Does Using A Charge Card Help Your Credit Score?

American Express CardHere’s an interesting take on the question of whether or not using a charge card will help you improve your credit score.

Remember there is a difference between a charge card, like an American Express, and a credit card like a Visa.  Charge cards have no hard limits and you can spend as much as the issuer thinks you can pay back that month.  Additionally, charge cards are normally due in full every month, generally there is no carrying a balance over from one month to the next, and hence interest is normally not charged.

How Will a Charge Card Affect My Credit Score?
In a recent article, you warned against putting too many expenses on a credit card. You said it could hurt my credit score — even if I pay off the balance each month — by adding too much debt compared with the amount of credit under my name. How does …

Bottom line, yes, using a charge card can help you improve your credit score, but it might not help as much as you think.  But remember, while it won’t help as much as you thought, if you do miss a payment it will sure as heck hurt just as much!

Do you use an American Express or other charge card, comment below and let us know if you have seen an increase in your credit score from using it.

Images provided by:
About Anthony Candella

Anthony is the founder and Directing Attorney of and has been helping consumers just like you understand and improve your credit and financial situation since 2003.