To AMEX and not AMEX?

Question

I've read various articles saying that AMEX cards can actually hurt your credit score, due to them not having a spending limit. Do all AMEX cards have no spending limit?? Does the Blue card have no limit??

Answer 1

You’ve got two questions here, so let me answer them one at a time. :)

(1) Does no spending limit hurt your credit score?

Having a credit card with no spending limit does not hurt your credit score, but it doesn’t help as much as a credit card that does. Your credit score is partly determined by your overall credit utilization percentage, so a credit card without a limit won’t help you build points in this area; if you’re looking to embolden your credit score with a credit card then a card without a spending limit is not for you.

(2) Does Blue from American Express have a spending limit?

Yes it does, and this limit is determined by your credit score. The American Express Blue is actually a regular credit card – meaning you can carry balances on it and the whole amount is not due at the end of the month. One of the biggest misconceptions about the American Express family of credit cards is the fact that they are all limitless and require payment in full at the end of the month. This is false! The only two cards that do this are the Green and Gold cards; the rest of their credit cards function just like any other credit card from any other issuer.

Answer 2

American Express has cards with and without credit limits. Their basic green, gold and platinum cards have no preset limit. Remember, these are charge cards, not "credit cards." Amex expects you to pay off the balance monthly.

In reality, Amex charge cards do have a spending limit, which Amex enforces rigidly. They just don't make it obvious. In other words, if your average monthly charges are $800 and you are buying an $8,000 ring for Valentines Day, you will run into resistance at checkout. The cashier will put you on the phone with Amex who will check your ID and ask if you can afford this item. Based on your payment record with Amex, they may or may not approve the purchase. It was not always this way.

American Express also issues "credit cards." They have Blue and various business cards with a credit limit. This was a change in their business model. Ultimately Amex decided to compete with Visa and Mastercard by issuing credit.

I am not aware of a credit score being hurt by having an Amex Gold Card that you consistently pay on time. The way it works is, Amex only reports "lates" to the credit bureaus.

Answer 3

Not all Amex cards have "No limit" The Blue Card has a limit but you can pay over time. The other Amex cards (Gold, Green and Business don't have limits but what ever you charge for the month is your payment. As far as the credit score thing goes, it is true that "potential" credit (credit card with no limit) can hurt your credit score but only if you are in trouble to begin with. i.e late with payments, partial payments, bankruptcy, etc. Hope this helps>

Answer 4

AMEX has lots of different programs. Yes, some have limits, some don't. No AMEX card will hurt your credit score unless you exhibit some behavior interpreted as an indicator of poor credit handling. The credit bureaus report "high used credit" rather than "credit limit". What this means is that the most you have put on the card is the "high used". You need to keep any revolving balance at less than 50% of this "high used" number. Remember, the bureaus don't report credit after you just made a payment, they report monthly on their own cycle. This may be easier to understand with an example:
January, you put $1000 on your card and pay it off before the reporting cycle. $1000 goes on your "high used" and $0 goes on balance due.
February, you put $580 on your card but the pay off is after the reporting cycle. "high used" remains the same but $580 goes on balance due. Since you are current, there is no 30 day past due. Your score will be lower than the previous month because you "owe" more than 50% of the "high used".

I hope this clarifies some of the scoring and reporting. For more information, go to www.myfico.com and click on "Learn".
Good luck.

Answer 5

I have a blue card and it has a spending limit. I actually have heard the oppsite about Amex, I was told that having an Amex card is good for your credit score because they are sometimes difficult to get.

Answer 6

To make a long answer short some Amex cards do have a spending limit

Answer 7

The Amex blue have a credit limit you go to http://www.ipod-vibez.com/credit.html they have list of Amex blue cards you can use and you get approved in 60 seconds

Answer 8

Had the blue card several years ago. Pretty sure it had a limit. I got rid of it because I had a better interest rate with another card.

Answer 9

I have been given my Bridesmaids rings, yet then i'm no longer very inventive. :) i admire the belief of a contemporary card, yet i've got bought Amex present playing cards earlier and you sometimes would desire to purchase the certainly present card. there's a cost, $7-$14, i can not undergo in suggestions how lots, on ideal of the present card quantity. so as which you will have the potential to save your self a especially penny in case you get present playing cards to certainly companies somewhat of Amex. that's fairly helpful to seem into that! I consistently love massages, who would not? you could google spas in each of their zip codes. additionally, i've got been a flower lady in 4 weddings, and that i do no longer undergo in suggestions what my presents have been (of course i became youthful, nonetheless.) 12 years in the past i became a bridesmaid in a relative's wedding ceremony, she have been given me wedding ceremony-day rings that i on no account wore lower back. My factor is, you will desire to as nicely get them some thing useful via fact its unlike they are going to undergo in suggestions the engraved physique in 10 years besides! :)