Credit Cards VS Charge Cards: Pros and cons

[@itolokz]

Charge cards because you’ll be more discipline in paying off the whole amount at the end of month.

[@jasoncmaicon5704]

Hi

[@Shaolin91z]

Credit card 😊

[@ビップレクサス]

Disagree. Charge card and credit card will both require discipline to pay it off. You are acting as if the charge card will cost you tons of money if you don't pay it off on time. Per video - it only cost you a late fee in the $20 dollar range if you don't pay off your AMEX card.

[@Shaolin91z]

I don't like annual fees on amex charge cards. Its like I gotta pay you a fee to make you some more money off of my swipe fees.

[@Shaolin91z]

At the very least just churn for intro apr. Hit the sign up bonus and enjoy intro apr for 18 mos. No need for a charge card😄

[@jasonrothfeld]

Charge card all the way. If you don't have the cash in the bank for something you shouldn't be buying it.

[@ビップレクサス]

Same thing for a charge card. If you can't afford, you shouldn't buy it applies to the charge card as well.

[@Shaolin91z]

Intro apr and I'll buy what I want. 18mos to pay it off

[@checkfoldcallraise]

So there's really no reason to have a charge card if you can just use your checking account debit card. Unless you need to purchase something before payday and then pay it off on payday. I can see how it can be useful but of course, like drinking and gambling, one must be responsible with plastic spending.

[@Shaolin91z]

Extra fraud protection using charge and credit cards. After all...when using charge and credit cards...if something goes wrong there's extra incentive to fix the problem because you aren't using your money. You are using the banks Money. Not to mention the points etc. Something goes wrong with that debit card... That's your money.....not theirs

[@Shaolin91z]

I've had several experiences with credit card protection versus debit card protection. They will try to fix the problem. But I find they are more active in resolving the issue with credit cards versus debit cards

[@Bad4Good2]

My thoughts are to use the charge cards as cash so you can get points for regular cash purchases and then the every day card as an actual credit card.

[@thetechlibrarian]

That’s what I do I use it like a debit card or cash and pay it off right away. Sometimes multiple times per a month

[@dsanti4069]

your story about the friend who bought the "Gold Bars" sounds like someone was doing a little manufacturing spend ;). He probably sold it back for the same amount paid and gained all those points.

[@englee2006]

Thanks for doing this video man. Appreciate it. A lot of people still didn’t know the difference.

[@DattKiddFromSTLouis]

Lots of information, thank you! Considering downgrading my delta silver before I have to pay another annual fee. The Amex platinum can cover the checked bags. Plus, you're right, charge cards have definitely encouraged better spending habits for me.

[@BradRenfroUS]

Kwame Appiah true! I had a conversation with an AmEx rep and I end up canceling the Delta Platinum. Using my Platinum AmEx saved me lots of money!

[@socalguy97]

Agreed! I’m much more frugal now than I ever was in my spending thanks to my Amex Gold, yet I still get great perks. I find it much better than any credit card I’ve ever had.

[@yusuf8938]

Not to mention, because charge cards don't report credit limit, it doesn't positively effect credit utilization either. Meaning your maximum available credit doesn't go up because you have one, even if your hypothetical credit limit is in the tens of thousands.

[@OBENSquad_21]

Fuckkkkkk I didn’t realize that but they approved me and I don’t want the card anymore

[@HoweyJR_]

@@OBENSquad_21 why?

[@jusatesst]

​@@HoweyJR_because we want to improve our credit reports and scores by using the cards properly. If our good usage is not being reported to the bureaus, it feels like a waste of time. The only postive I see with it is that it builds history with the credit card provider. Like Amex who have basic charge cards

[@HoweyJR_]

@@jusatesst you dont have to have a credit limit to have a high score.

[@jusatesst]

@@HoweyJR_ nah was talking more about using the charge card to increase the score/report by paying it off in full every month which likely doesn't get reported, to be extra sure would have to ask each charge card provider

[@ビップレクサス]

I prefer credit cards over charge cards, honestly. If you have a high-income and good credit, you can have an insane credit limit. And this credit limit is pretty much there forever allowing you to spend as much as you want within that limit without worrying about your limit dropping. The way a charge card is structured forces you to spend and spend an average to keep your "spending limit" up. That's BS. I don't want my "spending limit" dropping because I'm not buying anything.

