After I applied for Zync and was denied (twice) I kept getting emails from AMEX telling me to try their pre-paid card. So I bit. Been using it for a couple months now.
My question is, when I go to apply for a real AMEX in the future, will it benefit me at all having this card? I don't know if it would show up in their system when I apply or what. I figured if nothing else I could call and do a recon (if I got denied again) and tell them I've been giving them my business via the prepaid card for X amount of months, hoping it'd sway them a little. Because I know even though I pay no fees, they're making money off all of my purchases.
Any thoughts? I'm just curious...it'll be a while before I apply, but maybe someone else has had experience with this. The card is usefull for me regardless, because it's an easy way for me to budget myself (I only load x amount of dollars every 2 weeks for "luxury" items, so I don't overspend). Plus I just like having an AMEX...even if it's prepiad. 
@FloridaState12 wrote:After I applied for Zync and was denied (twice) I kept getting emails from AMEX telling me to try their pre-paid card. So I bit. Been using it for a couple months now.
My question is, when I go to apply for a real AMEX in the future, will it benefit me at all having this card? I don't know if it would show up in their system when I apply or what. I figured if nothing else I could call and do a recon (if I got denied again) and tell them I've been giving them my business via the prepaid card for X amount of months, hoping it'd sway them a little. Because I know even though I pay no fees, they're making money off all of my purchases.
Any thoughts? I'm just curious...it'll be a while before I apply, but maybe someone else has had experience with this. The card is usefull for me regardless, because it's an easy way for me to budget myself (I only load x amount of dollars every 2 weeks for "luxury" items, so I don't overspend). Plus I just like having an AMEX...even if it's prepiad.
My best guess would be that the pre-paid card will not help you. There is nothing that show up from a pre-paid card in your credit report and that is what will probably matter.
Your best bet is to start with a secured card to build your credit rating. They want to see a certain amount of time where you show that you pay CC acounts on time to be comfortable with offering you an unsecured card. And AmEx tends to be pickier than others about history.
@bobebob wrote:My best guess would be that the pre-paid card will not help you. There is nothing that show up from a pre-paid card in your credit report and that is what will probably matter.
Your best bet is to start with a secured card to build your credit rating. They want to see a certain amount of time where you show that you pay CC acounts on time to be comfortable with offering you an unsecured card. And AmEx tends to be pickier than others about history.
Appreciate the response, but I think you misunderstood me. I know prepaid cards don't report on my credit, I was wondering if it would at all factor into AMEX's decision, since it's their prepaid card. Because I know it's a big deal with AMEX if you have a history with them...but I don't think a prepaid account would count.
I already have 3 unsecured CC's, so I don't need a secured card. I'd go for an AMEX secured if they offered it. Really wanting to get in with AMEX as soon as I can.
I believe it was because my FICO was too low and I have a collections on my report. The collections is SUPPOSED to be coming off soon, but we'll see. The other reason my scores were so low was because 1) I'm new to credit, so my 3 CC's are all less than a year old, and 2) I have a crapload of INQ on my reports.
If this collection gets off and my scores are upper 600's, I may reapply. It's a new collection so I imagine it's greatly affecting my score....hopefully getting it taken off will give me a sizeable boost.
Not to mention that no creditor is going to approve someone who has a recent collection. Having a lot of inquiries is another reason that you can be declined. If I were you, I would:
1. Do my best to get the collection removed - if you cannot, then you are going to have trouble getting an AMEX at all.
2. Wait until all those credit inquries age off your report. When the computer reviews your app and sees a lot of INQs, you will usually be declined automatically.
3. Establish a solid 2 years of positive credit history
Then if you still want an AMEX, apply.
I can't see any reason why a pre-paid card would be considered at all with AMEX. It proves nothing to them about being able to handle credit, which is the whole point of past experience.
Starting Score: 627 EQ, 621 TU - 11/15/08
