Amex Green - annual fee?

[Anonymous]

Now that my scores have finally increased and we've bought a home, I'm starting to get cc offers in the mail.  That's pretty exciting, since my only other cards are a Visa with my credit union with a $300 CL and a now-closed Orchard card (didn't want to pay the annual fee). 

I accepted the pre-qual for a Discover More and now have that card with a $2000 CL.  I'm happy with it so far and like it because of the rewards.  I don't carry a balance and there's no annual fee.

So today, I was excited to get a pre-selected letter for an AMEX Green, but it has a $95 annual fee after the first year... so I guess what I'm wondering is, what's the point?  Is there any advantage to having this card that would make an annual fee worth it...?

[Anonymous]

Don't know too much about the amex green but are you fully past the point of major derogs on your CR such as judgements, CO's, and CA's??

[Anonymous]

Not completely: one on report I have two charge-offs (it was actually a verizon phone service, they dinged me once for local and a second time for long distance apparently), and on the other I have that plus one other charge-off.  They are more than three years old.

[Anonymous]

Well congratulations on the discover more that's a good pick up.  I've heard of amex with the annuals but don't know if that's across the board on their cards or they just handing it to you. Not sure someone  else will know for sure though.  Do you know who they pulled.  Let me guess the eq has only one and the Tu has the two but the tu is still higher ... well that's the case with me granted that's '98 ... some folks are saying that some lenders are still pulling '98 some places.  However would have to think that '04 would be a bit lower.

[Wolf3]

American Express charge cards are not usually worth it unless you use it for your main card.     They are considered good for travelors, expecially international.  You might consider the Zync, much smaller fee, almost the same benefits. 

[MrShush]

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@Wolf3 wrote:

American Express charge cards are not usually worth it unless you use it for your main card.     They are considered good for travelors, expecially international.  You might consider the Zync, much smaller fee, almost the same benefits. 

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+1

[Anonymous]

Hi helpless,

Sounds like you are anything but helpless - congrats on your home purchase and your credit building!

First thing, is check your AAofA.  You have some newbies - that mortgage and your Discover.  If you do some quick math, you can decipher your current AAofA.

Then, check what your AAofA would be if you app'd for one more card.  Chances are you'll be better off if you age things a little before additional app'ing.

Second, don't get stars in your eyes when you get pre-approvals.  Even from Amex.  They don't mean you will qualify if you choose to app.  And you'll want to create your own short list of potential cards that will fit your needs best as you move forward.  If Amex is on that list, and you have your ducks in a row, then it's time to app.  FWIW, I'm guessing that those CO's mean you don't have 100% of your ducks in a row yet (many of us don't - me included) and you'll want to be app savvy.

Oh, and third,  It's always a relief to us real people when baddies (i.e. charge-offs) start to get older.  However, they continue to impact your credit for the full time they show on your reports.  Not only do they affect scores, but they affect credit acceptances because each creditor has their own policies.  For example, I have a FICO score in the 700's, but I have a BK on my report.  Even though it was filed 5 years ago, it still impacts my score.  And there are creditors who would take me with my score but refuse to take me because of my BK.  So, I have to be savvy when choosing where to app.

Don't overlook the first point - the AAofA.  If you drop your AAofA, only time can pick it up again.  Much easier to age things a little and then app when it's more advantageous.

Hope that's helpful!  And best wishes.

[Anonymous]

Thanks to everyone for the replies!

I'm happy with the Discover More.  I'm glad to have a rewards card and something with a higher limit (especially when I have to travel for work) and no AF.  I don't really *need* another card and certainly am not interested in a card with an annual fee, so was wondering if I'm missing something here.  Great point on the AAoA. 

I'll skip it and maybe opt out - but I won't opt out yet, because it's so nice to see some good news in the mail finally! 

A year ago, I was in the mid-500s and had no hope of getting a home mortgage, much less a decent card, and most of my success so far is due to the amazing advice and great community here.

[Wolf3]

You'll be missing $95 with the green card 

[marty56]

AE is the only company that still sends my offers that I had a product in DMP with.  They closed my Green card when my Blue card was added to the DMP. LOL now that's a subprime CCC if ever I saw one.