I just don't get the allure of Amex Charge Cards

[Anonymous]

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@navigatethis12 wrote:

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That is why I do not like charge cards. That and they cost an annual fee. If I only charge $30 on a charge card for six months and then try to put $5000 it will probably be declined because it is way out of my spending habits. If I do the same on a card with a $10000 limit it will go through no problem and I always know that I can charge at least $10000. I always pay before the statement closes so utilization is not important to me but I can understand that for people who charge a lot and do no pay it off right way, that would really help with their score.

I do have other cards with better rewards for other things but the 3% for groceries can not be beat. Sallie Mae is 5% but I think it is capped at $500 a month, I am not sure. I have no problem with it being accepted where I want to use it.

I can never see myself with a charge card. Before looking at this site I never knew American Express was thought of so highly, I always thought they were garbage.

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That's not the best way to utilize a charge card but I understand where you coming from. Most Amex users who are not on these boards and use the card for everyday expenditures. They have no idea how Fico scores are calculated but they have great credit probably because of the way charge cards are not factored into utilization. Charge cards are not for everybody (neither are credit cards for that matter), and if you don't want one that's okay.

One thing that Amex does that is still unique to any other CCC is the fact that the always side with the customer regarding charge disputes. It sucks to be a merchant in this regard but looking back I can certainly think of a few instances this feature could have been used to my advantage as opposed to my being screwed.

Also CCC just recently (with exception to Discover) got on the bandwagon with all the cash back, point rewards, etc benefits that are flooding the market today. They would not be doing this if their was no Amex to pioneer such a program. Amex has been doing this for decades while other CC issuers have been doing this for a short period of time. We have no idea what the fallout will be regarding other CCC. Look at PenFed sure they still give 5% CB for gas but they cut their 1% everything else category to .25. That may happen with others (Amex included) if profit margins begin to diminish.

[namvet]

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@Anonymous wrote:

It's just another company that extends credit.

It's kinda like white chocolate and me. A lot of people don't understand why I'm so fascinated by it, but I can't understand why so many people aren't.

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You have to develope a taste for white chocalate!  No it's not just another company that extends credit my friend.  Amex is the best company that extends credit to those that qualify.

[Anonymous]

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@namvet wrote:

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@Anonymous wrote:

It's just another company that extends credit.

It's kinda like white chocolate and me. A lot of people don't understand why I'm so fascinated by it, but I can't understand why so many people aren't.

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You have to develope a taste for white chocalate!  No it's not just another company that extends credit my friend.  Amex is the best company that extends credit to those that qualify.

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I'm inclined to agree with you, but in the eyes of the uninformed or to those who haven't fully enjoyed their services, AMEX is just another company that extends credit.

We give AMEX that perceived value.

[pipeguy]

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@namvet wrote:

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@Anonymous wrote:

It's just another company that extends credit.

It's kinda like white chocolate and me. A lot of people don't understand why I'm so fascinated by it, but I can't understand why so many people aren't.

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You have to develope a taste for white chocalate!  No it's not just another company that extends credit my friend.  Amex is the best company that extends credit to those that qualify.

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LOL ! Spoken like a true fan

[android01]

I know that my Business AMEX is invaluable because of the NPSL.  There have been many many times when I've had to drop $50,000+  on buying new equipment or had crew's travelling all over the country at the same time incurring substantial expenses.  The NPSL has been invaluable that way.  PLUS, AMEX Business cards do not report on your personal credit file (unless you default).  Every business Visa/MC I've ever had reports on my personal credit report, which I really don't like, and I have yet to find any Visa/MC that will give me a high enough limit to effectively run my business.   

[namvet]

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@Anonymous wrote:

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@namvet wrote:

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@Anonymous wrote:

It's just another company that extends credit.

It's kinda like white chocolate and me. A lot of people don't understand why I'm so fascinated by it, but I can't understand why so many people aren't.

