Charge card question

[Anonymous]

For someone starting to build credit, is charge card a great option?  

Any cards that you can get with little or no credit history will either be secured or have a low CL.  

Now, keeping in mind your credit utilization should be 0-10%, it would be really hard to rely on those credit cards unless you keep paying them off multiple times a month.

So, are amex charge cards a great option?  They have an internal preset spending limit which will most likely be higher than the CL you get on your credit cards at this point.  Also, you do not have to worry about credit utilization.  Can you pay a charge card before you use it or it not advised to do so?

Thanks.

[creditguy]

Honestly I doubt Amex would approve someone for a charge card who is starting to build credit. You can always check out their website for prequalified offers and see if its an option. Have you tried any other cards prequalified offers, like Capital One? If not start there and see what your options are, I know I personally wouldn't start with a charge card, there are better options and cards out there. 

[NRB525]

OP which cards do you have now? Building credit often starts with the lower limit cards, but with good payment history, access to credit grows over time.

[Anonymous]

I have a charge card from amex with no credit history.  I also have 2 other credit cards but their CL is way too low even for weekly expenditure.  Hence, I wanted some advice.

[creditguy]

If you have an Amex charge, then by all means use it to build your credit history along with building your rep with Amex.As far as your other cards, you can use them and pay them off several times a month and then hit up the issuers for a CLI with a demonstrated need for one. 

[Anonymous]

Thanks but how will credit build with a charge card since it has no preset CL?

[creditguy]

I do believe balances on charge cards are reported but are not factored into your utilization. So it should show if you have had a balance and if it has been paid. Charge cards are not the best card for building, but like I said it will help your standing with Amex. Use it and apply for a revolver with Amex so they can see you have history of using and paying and give you more responsibility. 

[Anonymous]

Thanks for the advice, really like this forum!

[OmarGB9]

As stated, charge cards help build solid payment history and build up a nice relationship with the Amex as well. Plus their balances aren't factored into your utilization so even better!

[Anonymous]

It's good for building your rep with Amex as previously stated and all around credit history with timely payments.  I started out with an Amex Green card and just went from there.  Also on the Amex site you can type in how much you are looking to charge and it will tell you if you are approved for that amount.