[@ChristopherAyresfrs2]

ビップレクサス but charge cards don’t ding you for utilization. My Credit Score would drop a 100 points if I bought my cars on my Chase Reserve rather than my Amex Platinum. This is prolly the only credit score difference, besides rewards.

[@jonathant4280]

@@ChristopherAyresfrs2 If you are going to pay off your credit card balance every month just like using a charge card, you wont worry about the utilization rate neither.

[@ChristopherAyresfrs2]

T Jona well short term you do, if you let a full billing cycle hit on say a 7,000 dollar charge. That can be quite the drop in your credit score if your going from 0 to 5%. I know it’s very temporary, but it still occurs.

[@rovagangq]

U act like u spend 6000 every week

[@ljpolo14]

Jesus christ. Lol kinda blew my mind about the charge card difference its so good. Great content.

[@neiritanuki2072]

The equation is probably wrong because my monthly spend is about $3,000 and my amex limit is well over $30,000.

[@milhascomruan491]

Awesome! I am from Brazil, I found that funny when he said APR is too high, because we pay monthly here what you pay annually there in case you dont pay in full.

[@atibalaroche2846]

If you spend 9k and your limit is 10k and pay it off right away it wouldn’t show up as 90% utilization. Only because it didn’t hit your statement

[@TheCreditShifu]

correct, cards generally report to the bureaus on your closing date, so if you pay it off before then it is fine

[@glowblank17]

Come again?

[@kefkapalazzo1]

glowblank17 you can max out your card and still have low utilization if you pay it early because the bureaus only check your balance when it’s reported as opposed to when you spend.

[@rovagangq]

Atiba La Roche that would be bad

[@coryCuc]

@@rovagangq Why would it be bad? He's paying it off in full before the balance is reported to the credit bureaus.

[@jboyette47]

I’ve looked around and nobody has done a video on ideal setups for people that put company expenses on their personal cards and get reimbursed. It’s been a fantastic way for me to gain points this year outside of just airline and hotel programs

[@user-pc6zn1vy9d]

An interesting note. On the No Preset Spending Limit, I applied for a few cards last year, was carrying some high balances and my credit score dipped a bit. Around the holidays and I paid everything off shortly after however on my Gold Card, AMEX put a cap on my monthly limit at $2000. So I had a $2,000 spending limit on my Gold Card. I called to complain, they told me I could submit financial documents, which I did. They upped it to $25,000. So now I have a $25K SL on my Gold Card. Same functions, same points, same everything. I pay it in full each month. But I don't have to worry about that bizarre & mysterious "No Preset Spending Limit" crap, you really don't know what you can and can't purchase. That guessing game is ridiculous with the no preset spending limit, a spending limit on a charge card makes all the sense in the world and I'm glad I have it. Charge cards are awesome because it keeps you in check and it's nice to know I have a $25K limit on it. It also DOES NOT effect utilization on my credit reports. Win, win all around.

[@HollywoodF1]

On my AMEX green, 5 years ago, I tested the limit on their website. The most I'd ever paid on a monthly bill was $2k. I tested $30k and it was approved. My credit score was 760 and my utilization was 9%. Income and assets (to be intentionally vague) each less than $200k.

[@baddboo]

Ben , you look like a French painter in this video. You just need to get a hat and a palette, OUI !!

[@toothybj]

I have 2 store cards - Guitar Center and Lowe’s Advantage (both handled by Synchrony Bank) that show up on my credit report as “charge cards”, yet i’ve definitely carried a balance over in the past, though not currently.

[@dominick6131]

They are equal. If you don't pay off your card in full every statement, Then you should not have a credit card

[@Shaolin91z]

Not necessarily. Some carry a balance and pay interest....so what....

[@TheAlcapone100]

Tee Cee and that’s why credit cards still exist that’s how they make money... if everyone paid in full and did not carry a balance there would be no interest charge meaning the credit card providers are not make any profit!!

