Does having a charge card affect borrowing power the same way credit card limits do?

Hey team - does anyone know if charge cards (AMEX Platinum Charge Card) impact borrowing power like credit cards do?

Hi @rycolza

The short answer is that it depends on the lender/credit provider. My experience might be helpful:

Late last year I applied for an NAB credit card. During the application process they asked me whether I had a charge card and, when I told them that I did, they asked me for the latest 3 statement closing balance amounts. My charge card spending was definitely considered in the application.

However, since taking out my charge card I’d also applied for cards from three other credit card providers, and I’d refinanced my home loan, and I changed electricity and gas providers. In not one of those applications for credit did they ask me whether I had a charge card.

So as you can see, with some lenders (the only one I know of is NAB) it will impact borrowing power. With many (most?), it won’t.

Hope this helps!

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