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New Card Arrived, Charge?

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So an Amex Gold arrived in the mail today.  This is my first time having a charge card. How does it work?

 

I’ve read that you don't carry a balance etc.  But how does it work in terms of due dates, and statement dates, statement balance etc.?  Is it like if I were to use one of my normal cards that I pay in full each time? 

 

And should I be concerned about what my first purchase should be?

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I think all that first purchase stuff is overrated, IMO.

 

A charge card functions like a credit card, the only difference is that the entire statement balance is due by the due date rather than some minimum payment like 1-2%.  You'll get a statement after ~30 days and the balance will be due ~25 days from the statement date.  Amex does allow a pay over time feature on some of their charge card products, but it isn't something I would use due to the high interest rate. 

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Thanks. This is the first time I’ve had a card of this caliber and wanted to make sure I treated it right from the get go. 

 

Is it true that these things don’t have a limit? I really hate that feeling when your card comes back, only to find out your bank has an itchy trigger finger. 

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congrats on the new card!

 

amex does set a spending limit (you can check on your online account what your purchasing power is).

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Congrats on the new card. 

AMEX charge cards don’t have a credit limit that gets reported to the CRAs. All that’s reported to the CRAs is your balance when a statement is generated. But as hege mentioned, you have purchasing power.

This is basically a credit limit. But it’s determined by a computer algorithm, and the resulting limit will change on a very regular basis. There are a bunch of factors that go into how much you can charge (credit score, previous usage, payment history, etc). If you find that you can’t charge as much as you need, you can get the computers to increase your purchasing power by paying off your balance early. So if you want to charge $10k a month but it will only let you charge $5k, charge the $5k then immediately pay it off. Then charge the other $5k. You’ll be making a couple payments in a month, but after just a couple months the computers will have learned your spending pattern and your purchasing power will increase. 

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Congrats. Im new to the charge card game too, but Im actually digging it quite a bit. The one thing that caught me off guard was I used it to pay a few bills and I logged into pay them. Then I went to the grocery, got some gas, etc and after they posted I went to pay them, but amex wouldnt let me. It seems to only allow payments a couple of times a month which is fine, but was something new to me. Hope you enjoy yours like we have been

Edited by xdfgf

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8 hours ago, xdfgf said:

Congrats. Im new to the charge card game too, but Im actually digging it quite a bit. The one thing that caught me off guard was I used it to pay a few bills and I logged into pay them. Then I went to the grocery, got some gas, etc and after they posted I went to pay them, but amex wouldnt let me. It seems to only allow payments a couple of times a month which is fine, but was something new to me. Hope you enjoy yours like we have been

There is generally no reason to make multiple payments on routine purchases mid-cycle.  

 

With that said, I occasionally do prepay certain transactions for convenience (work expenses that have been reimbursed before the statement closes, for example), and Amex is always wiling to take my money.  

 

Edited by cv91915

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9 hours ago, xdfgf said:

Congrats. Im new to the charge card game too, but Im actually digging it quite a bit. The one thing that caught me off guard was I used it to pay a few bills and I logged into pay them. Then I went to the grocery, got some gas, etc and after they posted I went to pay them, but amex wouldnt let me. It seems to only allow payments a couple of times a month which is fine, but was something new to me. Hope you enjoy yours like we have been

The payment account has to be linked to you AMEX account for more than 30 days before you can make multiple payments.

 

I ran into this with my business card. I added three checking accounts to pay from (different accounts for different projects to keep taxes easier). After I made a payment from one, the online system said that the other two had to be on my account for at least 30 days. Now I have no problem paying from the three accounts. 

Edited by DPB

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1 hour ago, DPB said:

The payment account has to be linked to you AMEX account for more than 30 days before you can make multiple payments.

 

I ran into this with my business card. I added three checking accounts to pay from (different accounts for different projects to keep taxes easier). After I made a payment from one, the online system said that the other two had to be on my account for at least 30 days. Now I have no problem paying from the three accounts. 

That makes sense. 

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AXP allows SOME of their charge customers to use what they call a Pay over Time feature on certain charges.  APR is consistent with most credit cards.  As a result, it is not uncommon to see, for example, a statement with a total balance due of $8,942.73 but reflect a minimum due of $4,766.17 because the other charges were subject to the pay over time option. 

 

Personally, I abhor the payment of interest and tend to pay somewhere in the middle of the cycle in an amount that exceeds the prior statement balance but is less than the current total...AXP has never displayed a problem with this habit. 

 

I've played with the feature to see what they would approve...I stopped the last time when it told me they would approve $125K.  I cannot envision ever looking to spend more than that in one purchase and have the irrational fear that playing with it beyond that level might somehow trigger the 4506 process...

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3 hours ago, centex said:

AXP allows SOME of their charge customers to use what they call a Pay over Time feature on certain charges.  APR is consistent with most credit cards.  As a result, it is not uncommon to see, for example, a statement with a total balance due of $8,942.73 but reflect a minimum due of $4,766.17 because the other charges were subject to the pay over time option. 

 

Personally, I abhor the payment of interest and tend to pay somewhere in the middle of the cycle in an amount that exceeds the prior statement balance but is less than the current total...AXP has never displayed a problem with this habit. 

 

I've played with the feature to see what they would approve...I stopped the last time when it told me they would approve $125K.  I cannot envision ever looking to spend more than that in one purchase and have the irrational fear that playing with it beyond that level might somehow trigger the 4506 process...

FWIW, I wish ALL cards operated this way... that is, require people to SEE and THINK whether or not they want to carry a balance... some idiots might actually get smart if it was spelled out for them.

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6 hours ago, centex said:

Personally, I abhor the payment of interest and tend to pay somewhere in the middle of the cycle in an amount that exceeds the prior statement balance but is less than the current total...AXP has never displayed a problem with this habit. 

This is actually how I treated my Amex Everyday card. It was a toy CL (it actually still is) but I was just happy they let me in. It wasn’t uncommon for me to make 4-5 payments during the cycle to keep my util down. A few months later, I got an auto CLI after they denied my first two requests. 

 

Even after the CLI, I still kept the same habits, but just doubled the use. Soon after, they offered me the Gold Card. Go figure. 

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One thing to beware of is Amex's pay over time option, charges interest from the date of the posted transactions. This is to be avoided. Don't use it.

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