How many of you have American Express card?
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How does it work? Do you have to payoff all the balance every month? What if you used 1000 this month and only pay 800? Will the 200 roll into next month's bill plus interest? Does it really have no limit on how much you can spend? I have 2 credit cards, and know very well how credit cards work. But American Express is a Charge Card, and have no idea how it works. Anyone? Thanks.
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How does it work? Do you have to payoff all the balance every month? What if you used 1000 this month and only pay 800? Will the 200 roll into next month's bill plus interest? Does it really have no limit on how much you can spend? I have 2 credit cards, and know very well how credit cards work. But American Express is a Charge Card, and have no idea how it works. Anyone? Thanks.
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Charge Chard 'ey? Her in Aus a change card is direct debit. Takes straight from our bank account if we use it.
Brad Australian - Christian Graus on "Best books for VBscript" A big thick one, so you can whack yourself on the head with it.
In North America, that's called a debit card. A "charge card" is synonymous with "credit card", although in reality there is a distinction. A charge card needs to be paid off in full (at least it used to be that way), while a credit card allows you to pay a minimum balance each month. Like many people, I use my credit card as a charge card - i.e. I don't buy anything I can't afford, but it's nice to have a cushion in case of an emergency. /ravi
This is your brain on Celcius Home | Music | Articles | Freeware | Trips ravib(at)ravib(dot)com
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In North America, that's called a debit card. A "charge card" is synonymous with "credit card", although in reality there is a distinction. A charge card needs to be paid off in full (at least it used to be that way), while a credit card allows you to pay a minimum balance each month. Like many people, I use my credit card as a charge card - i.e. I don't buy anything I can't afford, but it's nice to have a cushion in case of an emergency. /ravi
This is your brain on Celcius Home | Music | Articles | Freeware | Trips ravib(at)ravib(dot)com
Ravi Bhavnani wrote:
but it's nice to have a cushion in case of an emergency.
Bloody expensive cushion if you ask me!
Brad Australian - Christian Graus on "Best books for VBscript" A big thick one, so you can whack yourself on the head with it.
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Ravi Bhavnani wrote:
but it's nice to have a cushion in case of an emergency.
Bloody expensive cushion if you ask me!
Brad Australian - Christian Graus on "Best books for VBscript" A big thick one, so you can whack yourself on the head with it.
Bradml wrote:
Bloody expensive cushion if you ask me!
You're absolutely right! Prudent consumers with a good credit history who occasionally find themselves needing to maintain a large balance on a credit card (for less than a year) would be wise to transfer the balance to a promotional zero interest card. /ravi
This is your brain on Celcius Home | Music | Articles | Freeware | Trips ravib(at)ravib(dot)com
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How does it work? Do you have to payoff all the balance every month? What if you used 1000 this month and only pay 800? Will the 200 roll into next month's bill plus interest? Does it really have no limit on how much you can spend? I have 2 credit cards, and know very well how credit cards work. But American Express is a Charge Card, and have no idea how it works. Anyone? Thanks.
Huh, mine says "Emmitt Smith".
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How does it work? Do you have to payoff all the balance every month? What if you used 1000 this month and only pay 800? Will the 200 roll into next month's bill plus interest? Does it really have no limit on how much you can spend? I have 2 credit cards, and know very well how credit cards work. But American Express is a Charge Card, and have no idea how it works. Anyone? Thanks.
Link2006 wrote:
Do you have to payoff all the balance every month?
It depends. Their regular green/gold/platinum charge cards require full payment of the bill every month. You don't get charged any interest because you don't carry a balance from month to month. They make their money from the charge card's yearly fee, and the slightly increased surcharge they charge businesses who accept AmEx. You pay obscene amounts of money if you don't pay off a bill by the end of month, however. Do NOT get one of these charge cards if you can't 100% guarantee that you'll pay the bill in full every single month. They also have a line of credit cards, which have very low (sometimes zero) annual fees, but have preset charge limits and charge interest for balances.
Link2006 wrote:
Does it really have no limit on how much you can spend?
It has no pre-set limit. Each time you charge, AmEx checks to see if it thinks it's a reasonable charge based on your income and previous purchase & payment history. A person with a great credit history with AmEx and a large income would be able to charge very large amounts - more than any typical credit card would allot for a credit limit. If I tried to charge a $30000 car on my AmEx, it'd get declined at the dealership, and I'd get a hurried call from AmEx asking me if I knew that my card just got used to attempt to purchase a car :). Bill Gates could buy a Ferrari with a swipe of his AmEx, however, with no questions asked. AmEx typically has very, very good customer service and support. I've always been very pleased with them in the few situations I've had to deal with them.
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Link2006 wrote:
Do you have to payoff all the balance every month?
It depends. Their regular green/gold/platinum charge cards require full payment of the bill every month. You don't get charged any interest because you don't carry a balance from month to month. They make their money from the charge card's yearly fee, and the slightly increased surcharge they charge businesses who accept AmEx. You pay obscene amounts of money if you don't pay off a bill by the end of month, however. Do NOT get one of these charge cards if you can't 100% guarantee that you'll pay the bill in full every single month. They also have a line of credit cards, which have very low (sometimes zero) annual fees, but have preset charge limits and charge interest for balances.
