Amex usage and upgrade

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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Gb24
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Amex usage and upgrade

Postby Gb24 » Sat Dec 14, 2013 9:32 pm

I currently have the Green card and at my age have been doing some serious spending on it. To sum it up, I just got the card a week ago and close to pushing $1,500. I'm a college student.
To sum it up:
How does amex look at it if you charge something then pay it off immediately? Is that frowned on? Should I wait til the end of the month to pay?

Also,
If you continue this, do you think it's possible I'd be pre selected for the gold or platinum card next?

Sorry for being so lengthy. Thanks guys!


samhradh
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Postby samhradh » Sat Dec 14, 2013 9:59 pm

Paying it off immediately vs. at the end of the month probably makes no difference to AmEx. You're not building your credit with this card so it also shouldn't impact your FICO score as far as I'm aware. With credit cards this strategy does impact your score.

The Gold is the next step after Green so in time it is possible you could be sent a pre-approval offer. I recently got an email offer for the Business Gold and a 50K pt sign-up bonus. I have no room for that card so I will not be taking them up on the offer. This was the first such offer I've ever received, if my memory serves, and I have been a card holder in good standing for two years.

If you want the Gold, give yourself some time as a AmEx member, then apply for yourself. Worst case scenario your credit score takes a small hit if you're rejected. Best care scenario you've got the card you want because you were proactive about it. Make sure your spend really warrants the card. Don't just apply for the "Prestige."

Not sure if they send pre-approval offers for the Platinum...if they do, I presume it's very targeted at frequent travelers and five to six figure annual AmEx card spenders.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

Gb24
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Postby Gb24 » Sat Dec 14, 2013 10:10 pm

Thanks.
So paying off the card does not affect your credit?
So basically I should keep my other cards in rotation, just to build credit?

samhradh
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Postby samhradh » Sat Dec 14, 2013 10:42 pm

Since I've never had a charge card my info was partially incorrect. Here's a better overview of the difference and how it affects your score: http://www.myfico.com/CreditEducation/Questions/Charge_Cards.aspx

My apologies.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

Gb24
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Postby Gb24 » Sat Dec 14, 2013 10:46 pm

Ahh! Thank you

samhradh
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Postby samhradh » Sat Dec 14, 2013 10:49 pm

Gb24 wrote:Ahh! Thank you


You're welcome. There are quite a few articles out there but I find this one is one of the better ones, after reading over a few.

This is also succinct info from Discover:
Charge cards and credit cards are both effective ways to build credit histories. However, because a charge card has no interest or set spending limit, determining its impact on the credit utilization part of your credit score is more complicated. Your credit utilization rate is the portion of credit you have available from revolving accounts. Because credit scoring agencies factor your credit utilization in different ways, older scoring models may factor the charge card's highest balance in its history as if it were a credit limit. However, newer credit scoring models consider a charge card as part of the credit score's payment performance component, but discount it within the credit utilization calculation.


Biggest take aways for me: having both charge and credit cards helps your score, charge cards do not report balance/utilization, paying a charge card according to its terms does actually help your score.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

Gb24
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Postby Gb24 » Sat Dec 14, 2013 11:17 pm

Some really good advice. Glad this card isn't just useless.



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