Charge Card ApplicationBatch Card Application
What effect does the recharge card have on my balance?
In a recent review, Dear Card Advisor, you advised against placing too many issues on a single card. They said it could offend my credibility - even if I paid the account every single months - by increasing too much indebtedness in comparison to the amount of money I have under my name.
What does it do with my American Express card, which has to be paid for in full every single months? Doug, the American Express card you described is a customer card, not a debit card. The two are very different, especially how they impact your credibility. You will have to pay in full for a customer card every three months.
Had it been a debit card, you would only have to make a minimal deposit to remain in good condition. There is a default spend and interest amount for a card. Limits help keep your expenses under control and thus reduce the risks of an emitter. Interest also is how your card companies make cash when you are rolling over a balancing account from one month to the next.
However, a customer card has neither a line of credit nor an interest rat. There is no interest on your account and you must withdraw your entire account every single months. Due to these discrepancies, this AmEx customer card from you will not have the same impact on your credibility as a debit card.
For example, since there is no bank line available, your customer card will not be included in your bank line. This is the part of the balance you have from revving bank balances, and it is an important part of your credibility. So even if you have a large amount of debts on your customer card, this will not affect your usage at all.
However, these liabilities will impact your creditworthiness in a different way. myFICO.com spokesperson Anthony Sprauve says that the funds on customer loyalty card are used to add up the aggregate amount of indebtedness you have across all your bank account balance, just like your balance on your debit card. Sprauve says that the customer card's paying behaviour is also contained in FICO creditworthiness.
This means that if you repay your customer card balances every single monthly on schedule, your credibility will increase. When you miss a payment, your emitter will meet you with a delayed charge, and your credibility will be distorted. In order to ask the card processor a query, go to the "Ask the Experts" page and choose "Credit Cards".