Thread: Does American Express build credit?

I heard that American Express charge cards are not good to build credit because there is no balance carried and no credit limit reported. Why would I want to get a credit card if it won't help my credit?

Please someone clarify if these things are true or not about American Express cards. thanks

Well your question doesn't make any sense.

First you are talking about charge cards, and then you are talking about credit cards. This is like comparing apples to oranges.

I am sorry when I said credit card I meant to say charge card. I have been saying the words interchangeably because until recently I had no of the difference.

My question may be better worded as: do American Express charge cards build credit?

American Express reports your maximum balance so it does "build credit."

But your primary reason for using a credit card (or charge card) should not be to build credit. If it is then you probably want something other than an AMEX. You want something with no fees.

Flin your half right. With the platinum card it's usually used for business plane trips, dinners entertaining customers. It's always paid off by the company except personal charges like going to Neiman marcus, costco, etc. You are not going to see many people in line at Lord & Taylor, Gap, Wal Mart etc using this card. If you go buy a house or condo and you have the platinum card they may actually ask to see your expense account to see who's paying the bill.

Now as far as the Gold and Green card goes I have seen people at hotels and restaurants, starbucks using the green and at my local bagel shop using the gold. Brooks brothers, the Gap and all around the mall using both levels, also on business too.

I would say as far as credit goes the platinum isn't a good card. It's a card for traveling. But I would say that the Green and gold are great for credit .

If you have an American Express charge card it reports to your credit report just like a credit card except it doesn't report a credit limit. However, unlike a flexible limit credit card, reporting a high balance doesn't hurt your credit. As long as you pay the card off on time it will help your credit. Also, a platinum card versus a zync card does not matter on the credit report as it all reports as a charge card.

Creditors look at how much you spend each month on your AMEX add in the rest of your expenses and then put it in a formula that says how much your discretionary income is in relation to your "reported" annual income, from all sources.

If you have an AMEX platinum it tells other creditors that you are a responsible customer and you are a low risk. Platinum isn't for everyone that is part of what it makes it so desirable. Why else would anyone want a prestige card?

Originally Posted by PlatinumAMEX94

Creditors look at how much you spend each month on your AMEX add in the rest of your expenses and then put it in a formula that says how much your discretionary income is in relation to your "reported" annual income, from all sources.

If you have an AMEX platinum it tells other creditors that you are a responsible customer and you are a low risk. Platinum isn't for everyone that is part of what it makes it so desirable. Why else would anyone want a prestige card?

Totally not true. Say somebody works for IBM, Multistate Tax Commision and the sales people or vice presidents of these companies travel, spend about 2500 a month per person, they don't pay there bill the CEO, president or owner pays the bill. so how do creditors tell whether you or your corporation is paying your platinum card?

I think the green, the gold and the gold rewards are better for credit. the platinum is better for business use.

..."the platinum is better for business use" - This is not 100% accurate.

I do not have any business and I have the platinum just because I want and I like it.

Originally Posted by patrick bateman

I applied for a car loan and having a charge card apparently hurt my credit according to the finance manager. He claimed that Amex reports any balance as a maxed out credit card and that affects the Fico score.

The guy is wrong. Amex reports your highest balance ever as your limit. If you had a balance of $10000 in 2002 and this month have a balance of $1000 they do not report it as maxed out. They report a $1000 balance and $10000 limit which gives you a utilization of 10% and that is very good.

In any case, just pay the card off and your score will immediately go back up. If you can't pay it off today then you should be using a credit card rather than a charge card.