[@Shaolin91z]

Absolutely not true. They make money off of merchants every time you use your card. They make more If you pay interest. But even if you don't pay interest They still make money off of transaction fees paid by merchants

[@eatingparis]

Shaolin Soldier why would you pay 20% interest when you can simply save up and pay something off in full AND get rewarded for it at the same time.?

[@LilBleachThaGod]

Wrong you could easily buy a laptop for your online business might take you two or three months to pay off however the computer will continue to make you money plus the money will eventually made back !! I pay off full most months some I’ll just pay the minimum and my credit will still go up !

[@sarahj3337]

So in debt since early this year -$7000 maxed out on my card, I almost lost my car and credit score decreased but still got $4000 to pay off. After watching this video i think i learnt a lesson.But it didnt take away my card debt oh.

[@bijanshadnia3620]

Graham Stephan sent me. Super useful content thank you

[@tamirajohnellestyle]

The credit utilization regarding the charge card was very helpful. Thank you!

[@Kayakamuy]

I just started credit and I have a 702 thanks for the videos! :)

[@lexxzus]

How you get 702 if you're just starting with credit🤥

[@TheAlcapone100]

Melson31 in the beginning they always give you a higher rate.... but it’s just for looks it will drop later... and if she pays minimum or even in full over time it will go up again!!

[@LilBleachThaGod]

Kayachi nice I’m at 699 lol 😂 I laughed at my credit score

[@rovagangq]

Bledar P not if she has a good utilization rate and she pays on time an she’s not applying for hella cards, and if she got history no sir it will not

[@Daniel-jk9ge]

Hey I don’t know if you get this message but what your credit score now if you don’t mind sharing ?

[@Slb5988]

I’ve put that spending power like 25X in the last two months and there’s no issue just have to wait a day after doing it like three times to restart. Smh 🤦🏻‍♂️

[@crackerbex]

So from what I understand, charge cards have no spending limit once you get them but EVERYTIME you make a bill payment, your spending limit gets updated to 3X what you paid on that bill

[@mdrealtorchic]

Capital One now has a charge card and this was the most helpful video in understanding it. Thank you!

[@plokiju88]

I’m deflated, today I just got my Amex gold. I was gonna travel now I have to stay home and accumulate a fund to avoid the late fee. Argh 😤. Thank you shifu! You really have helped me understand credit and how it works.

[@G-y_m]

If you have to go into debt to travel you shouldn't be traveling

[@dominick6131]

Don't make that a habit. Pay your card bill in full every month for all your credit cards. If you can't pay for it, you don't buy it. Never borrow money on frivolous things. Borrowing money is for a house only

[@Shaolin91z]

Borrow that money. Just be careful and be disciplined.

[@Shaolin91z]

Credit card with no interest for the first 18 months. That is the ticket

[@AB-uc8tj]

Shaolin Soldier Wells Fargo cash wise!

[@BW-ru8pt]

Need to be careful with that, it might just be the ticket to credit card debt..

[@Xachremos]

That's a very slippery slope

[@nycabilifeisgreat9768]

Never mind ! U covered my question later in your video! LOL! Thanks!

[@evieparada]

I would stick with credit cards because you can pay it back slowly overtime even if you pay interest It's more flexible to use.

[@Penjaminblinkerton99]

Wow, I’m glad I watched this video. These are the types of videos we need to show our youth, not bullshit history! I learned a lot watching your vids as a young adult, and prevented me from making a lot of dumb decisions

[@realkewlmann]

Love the video! Lots of information and general financial advice.

[@chuckwalker1899]

GREATEST CHANNEL

[@djcity1]

Charge card because when you apply for credit you can only technically use 30% of the credit in order for it not to ding up your credit score versus a charge card that you will be responsible to pay each month because you will only spend as much as you can pay back in a matter of a month.

[@josem1596]

Credit cards should be for people who are responsible.

[@matthattermatador4595]

Yeah at some point you’ll hit it where your credit limit is so stupid high you’ll just never spend that normally per month so utilization becomes a joke.

[@MrAnonymousRandom]

If you can only get a charge card from Amex, that adds a big inconvenience factor. A lot of businesses don't accept Amex. In my understanding, credit utilization is calculated by averaging the balance of every day of the month, so if you use the card to earn points and then pay it back within the day, it shouldn't impact credit utilization by much. Credit card companies give out credit like candy to kids, so the limit is kind of irrelevant. I don't know if this is the case with charge cards, but credit cards can also be topped up before hand and used like a debit card, so at the end of the day, it's the human factor that matters.

