Over the past few months I've read conficting reports re Amex charge cards and the effect it has on your score. Does anyone know for sure if a charge card negatively effects your score - and - if I cancelled my charge card - would my score go up? Thanx in advance for any input. Mark LA
I would not close the card. If you look at your Trans Union credit report you will se that the second section contains your positive accounts. The accounts that help your score the most or are the most positive are listed first. I have a Amex gold card and when it is at zero balance it is listed after my bank and store cards but before my installment loans. Also note that there are only 4 AMEX charge cards. The green, gold, platinum, and centurion or black cards. All the rest like the Blue card are regular bank or credit cards. The other unknown is whether just having a charge card is in some way a plus in the FICO scoring system. That I don't know but I always thought that a good credit card portfolio was one or the charge cards. Say a AMEX gold and a Diners Club, two store cards, and 3 to 5 Visa cards.
thanks eric i have the gold card - don't use it that much - find myself using the Blue and Starwood more - but i had actually thought that a charge card looks good on your report - shows you're responsible and all - however I thought i had read somewhere that it brings down your score. my balance on the gold - which i pay off immediately is usualy 300 to 400 bucks.
I find that having a balance on the AMEX gold card does not seem to have a hole lot of impact on my score one way or the other. However they don't like it if I have a balance on five or more revolving cards at a time.
