If you check your credit report for an Amex charge card, you'll see that there is no utilization calculated: In many ways, this means that charge cards share one of the best benefits of business credit cards, namely that purchases you make don't directly affect your personal credit report.
Every month an open Amex account is used responsibly, positive information will be reported to the credit bureaus. On the other hand, using an Amex card irresponsibly will often be bad––or at the very least, unhelpful––for the primary cardholder's credit score.
Yes, an American Express card is worth it for people with good or excellent credit scores who want to earn rewards on U.S. purchases that they'll pay for in full by the due date every month. An Amex card may also be worth it for people who want an introductory low-interest period in addition to rewards.
Yes, it's hard to get an American Express card because you will need a good or excellent credit score for approval, along with enough income for monthly bill payments. The easiest American Express cards to get are those that require a minimum of good credit for approval, as opposed to excellent credit only.
The primary drawback of American Express cards is the fact that they charge companies for the payments that they process. This is because they have their own payment network and don't rely on companies like Visa and Mastercard. This means that some businesses, especially smaller ones, may not accept American Express.
It's known for its top-notch customer service and some of the best rewards available. From ultra-elite business travel cards to everyday rewards, American Express has credit cards that are a good choice for many different types of cardholders.
American Express (often referred to as Amex) enjoys a reputation as a high-quality brand with a broad range of cards and good customer service. It is probably best known for its rewards and cashback offers, which are typically generous, exclusive and desirable.
For example, American Express cards are accepted in more than 160 countries worldwide, which lags behind Visa and Mastercard that are both accepted in more than 200 countries. While it's easier to find places in countries like Canada or Australia that accept American Express, it is harder across Europe and Asia.
Paying your bill in full each month allows you to avoid interest charges on your credit card purchase. You can build a positive credit history. Paying your bills on time can help you build good credit and remain eligible for good interest rates in future. You can save money on other bills.
The main reason for the high cost of Amex cards is that many American Express credit cards offer generous rewards rates and high-end perks, which justify the high annual fees. Amex cards aim at people with good credit and high incomes who are likely to charge large sums to their cards every month.
Paying your credit card balance in full and on time each month can help you optimize your credit score and avoid certain fees. You'll pay more in interest if you make only the minimum payment each month, and late or missed payments can result in late fees – and may adversely affect your credit score.
It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.
Yes, Amex increases credit limits automatically. This might happen if you have excellent creditworthiness and make all your payments on time. Paying your balances in full each month or maintaining a low credit utilization ratio might also work in your favor.
If you make nearly $100,000 a year and have good credit, you should have no issue getting approved. But, applicants with annual incomes as low as $40,000 have also been approved if they have a low debt-to-income ratio and pay their other credit cards in full every month.
If the approved applicant then accepts the Card, a hard inquiry will be made on their credit report, which may impact their credit score.
The different fees often make or break a deal for a merchant. This is why many merchants, especially small businesses, don't accept American Express. American Express' interchange fee is just too high. Providers like Visa and Mastercard charge between 1.15% and 2.5%, while Amex charges merchants between 1.43% and 3.3%.
Because Visa is offered by so many more card issuers than American Express, there are more types of Visa cards, so it's typically easier to get approved for a Visa card with a lower credit score than an American Express card.
Places Where American Express is Not Accepted: Cuba, Sudan, South Sudan, Iran, Syria. Major Retailers That Accept American Express: Amazon, IKEA, Sears, Target, Walmart, Lowe's, Apple, Best Buy, Staples, CVS. Major Retailers That Don't Accept American Express: Costco, small non-chain stores/restaurants.
Winner: Visa
More merchants accept Visa than American Express. In fact, Visa is one of the most accepted payment networks in the world. American Express is accepted by 99% of the merchants that accept credit cards, but it's still not as widely accepted as Visa.
Approximately 10.6 million U.S. merchants take American Express cards, which is only 1% fewer than Visa, Mastercard and Discover. It's generally a good idea to have a backup card with you when traveling, in case you happen upon one of the merchants that doesn't take American Express.
The American Express Gold Card is considered one of the best travel rewards cards thanks to the numerous food and travel perks that appeal to big spenders who can afford its $250 annual fee. It offers generous ongoing rewards for airfare purchases and spending at restaurants and U.S. supermarkets.
The American Express Centurion Card
The Amex Centurion (or Amex Black) is the highest level American Express card, but it has a very elite, invite-only membership and Amex does not officially publish its information.
Amex Platinum ultimately offers more value, though. For example, its benefits include airport lounge access, while the Amex Gold Card's perks do not. When it comes to ongoing rewards on purchases, Amex Platinum has a higher maximum earning rate and better travel rewards. But Amex Gold provides more everyday value.
How much do you have to make to get Amex's black card? There aren't any income requirements per se, but you most likely need to be a high spender on your Amex cards. If you're in the ballpark of $250,000 to $500,000 in annual spending across all your open Amex cards, you may qualify for the Centurion card.
You've used your existing credit line responsibly
You pay every credit card bill on time. As a reward, the credit card issuer may automatically grant you a higher credit limit, or invite you to request one. It could be just a small bump, or it may be as much as 30%.