[@solotrippin09]

I keepy my Amex Plat (charge card) for the perks & insurance and use the Cobalt (credit card) on a daily basis

[@madmike2835]

Another good video would be how does a loan affect credit, credit of long history, short history, high credit limits of credit vs low or middle range of credit limit. How it affects credit when you get the personal loan vs half way vs paying it off. Also a video about credit karma, credit wise etc stimulator would be cool. Show them how they close to being accurately correct from w.e you stimulate. I'm going to post this on Sebastian page too. Let's see who makes the video first 🤔 lol

[@ricksanchez4659]

Hi Ben, May I ask, why haven't you uploaded anything on your Learn Chinese Now channel? And what happened to Only in Asia? I guess that it's because your videos on these channels weren't viewed a lot. Btw, is that Buy one Get one deal still available?

[@RobertJohnson-je6tx]

What about the J.P. Morgan Reserve Card (formally Palladium Card). Is this a credit card or a charge card?

[@TheCreditShifu]

I believe it is a credit card

[@RobertJohnson-je6tx]

The Credit Shifu - Thanks

[@jared997]

One way to check is if there is an interest rats. Charge cards won't have interest rate since needs to be paid in full

[@arabiantxn]

You can also call Amex and they will pre approve you for a purchase transaction, My Manager bought a car and he used Amex for the points.

[@ygbodybuilder3023]

Dealership won't let you use credit to buy a car

[@stupidrules1000]

Very helpful review. I had been on the phone with amex trying to figure out exactly how the platinum card is going to report....lol.

[@joeblack2732]

how do charge cards effect your credit score ?

[@Shaolin91z]

Positively if you pay on time every month

[@backspacek11]

Affect

[@williamhadley1096]

Very informative comparison of credit cards and charge cards.

[@realamazingworld6756]

Also with American express you can transfer your account to another country (if you’re moving) thereby starting a new credit history in your new country

[@MrAny9000]

How?? Can you also keep the US history?

[@RobertJohnson-je6tx]

Oh, BTW really like your videos. Very helpful.

[@micomarinas2753]

wow extremely high interest on the unpaid balance! here in the philippines all credit card has a flat interest of only 3.5% on the unpaid balance.

[@MarkVank]

Damn! Where I'm from all credit cards are 50%+ APR, even up to 65%. I'm lucky i'm financially responsible, but I've known some people with debt at those rates......... scary.

[@blorfenburger]

5:34 oh. I did a test once. I thought it was a funny little button so i just tried it out for 2000. Will be saving it for real moving forward

[@mallowhawk294]

😂 Wanted to buy $45,000 in gold bars. Sounds like a G

[@AndyinMTL]

Lolll

[@kefkapalazzo1]

Gold is a good investment

[@VesmicTCG]

@@kefkapalazzo1This comment aged well, gold's at a current ATH right now.

[@timewithsopy]

Don't ask why

[@matiluko_king1381]

Very informative. Thank u.

[@traydadiiethegreat1728]

I just receive my gold card today 🤙🏽 thanks for the whole run down...

[@tintedpandas]

If charge cards don't allow you to carry a balance, does that mean there's no interest? If that's the case, how do they make money off of you?

[@tintedpandas]

@@BenGaut thanks for the info! :)

[@Flannelban]

Does AMEX do both credit cards and charge cards? I have been carrying a balance on an AMEX card with no fees for months

[@TheCreditShifu]

Then it is probably a credit card, what card is it?

[@XxAlexanderProxx]

Credit cards. If you have an emergency and can’t pay it in full one month then you are not under the gun. But should try to just pay them in full every month. Sometimes you even get the opportunity to get a 0% period and use the money for business or to take down another “good debt” balance down. There are many credit card useful strategies if you have the discipline. I have both.

[@spoderman8351]

I abuse the check spending power on my gold card. I used it up to 40k

[@epicfailer11111]

So does this mean that you can never incur interest on a charge card? Due to the fact that you cant keep a balance on it?

