AMEX Prepaid targeted email

[wreith]

Hello everyone.  I just received a targeted email from AMEX for their prepaid card.  I did some research and one site said that the card can "graduate" into a full charge card.  Has anyone done this or have any knowledge of this happening?  I'm planning on reapping in Dec for the Zync card as my one baddie on my Teletrack will fall off in Nov.  I'm not sure it's worth it right now, but maybe if declined again in Dec?  Any thoughts?

[iMacDrew]

I think everyone gets that email. Have you been denied by Amex before? I'd just hold off on the prepaid and app for the Zync in december

[wreith]

I was declined back in June, top reason was my Teletrack report, that'll clear up in Nov.

[iMacDrew]

Ya usually they send out that automated prepaid card email to those who've been denied. The Zync is a good way to get your foot in with American express and build some history with them. It's relatively not hard to get. Check whogavemecredit.com

[WhiteCollar]

I've been denied by AMEX at least 3 times...even for the Zync!! I too recently found out about Teletrack and corrected that report but I'm still going to wait to app with them again. Because I shop at Costco often, I was thinking of getting this card.....it couldn't hurt right? I really hope it's true about future opportunities with AMEX but I have my doubts.

[Open123]

It can't hurt.

But, all things being equal, if you can "graduate" to a charge card 6 months later, then I'd imagine you can apply and be approved for a charge card 6 months later without having to use the Prepaid card (which doen't help your credit at all).

With AmEx, unless you fix the teletrack blemish, you likely won't get approved.  Like BK, it's one of their deal breakers.

[Revelate]

FWIW I don't think anyone on this forum has been offered an invitation to apply for a charge card yet off the pre-paid card.

It's been more than six months since the cards release and people's picking it upl personally I don't think this is a good option and is likely something of a placebo effect.  YMMV but don't pin all your hopes on this card, it hasn't worked for others.

Edit: it can't hurt with Amex, it can possibly hurt with other lenders.  The prepaid doesn't show up on your credit report, which means any money you spend through it isn't shown to every other lender... and lenders like to see spending on even their competitor's products as it makes you look like a more profitable customer (and therefore worthwhile) to them.  

From a lender's perspective: someone spending money through credit cards can be converted to use your own card through simply offering them a better deal; however, if someone isn't using their cards, what's to suggest they're going to now do so with you?  So any money not seen there is effectively a non-starter for a profit analysis, which does factor into the approval decision.  While I agree there's some benefit to "hidden" tradelines when you're playing in the gold-plated level, I absolutely disagree with that analysis for people building or rebuilding.

I'm of the opinion that any money you spend through the Amex prepaid is pretty much wasted, especially as Amex has publically stated it's not for those rebuilding credit. 

[Creditaddict]

The card does not "Graduate" but it says in as little as six months you "may" be invited to apply for a "Charge Card" with us.  Further stating that just because we "invite" you to apply does not gaurantee approval... I tend to lean towards it pretty much does mean an approval though when being invited for the Charge Card.

I got it simply for the reason that I set up the "Serve" Amex about 2 months ago but you literally can only have 1 bank account on it, a person can't set up to load money to it for me...

The Amex Pre-Paid is faster, easier to handle and I can get text messages in about 10 seconds after a purchase, it's very much like the BofA commercials we were seeing back in like 2007 when that person bought a coffee and then something else, then something else, then is friend says thanks and walks away!!!

[Open123]

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@Revelate wrote:

From a lender's perspective: someone spending money through credit cards can be converted to use your own card through simply offering them a better deal; however, if someone isn't using their cards, what's to suggest they're going to now do so with you?  So any money not seen there is effectively a non-starter for a profit analysis, which does factor into the approval decision.  While I agree there's some benefit to "hidden" tradelines when you're playing in the gold-plated level, I absolutely disagree with that analysis for people building or rebuilding.

I'm of the opinion that any money you spend through the Amex prepaid is pretty much wasted, especially as Amex has publically stated it's not for those rebuilding credit. 

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Couldn't agree more. 

This is a deal breaker, unless Amex has some kind of clearly defined process on how they determine "graduation."  Allocating unreported spending without any insights into the graduation process would not be a risk worth taking--at all.

[WhiteCollar]

I think this article pretty much sums it up. I'm just gonna wait until this Teletrack madness is 100% correct and app next year.

One of the downsides of prepaid cards is using one doesn't get you any closer to getting credit. American Express is changing that.

The credit card issuer is inviting qualified holders of its prepaid card to apply for a charge card. The program is called "Make Your Move," and the company will evaluate prepaid cardholders for a minimum of six months before extending the offer to apply, says American Express spokeswoman Leah Gerstner.

While there's no specific set of requirements a prepaid cardholder must meet to be eligible for the invitation, the company offers a few recommendations, she says. Cardholders should use the card for everyday expenses such as groceries or gas or for recurring bills like utilities and phone service, and reload the card consistently when the balance is low. Of course, prepaid cardholders still need to qualify even if they receive an invitation to apply for the charge card.

"Receiving an application for a charge card doesn't guarantee approval," Gerstner says.

American Express will go through the same process to qualify a prepaid cardholder as it does for anyone applying for a credit or charge card. That includes considering a person's overall credit history. However, Gerstner points out that "Make Your Move" will give American Express a fuller picture of an applicant's financial history based on spending on their prepaid card.

http://www.bankrate.com/financing/credit-cards/a-learners-permit-for-credit/