How does the Amex Platinum Charge work with credit score?

[Tonyladz]

So i know the that theres no credit utilisation reported like in the US and that only the credit limit is being reported. So what about the platinum charge card in Aus? Does the balance you owe get reported on statement or does it show up as $0. I’m thinking of reducing or canceling one of my high credit limit card to improve my credit score as it could be “potential debt”. Anyone know much about the charge cards and how it affects credit score?

 

[tlam]

I think the mortgage broker is wrong.
If you don't pay the Charge you have effectively defaulted (and won't be able to use it) which is a wholly different problem to having to pay minimum payments on a massive credit limit each month (which is the assumption that mortgage lenders make in their assessment process)

My bank (CBA) approved my 2 loans without considering the charge card and they put $1 for it when calculating the borrowing power.

Post automatically merged: Jan 9, 2021

yeah, I guess charge card is not something common in Australia market? my broker said some smaller bank/lender treat charge card as 10k credit limit before. from my experience, CBA, Nab and St George do not count charge card in the credit limit

That’s correct! CBA and NAB don’t count the charge card.

 

[TravellingSquid]

This is interesting to know. I have also head from a friend that their lender didn't care about the charge card.

While I'm here, can we reduce our platinum reserve down to something like a $1,000 limit? The lowest I could take it to using my account settings was $3,000.

 

[Tonyladz]

This is interesting to know. I have also head from a friend that their lender didn't care about the charge card.

While I'm here, can we reduce our platinum reserve down to something like a $1,000 limit? The lowest I could take it to using my account settings was $3,000.

It’s the lowest, but you can try to call up to see if it can be done.

 

[mikedesign]

While I'm here, can we reduce our platinum reserve down to something like a $1,000 limit? The lowest I could take it to using my account settings was $3,000.

I was able to reduce my Plat Edge to $2k – minimum for application is $3k as well.

 

[TravellingSquid]

It’s the lowest, but you can try to call up to see if it can be done.

I was able to reduce my Plat Edge to $2k – minimum for application is $3k as well.

Thanks I'll call up and see if I can at least get it to 2k. Anything helps when trying to apply for a mortgage

 

[andye]

I reduced my Reserve to $2k

 

[TravellingSquid]

While utilisation isn't reported in Australia, repayments are. So it'll record that info for a charge cards as well. For credit cards it just records if you made met the minimum payment on time or not, it doesn't record any info about if it was just the minimum payment, more than the minimum or the full balance. With a charge card the minimum is the full balance, so if you don't make the full payment in time that'll get recorded as well.

Do charge cards have a positive effect on your credit score?

My score was going up by 5-50 points every month when using and paying off the Amex Explorer credit card.

But as soon as I switched to using the Charge card only (and paying it off on time) my score stagnated. It's been the exact same for a year. I can clearly see the Charge card on the file, and that all payments have been reported as "on time" but it seems like it might not have any effect on the score.

My Explorer is still open just not being used.

Note that I've had no enquiries or any other changes besides changing what card I use

 

[andye]

Do charge cards have a positive effect on your credit score?

My score was going up by 5-50 points every month when using and paying off the Amex Explorer credit card.

But as soon as I switched to using the Charge card only (and paying it off on time) my score stagnated. It's been the exact same for a year. I can clearly see the Charge card on the file, and that all payments have been reported as "on time" but it seems like it might not have any effect on the score.

My Explorer is still open just not being used.

Note that I've had no enquiries or any other changes besides changing what card I use

Likely to be a coincidence. I've frequently plateaud until something drops off after 5 years

 

[TravellingSquid]

Likely to be a coincidence. I've frequently plateaud until something drops off after 5 years

Maybe. My file is only 3 years old though with no negative events to drop off (except possibly a few enquiries).

GetCreditScore has shown it stuck at 873 for nearly a year. And Wisr has it at 871 but their detailed reports show my old credit card limits from just before it stopped moving. So I'm starting to wonder if the data is just not up to date.

Going to try getting a report direct from Equifax now and see if that's the case.

 

[TravellingSquid]

I reduced my Reserve to $2k

I was able to reduce my Plat Edge to $2k – minimum for application is $3k as well.

How did you guys go about getting it reduced? I have called a few times and keep getting told that it's not possible (even after telling them that I know of people who have done it).

 

[Spongbob]

How did you guys go about getting it reduced? I have called a few times and keep getting told that it's not possible (even after telling them that I know of people who have done it).

When you log onto your PE card, the page has a link called "Manage Your Credit Limit" (in the statement balance column).

 

[TravellingSquid]

When you log onto your PE card, the page has a link called "Manage Your Credit Limit" (in the statement balance column).

Already tried that, the minimum is $3,000 on the Reserve

 

[TravellingSquid]

Got it done. They kept saying it wasn't possible but a rep put in a special request and now my Reserve card is reduced to $2000