[@gta4everrr]

You can carry a balance. It's not like it's some sort of crime that you'll be prosecuted for. It's just that unlike with credit cards, if you're even a penny short, you'll get hit with a late payment fee and a late payment on your credit report as well as interest on the carried balance.

[@mjfaas]

Haha sounds like your "friend" is doing some manufactured spend

[@jackmurr8165]

Op ,k

[@jackmurr8165]

Mim

[@jackmurr8165]

Mo Kw , Oh m sorry I jmmmiop miu I'm mk oil mm

[@jackmurr8165]

O

[@Esignn]

Amex Platinum or Gold. Thoughts?

[@CoupeDominic]

Basically, it’s only worth it if you take advantage of its benefits

[@noahhaughn4959]

idk about that 3x thing... on my amex gold my highest balance has ever been a few hundred & over about 9 months my limit has gone from $5k-$8k (i found out by checking spending power). ive also never been penalized for checking spending power.

[@marksantucci4230]

on your credit report both cards fall under credit cards 1 falls under open credit cards like the green, gold, platinum and the other falls under revolving credit cards like the Blue cash , blue sky, delta, and spg but there both credit cards. He is right about store charge cards like Kohls, Lord and Taylor.

[@lorumipsum1129]

I'm currently letting my inquiries go down so I can apply for a gold or Platinum. I'm also planning on upgrading my preferred to a reserve inntwo years, or when my credit limit is raised over 10000, whichever comes first.

[@jonnieinbangkok]

Can you clarify something about the interest calculation on credit cards for me. I understand that if you pay off the entire balance each month there is no interest charged; however, I have read that if you make a partial payment, the interest charged for that billing period will be for the entire balance for that month and not the balance minus the amount paid. For example: There is a balance due of $ 1000 and a payment of $ 500 is made...leaving an unpaid balance of $ 500 on the card. However, when the bank calculates the interest due on the next statement, interest will be charged on $ 1000 for the entire period of the first month (despite $ 500 being paid) and calculate the interest on $ 500 for the next statement period until the balance is paid off? I hope I explained this correctly and is this the way banks calculate credit card interest payments?

[@1126richardfan]

Credit card charge you interest based on the outstanding balance you have, let say $500 in your case. The interest calculation is on a daily basis, but not calculating once at the end of the month, as you say. So if you don't pay the outstanding balance off until month end, you will find the interest higher than the amount just calculated by ($500 x Monthly rate) because of the compound interest.

[@elizabethoripeloye9199]

Please does it mean he wil pay $1000 at least for both the balance and interest ,I’m curious pls

[@chriskasprzyk6235]

It depends on the terms of the particular card. You need to check the terms for your card(s) to determine the method used. Most use some method of “Average Daily Balance”.

[@ArchLinuxTux]

Jonnie Bangkok intrest ia only accrued on the month''s unpaid amount and cumulative on previous outstanding month(s) balance

[@elizabethoripeloye9199]

Ok, thanks so much guys

[@lseul8812]

They phoned my account and asked me to provide account details to my bank and had them disclose my total accounts available funds. Once my bank said I had x amount of funds (an amount over the purchase) amex approved the purchase for me

[@danielmewes]

The formula for the Amex spending limit doesn't seem correct. My spending limit is significantly higher than 3x my max monthly bill over 6 months.

[@lourellesobrejuanite2012]

thanks for the info.. :)

[@HaouasLeDocteur]

Couldn’t the gold bars guy just overpay by 45,000 dollars and bypass the whole proof of funds kerfuffle?

[@katconnor6422]

No, that is called "money laundering" and an extremely bad idea.

[@HaouasLeDocteur]

@@katconnor6422 that is definitely not money laundering in any way, shape or form.

[@MarioRioMcBride]

Hello Ben, I just recently accepted an Amex gold card because of 90000 reward points within 6 months of spending. With that said from my understanding, you said it will go up and down far spending charge limits. No matter what card I use I make sure I don't go more than 1200 a month and I pay every month in full. Will Amex lower my spending limits on my Gold Amex because I'm not a spender or charging a lot on the card?

[@EudesRJ]

If I don't pay a US credit card, after 1 one I only will have to pay 25% in interest? In Brazil is 360% per year (between 5% and 15% per month), that's why I use my credit cards like charge card, always paying in full and on time.

