Why American Express?

[Anonymous]

---

@Open123 wrote:

In addition to everything else already mentioned, I just like Amex better than all the rest.  Not sure why, but it's like a favorite color.  I just like Amex period.

---

+1

[Anonymous]

---

@Anonymous wrote:

---

@takeshi74 wrote:

---

@Anonymous wrote:
Why did you choose American Express?

---

I didn't choose American Express.  I specifically chose the BCP and the TE because they fit my needs.  Don't pick a creditor and then try to justify a card.  Use your needs/wants/etc to select cards that suit you.

---

@Anonymous wrote:
Do you use the benefits enough so that the yearly fee is worth it?

---

Worth is always highly subjective regardless of topic so you can't just poll to determine if something is worth it to you.  Again, you need to use your needs/wants/etc as your criteria.  If you're selecting a card for rewards then make sure you run the numbers for your spend to help you determine if the card is worth it to you.  If the rewards program is a miles/points program then make sure you're also researching redemptions to ensure that you can get the most value out of each mile/point.

---

Although I really appreciate your comment, I see your bringing of semantics into my question pretty pointless and honestly quite pretentious

---

[axlm]

---

@Anonymous wrote:

---

@takeshi74 wrote:

---

@Anonymous wrote:
Why did you choose American Express?

---

I didn't choose American Express.  I specifically chose the BCP and the TE because they fit my needs.  Don't pick a creditor and then try to justify a card.  Use your needs/wants/etc to select cards that suit you.

---

@Anonymous wrote:
Do you use the benefits enough so that the yearly fee is worth it?

---

Worth is always highly subjective regardless of topic so you can't just poll to determine if something is worth it to you.  Again, you need to use your needs/wants/etc as your criteria.  If you're selecting a card for rewards then make sure you run the numbers for your spend to help you determine if the card is worth it to you.  If the rewards program is a miles/points program then make sure you're also researching redemptions to ensure that you can get the most value out of each mile/point.

---

Although I really appreciate your comment, I see your bringing of semantics into my question pretty pointless and honestly quite pretentious

---

I get what you mean, but takeshi's advice is good, nonetheless. Don't discard a good advice just because the way it was conveyed.

Edit: I forgot to answer. Amex because lender diversification (and that weird prestige stuff, I must confess)

[thelethargicage]

Why American Express?

Because I didn't have one.

Well, that and my ex-wife had already managed to max out all my other cards and I needed a new card.

[thelethargicage]

---

@Anonymous wrote:

---

@takeshi74 wrote:

---

@Anonymous wrote:
Why did you choose American Express?

---

I didn't choose American Express.  I specifically chose the BCP and the TE because they fit my needs.  Don't pick a creditor and then try to justify a card.  Use your needs/wants/etc to select cards that suit you.

---

@Anonymous wrote:
Do you use the benefits enough so that the yearly fee is worth it?

---

Worth is always highly subjective regardless of topic so you can't just poll to determine if something is worth it to you.  Again, you need to use your needs/wants/etc as your criteria.  If you're selecting a card for rewards then make sure you run the numbers for your spend to help you determine if the card is worth it to you.  If the rewards program is a miles/points program then make sure you're also researching redemptions to ensure that you can get the most value out of each mile/point.

---

Although I really appreciate your comment, I see your bringing of semantics into my question pretty pointless and honestly quite pretentious

---

He does that on every single post. Just ignore him like the rest of us do.

[Anonymous]

Hmmm... Why AMEX, eh?  Well, I hold the Green, Ameriprise Platinum, and Hilton Surpass.  I use them all, and quite often actually.  Heck, I use my Surpass more than my Debit card! LOL.  The bennies for me are worth the AF's that I pay (minus the waived $450 platinum), the signup bonus on the Surpass alone was worth it for me as much as I stay at Hilton properties, and the complimentary gold status is worth the AF to me.  As others mentioned, the purchase protection, extended warranty, amex offers (which i've used to get back $335 and counting this calender year), and customer service are why I love AMEX!!

If I included the AF that I will pay next year on my Platinum, the total I am paying AMEX just to carry their cards is $620!!!  Walking into BestBuy to purchase a new TV and shutting down their annoying sales pitch about extended warranties and all that other garbage when I simply say "Actually, I'll be putting this on my AMEX" is worth EVERY PENNY of that!!!!!!!!!!   HAHAHAHA

[kdm31091]

---

@thelethargicage wrote:

---

@Anonymous wrote:

---

@takeshi74 wrote:

---

@Anonymous wrote:
Why did you choose American Express?

---

I didn't choose American Express.  I specifically chose the BCP and the TE because they fit my needs.  Don't pick a creditor and then try to justify a card.  Use your needs/wants/etc to select cards that suit you.

---

@Anonymous wrote:
Do you use the benefits enough so that the yearly fee is worth it?

---

Worth is always highly subjective regardless of topic so you can't just poll to determine if something is worth it to you.  Again, you need to use your needs/wants/etc as your criteria.  If you're selecting a card for rewards then make sure you run the numbers for your spend to help you determine if the card is worth it to you.  If the rewards program is a miles/points program then make sure you're also researching redemptions to ensure that you can get the most value out of each mile/point.

