Charge Cards - Credit Score

[hrbatyfan]

Hi,

I have a American Express Gold Rewards Card which is technically not a credit card, but instead a charge card. This is because you are supposed to pay off your balance each month.

Does anyone know how cards like these impact your credit score? Obviously they checked my credit to get one, and if I don't pay off the card properly, it will kill my credit score - but does anyone know how it works with regards to the card not really have a "credit limit" which presumably therefore doesn't contribute to my credit:debt ratio (or whatever it's called!)

Thanks for any help. I hope I made myself clear in the post.

Joel

[usnavy_233]

Here you go!

Credit Card with No Pre-Set Limit: Is It Bad? | The Sun’s Financial Diary | A Personal Finance Blog on Saving and Investing

In a nutshell, most likely the highest balance you have ever carried on the card will be used as your "credit limit" when factoring a credit utilization ratio. The article is a great read and will go into far more detail for you.