[@MrAny9000]

F 360% per year???

[@Hempfuelgroup]

Nice ! Now do they offer Business charge card or credit card ? Thank You

[@luisj.becerra2494]

Have you heard anything about the upcoming Delta charge cards?

[@Valentino_Ford]

From what I've heard so far, it's a rumor but I wouldn't' suspect that type of charge card would come about. That's card I could see myself having.

[@jamespalmer6300]

Do AMEX charge cards report to the credit bureau’s on the statement date or will you be fine paying it on the duty date without it hurting your credit score?

[@AndyinMTL]

Great and very informative video! Thx

[@shellzlockit2257]

How does canceling a charge card affect your credit vs canceling a credit card.

[@phajej1993]

I want a card for strictly gas and food. Then I want another one for traveling and bigger purchases

[@0412lennon]

Credit card= chase sapphire reserve is amazing and good for travel Charge card= Amex platinum is one I’m eventually going to get and is good for travel as well Gas and food I really haven’t gotten a card that’s specifically for that.

[@Mac-pluto]

Amex Blue Cash for Gas & Grocery CapOne Savor - Restaurants/dining/entertainment As far as travel goes, I don’t do much so I can’t tell you what’s the best

[@kimberleywatson7330]

Same!

[@jamiep2318]

Great video mate

[@jared997]

Great video Ben. Was wondering how charge cards report. I only recently got the platinum. All others are cc

[@vanessak487]

Good video

[@wittleMermaid13]

New amex plat cardholder here! Planning to purchase 5 airline tickets for family vacation to Tahiti from D.C.. Should I be worried the charge won't get approved? Great info, I never knew there was a difference!

[@TheCreditShifu]

Well you can use the check spending power tool in your online account to check before you make your purchase. Have a great trip to Tahiti.

[@brandonrodriguez4900]

What happens when you don't pay your charge card in full?

[@MNBN87]

no, you simply don't buy $3000 business ticket if your credit limit is only $5000.

[@TheCreditShifu]

Why? If you pay it off before your statement closes, it will have no effect on your credit score

[@MNBN87]

@@TheCreditShifu thanks for the reply. I was simply speaking in common sense of saving&spending money. As you know, the biggest factor for your credit limit is your income. If one's income is low as $5000 credit limit worth, he/she shouldn't be flying with $3000 business ticket. ;)

Very informative video thanks.

[@crazy808ish]

idk why people seem to be hating on charge cards in the comments here. From the video I think they're a great idea. Just depends what your spending habits are I guess.

[@hiphopjewels]

It sounds like either would work well for me. But, I'm trying to build up my credit history (5 years average history), and it seems like a credit card is better for that purpose, reporting my utilization each month to the credit bureaus. A lot of people are mistaken in the comments. If you carry a high balance on a credit card for several months, even if you pay more than the minimum balance, and pay on time, the credit card company can monitor how close you are to that credit limit threshold and drop your credit limit without notice. That will change your utilization ratio, and drop your credit score. So, a lot of these high credit limits on credit cards are not set in stone. I recently had the opposite happen too, now that I'm more attentive, where recently my balances have been close to zero at the closing date, so they increased my limit and doubled it. I've had both things happen. Keep that in mind when preferring to use credit. One credit card and one charge card would be cool to have. Why choose?

[@BritoWorx]

Wonderful content thank you

[@q.l5480]

How can one tell which one is a credit card and which one is a charge card on the Amex website? They all appear under credit card.

[@STALMANNEN]

I guess an ultra high net worth individual could just pull out his Amex black card and purchase a Bugatti Chiron Super Sport... then settle the bill at the end of the month (or anytime of the week). 🤔

[@TheCreditShifu]

Yes, you can indeed put purchases of $1m+ on the card

[@STALMANNEN]

@@TheCreditShifu Damn wow... 🤯

[@VNtheOnly]

Soo...I can use Amex to buy a car?

[@Jutrasongtr]

Thank you so much for the information! Does anybody know how opening and closing charge cards affect on credit score?

