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Kylan1234
Posts: 143
Registered: ‎08-26-2009
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Discover Vs. AMEX

I keep getting American Express offerers in the mail but I dont understand the big deal about them. I have a Discover More card right now and love it, but what is the advantage, if any, of having an American Express card over Discover. If there was no annual feee, I could understand, but what makes this card so great? Also does the annual fee divide into 12 months or do you have to pay it all at once. 


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AgonyBooth
Posts: 51
Registered: ‎05-31-2010
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Re: Discover Vs. AMEX

[ Edited ]

This is just my opinion, but the reason why I use AMEX over Discover is that I find in my state that AMEX is accepted far, FAR more than Discover.  In addition, AMEX has decades of a reputation for being a premium brand with strong customer service and membership rewards.  Lastly, since I'm a business owner, AMEX has some of the best card technology and account management software to manage my expenses and spending, whereas Discover does not.

 

With regards to the fee, you pay the annual fee up front at the end of the year, but AMEX usually gives you the first year free to "try them out."  You can always cancel before the fee hits you if you're unhappy with them.  I would imagine that the reason why AMEX has an annual fee is to pay for their higher overhead (they have 100% American call centers to handle your issues, and these CSRs have superior customer service training than other call centers I've used) and also to pay for their membership rewards program and high cash back cards (definitely better than many card companies, though not perfect).  I find the annual fee on my Zync card to be well worth it.

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Kylan1234
Posts: 143
Registered: ‎08-26-2009
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Re: Discover Vs. AMEX

^ yeah I just applied for the AMEX Zync and got approved. We'll see how it goes . So far I my Discover has been a good card to me so lets see how AMEX does. 


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PRILEY
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Re: Discover Vs. AMEX

I think It's good just to have a mixture. I have both and both are excellent cards with great customer service. The other day I spoke with Discover and they told me that 12k is the limit they are giving right now yet I apped for an AMEX Blue today and was approved for 20k. But let me say again they are both good cards as long as you don't abuse them but I think all ccc's can go nuts in a second.

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Kylan1234
Posts: 143
Registered: ‎08-26-2009
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Re: Discover Vs. AMEX

Im just confused on when to use the AMEX and when to use the Discover. I mean the 5% cashback throughout the year is nice, plus cashover feature is awesome too. Pretty much my question is what is the advantage of AMEX over Discover?


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AgonyBooth
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Re: Discover Vs. AMEX

I don't have personal experience with Discover, but if I had a Disc card and an AMEX, I'd use the AMEX more because their fraud protection and customer service is a proven deal in the finance industry.  If I have a problem, I don't have any doubt AMEX will take care of it quickly over the phone.  All purchases made on your AMEX card (most of them) have additional insurance and warranty automatically extended to them by AMEX - does Discover do this?

 

5% cashback is killer on the Discover card, though.  AMEX has their Membership Rewards program, which I find to be pretty weak from my research on it using this board and on the web.  

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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Discover Vs. AMEX

 


Kylan1234 wrote:

Im just confused on when to use the AMEX and when to use the Discover. I mean the 5% cashback throughout the year is nice, plus cashover feature is awesome too. Pretty much my question is what is the advantage of AMEX over Discover?


 

I don't know that there is one, in terms of the classic charge cards, unless you're doing George Clooney in "Up in the Air" and traveling a lot.

 

I prefer cashback any day. The only reason I have a Blue instead of a Costco is because there isn't a Costco store within a couple hundred miles of my hometown. (Yes, I know that I could order online, but I wanted a brick-and-mortar store, with a gas station.)

 

The Costco card looks like the cream of the crop to me. Blue Cash would take WAY too much usage to generate significant rewards, and unless I suddenly find a dozen children moving in with me, it isn't useful.

 

The problem with Discover is that those moving 5% categories don't always fall in areas where you actually spend, and I believe that they're capped pretty low as well.

 

The way that the rewards cards are cutting back, I think the best bet is to get maybe 4 or 5 that pretty much cover the board, without expecting any one card to do it all.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
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my-own-fico
Posts: 1,216
Registered: ‎01-05-2010
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Re: Discover Vs. AMEX

I can't find anything here to disagree with you about. That's highly annoying. :smileytongue:

When an appealing quarterly Discover category is not available, we default to the Costco Amex for its 3% year-round categories and sometimes the 2% as well. The rest goes on our travel cards, primary the one aimed for redeeming our next international vacation.

This feels intuitively right to us. I have yet to calculate whether it's better to put the 2% cash back purchases on the travel cards.

DW has a semi-distant branch of the family in Michigan. They happened to mention their nearest Costco is 100 miles away and that they were considering getting a bigger car to justify the trip. Their excuse was there was this particular brand of something they liked. Still didn't make sense. But I say, get the card even if you go only one a year!

Of course our problem is that no matter which card we get next, it'll take away money spent on the others. The Chase Freedom's quarterly system may work because it doesn't fully overlap with that of Discover, but I'd rather not get a card that doesn't report its credit limit. And of course by now there has to be no annual fee.

Or maybe I could benefit from seeing Up in the Air again. :smileyvery-happy:

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Regular Contributor
Kylan1234
Posts: 143
Registered: ‎08-26-2009
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Re: Discover Vs. AMEX

Thanks for everyones opinions. I will just rotate the cards for different things, but mostly use the the AMEX card unless its in the 5% cashback category, Ill use the Discover. 


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haulingthescoreup
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Re: Discover Vs. AMEX

 


my-own-fico wrote:

 

I can't find anything here to disagree with you about. That's highly annoying. :smileytongue: ...


 

Cheer up, our troll over on General Credit Issues has found plenty! :smileywink:

 

Trying to keep multiple rewards cards happy can wear you out. But it sounds like you've got a plan that works for you.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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