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Question:

American Express?

I just got approved for the American Express Green Card.... My objective of getting the card is to never use it so it can open the doors to a real credit card wit them.... If I don't never use it, will it make sense? Will my score increase? im scared becuase i messed up before wit them but paid them off

Answers:

1) It will help, but you should use it occassionally. Just make sure you pay it off on time. tba

2) You have to use it at least one or twice to show them that you can pay off money on time in full. Having the card just sitting there doesn't do anything. You don't have to use it all the time, but use it at least one or twice. It will also help you to get other credit cards or bank loans.

3) no, and in order to establish good credit then you must show a history of charging things and then paying them iff in a timely manner and never being late when you are paying off what you charged up.

4) I got a credit card with the same intentions as you. I use it all the time. Mostly for groceries, and I only charge to it what I can pay the same day. As soon as I get home, I go online and pay the credit card from my bank account. The card I got actually gives me points for free groceries and even though I haven't paid out a penny in interest or fees, I've gotten $30 in free food in the past few months, lol.

5) I haven't heard of any changes yet. So, I think for now if you don't use credit cards, your score will slowly and steadily increase because technically it's being paid off every month on time with a balance of less than 30% of your credit. But credit scoring is being reworked. In a new scoring model, you have to use your credit and pay it off. Because using credit responsibly is not ignoring your lines of credit. Using credit responsibly is using credit and paying it back. For now though, I think you're fine with just not using the card.

6) It will help because you will start to establish credit. The score needs both limits and usage to determine your C.U.R. or credit utilization ratio. When you first open a card, your score may drop. Mine fell 10 pts recently for this. But after a month or so, my score recovered and ultimately you will see score increases if you pay on time and keep balances low.

7) The American Express charge cards (which your Green card is) work differently than a regular revolving credit line in terms of how it reports to the credit bureaus. Because there is "no pre-set" limit on the card, your highest balance to date will appear on your credit report, and for reporting purposes, this is how it will look. So if you use your card only once or twice per month, and putting lets say $30 on it, your credit report will have your highest balance at $30. Thusly, if you never charge more than , and consistently charge that to your AMEX account, it will impact your credit score negatively because of the whole 30% rule. I too have a preferred rewards Green card. The card is extremely flexible, but can also be dangerous to people who do not watch their money. If you're a new Cardmember, your account will be monitored at around $1,000. My charges started getting declined at $1,070, but after I made a payment that same day (the entire balance), they released my card, and I was able to spend.

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