Why Amex?

[icetrap06]

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@bs6054 wrote:

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@GaTech wrote:

Great benefits, good looking cards, decent rewards structures (for travelors/big spenders).

If you have to justifty the annual fee, then you really can't afford it.

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That last statement is really untrue.  Some of the richest people in the world are notoriously frugal, and would want ANY fee justified, and for lesser mortals it still makes sense:  I can spend money on a lot of things, is this the best/(or even just good) use of my money.

And your "great benefits / decent reward structures" are similar to justifying the annual fee, would you pay $10M a year in annual fee for those benefits?  $1000? etc

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+1

All expenditures should be justified no matter how much money you have.  Even the largest companies break cost down to analyze the return on every dollar spent.

[FutureBillionaire]

I love Amex, but the rewards and benefits don't match the amount of the annual fees.  It doesn't make sense to pay an annual fee for a benefit that a.  isn't all that great to begin with b.  you can get with other cards. 

I wholeheartedly admit that I paid for the PRG because I was concerned with the prestige.  I also liked that I had almost two weeks past my bill cycle close date to pay my bill.

I travel a few times a year for pleasure.  The benefits of this card aren't really worth it.  I don't really want to cancel it, but it will at least get downgraded.  I wish more folks woul catch on and take action so that Amex would be forced to take action.

[GaTech]

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@FutureBillionaire wrote:

I love Amex, but the rewards and benefits don't match the amount of the annual fees.  It doesn't make sense to pay an annual fee for a benefit that a.  isn't all that great to begin with b.  you can get with other cards. 

I wholeheartedly admit that I paid for the PRG because I was concerned with the prestige.  I also liked that I had almost two weeks past my bill cycle close date to pay my bill.

I travel a few times a year for pleasure.  The benefits of this card aren't really worth it.  I don't really want to cancel it, but it will at least get downgraded.  I wish more folks woul catch on and take action so that Amex would be forced to take action.

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This is what I'm talking about. I'd love to have a Platinum Card in my wallet, but as a college student I couldn't justify the benefits + annual fee. 

[loviedovie]

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@Swapmeet wrote:

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@nickn86 wrote:

I don't get the advice re: Green Card.  If the plan is to cancel after a year, why not just get the PRG instead? 

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The advice seems to be as follows: Since the Green card is allegedly the easiest one to get, apply for that one to get in the door. At that point one can 1. Secure their coveted "member since date" and 2. Apply for any other Amex product without risking an HP for a denial.

I used a similar strategy, but with Delta Gold first, then BCE. I have been thinking lately "I wonder if the Blue Sky is a better travel card than Delta Gold -- it has no AF".

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Swapmeet-

is this true that Amex will not do another HP if you already have one of their cards

[navigatethis12]

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@loviedovie wrote:

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Swapmeet-

is this true that Amex will not do another HP if you already have one of their cards

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It is said that if you have a card from American Express and are denied they will use a soft inquiry they already had, instead of performing a hard inquiry. If you are approved, you will receive a hard inquiry. Someone recently said it didn't work for them and they still received a hard inquiry even though they were denied.

[jamesdwi]

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@loviedovie wrote:

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@Swapmeet wrote:

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@nickn86 wrote:

I don't get the advice re: Green Card.  If the plan is to cancel after a year, why not just get the PRG instead? 

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The advice seems to be as follows: Since the Green card is allegedly the easiest one to get, apply for that one to get in the door. At that point one can 1. Secure their coveted "member since date" and 2. Apply for any other Amex product without risking an HP for a denial.

I used a similar strategy, but with Delta Gold first, then BCE. I have been thinking lately "I wonder if the Blue Sky is a better travel card than Delta Gold -- it has no AF".

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Swapmeet-

is this true that Amex will not do another HP if you already have one of their cards

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Denials are SP only (some wierd/rare boarderline cases have been rumored to result in an HP and a denial), an approval will result in a HP and a new tradeline. 

[Swapmeet]

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@jamesdwi wrote:

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@loviedovie wrote:

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@Swapmeet wrote:

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@nickn86 wrote:

I don't get the advice re: Green Card.  If the plan is to cancel after a year, why not just get the PRG instead? 

