charge card with no limit?

[bcmorris]

I applied for the AMEX one card, it has a savings account of over 5% with a 1% deposit into your savings account off of every purchase.  My concern with the card is that it has no limit, and it is a charge card rather than a credit card.  I  can't factor it into my "score simulator" on my "myfico" account because of no limit. 

 I wanted it to have another credit card (I only have 2, with a combined $3300 limits) to assist with building credit but I'm not sure it this would count in the same category since it doesnt have a limit.

Does anyone have any tips or anything I should be concerned with before actually activating the account? Any experiences?  Thank you

[Anonymous]

The bad part about cards that dont report limits is that the high balance is what will be used to calculate your utilization . This being a charge card, you have to decide how much you can charge on it in one fell swoop and pay it off.  Not cure how charge versus credit factors into the report.  Have you thought about applying for the Blue?  Or asking if they will convert it for you?

[bcmorris]

First of all, thank you for a quick response.

I did ask about converting it over to the blue, or any other credit card. The answer was that they could close my 'one' card, and I can apply for another.  She said that I only have one inquiry from them, and that a second would not effect my credit score.  I'm not so sure of that, I want to believe her though.  If that is the case, then I could just apply for the blue card and set up my savings account for the 'one' and not use the card.  I do not need to use the 'one' card to utilize the savings account,  but I do want to help my debt ratio. 

[Anonymous]

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bcmorris wrote:

First of all, thank you for a quick response.

I did ask about converting it over to the blue, or any other credit card. The answer was that they could close my 'one' card, and I can apply for another.  She said that I only have one inquiry from them, and that a second would not effect my credit score.  I'm not so sure of that, I want to believe her though.  If that is the case, then I could just apply for the blue card and set up my savings account for the 'one' and not use the card.  I do not need to use the 'one' card to utilize the savings account,  but I do want to help my debt ratio. 

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Whether or not a second inq would effect your score remains to be seen.  Credit card inq are not like mortgageand auto shopping, each carries their own weight. How many inqs do you have in the past 6-12 mos?  That would factor into it greatly.  I am wary of Amex with their reputations for F/Rs and such especially on accounts in good standing. There may be more cards that you can apply for with better terms.  Just do your research.

[Anonymous]

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Brammy wrote:

The bad part about cards that dont report limits is that the high balance is what will be used to calculate your utilization . This being a charge card, you have to decide how much you can charge on it in one fell swoop and pay it off.  Not cure how charge versus credit factors into the report.  Have you thought about applying for the Blue?  Or asking if they will convert it for you?

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This is a charge account that will NOT EFFECT your revolving Utilization at all. It will be reported as Other rather than Revolving.  Blue Cash, Blue Sky, HH, Delta, etc... ALL of these ARE revolving CC.

They are calculated differently than PIF charge cards.

Rob

[Anonymous]

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FICO_Focused wrote:

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Brammy wrote:

The bad part about cards that dont report limits is that the high balance is what will be used to calculate your utilization . This being a charge card, you have to decide how much you can charge on it in one fell swoop and pay it off.  Not cure how charge versus credit factors into the report.  Have you thought about applying for the Blue?  Or asking if they will convert it for you?

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This is a charge account that will NOT EFFECT your revolving Utilization at all. It will be reported as Other rather than Revolving.  Blue Cash, Blue Sky, HH, Delta, etc... ALL of these ARE revolving CC.

They are calculated differently than PIF charge cards.

Rob

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That was my understanding too.  Depending on the model but have several board buds when they do the calcs by hand, the only way their utilization is what it is is if it is included.  Better take a closer look at mine cause I know I have some cards reporing as charge that sould report as credit.

See what happens when you get rusty

yep just checked reporting as type revolving but loantype Charge instead of credit

Message Edited by Brammy on 08-15-2007 06:54 PM

Message Edited by Brammy on 08-15-2007 06:56 PM

[bcmorris]

My score watch states that I have 3 inquiries the past year.  I moved and needed furniture so I opened a badcock acct, needed a labtop and opened a bestbuy card, and my cell phone.  It is not counting another cellphone inquiry though.  I had "amp'd mobile" but they went bankrupt or something so I had to apply for a whole new service.

[Anonymous]

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bcmorris wrote:

My score watch states that I have 3 inquiries the past year.  I moved and needed furniture so I opened a badcock acct, needed a labtop and opened a bestbuy card, and my cell phone.  It is not counting another cellphone inquiry though.  I had "amp'd mobile" but they went bankrupt or something so I had to apply for a whole new service.

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Another inquiry should not hurt you much maybe a point or two

Message Edited by Brammy on 08-15-2007 06:59 PM

[fused]

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FICO_Focused wrote:

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Brammy wrote:

The bad part about cards that dont report limits is that the high balance is what will be used to calculate your utilization . This being a charge card, you have to decide how much you can charge on it in one fell swoop and pay it off.  Not cure how charge versus credit factors into the report.  Have you thought about applying for the Blue?  Or asking if they will convert it for you?

---

This is a charge account that will NOT EFFECT your revolving Utilization at all. It will be reported as Other rather than Revolving.  Blue Cash, Blue Sky, HH, Delta, etc... ALL of these ARE revolving CC.

They are calculated differently than PIF charge cards.

Rob

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Rob you are correct! Amex charge cards are suppose to report as other open account and do not factor in util% calculations. I have a Gold card and EQ and TU report it this way but not EX. I disputed this with them and it came back verified. I sent an MOV letter with an ITS flavor, no dice. So I am left with no other option but to sue them!

[bcmorris]

Fused111, did it being a charge card effect your credit score in a negative way?