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.
Charge and Credit Cards
Used wisely, Credit and Charge Cards can make your life easier and offer many benefits and protections. Boost your card knowledge with a better understanding of the differences between Credit and Charge Cards.
What is a Credit Card?
Credit Cards offer a revolving line of credit, meaning that you can carry a balance from month to month rather than having to pay the amount owing in full.
Each time you use a Credit Card, you are essentially taking out a loan. Card issuers require that at least the minimum amount due is paid by the due date every month.
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. Interest is always charged on balance transfers and funds advances starting from the day the transaction occurs.
TIP: If you make your monthly payment earlier than the due date, you can save money on interest charges when you are carrying a balance.
What is a Charge Card?
Charge Cards are different from Credit Cards in that they require you to pay the full amount you’ve charged to the card each month. By doing so, they can help you manage spending and stay on track with your finances. By paying in full every month you can avoid interest charges.
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:
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, payment history, spending pattern and personal resources. Proof of resources and security may be required.
Like many Credit Card 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.
Online Expense Management Reports for Small Business Cards
Managing business expenses just got easier with Online Expense Management Reports. These reports offer flexibility in tracking expenses, and can help make financial statement and tax preparation easier.
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 loan so that we receive your payment in full by the payment due date or over a longer period of time. A minimum payment is always due by the payment due date every month.
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. Interest is always charged on balance transfers and funds advances starting from the day the transaction occurs.
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 method of payment (mail, telephone and payment collection box). Allow enough processing time to ensure we receive your payment by the due date.
The Autopay Service is a great tool to manage your payments.
What is a Credit Report?
A credit report is a collection of information held at credit bureau service provider, TransUnion Limited. Banks and other businesses that lend money access this information with your consent. This information is compiled into a single report that helps lenders determine if you are a good financial candidate.
Your credit report is referred to when you apply for credit and includes the following information:
It is a good idea to review your credit report once a year. If you discover any inaccurate information, it can be corrected or removed by contacting the Credit Bureau directly.
By law, your credit report does not include certain personal facts such as race, religion, health status and political affiliation.
Who can view your Credit Report?
With your consent, your credit report can be viewed by lenders and yourself in accordance with the Privacy Act.
As a responsible lender, American Express reviews credit reports of our customers on a regular basis. The information reflected on credit reports is taken into consideration to manage your account.
How do you establish a Credit Rating?
You begin to establish a credit rating as soon as you apply for your first loan or credit card. From that point on, the way you manage your accounts will have a positive or negative impact on your credit rating.
A good credit rating is necessary in order to apply for credit in the future. For example, lenders will evaluate your credit report prior to approving your request for car loans, mortgages, lines of credit and credit cards.
Good Credit Guidelines
Some things that lenders consider when reviewing your credit report are:
To help keep your credit rating in good standing you should always pay your bills on time. If you are moving, ensure you provide your lenders with your new address and other contact information to avoid late or missed payments.
You should also check your credit report annually to ensure the accuracy of your information.
Remember to inform your lender and the Credit Bureau immediately if you notice any inaccurate information in your credit report.
Online Resources offer more info about credit
By learning more about credit, you’ll be in the best position possible to make informed choices about the way you manage it. You can always refer back to this site for advice and guidance. Plus, there are many other online resources that can help you learn and stay informed. Just follow these links:
TransUnion
TransUnion HK offers consumer credit related products and services to the HK market. Visit the TransUnion website for more information.
The Office of Privacy Commissioner for Personal Data Hk
The website can provide access to information regarding the execution of the Privacy Ordinance, as well as news and the latest activities of the PCPD.
Hong Kong Monetary Authority
The HKMA is the government authority in Hong Kong responsible for maintaining monetary and banking stability.
Sometimes, you may need support
Your personal circumstances constantly change. And sometimes you may face temporary periods of financial hardship for any number of reasons – often beyond your control.
These situations may include:
American Express understands that hard times can happen. That’s why, if you’re experiencing difficulty meeting your monthly credit commitments, it’s important to stay in contact with us – so we can make you aware of all the repayment options available to you.
Our Customer Service team is specially trained to assess your situation and can provide repayment plans tailored to your needs. Solutions offered to you will differ depending on your circumstances.
Helpful tools you can use right now
As an American Express Cardmember, you have a wide range of financial tools at your disposal.
Online Services is a free service that enables you to review billing records and update contact details.
Autopay Service is also a free service that automatically processes monthly payments from your bank account by your payment due date.
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:
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
American Express Online Services gives you 24-hour secure access to manage your Card account online.
So why not DO MORE online today?