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The advice seems to be as follows: Since the Green card is allegedly the easiest one to get, apply for that one to get in the door. At that point one can 1. Secure their coveted "member since date" and 2. Apply for any other Amex product without risking an HP for a denial.

I used a similar strategy, but with Delta Gold first, then BCE. I have been thinking lately "I wonder if the Blue Sky is a better travel card than Delta Gold -- it has no AF".

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Swapmeet-

is this true that Amex will not do another HP if you already have one of their cards

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Denials are SP only (some wierd/rare boarderline cases have been rumored to result in an HP and a denial), an approval will result in a HP and a new tradeline. 

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agreed. I have no personal experience to share, but this is what I've read numerous times. 

[pizzadude]

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@jamesdwi wrote:

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Denials are SP only (some wierd/rare boarderline cases have been rumored to result in an HP and a denial), an approval will result in a HP and a new tradeline. 

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+1.    And in most cases the new AMEX account won't appear as a new account because it will be backdated to the member since year.

[distantarray]

Amex has charge cards and revolvers.

Revolvers are fine, which you can carry a balance and have annual fees, but remember they have cards that don't have annual fees as well.

The thing that most people don't understand about charge cards is imo they should ALL be charge cards. Why? Because you shouldn't be spending money you do not have.

Charge cards over cash

1. If you lose your charge card your not liable for purchases made by a stolen account

2. extra insurance and benefits

3. points to use

4. lighter wallet

5. prestige a lot of people look upto platinum card holders not that they all will it's like driving a mercedez the car itself isn't very good, and has been on the bottom of the reliablity list for the last 10 years since they been bought out but people still believe it's a status symbol.

6. You should almost NEVER carry a balance regardless of credit/charge card.

If you intend to carry a balance you should have a 0% balance transfer option or something simliar if your smart. If you do not everyone should have atleast 1 zero rewards card with low APR. Incase **bleep** happens

NavyFederal is the best for this. but unfortunately most people do not have it.

even if you get 1% rewards remember even if you get a low rewards card interest of 15.25% annual interest, your monthly interest is 1.27% you don't want to kill your own rewards now!

although some people value their rewards more than 1 cents, I value my points as close to 10 cents a piece in some cases. so it all depends on you, but I wouldn't do anything to kill my rewards no matter what.

[FutureBillionaire]

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@distantarray wrote:

Amex has charge cards and revolvers.

Revolvers are fine, which you can carry a balance and have annual fees, but remember they have cards that don't have annual fees as well.

The thing that most people don't understand about charge cards is imo they should ALL be charge cards. Why? Because you shouldn't be spending money you do not have.

Charge cards over cash

1. If you lose your charge card your not liable for purchases made by a stolen account

2. extra insurance and benefits

3. points to use

4. lighter wallet

5. prestige a lot of people look upto platinum card holders not that they all will it's like driving a mercedez the car itself isn't very good, and has been on the bottom of the reliablity list for the last 10 years since they been bought out but people still believe it's a status symbol.

6. You should almost NEVER carry a balance regardless of credit/charge card.

If you intend to carry a balance you should have a 0% balance transfer option or something simliar if your smart. If you do not everyone should have atleast 1 zero rewards card with low APR. Incase **bleep** happens

NavyFederal is the best for this. but unfortunately most people do not have it.

even if you get 1% rewards remember even if you get a low rewards card interest of 15.25% annual interest, your monthly interest is 1.27% you don't want to kill your own rewards now!

although some people value their rewards more than 1 cents, I value my points as close to 10 cents a piece in some cases. so it all depends on you, but I wouldn't do anything to kill my rewards no matter what.

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There isn't anything wrong with carrying a balance, as long as you do it the right way.  You don't want your credit card to report more than a 20% or even less utilization.  You only want 1 or 2 cards reporting a balance.  Additionally, it's ok to carry a balance if you aren't paying interest on it.  I have let a statement close with a zero balance and then carried a balance on the next statement.  I then pay the balance off in full before the 3rd statement prints.  I don't pay a dime in interest, nor do I have a detrimental impact on my credit if I keep my utilization low.  That allows me to use other people's money to finance a purchase. Plus, I can make interest on my cash if I so desire.