guaranteed to be enrolled in the POT Program, is that really true? because when I was Chatting with an Amex rep she said that benefit comes with all Charge cards.

[Anonymous]

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@The-Credit-Disciple wrote:

Thanks for the wisdom Fico Family!! I also just found out by reading a lot about the POT on charge cards is that your not Guaranteed to be enrolled in the POT Program, is that really true? because when I was Chatting with an Amex rep she said that benefit comes with all Charge cards.

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While I think the majority of Amex charge card holders are offered the PoT option, it definitely is not offered to everyone.  I love American Express, one thing that you will discover is that the frontline CSRS are often incorrect in what they tell you.  Before making any decision based on what one tells you I highly suggest coming here first to get advice.

[The-Credit-Disciple]

@Irish80. Yeah i agree with you, I love Amex but i was very skeptical when a customer service rep told me earlier when you log into your account and check for offers and whatever pops up in the "Featured cards" spot that means that those are the cards your pre approved for. I was happy about that at first but i remember reading about that some where on the forum

[The-Credit-Disciple]

I will come to this site first before going with what they say. You all have years of Credit experience. Im only 11 months into my credit building journey. Its been fun so far, especially after joining the Fico Fam😁😀