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You have to develope a taste for white chocalate!  No it's not just another company that extends credit my friend.  Amex is the best company that extends credit to those that qualify.

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I'm inclined to agree with you, but in the eyes of the uninformed or to those who haven't fully enjoyed their services, AMEX is just another company that extends credit.

We give AMEX that perceived value.

 Agreed!  Perception is the better part of Reality!

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[Anonymous]

It sounds like you have three issues:

1. You don't like charge cards

2. You don't like AMEX

3. You don't understand the prestige of the AMEX card

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1. That's totally fine, but there are many people who--as other members have mentioned--really benefit from charge cards because they use them as their debit cards and PIF every month.  It keeps their finances on track and they rack up the rewards points.

2. As for not liking AMEX, that is fine too.  They are a rigid company, but they treat their customers well.  And by customers, I do mean those that use the cards regularly, pay on time and preferably in full, and respect the credit they are given.  Many other cards are now offering the same benefits and I hear Discover has better customer service than AMEX, so you may wish to try business with them.  

3. Personally, I didn't know AMEX was such a big deal until I started this forum.  To me, it was the first credit card I ever owned and I like them because they have great CSRs that don't have accents.  I have so much difficulty with accents on the phone, it's sad.  I think this was more a grandfathered effect.  AMEX had a lot of prestige in our parents' generation and that has carried over to some of us today.  In the end, a credit card is a credit card.  They all swipe the same; for the most part spend the same; and as long as you pay in full and never have a problem that will require you to call in; there is no real difference in what you carry in your wallet.  

I'm sorry you had a bad experience with a company I love so much, but that's the way it goes.  

[namvet]

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@Anonymous wrote:

It sounds like you have three issues:

1. You don't like charge cards

2. You don't like AMEX

3. You don't understand the prestige of the AMEX card

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

1. That's totally fine, but there are many people who--as other members have mentioned--really benefit from charge cards because they use them as their debit cards and PIF every month.  It keeps their finances on track and they rack up the rewards points.

2. As for not liking AMEX, that is fine too.  They are a rigid company, but they treat their customers well.  And by customers, I do mean those that use the cards regularly, pay on time and preferably in full, and respect the credit they are given.  Many other cards are now offering the same benefits and I hear Discover has better customer service than AMEX, so you may wish to try business with them.  

3. Personally, I didn't know AMEX was such a big deal until I started this forum.  To me, it was the first credit card I ever owned and I like them because they have great CSRs that don't have accents.  I have so much difficulty with accents on the phone, it's sad.  I think this was more a grandfathered effect.  AMEX had a lot of prestige in our parents' generation and that has carried over to some of us today.  In the end, a credit card is a credit card.  They all swipe the same; for the most part spend the same; and as long as you pay in full and never have a problem that will require you to call in; there is no real difference in what you carry in your wallet.  

I'm sorry you had a bad experience with a company I love so much, but that's the way it goes.  

 Oorah, roger that!  You have figured it out.  Pay it forward. 

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[namvet]

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@android01 wrote:

I know that my Business AMEX is invaluable because of the NPSL.  There have been many many times when I've had to drop $50,000+  on buying new equipment or had crew's travelling all over the country at the same time incurring substantial expenses.  The NPSL has been invaluable that way.  PLUS, AMEX Business cards do not report on your personal credit file (unless you default).  Every business Visa/MC I've ever had reports on my personal credit report, which I really don't like, and I have yet to find any Visa/MC that will give me a high enough limit to effectively run my business.   

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  My thoughts as well.  Amex was with me all the way when i was building a business.  Never had a second thought about the amount i was charging.  Neither did Amex.

[LS2982]

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@pizzadude wrote:

There is no single card that meets everyone's needs.   Not from AMEX, or Chase or anywhere.....

People who do use AMEX charge cards generally like the fact that it keeps them honest with their spending, since you have to PIF.   Also the fact that Charge Card balances aren't included in FICO scoring helps those who run alot through their cards each month.

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+1