How much to use charge card?

[LS2982]

@Open I like that idea! I'm going to do that!

[Anonymous]

My first month with my Zync I did have my account suspended and had to call Amex. I got a friendly customer service rep in FL who wanted to remind me that the card is a charge card and not a credit card and I had to pay in full at the end of the billing cycle. I charged roughly 2,300 on the card and still had a couple of weeks left to go. They requested a $1000 payment. I paid and have not had any issue since. I think Amex really, really likes to receive their payments as soon as your bill cuts. I've heard that it raises your internal score with Amex. Put some recurring bills on the card and get some essential like groceries. Buy small things and take it easy on larger purchases for the first few months. 

[espnjunkie]

I used 1,000.00 the first month, then 15,00.00 the second month. I didn't expect to get such a huge bump from where I started, but the customer service rep was like "Well I can see that your account is in great shape so you can charge upto 4,000.00 more without a payment being needed", current balance is sitting at 950.00 for this month so far. It's funny how capital one will likeluy never again give me a cli, but amex will give me a huge one within the first three months. Now that's service!

[Open123]

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@Anonymous wrote:

I think Amex really, really likes to receive their payments as soon as your bill cuts. I've heard that it raises your internal score with Amex. 

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The charge cards are really net 30 pay accounts.  From the old days, every bill was due in 30 days.  They kept tab by a paydex score where the sooner you pay within the 30 days, the higher your score in this area.

I think Amex definitely has an internal paydex score type of thing for their charge cards.  Ideally, pay a day or two AFTER the statement cuts.  Technically, you have until the close of the next statement to pay (the full 30 day cycle), but it'll lower your paydex (or Amex equivalent) score.

[Open123]

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@espnjunkie wrote:

I used 1,000.00 the first month, then 15,00.00 the second month. I didn't expect to get such a huge bump from where I started, but the customer service rep was like "Well I can see that your account is in great shape so you can charge upto 4,000.00 more without a payment being needed", current balance is sitting at 950.00 for this month so far. It's funny how capital one will likeluy never again give me a cli, but amex will give me a huge one within the first three months. Now that's service!

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This is why charge cards are still my favorites for spending.  I'll use credit cards for different rewards, perks, and beneifts.  But, when it comes to just spending, nothing reflects better and evolves more quickly your spending habits and ability than a pure charge card.  You can easily ramp up to 10 - 15k per month spending on any of the charge cards.

[espnjunkie]

I really like the flexibility of having a higher limit. Revolving cards take far longer to trust you and build up to the higher limits. It is worth noting that I have paid each amex statement right away after it gives me a payment due date. I think for internal scoring and building trust that paying soon after receiving that helps alot. Amex also said each six months they individually review accounts and take into account what your average monthly payment is. The higher that payment, the higher your internal limit will be. So it makes the most sense to only pay off your charge card once and in full each month.

Not that I ever expect to see a cap one cli, but if they would even raise me to a reasonable limit such as 1,500-2,000.00 I would be happy with that and likely would not apply for another card anytime soon. I charge everything to amex to rack up MR points and if the merchant doesn't take amex then I could just use the capital one card that gives me cash back. I called them last month and asked if there was anything they could do, and while obviously reading from a script my request was denied because I have not maintained my 750.00 limit on tat card for six months yet...I do appreciate them giving me an unsecured card last August when it's unlikely any other lender would because of no previous history

[JenniferinFL]

Thanks for all the information! It doesn't seem to have a limit, which is odd to me, it justs says "no preset spending limit". That seems odd since our household income is less than respectable.

I was planning on trying to run the car payment through it and my monthly baby supplies from Amazon on it. So, only about $300 per month running through it. Is that probably adequate? We just really don't spend very much, monthly OOP is only about $1200 for everything. I'm not sure if there will be a way to run the mortgage through it, otherwise there just isn't much spending.

[espnjunkie]

No preset spending limit does not mean no limit. All cards have a limit, even the centurion haha. The idea is that you do not have a constant 'hard' limit on a charge account like you would a revolving one. You do not have to request a cli with charge accounts because they regularly update your spending ability given how much you are spending each month, payment history, known income and assets, etc. So after a few months of paying them back and keeping spending under control they start to trust you more and will bump up your limit. Spend within your means and for what you can afford.

[Anonymous]

we charge about $10k per month on our Amex Plat card.  We use it as primary, and our highest balance has been $72k.  We love the flexibility and comfort of doing what we want when we want (so long as we pay ). 

[Anonymous]

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@JenniferinFL wrote:

Thanks for all the information! It doesn't seem to have a limit, which is odd to me, it justs says "no preset spending limit". That seems odd since our household income is less than respectable.

I was planning on trying to run the car payment through it and my monthly baby supplies from Amazon on it. So, only about $300 per month running through it. Is that probably adequate? We just really don't spend very much, monthly OOP is only about $1200 for everything. I'm not sure if there will be a way to run the mortgage through it, otherwise there just isn't much spending.

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I wouldn't worry too much about not being able to spend enough.  AMEX is more concerned with whether or not you can PIF.  As long as you spend as much as you feel comfortable spending and you can pay it off every month, you'll be fine.  Just because another person is able to put more on their card doesn't mean you should feel obligated to do the same.  Slow and steady will still get you to your goal.