Why Zync?

[jforsyth]

I'd just like to start off by saying that I'm not making this thread to bash Amex or their new card. I'm a student with 5 months of history on one card and I'm about a month away from a series of applications for a second one. I'm just curious as to what people might have to say about Zync.

With that out of the way, people have been recommending application for this card a LOT recently on these boards (more than any other card I'd say). I know Amex is renowned for their customer service and is considered the gold standard in the credit world, but is this card really more desirable than:

Citi Forward,

Citi mtvU,

Discover Student,

or Chase +1?

for people with limited, yet responsible credit histories?

The glaring issue that I take with Zync when comparing it to the cards listed above is its annual fee. While the minimum $25 dollars isn't exactly steep, it seems a little out of place considering the card is being marketed towards a younger audience. Usually, a card's benefits are supposed to outweigh an annual fee. However, younger people aren't exactly the type to accumulate enormous amounts of points. For people who have Zync or another Amex charge card: how good are the rewards/services? Are they worth the fee? Is adding any of the other non-free bonus packs worth it as a student or as someone with limited income? Are the rewards better than those of the cards listed above?

Another thing that I don't understand (and this is just about Amex charge cards in general) is why they don't tell you what your credit limit is. I really, really don't see the point in this. Why do they keep you in the dark? How do you know how much you can spend before getting declined? What if you need some unexpected emergency funds? I don't understand why people would want a card that could potentially just say "no" at the drop of a hat, and I don't understand why people are under the illusion that "no pre-set spending limit" means anything other than "na-na na-na boo-boo we're not telling you what your limit is."

And finally, why a charge card over a regular credit card? This isn't really applicable to me specifically, as I always pay in full and never spend more than I already have, but it is still a clear disadvantage to not be able to carry a balance if you'd like to. I know some will argue that charge cards prevent people from accumulating debt and paying interest, but for responsible credit users I just don't see the point.

So, is this card worth it, or are people just going nuts over it because of Amex's prestige or how pretty it looks? Are people just trying to get it so they can establish an early relationship with Amex (which is a completely valid argument, as many, including me, would like to get Amex Blue down the line)? Am I a total idiot for being skeptical of this card in the first place?

Someone please fill me in. I'm young and I know I don't have all the answers...or most of them.

[Creditaddict]

I think the Zync is a great program and I think they will issue it to new people once they have at least 1 account and a credit score, so after 6 months as you mentioned. I like the rewards and being able to choose the different programs that will work best for you.

[Wolf3]

IMO, they started changing about 7 or 8 years ago and now are no better than most of the prime CC companies.

Charge cards enforce a PIF discipline that is helpful to some.    The no spending limit is great if they trust you and dangerous if they don't.    And that can change in an instant.  

I'm older and don't know all the answers, but I do know a lot more questions!

[Anonymous]

ha ha ha 1 card and credit score thats a lie i got denied for the zync cuz they say my score of 767 is not good enough nor my perfect history of 5 yrs with 2 paid of car loans and 5 credit cards no badies whatsoever and by the way i got approved for 11,600$ from local CU but amex things i am not good enough for them ........ AMEX is the worst bank ever .....

[ct850]

I just got my Zync a few weeks ago, I also applied as a 20 year old student with 7 months of spotless history on one other credit card and was instantly approved, so that wasn't an issue.

I have read that someone did the math and in order to break even on the packs, you must spend at least $2,500 in that category a year. I spend that at restaurants in 6 months or less, so that was a no brainer for me, and my "other" spending more than easily exceeds another $2,500 per year to recoup the value of the AF in points. Add that to the 10,000 point bonus and it looks like a pretty good deal to me. The Eco Pack is ehh, but is free and Trader Joe's participates which is nice. And to boot, I just got $25 worth of gift cards in the mail today just for signing up for the restaurant pack.

The only thing I am not satisfied with is that they are Membership Rewards Express points (can't transfer directly to airline FF programs and less favorable redemption rate), but I plan on moving up to Gold and Plat later on, and confirmed with a rep that if the card is upgraded, the points will become full MR, so problem solved.

Honestly, the MR is great, but I really think that the base card is easily worth the $25 AF without them because of the built-in benefits (rental car insurance, purchase, return and fraud protections, extended warranty, travel insurance). And compared to my the service with my Wells Fargo Student Cash Back card, the Amex customer service has really been a breath of fresh air; I've never waited on the phone or anything.

I'm happy with the benefits and impressed with the service, and the card is pretty anyway. My vote is go for it.

[ct850]

And with regards to the spending limit awkwardness, I have felt it too, but no problems yet. You can check your spending ability online to see if a big purchase will be declined. Just today I had to make a rather large and unusual transaction and was assured it would be approved within 2 minutes of calling.

[Anonymous]

I think you answered a lot of your own questions.   Many people apply to get in the door with Amex.  Once they're in, they can product change to a different charge card or apply for a credit card with the benefit of having a history with Amex.   Also the backdating helps, since all your future cards with Amex will have your original account opening date.   The customer service is top notch for disputes.   But many of the standard services you can find on Visa and MC now such as car rental insurance and extended warranty.

As someone noted above, the Membership Rewards Express system doesn't allow you to transfer points to frequent flyer programs.   All the points must be used within the Amex system, unless you upgrade to a regular Membership Rewards card in the future.   In that case all your points become Membership Rewards points.

[jforsyth]

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@Anonymous wrote:

 Also the backdating helps, since all your future cards with Amex will have your original account opening date.

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Wow...I didn't know about that. That is really nice...

Well thanks for all the info everyone. Appreciate it.

[ncaguy]

Hi jforsyth,

I agree with your argument. Here is my point of view:

Annual fee: I think AMEX sells their charge cards as a prestigious/luxury financial product. They add several additional services, usually insurance, to it. In this way, customers are distracted from comparing the real cost of the card with the annual fee.

No-preset spending limit: Ideally, no-preset spending limit should be equal to unlimited limit, of course, only for very credit-worthy customers. However, as charge cards become available to most people, the "no-preset spending limit" is no longer what it literally means. I think it means your credit limit can be increased automatically and frequently according to your spending, income and payment history. This idea may be a selling point to catch the eye balls of customers. Again, I think they try to sell this concept as a prestigious thing. However, as long as one has a regular credit card with enough credit limit, it doesn't make sense to get a "no-preset limit" card. I think you are right that  AMEX's "no-preset limit" is essentially equal to "we're not telling you what your limit is". But this concept may appeal to some people psychologically.

Why a charge card over a regular credit card: there is no rigorous definition for a charge card, as far as I know. I just think credit card + PIF = charge card. PIF cards usually offer higher limit and are for business and affluent individual customers. This is just a different product than regular credit cards. But the boundary between these two products gets blured these days. IMHO, in order for a charge card to be superior to regular credit cards, it has to offer much higher limit and can be used to make big purchases. I think AMEX's low-end charge cards are not real charge cards.

Overall, I think the Zync card is just another luxury "credit card" product, though a low-end one. I believe AMEX tries to differentiate their cards with those offered by other financial institutions by using the name "charge card". When comparing the real cost of AMEX charge cards with the cost of other regular credit cards, one should keep in mind that luxury products are usually priced way above their real cost.

The above is my immature opinion. Comments are welcome!

[shiftomnimega]

If you're going to get a card just for to get in the door with AMEX wouldn't it be better to apply for Clear?  The rewards are 1% (which seems to be the standard) and there is no annual fee.