Do Charge Cards Benefit Credit Rating?

[Deleted User]

Hi guys,

Title pretty much says it all. Do Charge Cards (Amex in this case) benefit your credit rating in the same way that using a credit card and paying off in full each month does? Reason I ask is that I've had a Amex platinum credit card for a few months but was thinking of switching it to a charge card after my first year is up and collect points rather than cashback.

Also, am I right in thinking that you don't get the Section 75 cover with charge cards?

Thanks!

bengalknights

They are treated same as credit cards

reclusive46

bengalknights wrote: »

They are treated same as credit cards

Above, apart from the fact they obviously have no limit and therefore will not be counted in most credit providers utilisation scoring. (I.e. Its even better as whatever your balance on it is, will not take up your over all credit taken out).

dalesrider

bengalknights wrote: »

They are treated same as credit cards

Oh NO... They are not....

purchases are not covered if they are made by debit cards or by charge cards (where the monthly bill has to be settled in full).

link thanks to FOS.

But they are coverd by PSD (payment services directive) unlike a credit card.

reclusive46

dalesrider wrote: »

Oh NO... They are not....


link thanks to FOS.

But they are coverd by PSD (payment services directive) unlike a credit card.

Section 75 doesn't cover charge cards but Amex have their own policy, which effectively is the same.

dalesrider

reclusive46 wrote: »

Section 75 doesn't cover charge cards but Amex have their own policy, which effectively is the same.

But is NOT section 75 cover.

Section 75 is a legal right. Amex is not. Totally diffrent as far as FOS goes.

chattychappy

People often swear by Amex service, but frankly I found the service I got with the Plat chargecard nothing special.

So agree with the above - s75 is law and doesn't apply to chargecards. I doubt whether anything Amex offer you in the T+Cs is as good. Certainly wasn't when I had the card (sorry.. was a "member"!)