On Amex, it said no-preset spending limit?? What is that mean? No credit limit?? And also, it said that you pay in full each month. What happen if you carry balance? Would APR be apply or they'll just suspend your card? I just don't understand the different between charge vs credit. Would someone be kind enough to explain to me? thank you!
NO PRE-SET SPENDING LIMIT... Your "HISTORY" is tracked... "IF" you always spend up to $1,000/month...that is your limit...but you can exceed that a little with no problem...probably $1,500 no problem..."IF" you want to spend $5,000 in DECEMBER...you would have to call at some point before you got over $1,500 or $2,000 or the store would be asked to call or the sale would just be DENIED!!! YMMV
Think of it this way. A charge card must be paid in full every month, accrues no finance charges and is mostly used for travel or entertainment and has no preset spending limit per se. Your income and usage patterns determine if a charge will be accepted. With a credit card, you can take that monthly bill and choose to revolve it over many months (forever if your heart desires) or pay it in full, your choice. However, unlike a charge card, there is a hard set credit limit and multiple APR's that can be assigned so there is alot more flexibility to issue to many different people. Both have their pro's and con's.
Sorry if my earlier response was tinged with sarcasm! Here's a serious questions, relevant to my current circumstances: I received the Amex Gold at the weekend and have yet to christen it. Are you saying that it would be better to hit it hard in the first month so that they think this is the way of the future. I think I have seen a link for "will this charge be accepted somewhere". Here's what I had in mind: I have to pick up some kitchen appliances on Friday for the new house. I think the balance it about $11K. Check out on the web site, which will presumably laugh at me - call up Customer Service, and complain a bit, offer to fax a bank statement with a large balance and see it that will work.... Pay it off, and there will be an $11K established credit line on my file. What do you think.
ACCOUNT SERVICES Additional Payment and Credit Options See if your Card can be used for a specific purchase
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thanks! Is there any con for using a charge card other than no carrying balance? But lets just say you forgot to pay your bill....then what happen? APR charge to your account?
