Chargecard best deals?

rus4r

Hi I am a long time lurker of this message board.
I have decided is time to get a chargecard, since I like the idea of getting a interest free period an then moving the balance to a long term 0% credit card.

The choice is out of american express cards. (charge cards).

What is the best way of obtaining? Cashback sites? or referral? an which one is the best to get an why?
I dont travel much but have costco (so maybe costo amex is best?) not far an main reasons to have is build credit lines(have bigger lines), better cashflow, peace of mind on shopping purchases an like idea of concierge but is low down on priority list, do make few big purchases during year.

Also do anyone know how much info they need when you apply? or is it similar process to getting a credit card? or do they need more info than credit cards?
I am IT contractor an director of ltd company so credit line also help my business cashflow somewhat.
:beer:

Look forward to replys.

Caz3121

do you mean a charge card or a credit card?
from what I can see on the American Express site the charge cards require you to pay the balance in full each month so, assuming you want interest free periods etc, you would be looking for a credit card
1) Green Charge Card - pay in full each month
2) Gold Charge Card - £140 fee - pay in full each month
3) Platinum Charge Card - £450 fee - pay in full each month

Costco American Express is a Credit Card not a charge card

Anthorn

rus4r wrote: »

Hi I am a long time lurker of this message board.
I have decided is time to get a chargecard, since I like the idea of getting a interest free period an then moving the balance to a long term 0% credit card.

The choice is out of american express cards. (charge cards).

What is the best way of obtaining? Cashback sites? or referral? an which one is the best to get an why?
I dont travel much but have costco (so maybe costo amex is best?) not far an main reasons to have is build credit lines(have bigger lines), better cashflow, peace of mind on shopping purchases an like idea of concierge but is low down on priority list, do make few big purchases during year.

Also do anyone know how much info they need when you apply? or is it similar process to getting a credit card? or do they need more info than credit cards?
I am IT contractor an director of ltd company so credit line also help my business cashflow somewhat.
:beer:

Look forward to replys.

I think I don't fully understand the question. Do you want an Amex as a status symbol which looks good when you open your wallet?

Based on my own experience, the MBNA Everyday Plus American Express Credit Card is the easiest to get and pretty much redefines credit cards. I was approved for one and then cancelled it due to my experience of MBNA through their Low Rate Mastercard.

You say you don't travel much but that's a major reason to get a straight American Express charge card. For everyday spending I'd say avoid American Express because not a lot of retailers accept it.

Amex look for a clean credit history and their major concern is income, the bigger the better because you must clear the balance every month - because it's a charge card.

than_prutt

I don't understand the reason for why you have decided on getting a charge card? For charge cards there won't be any interest free periods or any balance to transfer to a 0% credit card as you will have to pay off the whole balance every month.

I think you don't fully understand yet the difference between a charge card and a credit card. Before you do any applications, I think you will need to go back and carefully read the details, and T&C's to make sure that you don't apply for a wrong card.

As for the application requirements, Anthorn's got it spot on!!

guesswho2000

Caz3121 wrote: »

do you mean a charge card or a credit card?
from what I can see on the American Express site the charge cards require you to pay the balance in full each month so, assuming you want interest free periods etc, you would be looking for a credit card
1) Green Charge Card - pay in full each month
2) Gold Charge Card - £140 fee - pay in full each month
3) Platinum Charge Card - £450 fee - pay in full each month

Costco American Express is a Credit Card not a charge card

Couple of additions - green charge card also has an annual fee (£60, I think, plus £24 for enrolment into Membership Rewards, the latter being inclusive with Gold/Plat).

You also still get an interest free period with these, in that you're not charged interest between purchase and payment - Technically you don't get charged interest at all, just a hefty penalty charge if the full balance isn't repaid!

But yes, all the rest (bar Centurion) are credit cards, not charge cards.

than_prutt

guesswho2000 wrote: »

Couple of additions - green charge card also has an annual fee (£60, I think, plus £24 for enrolment into Membership Rewards, the latter being inclusive with Gold/Plat).

You also still get an interest free period with these, in that you're not charged interest between purchase and payment - Technically you don't get charged interest at all, just a hefty penalty charge if the full balance isn't repaid!

But yes, all the rest (bar Centurion) are credit cards, not charge cards.

Having read your comment regarding the penalty charge on the charge card, I got curious and went on the Amex website to find out about the amount of penalty charge if full balance isn't repaid but nothing on it really apart from the £12 late or returned payment fees.

Does anyone know what happens if you fail to pay the full balance on the charge card account?

guesswho2000

than_prutt wrote: »

Having read your comment regarding the penalty charge on the charge card, I got curious and went on the Amex website to find out about the amount of penalty charge if full balance isn't repaid but nothing on it really apart from the £12 late or returned payment fees.

Does anyone know what happens if you fail to pay the full balance on the charge card account?

Just dug up the cardmember agreement for my Gold, the section about default just mentions that they consider a missed or late payment a serious breach. I was sure there was something more specific, but I've never missed one, thankfully, so have no first hand experience!

Could be the Diner's Club personal charge card I was thinking of - 3.5% of the balance in the case of a late payment, per 30 day period the overdue amount remains unpaid!

blenz101

Missing the full payment on these charge cards would be a immediate default and you would find yourself dealing with their collections department and a black mark on your credit report.


You could expect to lose your MR points, for the card to be stopped and a quick google suggests Amex would put a repayment plan in place with the balance incurring interest (which is unlikely to be favourable to you!).


In short if you can't repay the balance in full this is not the card for you, get a regular credit card which will allow you to roll the balance over once the minimum payment has been made.

Ben8282

than_prutt wrote: »

Does anyone know what happens if you fail to pay the full balance on the charge card account?

It gets cancelled.

planteria

just get a Credit Card with a 0% on purchases deal, and spend on that..

is it even possible to pay off a charge card by balance transferring to a credit card? i don't know, i've never had a charge card:think: ...but i think the normal routine would be to clear in full by DD.

rus4r

Thanks for all your replies ,
Caz3121 - Your right , I made a mistake I should be looking at amex credit cards as well as charge cards.

Anthorn - No to status symbol, main reasoning was to obtain a lengthy interest free period then pay off balance in full with another credit cards balance transfer ( non-amex card) I was looking with enthusiasm at 56 day interest free period (with amex which is probably amex credit card now board members have corrected me) plus around 45-54 day interest free period from regular 0% long term deal credit cards that I will be balance transferring with so typically 90 days credit interest free or near interest free as well as building credit status by paying off in full each month.
I travel 2 maybe 3 times a year spending no more than around 10 days in hotels a year in uk or mainly europe short hul flights & trains / car. I like the idea of the peace of mind amex gives when making purchases if you need to refund something as well as the points or cashback features.

than_prutt - your correct I need to read the T's & C's very carefully.

I have a record of managing cards very carefully on the odd occasion when i have had a £12 default charge I normally negotiate it away with the card providor as they can see I manage cards well ( I use a master spreasdsheet that has a lot of info to track everything). It normally only happens when a transaction charge comes through unexpected such as a payment for something on a automated payment or transaction arriving to card on a date different to that expected.

So whats the best way of applying for amex ? (referral/cashback or some other way?) and

Are the different cards having different strictness on criteria with mbna amex being a easy one to obtain?

my income is above 20k

I thought for purchases amex is the PREFERRED card due to its customer service an peace of mind is it not? Many companies use them for their staff for business from what I remembered.

And look forward to your replies.
thanks