Link2006 wrote:
Does it really have no limit on how much you can spend?
It has no pre-set limit. Each time you charge, AmEx checks to see if it thinks it's a reasonable charge based on your income and previous purchase & payment history. A person with a great credit history with AmEx and a large income would be able to charge very large amounts - more than any typical credit card would allot for a credit limit. If I tried to charge a $30000 car on my AmEx, it'd get declined at the dealership, and I'd get a hurried call from AmEx asking me if I knew that my card just got used to attempt to purchase a car :). Bill Gates could buy a Ferrari with a swipe of his AmEx, however, with no questions asked. AmEx typically has very, very good customer service and support. I've always been very pleased with them in the few situations I've had to deal with them.
Okay got it. But I still don't understand why would one use an American Express if you have to pay off all balance. What is the incentive over using a debit card? Not to mention debit card is free. With the credit cards, I don't have to pay off all balance, and with the credit line limit increase, your credit score will increase as well. So what is the point of a Charge Card?
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Okay got it. But I still don't understand why would one use an American Express if you have to pay off all balance. What is the incentive over using a debit card? Not to mention debit card is free. With the credit cards, I don't have to pay off all balance, and with the credit line limit increase, your credit score will increase as well. So what is the point of a Charge Card?
Link2006 wrote:
What is the incentive over using a debit card?
Primarily, it's the customer service and other niceties you get. I get very good price protection on items I buy with my AmEx, they're mean as pit-bulls to other parties when I contest a charge, and the card I've got from them earns me "reward" points which I can swap 1-for-1 with any airline as frequent-flier miles. There are also certain stores that will do free basic shipping online when purchased with certain AmEx cards, and some hotels has free upgrades or other niceties for AmEx holders. The primary reason I got mine is that I know I'm going to be forced to pay it off at the end of the month, and it adds well to my credit report. It is also my understanding (I'm not sure though - it's not that big a deal) that an AmEx charge card (in good standing) looks better on a credit report than a regular credit card. At the end of the day - it's always a bad idea to plan to carry a balance on a credit card unless you're in an emergency situation. Interest rates on ALL of them completely suck once you get past their temporary "0%" hook. But it is good to have a credit or charge card in good standing on your credit report.
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Okay got it. But I still don't understand why would one use an American Express if you have to pay off all balance. What is the incentive over using a debit card? Not to mention debit card is free. With the credit cards, I don't have to pay off all balance, and with the credit line limit increase, your credit score will increase as well. So what is the point of a Charge Card?
Well, you still get the "float" until the payment due date, and you don't have to carry large amounts of cash around or risk giving out the direct access to your checking account that is your debit card. Also, AmEx now offers rewards programs, so you can earn airline miles and the like when you use their card (disclaimer: there's generally yet another fee associated with this unless you have a card via a special program) In my case, it's primarily my emergency card, if I need extra money beyond what I have available in immediately liquid assets. Use the AmEx, then sell the stock or whatever in time to pay the bill. In my case, my AmEx is a perk associated with my brokerage account, so I don't pay any yearly fees for it. That makes it worthwhile for me. I don't know that I would have one if I had to pay the fee, since I have credit cards that could serve the same purpose.
Caffeine - it's what's for breakfast! (and lunch, and dinner, and...)
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Well, you still get the "float" until the payment due date, and you don't have to carry large amounts of cash around or risk giving out the direct access to your checking account that is your debit card. Also, AmEx now offers rewards programs, so you can earn airline miles and the like when you use their card (disclaimer: there's generally yet another fee associated with this unless you have a card via a special program) In my case, it's primarily my emergency card, if I need extra money beyond what I have available in immediately liquid assets. Use the AmEx, then sell the stock or whatever in time to pay the bill. In my case, my AmEx is a perk associated with my brokerage account, so I don't pay any yearly fees for it. That makes it worthwhile for me. I don't know that I would have one if I had to pay the fee, since I have credit cards that could serve the same purpose.
Caffeine - it's what's for breakfast! (and lunch, and dinner, and...)
ResidentGeek wrote:
In my case, it's primarily my emergency card, if I need extra money beyond what I have available in immediately liquid assets.
Can you get cash advance from AmEX in ATM? I can do that with credit cards, which is very helpful sometimes.
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ResidentGeek wrote:
In my case, it's primarily my emergency card, if I need extra money beyond what I have available in immediately liquid assets.
Can you get cash advance from AmEX in ATM? I can do that with credit cards, which is very helpful sometimes.
Link2006 wrote:
Can you get cash advance from AmEX in ATM? I can do that with credit cards, which is very helpful sometimes.
I believe you can, but you may have to be enrolled in the Express Cash program to do it. I believe that, like many credit cards, there's a 3% fee to get cash. I've never used that option and probably wouldn't - I have a credit card that treats cash advances like any other purchase with no extra fees if it's paid off at the due date.
Caffeine - it's what's for breakfast! (and lunch, and dinner, and...)
