LEARN. KNOW HOW.
MANAGE CREDIT BETTER
In challenging or encouraging economic times,
understanding your Cards, your credit and how to manage debt is important for your financial health.
It can be overwhelming, but American Express is here to help.
Start your Credit Know-How journey here.
About the Cards we offer
Get to know basic knowledge
Credit or Charge?
Know the differences between the Cards we offer
How to be Card Smart
Tips and more for smart Card use
Managing Debt
Information to help manage debt
Have questions? Need info?
More ways to manage credit
Discover the resources available to you.
Find answers in our Credit Resource Centre
Charge and Credit Cards
What is a Credit Card?
What is a Charge Card?
What is a charge card?
A charge card allows you to manage and maximize your cash flow, because it has no pre-set spending limit. For the financially savvy consumer, a charge card makes good sense. Because your statement must be paid in full each month, many people find charge helps them control spending.
Purchasing Power
With a charge card, you are granted more purchasing power with no pre-set spending limit. While your spending is not unlimited, your purchases are approved based on a variety of factors, including your credit record, account history and personal resources. Proof of resources and security may be required.
Like many credit products, should you wish to make a purchase that goes beyond your usual spending patterns, please call the Customer Service number on the back of your Card to ensure a seamless experience.
If your spending continues to increase over the months, and your payments and credit record remain in good standing, you can achieve more spending power over time.
Year-end Summary of Charges for Consumer Cards
This valuable Card benefit simplifies year-end financial planning and can be a great asset during tax preparation. You'll receive an itemized, chronological listing of your Card transactions from the previous year.
This Card benefit is available on the American Express® Gold Card, the American Express® Platinum Card and the American Express® Business Card.
Maintaining Good Credit Information
To help keep your credit information in good standing, you must always pay your bills in full or at least the minimum required amount as per the agreed payment term and within the due date which stated in the statement. If your billing address is changed, you would need to provide your lenders with your new address and other contact information to ensure that you continue to receive the billing statement or other important notifications to avoid late or missed payments which will be impacting your credit information.
In addition, You should check your credit information report annually to ensure the accuracy of your information. In the event that you notice any discrepancy in your credit information, please notify your lender immediately for further investigation.
Manage your spending and maintain a good credit score
Credit cards and charge cards are important financial management tools that allow you to purchase the things you want sooner and pay for them later. But, because cards are so convenient, it can be tempting to overuse them, and overspend your budget.
Being Card Smart includes knowing how to manage your spending and realizing the importance of having a strong credit rating.
These simple tips can help you be even more Card Smart:
1. Know your spending limit and don't exceed it.
2. Know the due date of your payment and be disciplined about making sure your financial institution receives your payment on time.
3. Always pay at least the minimum due to keep your account in good standing. For Charge Cards, remember to always pay your balance owing in full and on time each month.
4. Maintain your preferred interest rate by paying at least your minimum payment on time each month.
5. Consider consolidating outstanding balances into one convenient payment or to a lower interest rate.
6. Use online financial management tools to keep track of your card spending. That way, there are no surprises when your statement arrives.
7. Avoid taking cash advances. They often incur a fee and can add to your debt and borrowing levels.
8. Make a budget, and stick to it. Track your spending to help you remain aware and in control of your purchasing behavior.
9. Regularly review your monthly statements to ensure there are no errors or unauthorized charges on your account.
10. Check your credit bureau report once a year by letter to verify that your information is correct. This will help to ensure that lenders evaluate your profile with accurate information. You are entitled to review your credit report one time per year without charge. Contact credit bureau service providers directly for details.
Managing Debt
In challenging or encouraging economic times, understanding how to manage debt is important for your financial health. Sometimes it can be overwhelming.
If you're feeling that way, remember, you're not alone. There are many solutions that can help make debt manageable. But just as it takes time to get into debt, it can also take time to get out of it.
Here are some guidelines to help you manage and reduce your debt:
- Create a budget and stick to it. Budgets can help u gain control of your debt and manage future spending.
- Prioritize your outstanding balances based on interest rate. Pay off your highest-interest debts first. But remember to continue paying at least the minimum amount on the other outstanding balances.
- Consider consolidating outstanding balances into one convenient payment. You might also be able to consolidate balances to a lower interest rate, and save on interest payments.
- Investigate alternatives for paying down your debt. You may want to consider using money from your savings account or using another alternative to help you pay down your debt.
- Source your available payment options. Some lenders offer a variety of payment methods. See what's available and use the option best suited to help you pay on time, every time.
- Utilize services such as Account Alerts to help you remain aware of your due dates and spending levels.
- Talk to your lenders if you're struggling to make your payments. Don't skip the payment altogether, as this will only make the situation worse and impact your credit rating. In many cases, lenders are willing to work out a solution with you.
- Seek advice from a professional credit counselor.
Budgets build healthy habits
Budgets can help you recognize spending habits and identify areas where you might be able to cut back. They're an important tool for managing your debt, and are simple to create.
How to prepare a budget
After downloading the Budget Worksheet , follow these steps to prepare your budget:
- Track your income and expenses: Over a two-month period, keep records of all your money coming in (income) and going out (expenses). Certain expenses may be fixed each month, including rent, mortgage, groceries, insurance premiums, utilities and transportation. Other expenses may vary - such as vacations, entertainment and gifts.
- Create your budget: Use the information you gathered above to help you complete the fields on the Budget Worksheet. It is recommended that you prepare the budget for one month so you can directly compare your monthly expenses against your income. You may also choose to complete your budget from a household point of view. If this is the case, be sure to consider income from all contributing household members and the total of everyone's monthly expenses.
- Follow your budget and keep track of your spending: When you have a good record of where your money is going, see if you can cut costs in certain areas. Or, see if you can add to your savings.
When interest is charged
Calculating interest
American Express Credit Cards are a convenient way to pay for everyday purchases. A credit card is a lending product. When you make a transaction using your Card, we are lending you that amount of money and you are essentially taking out a loan. As an American Express Cardmember, you have the flexibility to pay back the outstanding either paying the card in full each month or only paying a portion of the total outstanding amount within a due date. If you choose to pay the portion or minimum amount then the interest will be charged on a daily basis until full amount is settled.
** Interest is calculated on a daily basis and applied to the statement at time of cycle cut
When interest is charged
If you always pay your balance in full so that we receive your payment by the payment due date, interest will not be applied to any of your purchases. If you choose to carry a balance or if we receive your payment late, interest charges are calculated and charged to your account at a predetermined annual percentage rate (APR) starting from the posting date. Interest is always charged on balance transfers and funds advances starting from the day the transaction occurs.
Managing interest charges
How to manage interest charges
The best way to reduce your interest charges is to make your payments early or pay your balance in full and on time.
Remember, the processing time varies by financial institution and by method of payment (Internet, mail, telephone and bank branch).
Direct Debit service is a great tool to help you maintain your preferred interest rate.
Direct Debit Service
Automatically pay your account balance each month to help ensure you don't miss a payment.
Preparing a Budget
A budget can be a big help when it comes to managing spending and staying in control of your finances.
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