View Full Version : Charge Card vs. Credit Card


jb2
09-24-2005, 02:17 PM
Is it true that having a charge card like American Express is better for your credit than having a revolving line of credit with a credit card?

Doc2B-Finally
09-25-2005, 01:18 PM
Is it true that having a charge card like American Express is better for your credit than having a revolving line of credit with a credit card?

I am sure that you know that with charge card, you need to pay back full amount, reported on your account statement in full. You are not allowed to carry it over, period. With credit card, you can. With charge card, there is typically an annual fee, $55 in case of Amex. With credit card, you can have zero annual fee credit cards. With credit card you can earn points, cash back, travel miles etc, with Amex Green card, you can't. Your payment history will be reported to credit bureaus in both cases. Your credit report will reflect both accounts.
Typically, if you have no credit history, then you can open a charge card account, and then use it for a while, make on time payments and establish credit history. Then, after a year or so, you can apply for regular credit card and chances are, you will qualify for one.
So, if you have a decent credit history, stick to credit card, (or secured credit card, if you credit history has many blemishes). Else, (just to start off credit history) open a charge card account, by paying yearly fee.
I am not including Gold or Platinum Amex cards here, which have some extra benefits built in, (along with higher yearly membership charges, $75).

mshheaddoc
09-27-2005, 09:20 AM
There isn't a clear cut answer to the OP's question. Realistically, your credit "score" is based off of a combination of factors including amount of total credit available, total credit used, delinquent payments, amount of credit cards, amount of installment/mortgage loans (and those that are paid). I would imagine it wouldn't really make a different for both. But the higher "labeled" credit line (since it factors into your available credit) vs. the charge card I would say the credit line would help you more overall than a charge card in that category.

That is a great question and honestly I can only assume. I would suggest multiple credit/charge cards to build up your credit if that is what you are looking at. One card won't do it all and honestly one card really doesn't matter.

food4thots
10-22-2005, 11:29 AM
AMEX does allow for payment over time.

imlookingatyou
10-23-2005, 12:51 PM
I would have to say that you should use credit card because it is more widely accepted. Cards like American Express, some stores and gas stations won't except it because the percentage they get from the store is too high. So most stores will just accept Discover, Visa, and Mastercard.