---

Although I really appreciate your comment, I see your bringing of semantics into my question pretty pointless and honestly quite pretentious

---

He does that on every single post. Just ignore him like the rest of us do.

---

Takeshi means well. He just speaks in a more general tone than some of us. We're all different

That said, I've lost count of how many times I have read "worth is always highly subjective regardless of topic". lol

[Anonymous]

---

@kdm31091 wrote:

---

@thelethargicage wrote:

---

@Anonymous wrote:

---

@takeshi74 wrote:

---

@Anonymous wrote:
Why did you choose American Express?

---

I didn't choose American Express.  I specifically chose the BCP and the TE because they fit my needs.  Don't pick a creditor and then try to justify a card.  Use your needs/wants/etc to select cards that suit you.

---

@Anonymous wrote:
Do you use the benefits enough so that the yearly fee is worth it?

---

Worth is always highly subjective regardless of topic so you can't just poll to determine if something is worth it to you.  Again, you need to use your needs/wants/etc as your criteria.  If you're selecting a card for rewards then make sure you run the numbers for your spend to help you determine if the card is worth it to you.  If the rewards program is a miles/points program then make sure you're also researching redemptions to ensure that you can get the most value out of each mile/point.

---

Although I really appreciate your comment, I see your bringing of semantics into my question pretty pointless and honestly quite pretentious

---

He does that on every single post. Just ignore him like the rest of us do.

---

Takeshi means well. He just speaks in a more general tone than some of us. We're all different

That said, I've lost count of how many times I have read "worth is always highly subjective regardless of topic". lol

---

summarized : "don't ask forum"

[CreditScholar]

---

@Open123 wrote:

---

@Anonymous wrote:
Thank you so much to every single one of you. I love the details people added, the type of card, and how they used it. I just started with AMEX and am hoping to have a long partnership with them so I thought to ask others what they felt about them

---

Admittedly, I'm usually impartial and unemotional when it comes to CCs, but I'm biased towards Amex.  

Some general guidelines on building your relationship with Amex:

1. If possible, PIF (a single payment) a day or two after your statement cuts.

2. If possible, avoid using the card at "dubious" Merchants.

3. If you value travel, pick a program, and focus on it.  In the beginning, better to chose one--SPG, MR, Delta.

4. If you prefer cash, Amex isn't the best.  In this case, BCE or BCP; in my view, BCP is the better option.

5. If you can spare the HP/TL, do not PC Amex cards, unless you have an upgrade enticement, such as "bonus" to do so.  

6. 3X CLI one card, and if you heavily use the other, Amex will likely auto CLI from activity.

7. For accident prone and/or purchases where you may need to dispute, consider using Amex, even if it offers lesser rewards than Visa/MC/Discover.

8. Take advantage and check offers frequently, and make sure you utilize every card for small business Saturdays.

In my view, if you have a good relationship with them, there can be no better Issuer.  Enjoy your Amex cards!  

Good luck!

---

Do you know to what extent the nature of your charges (i.e. specific merchants) determines how they profile you?

I know there were issues before about Amex analyzing the types of purchases you made fairly heavily, perhaps more heavily than any other lender, but I'm not sure if they've since continued the practice to the same extent.

[Open123]

---

@CreditScholar wrote:

Do you know to what extent the nature of your charges (i.e. specific merchants) determines how they profile you?

I know there were issues before about Amex analyzing the types of purchases you made fairly heavily, perhaps more heavily than any other lender, but I'm not sure if they've since continued the practice to the same extent.

---

I’m not sure if or to what extent the practice continues, but there had been ample data points from the past where we may infer that Amex considered purchases in certain stores and/or in certain zip codes to have a higher correlation of default risk. These could range from charges for an Attorney, bail bondsman, to suddenly switching charges from Wholes Foods to Target. I recall on one of their conference calls, they had mentioned taking a “surgical” approach to reduce the overall risk of their credit portfolio with advanced data analytics. While we don’t have specifics, there were highly publicized incidents where certain card members “claimed” to have experienced AA while shopping in Wal-Mart’s in geographical regions associated with lower incomes and falling housing prices.

Conversely, their risk models had viewed favorably purchases in, say, Post Offices, high performance tires, and premium pet food. According to the correlative risk models, those who sent mail in a Post Office, purchased expensive tires for their cars, and paid for higher quality pet food all had one thing in common—lower default rates. While I don’t have a copy, I did see literally virtually every purchase imaginable compartmentalized into either a low risk, neutral, or high-risk category.

Also, there was a modeling on “first” purchase. Some CC companies (Amex may have been one) used as a data point a card member’s very first purchase for potential future CLIs. There were certain “first” purchases that had a much lower correlation associated with defaults, such as Starbucks. Cash withdrawals and casinos obviously would have the highest correlation.

I’m not sure if Amex or any other Lender still use such models, but it wouldn’t surprise me if they did, especially in this era of big data. For Issuers we find valuable (Amex & Chase, in my case), it’s a prudent and easy enough to hedge and avoid charges that “may” be correlated with a higher default risk.

Oh, and by the way, even to this day, my first charge on every new or replacement CC has always been a cup of coffee at Starbucks!

PS - Not sure I may have placed it, but if I can somehow manage to unearth it, I can forward you a list of purchases/establishments statisticians felt showed a "statistically meaningful" correlation to default risk characteristics.