Why Amex?

[loviedovie]

I'm confused... I just looked up AMEX charge cards after forum members suggested that I apply for one. But there is such a high annual fee. If you are not able to carry a balance, you are essentially just spending your cash through this AMEX card.. so why pay them to let you earn them money? What would I get out of that?

[BornSupercharged]

The Green card has no AF for the first year. Say you open it now, then January 2014 you apply for and receive the Blue Cash Everyday (no annual fee + gets cash back etc etc). Then you close the Green card before the AF hits. Now you just have the BCE with no AF and perks, and Member Since 2013 for backdating; it's a win/win situation. 

[Revelate]

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@loviedovie wrote:

I'm confused... I just looked up AMEX charge cards after forum members suggested that I apply for one. But there is such a high annual fee. If you are not able to carry a balance, you are essentially just spending your cash through this AMEX card.. so why pay them to let you earn them money? What would I get out of that?

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Annual fees are used to offset rewards structures.  To my knowledge, every signficant lender has at least one credit card product with an AF.

Every AF should be looked at and determined if it makes sense for you, both from the financial rewards persepctive (if you offset the AF or not) or for some other reasons which various people have (like wanting a metal card which comes up here routinely).

There's others that flat out refuse to pay any AF, and that's fine too.  Really, if the card works for you, then use it happily without worrying what others think; however, if it doesn't, then don't.

[drkaje]

Amex membership has benefits but they aren't for everyone. Personally, I don't feel it's still the "I've arrived" card since they offer credit but the BCP AF pays for itself in my case. I was also able to take advantage of backdating and not have a score hit because it wasn't scored as a new account.

[Open123]

Charge cards are worthwhile if you need high monthly purchasing power, value the MR transfer program, and for the signing bonus (most cards waive the first year fee).  Also, charge cards are easier to get and *backdating," arguably the most useful of all Amex perks.

PS - You guys reply fast!  When I clicked on to reply, there were no replies yet.

[GaTech]

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.

[patsfan1453]

I have an Amex Green and BCE. I dont even use them anymore. Very inconsistent customer service, rewards are terrible and take way to long to post to your account. Citi posted my 10,000 point bonus the month I recieved it. I feel as though Amex is really over rated. I'll take Citi for rewards and Discover for customer service any day. 

[LS2982]

I agree with Bornsupercharged.. Use the Green to your advantage and cancel it next yr. for the BCP. No AF paid.

[antae]

Agree with others.  Try the Green for a year without a fee.  If you decide on a card with a AF if your rewards don't justify the AF then the card isn't for you.  The reward structure must fit your spending habits.

BCP was my first card with a AF.  The reward structure fell in line with my spending (even with the new caps), so the decision was very easy.  Good luck in with your decisions.

[E150GT]

I agree with what people are saying here.  Amex charge cards are a good way to get in the door with Amex if your credit is okay but not good enough to get their revolving products. They also let you spend quite a bit without affecting your score when it reports. The green doesn't earn a bunch of rewards unless you spend big. Now the question is is what does one do with the MR points earned during the first year if you do not plan to keep the charge and go to a revolver?