One of the best things i love about American Express is that an individual can hold 3 Amex Cards on his own name (2 Credit Cards & 1 Charge Card). Note that If you’re planning for multiple cards, you need to have 6 months gap between each Amex card application. I already have American Express Platinum Travel Credit Card with which i’ve reaped the maximum milestone benefits and hence its the right time to apply for a new Card.
I have been eying on Platinum Reserve for a while but i got a love for “charge” card recently and wanna see what’s the fuss is all about the “charge” cards concept in India. Hence i applied for it and received it within a week, yes, super fast they are.
If you’re looking for a basic review of this card, check this previous article which was reviewed by my friend, below are some additional insights from my experience.
American Express Gold Charge Card in India – Things to Know:
1. Card with No EMI:
Globally the differences between credit/charge cards are like below,
- Credit cards comes with EMI option, while Charge cards don’t
- Credit cards has a Credit Limit, while Charge cards don’t
For Detailed info, I’ve written about Difference between credit card & charge card here
However, in India, the only difference is the EMI feature. Now, as most customers started to ask for EMI options, Amex decided to release a CREDIT card with similar features & EMI option enabled. This was recently released in India – The American Express Membership Rewards Card
2. Internal Credit Limit on Gold Charge Card:
While they still say that there is no pre-set Credit limit on the account, there is something called “internal credit limit” which is different from a normal credit limit. The thing is, you wont see this limit anywhere in the statement.
Customer care can help you find it though. They can do a “test charge” on your card and tell you if it goes through or not. The max. charge that the card allows at that point of time is your internal credit limit. It changes very often right from first month of the card issuance.
My first Amex Plat travel card was given a very low limit however they simply doubled after 6 months. On Amex Charge card, i was given a decent internal credit limit at the start, maybe because they already know my spending/payment pattern on the other card.
3. Going Beyond the Internal Credit Limit:
Now i started testing the limits. Hence, i came to know below rules, especially for a Freshly opened account/card.
- Generally, if you maxed out the limit, you can make your limit available for charge in few hrs on Amex cards by sending them NEFT snapshot of the payment done to the card. I’ve done this on my Plat Travel card but this cannot be done on a fresh card.
- Sometimes, you’re allowed to go beyond the limit on a Charge card. Hence i maxed out the limit & tried charging 10% to 50% beyond the actual limit but all got denied. Its because: they can’t take temporary “limit enhancement” on fresh cards.
- On Old cards, they might approve some transactions above internal credit limit if its for Emergency purpose.
4. Limit Enhancement on Amex Charge Cards:
Just after 4 months of my fresh Gold Charge card, i’m already able to charge more than 4X of initial Internal Limit that was assigned while signing up.
I think it works like this: If you spend 2L and repay 2L on time, you will be approved for 3L-4L Charge, in short time, like 3 months or even earlier and its completely dynamic and automated.
It can’t be enhanced like a typical credit card limit, also you don’t need to wait for 6 months to charge more. Start hitting the limit every month and you can expect them to double the limit from time to time.
So More you spend = More charge you’re allowed to take.
Hence, this internal credit limit is based on your past charges made on the card, repayment history, cibil score, age of card, etc. Everything contributes to the equation.
5. Free Credit Card – Temporary offer:
If you hold a American Express Gold Charge card, you’re eligible to get the recently launched Amex Membership Rewards – Credit Card as a “companion” card at free of charge. Now what a “companion” card means is that, you can club the reward points from both credit/charge card accounts to redeem.
I was given this offer, however i denied as i’m planning to take Amex reserve card in the future and if i take this offer now, i’ll have 3 Amex cards and i can no longer be eligible for a 4th Card from Amex. Hence i had to deny this irresistible offer 😀
Bonus Tip: You can link another amex card (in same earn rate category) with Gold Charge card and avail the benefit of higher point value by redeeming 18k or 24k points for statement credit.
So, overall, i feel less excited of having a charge card as it more or less act like any other credit card for me, still, it looks pretty good to hold a fully gold colored shining card in hand. More info here: Link 2 Amex Credit Cards to Accrue Reward Points in Single Account
Do you have Amex Gold Charge Card? Feel free to share your experiences in comments below 🙂