[@corruptvisionz6186]

Ivan Kungurtsev imo you should never close credit/charge cards as that can negatively affect your score. Keeping them will improve your credit history thus improving your score.

[@Iggysluckytonite]

closing a credit card out can drop your score if that account is one you've had a long time. it decreases your average age of accounts, hurting your score

[@latanyaarnold3450]

When you pay it off, do not close it as it makes your credit to debt ratio better. Basically shows you are not maxed out and have some availability to add credit.

[@jamesmoore8873]

What would a good first charge card from Amex to get

[@glowblank17]

Thank you so much! You rock!

[@MyCoreano]

Can I downgrade from Amex Platinum to Gold?

[@MichaelJohnson-xr4vg]

your the man thanks for the info

[@anime9228videos]

Can i use amex charge cards to build history with amex to eventually get their credit cards?

[@Shaolin91z]

Yes. Pay every month on time. Or pay multiple times a month. Whichever is easier for u

[@QueenConsious]

If you have good or excellent credit you should get 0% APR for a while so you don’t have to pay in full or have interest on your cards I love credit and charge cards spend on vacation and pay when you get back with benefits Cash Back & Rewards

[@travisedwards6837]

question just got discover it card will I get the reward if I pay me rent and then pay it off the next day

[@SGast]

I am wondering now. Don't you have private lines of credit in the US. We have them in Europe and the interest rate is a lot lower than what is charged on a credit card and they are normally free. So you can use them to work out liquidity problems instead of carrying an expensive balance on a credit card.

[@gewalt8827]

Yeah, I could have an open line of credit up to 5000€. 8.5% APR when I take out a loan from it and it costs nothing to keep open. In fact I'm probably gonna open it now that you made me think about it... Not to mention that even a regular personal loan only takes 48-72 hours to get approved by your bank here in Italy, so it's not really an issue. If I had a liquidity issue I'd just pay with my amex card and then catapult myself into my bank.

[@microsoftninja]

Question, was wondering I thought your credit score was calculated based on available credit and consumed credit. So it you have $10k available on credit cards but then spend $6k on a charge card does this not affect your credit score show you used 60% of your available credit? Or how does that work?

[@clutchlaughs9179]

It doesn't report to your utilization if you have a charge card. Only thing that gets in your utilization is your credit card.

[@sensaras]

I don't think that your suggested spending limit calculation on the Amex charge card is correct. I hold an Amex Centurion Card and my average spend is £20,000 per month. However, they won't let me spend more than £30,000.

[@TheCreditShifu]

That is what the understanding has been in the past, but the actual algorithm is secret so who knows. A 30k limit sounds a bit low for the Amex Centurion though, you mean the black card right?

[@sensaras]

@@TheCreditShifu Yes, it's the Black Amex Centurion Card. I was a Gold Card holder in 1995 and then worked at an Investment Bank.. One day, in 1999, out of the blue, I received the card, but in those days it was plastic. As you know, it's Titanium now, but mine has "Charter Member" enscribed on the front.. I know my effective limit is £30,000 because I bought a watch for myself which was around this value and I had to call them up because it was initially declined. When I first got the card, the fee was £645 per annum, but it's 4x that now. However, I still think it's worth the annual fee as I get a lot of travel and concierge benefits.

[@Iggysluckytonite]

Am I doing it wrong? I have never paid my Amex everyday card entirely in full in a month...maybe over 2-3 months but never get hit with any late fee

[@LankyLiam]

You only get a late fee if you have a charge card and don’t pay in full every month I believe.

[@affebanane3039]

What are the daily charge card from Amex or are they charge cards? Meaning you can charge them with money and when it is used you get the credit

[@TheCreditShifu]

I think you are describing a pre-paid card

[@affebanane3039]

@@TheCreditShifu can you use a credit on a prepaid card? Because how I understand it prepaid just means your own money.

[@randys7022]

Please do the target redcard. Thank you

[@bRealBlknsexi]

Do credit cards and charge cards vary in how well they can help build your credit? Are credit cards or charge cards better for building credit?

[@Shaolin91z]

They affect your score equally if you pay on time every month. Only difference is with a credit card you can carry a balance. If the balance on your credit card exceeds 30% your score will start to drop. That won't happen with a charge card because you have to pay your charge card in full every month