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AMEX paydown/off question


creditvixen1
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I have a AMEX card . Never late and I usually keep a small amount on it ( mabey 5-10% utilization ) and pay it on time and pay more than the minimum due. Well I did some christmas shopping and its up to about 3K right now alittle balance from last month and the rest this months purchases.

My question is should I pay like $400/500 a month until its paid off or just pay it all off except a $100 or so.

I try to keep a small balance on it because I read its better to not have a 0 balance on open cards.

Which one would be better score wise ?

Thanks:)

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I am not well versed w/ cc's yet...sadly, lol...but I was always under the impression that AMEX demands that it's customers pay off in full each month? Well, how much is your credit limit? I'd pay the 400-500 per month until most of it is paid off. I hear that putting your charges close to your CL hurts your utilization.

Elyse

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I am not well versed w/ cc's yet...sadly, lol...but I was always under the impression that AMEX demands that it's customers pay off in full each month? Well, how much is your credit limit?

Amex has two kinds of cards:

Charge cards (Green, Gold, Platinum, Centurion) -- no pre-set limit and are paid in full monthly (with some exceptions like sign & travel).

Credit cards (Delta, Hilton, Starwood, Blue, Costco, etc.) -- set limit and can be paid over time, though ANY Amex is really a PIF card.

And then there's One, which is sort of both, but should be treated like a Charge card.

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The AMEX im asking about is a "one" card. No pre set limit ( but they did tell me when I specifically asked that at around $6K in my case they wont let any more charges go thru until you pay it over half down ;its different amounts for everyone I guess) and it doesn't have to be paid off every month , but like I said after you get to a certian point they do make you pay about half before more charges can be added. My other AMEX has to be paid off every month ( don't like that one as much ! )

I usually pay it off every month or keep a small balance every other month to keep it in good standing , so I was wondering which would be better to do for the best impact on my score. Pay it all except a little or monthly for three months or so.

I want to do whichever will help my score the most. I am planning on buying another auto in the spring as well as one for my son ( who I can not believe is old enough to drive now ! but thats beside the point):) ) so I want to try to get my score in the high 700's so I can get good rates on both vehicles .

I don't have my actual scores but my fakos are between 750-785 ( Im getting my real scores before I go to get the autos) so I want to keep them high because I know fakos can be wrong.

So I guess in reading about utilization paying it off except for a small amount would be best ? right?

Thanks

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In reading more about AMEX and cards in general from some of the seasoned veterans on this site, I decided to call amex and ask what day they report to the CRA so I can show a small balance and make sure it shows it something low to 0 . instaed of being behind the eight ball so to speak with a high balance and high credit..

Well she tells me the "one" AMEX card does not report because its a charge not credit card. I didn't want to argue so I just said "oh, OK thank you"

Funny , for something that doesn't report its been "not reorting" on my CR for many , many a moon now:roll: Gosh its like they don't even understand what they do !

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"...it's like they don't even understand what they do..."

LOL, that cracked me up.

Anyway...AMEX accounts are usually Open (type) accounts (meaning they must be PIF each month) = Charge cards

{as opposed to}

Most CC's, which are Revolving accounts (meaning that you may revolve the balance over from month to month) = Credit cards

Utilization factors revolving accounts only. Because only revolving accounts provide the consumer a choice (of paying only a portion {without penality, that is}). Considering other account types (which provide no choice, you either pay what is due or else) would be useless.

Keep in mind, scoring programs are about assessing risk. Creditors want to know how a consumer manages their debt. The choices you make are the underlying criteria in utilization.

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