Should I pay off a charge card literally by end of the month, or?

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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Meltdownblitz
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Postby Meltdownblitz » Mon Aug 01, 2011 1:39 am

sticf wrote:Since you asked:
If that is your total net (or even gross) income, I would avoid anything that had an annual fee. I do not know what is in your wallet but if you have a major CC (MC, Visa, Amex or Discover), I would apply for another CC from another network.

If you just want an Amex:
I know some of the younger people in my company have Amex Clear. I do not know the requirements for the Clear card, but I cannot see it as being that high after seeing in in some people's wallet. This way even when you get better cards (higher limits, better rewards, etc), you can leave the Clear open w/out annual fees. (To be honest: I am mentioning Clear because it seems to be in younger people's wallets.)


I fully agree with this.


ivotedale
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Postby ivotedale » Mon Aug 01, 2011 2:38 am

I've definitely taken that $25 into consideration- though that's roughly a little more than, $2.00 a month? I do have another Visa CC that gets at least 1% percent back for everything, and with my spending habits over a year I imagine I'd be close to breaking even with the cashback on the Visa.

But you're right, I mainly want it for the Amex name/points, though I'm the kind of guy who just wants one or two major credit/charge cards, maybe something from Amex. I would enjoy the Amex Blue preferred ultimately, but I hear at least two years credit history + (2) credit cards is required, but who knows.

Edit: just looked into Clear a little more- same 1% back as my current Visa, but w/ the Amex name +their usual benefits, no annual fee as you mentioned. I'll have to consider it harder when I get to the 8-12 month mark.
Currently: American Express Blue Sky, American Express Zync, Chase Freedom Visa, Capital One Newcomers--->converted to Capital One Quicksilver Mastercard NO AF

Capital
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Postby Capital » Mon Aug 01, 2011 1:27 pm

Meltdownblitz wrote:I think I disagree with that. I'm not positive but just from what I've heard that doesn't sound accurate. Charge cards do count towards utl, I have also seen on my credit report that my balances and utl have raised once Amex reports my balance from my charge card.


Reporting the balance on a charge card is different from reporting a balance on a cc/revolving account. Your FICO score is not calculated with anything other than revolving accounts, and a charge card is not a revolving account. I'm not saying that Amex doesn't report your balance every month, because they do, but that balance is not factored into the FICO calculation of your open utilization.

Meltdownblitz wrote:And just because you pay in full before the statement cut doesn't mean you don't use your card. Besides I would only do that if I wanted to have the best credit score that I could have if I was applying for any type of credit anytime soon.


This is a point that maybe someone else can address better. I'm pretty sure if you don't have a statement balance, then nothing gets reported to the bureaus.

ivotedale wrote:Perhaps we're arguing over terminology? I believe I would want to pay before the due date as opposed to paying before the statement release date.


This is very true. You weren't asking about paying before the statement date, but jeff was asking why Meltdownblitz would be paying the full balance of a charge card before the statement posted.

Meltdownblitz
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Postby Meltdownblitz » Mon Aug 01, 2011 6:16 pm

Ok, I'm not sure but I paid in full this month because the statement for my card ends on the 3rd of this month so we'll see if my FICO changes when Amex reports the new balance.

Capital
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Postby Capital » Mon Aug 01, 2011 10:30 pm

Meltdownblitz wrote:Ok, I'm not sure but I paid in full this month because the statement for my card ends on the 3rd of this month so we'll see if my FICO changes when Amex reports the new balance.


Do you have a score tracking subscription or do you use the freebies like CreditKarma? I'd love to find out and end this riddle!

Meltdownblitz
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Postby Meltdownblitz » Tue Aug 02, 2011 12:20 am

Capital wrote:Do you have a score tracking subscription or do you use the freebies like CreditKarma? I'd love to find out and end this riddle!


Haha! Actually both.

jeff
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Postby jeff » Wed Aug 03, 2011 9:16 pm

Capital wrote:Do you have a score tracking subscription or do you use the freebies like CreditKarma? I'd love to find out and end this riddle!


I would like to know as well. Please post your findings when you're able to. Thanks!

Meltdownblitz
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Postby Meltdownblitz » Sun Aug 07, 2011 3:03 pm

Haha ok ok! Your right capital, I had charged $800 on my zync last month then paid in full, after CK telling me my Amex balance has changed to $0 my score on CK stayed the same. So it seems that charge cards, any cards that probably don't report a CL don't count towards your FAKO and probably the same for FICO because I have score watch with Myfico.com and my score hasn't changed yet, although I dont think it updated when your balance on a cc decreases, only when it increases.

ivotedale
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Postby ivotedale » Sun Sep 04, 2011 2:38 am

On another note, I just ended up applying for the Zync- and got instantly approved!

I finally got annualcreditreport.com to work for me as well and discovered (or re-discovered I guess) I had a Capital One card opened in my name by my father, circa 2005. It was always paid in full, though I overdrafted once, and didn't follow the 30% util. tip. I guess at the time I didn't care about credit, so the account ended up being closed after its 4th year due to inactivity. But both my first card and my current card are in good standing, according to Experian and TU.

In that event, I guess I didn't realize I had a few years of credit history, but still got approved for the Zync. I did get denied twice by Chase's Freedom card, six months apart each inquiry, but I was only working part time during those years, but I do remember they wrote about not having enough of a credit history. Hm. I'll try again next summer.

But honestly, I it feels great to step into the world of Amex; now a member since '11!
(also, haven't received the letter yet obviously, about my pre-set spending limit, etc).
Currently: American Express Blue Sky, American Express Zync, Chase Freedom Visa, Capital One Newcomers--->converted to Capital One Quicksilver Mastercard NO AF



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