Using AMEX cards

[hoang817]

Hello,

What is the best use of AMEX cards to improve your credit scores? Should i Pay Over Time? Pay in Full? should i wait for the statement or just pay in full when ever?

Thanks

[FlaDude]

Assuming you mean charge cards, pay in full every month. Paying over time will just cost you interest and would do nothing to improve your scores. The same is true for credit cards, barring AZEO.

[PNWRambler]

Pay in full every month, and you want to have a low utilization percentage when it comes to the statement balance. So if you have a high balance, pay some of it down before the statement cut date. No card companies like it when you carry a balance, and AmEx is particularly sensitive about it.   Other than that, it doesn't matter if you make one big payment or several small payments throughout the month.  All your score cares about is the statement balance, and all AmEx cares about is that you use your card and pay your balance off regularly. 

[Thomas_Thumb]

AMEX charge cards (green/gold/platinum) do NOT factor into aggregate revolving credit utilization. You can use it and let balance report naturally on statements without concern of elevated utilization. Just pay off statement balance in full each month to avoid POT interest fees.

The charge card is an account. So, a balance will count toward # of accounts with balances. However, it is classified as an "open account" and not a revolving account. So?

To avoid the "no recent revolving activity" score penalty, you need to report a balance on a true revolving credit card even if the charge card shows a balance. Revolving credit card accounts include: AMEX blue cash everyday, Visa, Mastercard and Discover card.

The primary benefit of a charge card - scorewise - is large balance reporting won't negatively impact utilization on EQ Fico score 5, TU Fico score 4 or any Fico 8, 9 or 10 scoring model.

[hoang817]

---

@Thomas_Thumb wrote:

AMEX charge cards (green/gold/platinum) do NOT factor into aggregate revolving credit utilization. You can use it and let balance report naturally on statements without concern of elevated utilization. Just pay off statement balance in full each month to avoid POT interest fees.

The charge card is an account. So, a balance will count toward # of accounts with balances. However, it is classified as an "open account" and not a revolving account. So?

To avoid the "no recent revolving activity" score penalty, you need to report a balance on a true revolving credit card even if the charge card shows a balance. Revolving credit card accounts include: AMEX blue cash everyday, Visa, Mastercard and Discover card.

The primary benefit of a charge card - scorewise - is large balance reporting won't negatively impact utilization on EQ Fico score 5, TU Fico score 4 or any Fico 8, 9 or 10 scoring model.

---

Thank you