No? Do you not understand how most credit cards work? American Express you're, traditionally, supposed to pay off the entire balance each month. They make their money off service charges of the credit card being used. Traditional credit cards make money off interest charges from a revolving debt from month to month...
Dont you have to do that with all credit cards anyway?
This.Probably why my bank wants to raise the limit on my card all the time.
It's basically why credit card debt is such an endemic problem in the US - tons of people charge more than they can afford, and then spend years (or decades) essentially paying interest because they can't afford to pay off the principle debt.
And this is also why my credit card company hates me, because I never run a debt, and thus never pay interest.
Dont you have to do that with all credit cards anyway? Regardless of whether youre talking a credit card or charge card, you have to pay off the balance every month in full no?
Why do I hear from everyone that Amex specifically has to be paid off in full every month lol
You do not have to do that with other credit cards. You can carry a balance. The issue is that for many people, if they were going to have all of the money at the end of the month they wouldnt need the credit card in the first place. Seems like a weird restriction to place on a credit card.
In that regard, it's less a matter of "here's some money to spend so you don't have to use your own" and more a matter of "here's a convenient card that allows you to access your money anywhere." The "credit" aspect of credit cards is only one part of the service they provide.
And this is also why my credit card company hates me, because I never run a debt, and thus never pay interest.I always pay in full, and my credit card companies don't seem to hate me.
Probably why my bank wants to raise the limit on my card all the time.I take credit line increases just so my credit utilization % goes down, and thus improves my credit score. Even if you pay every month, the monthly balance will count against your credit score.
"Hey, don't you want a $10K limit?"
"Why would I want that when I barely use 10% of my current limit every month?"
What, are they thinking if I have more credit limit I am magically going to use my card to buy more then just groceries and comic books?
I take credit line increases just so my credit utilization % goes down, and thus improves my credit score. Even if you pay every month, the monthly balance will count against your credit score.