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How does it work? Do you have to payoff all the balance every month? What if you used 1000 this month and only pay 800? Will the 200 roll into next month's bill plus interest? Does it really have no limit on how much you can spend? I have 2 credit cards, and know very well how credit cards work. But American Express is a Charge Card, and have no idea how it works. Anyone? Thanks.
I do.
Link2006 wrote:
Do you have to payoff all the balance every month?
I don't think so. But, I don't carry credit card debt so honestly, I don't know.
Link2006 wrote:
Does it really have no limit on how much you can spend?
I am pretty sure mine has a limit. I feel like an idiot not paying attention to these things but, like I said I don't have any card debt. I tend to use the card as a convince instead of carrying cash.
My Blog A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects. - -Lazarus Long
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How does it work? Do you have to payoff all the balance every month? What if you used 1000 this month and only pay 800? Will the 200 roll into next month's bill plus interest? Does it really have no limit on how much you can spend? I have 2 credit cards, and know very well how credit cards work. But American Express is a Charge Card, and have no idea how it works. Anyone? Thanks.
Amex has no limit in the US ? Here, you have a definite limit, and depending what it is, there's a yearly fee. You have to earn a certain amount to even be considered for different levels of card. Anything you don't pay off in a month, you pay interest on, that's how they make money.
Christian Graus - C++ MVP 'Why don't we jump on a fad that hasn't already been widely discredited ?' - Dilbert
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How does it work? Do you have to payoff all the balance every month? What if you used 1000 this month and only pay 800? Will the 200 roll into next month's bill plus interest? Does it really have no limit on how much you can spend? I have 2 credit cards, and know very well how credit cards work. But American Express is a Charge Card, and have no idea how it works. Anyone? Thanks.
If you're outside the US don't use it, the service in the UK is awful.
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If you're outside the US don't use it, the service in the UK is awful.
And compared to Visa or MasterCard the places you can use it is limited. Fi kept having to use my Visa card down in SA because the places didn't accept AmEx.
regards, Percival Watson Ireland & South Africa
Shog9 wrote:
I don't see it happening, at least not until it becomes pointless.
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And compared to Visa or MasterCard the places you can use it is limited. Fi kept having to use my Visa card down in SA because the places didn't accept AmEx.
regards, Percival Watson Ireland & South Africa
Shog9 wrote:
I don't see it happening, at least not until it becomes pointless.
I had similar problems - and that was working away so it was my mmeans of paying travel and acocmodation expenses. It meant drawing hundreds of pounds a week out of cash machines and making sure I kept records of the cahrges or I would have been liable for the cost AM charged for cash withdrawls X|
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Link2006 wrote:
Do you have to payoff all the balance every month?
It depends. Their regular green/gold/platinum charge cards require full payment of the bill every month. You don't get charged any interest because you don't carry a balance from month to month. They make their money from the charge card's yearly fee, and the slightly increased surcharge they charge businesses who accept AmEx. You pay obscene amounts of money if you don't pay off a bill by the end of month, however. Do NOT get one of these charge cards if you can't 100% guarantee that you'll pay the bill in full every single month. They also have a line of credit cards, which have very low (sometimes zero) annual fees, but have preset charge limits and charge interest for balances.
Link2006 wrote:
Does it really have no limit on how much you can spend?
It has no pre-set limit. Each time you charge, AmEx checks to see if it thinks it's a reasonable charge based on your income and previous purchase & payment history. A person with a great credit history with AmEx and a large income would be able to charge very large amounts - more than any typical credit card would allot for a credit limit. If I tried to charge a $30000 car on my AmEx, it'd get declined at the dealership, and I'd get a hurried call from AmEx asking me if I knew that my card just got used to attempt to purchase a car :). Bill Gates could buy a Ferrari with a swipe of his AmEx, however, with no questions asked. AmEx typically has very, very good customer service and support. I've always been very pleased with them in the few situations I've had to deal with them.
Russell Morris wrote:
If I tried to charge a $30000 car on my AmEx, it'd get declined at the dealership, and I'd get a hurried call from AmEx asking me if I knew that my card just got used to attempt to purchase a car
That happened to me when I bought my last car. I went in with my Debit Card and the bank initially declined the transaction. After a few security checks over the phone the transaction was accepted and I drove away in my shiney new car. :cool:
Upcoming events: * Glasgow Geek Dinner (5th March) * Glasgow: Tell us what you want to see in 2007 My: Website | Blog | Photos
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Russell Morris wrote:
If I tried to charge a $30000 car on my AmEx, it'd get declined at the dealership, and I'd get a hurried call from AmEx asking me if I knew that my card just got used to attempt to purchase a car
That happened to me when I bought my last car. I went in with my Debit Card and the bank initially declined the transaction. After a few security checks over the phone the transaction was accepted and I drove away in my shiney new car. :cool:
Upcoming events: * Glasgow Geek Dinner (5th March) * Glasgow: Tell us what you want to see in 2007 My: Website | Blog | Photos
Ditto Here! I did the same a couple of years ago. Except I used my Amex card because we get airline millage. All I had to do was call their customer service in advance and the transaction went smooth as silk.
My Blog A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyze a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects. - -Lazarus Long
