what is the point of Amex charge cards, when there's blue cash credit?

[Agent86]

The charge cards all have fees of at least $95, which is higher than the $75 for the Blue Cash Preferred; you only get 1 point per dollar on charge cards  (okay sometimes up to 3 on the gold preferred) vs. up to 6 cents per dollar on blue cash preferred, and the pay over time feature will apparently feeze your charging ability and possibly cause account closure, while blue cash cards are regular credit cards. I understand the platinum comes with fancy lifestyle perks like airport lounges, but in that case aren't you really just paying for a club membership rather than monetary incentives? I also understand that the psychological motivation of having to pay in full every month helps some manage their money and avoid a debt spiral, but you can still pay off your credit cards in full every month. What actual benefit do these charge cards offer?

[enharu]

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@Agent86 wrote:

The charge cards all have fees of at least $95, which is higher than the $75 for the Blue Cash Preferred; you only get 1 point per dollar on charge cards  (okay sometimes up to 3 on the gold preferred) vs. up to 6 cents per dollar on blue cash preferred, and the pay over time feature will apparently feeze your charging ability and possibly cause account closure, while blue cash cards are regular credit cards. I understand the platinum comes with fancy lifestyle perks like airport lounges, but in that case aren't you really just paying for a club membership rather than monetary incentives? I also understand that the psychological motivation of having to pay in full every month helps some manage their money and avoid a debt spiral, but you can still pay off your credit cards in full every month. What actual benefit do these charge cards offer?

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The charge cards are NPSL, while the revolvers are not. This is useful for people who need to make big purchases and have the ability to repay them back in full.

Using the pay over time feature will not freeze charging ability or cause account closure. It's just rumors.

Treat it as a club membership or a card membership or whatever you want to. The perks benefit certain group of people and there's really no wrong in having it.

Different cards also have different benefits and serve different purposes.

There's no one card that is suitable for everyone. Just because a card might suit someone more, or just because one card may seem more prestigious, may not necessarily mean it's the right card for everyone else. If you don't see a point in getting a charge card, then chances are the card isn't really going to suit you well and you should therefore not get it.

[CEOriginal]

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@Agent86 wrote:

The charge cards all have fees of at least $95, which is higher than the $75 for the Blue Cash Preferred; you only get 1 point per dollar on charge cards  (okay sometimes up to 3 on the gold preferred) vs. up to 6 cents per dollar on blue cash preferred, and the pay over time feature will apparently feeze your charging ability and possibly cause account closure, while blue cash cards are regular credit cards. I understand the platinum comes with fancy lifestyle perks like airport lounges, but in that case aren't you really just paying for a club membership rather than monetary incentives? I also understand that the psychological motivation of having to pay in full every month helps some manage their money and avoid a debt spiral, but you can still pay off your credit cards in full every month. What actual benefit do these charge cards offer?

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I've also heard that their charge cards are easier to obtain.... For most people, the charge cards are their foot in the door with AMEX. 

[navigatethis12]

I don't usually defend charge cards, but the 6 cents per dollar for the Blue Cash Preferred is only on groceries and only up to 6,000 a year.  The charge cards have no limit on the points you can earn, that I know of.I'm with you that charge cards are worthless, but I don't think you made a fair comparison.

[Open123]

The main benefits for a charge card.

1.  NPSL allows a person to charge amounts much higher and much faster than static lines.

2.  Amex has some unique benefits available only in charge cards.

3.  Unlimited rewards for spending.

For example, let's say you have no credit or bad credit, but have a high income.  You'd either not qualify for a revolver or be approved for one with a very small limit.  It would take years before your CLs hit $10K.  With an Amex charge, you can charge $5 - $10K per month after the 3rd or 4th month.  By the way, this is the ideal card for those who need to charge large amounts of reimbursable expenses, but don't have a high enough limit card on their own.

And, finally for large amount of quarterly business taxes, the only card that efficiently accomodates this would be the NPSL Amex.

[espnjunkie]

I use my green card for daily spending, except on the bonus categories for the bcp. The MR points are valuable if you convert them to frequent flier miles when a promotional bonus is going on. By doing so you can often get 25-50% more miles for your points. Also charge cards generally will be allowed a significantly higher limit than revolvers. 

[ibmrad7]

My cousin has used Pay Over time feature on this Platinum for over 6 months and never received any adverese action.

[thom02099]

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@Agent86 wrote:

The charge cards all have fees of at least $95, which is higher than the $75 for the Blue Cash Preferred; you only get 1 point per dollar on charge cards  (okay sometimes up to 3 on the gold preferred) vs. up to 6 cents per dollar on blue cash preferred, and the pay over time feature will apparently feeze your charging ability and possibly cause account closure, while blue cash cards are regular credit cards. I understand the platinum comes with fancy lifestyle perks like airport lounges, but in that case aren't you really just paying for a club membership rather than monetary incentives? I also understand that the psychological motivation of having to pay in full every month helps some manage their money and avoid a debt spiral, but you can still pay off your credit cards in full every month. What actual benefit do these charge cards offer?

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There's more to a credit/charge card than just points.  Many of us remember the days when cards didn't offer much of anything.  And then there's this:

http://ficoforums.myfico.com/t5/Credit-Cards/THIS-is-why-I-carry-AMEX/td-p/2187845

Benefits such as this make it worthwhile, and as I stated in this message, I've yet to be disappointed in AMEX for an entertainment purchase. 

EDIT:  the pay over time feature will apparently feeze your charging ability and possibly cause account closure, = Urban Legend

[NonSufficientFunds]

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@Agent86 wrote:

What actual benefit do these charge cards offer?

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The Gold and Platinum Cards have glitter in them that makes them sparkle under the halogen lights at the shopping mall !!

Definitely worth every penny !!

[mauwow0682]

Also charge cards IMO are good tools for budgeting and building discipline with using credit. With the exception of the pay overtime feature you can use on certain purchases you are responsible for paying the balance in full each month. When I was rebuilding 3yrs back and used my Zync I thought about all my purchases and didn't go buck wild. No that I am back in Primeville, I am very responsible with my cards and make sure I don't carry huge balances.