topic Re: Complicated AMEX Decision? in Credit Card Applications

Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 01:02:21 GMT

Hey FICO'ers!

So as many of us, credit addicts, know AMEX's backdating for recently new cardholders starts January 1.

On December 4, I was approved for my PRG (Premiere Rewards Gold) card. I do not plan to keep my American Express PRG card after about a year and a half strictly based on the $175 annual fee that will kick in. I would, however, like to keep my foot in the door with AMEX. I've decided a way to do that would be to get one of their no annual fee cards that would actually benefit me such as the Everyday or BCE (Blue Cash Everyday) that I would keep in my wallet for a very long time.

So here is my problem:

If I were to get a BCE or Everyday card here in the next few days, it would literally be in the sock drawer until my PRG's annual fee kicks in after the second year. Would AMEX cancel the card because of no usage? I would like for my AAoA to be extended because one of my 2015 goals is to get a Chase Freedom, but I don't want to upset AMEX. I currently have 5 inquiries on my Experian report.

So what would you folks do in my situation? Would you apply for the Everyday (or BCE) in January '15 or would you wait and apply later on in the year or right before the annual fee on the PRG kicks in? Do you think it wouldn't matter regardless?

Re: Complicated AMEX Decision?

Creditaddict — Wed, 31 Dec 2014 01:06:08 GMT

No amex won't do anything with it but i would figure out which one does better than Gold on a reward you use and just bill something monthly to it so you can probably qualify for your 61 day CLI and 6 months CLI after that so you would be 2 CLI's in by the time you close your PRG.

Re: Complicated AMEX Decision?

taxi818 — Wed, 31 Dec 2014 01:09:59 GMT

@Anonymous wrote:
Hey FICO'ers!

So as many of us, credit addicts, know AMEX's backdating for recently new cardholders starts January 1.
On December 4, I was approved for my PRG (Premiere Rewards Gold) card. I do not plan to keep my American Express PRG card after about a year and a half strictly based on the $175 annual fee that will kick in. I would, however, like to keep my foot in the door with AMEX. I've decided a way to do that would be to get one of their no annual fee cards that would actually benefit me such as the Everyday or BCE (Blue Cash Everyday) that I would keep in my wallet for a very long time.

So here is my problem:
If I were to get a BCE or Everyday card here in the next few days, it would literally be in the sock drawer until my PRG's annual fee kicks in after the second year. Would AMEX cancel the card because of no usage? I would like for my AAoA to be extended because one of my 2015 goals is to get a Chase Freedom, but I don't want to upset AMEX. I currently have 5 inquiries on my Experian report.

So what would you folks do in my situation? Would you apply for the Everyday (or BCE) in January '15 or would you wait and apply later on in the year or right before the annual fee on the PRG kicks in? Do you think it wouldn't matter regardless?

To be honest. It does not matter. That 1 year of backdating will only give a few points in any case. Now if you were backdating for many years. That's another story. Think of it as a long term relationship. Regardless of which card you get. In order not to risk account closure. Put small charge every 6 months. That simple. Provided you get approved. But in any case. AAOA is overrated at best in fico. And there's no point in trying to milk every point. Of your score. I just think backdating is overrated unless you are going back at least 3-4 years. Or 10 or more. 1 year ds so tiny in big scheme of things.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 01:28:29 GMT

... Oooh. I'm suprised! I thought I was going to see reasons to wait.

Re: Complicated AMEX Decision?

kdm31091 — Wed, 31 Dec 2014 01:31:21 GMT

I'd agree that 1 year of backdating is not going to help you much. You should open a card because you want to keep it long term if you're worried about AAOA. IMO opening a card knowing the AF is too steep for you to offset with your spending, once it kicks in, is a waste of time.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 01:32:35 GMT

Well the only reason is: Amex might deny you if you got a new account with them a month ago.

Also, go for Everyday instead of BCE. That way you can transfer your MR points from PRG to ED.

Re: Complicated AMEX Decision?

Creditaddict — Wed, 31 Dec 2014 01:33:10 GMT

why wouldn't you open the credit card version and SD the PRG until renewal vs SD the credit card that you want to keep long term?

Re: Complicated AMEX Decision?

CreditCuriosity — Wed, 31 Dec 2014 01:39:01 GMT

@Creditaddict wrote:
why wouldn't you open the credit card version and SD the PRG until renewal vs SD the credit card that you want to keep long term?

+1 alot better chances of getting 3X as well.. We know you are trying to get the spend bonus on the PRG now, but don't sock drawer new card.. sock drawer the PRG if anything once bonus is met.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 02:25:54 GMT

Very good point, guys. I have no idea why I didn't think of that in the first place.

And to answer a user above, the only reason why I got the PRG was because I knew my approval chances were greater than any other card they offer (from what folks were telling me on here) and it would be my attempt to step my foot in the door with them.

Re: Complicated AMEX Decision?

B335is — Wed, 31 Dec 2014 02:58:22 GMT

As an existing Amex Member, I'm pretty sure January is the one time you will hear consensus from this board to apply for another

Goodluck!

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 03:45:25 GMT

Since I am going to start using my new card and not my PRG (given I am approved, of course), should I get a BCE or Everyday since I only have like 200 MR points anyways? The BCE has a lot more attractive benefits to me for some reason, lol.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 05:38:01 GMT

Regardless of which one, I guess I shouldn't be too worried about it because of that extremely great benefit of being an AMEX cardholder: SP for denial, HP for approval.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 05:38:20 GMT

@Anonymous wrote:
Regardless of which one, I guess I shouldn't be too worried about it because of that extremely great benefit of being an AMEX cardholder: SP for denial, HP for approval.

Not always, but sure.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 05:40:52 GMT

Nixon, don't make me get paranoid now. You remember a few weeks back, lol.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 05:44:40 GMT

+1. Creditaddict makes sense.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 05:49:21 GMT

Agreed.

I still, unfortauntely, can't decide which one I want to apply for. I'm stuck between a Blue Cash Everyday and the Everyday.... Maybe you guys can help me here.

My spending goes like this: Restaurants (huge), gasoline, and department stores. I do like that you can transfer your points on the ED, however. I don't use Amazon, so I could care less about the sign-up bonuses and whatnot.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 06:02:06 GMT

Everyday im hearing is an easier approval than a BCE.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 06:03:43 GMT

Ouch. I wonder why? I thought they had the same underwriting.

I do, however, like that no APR for 15 months.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 06:15:47 GMT

It's definitely personal preference but I have both but use my BCE more than Everyday. I like the straight cash back vs MR points.

Re: Complicated AMEX Decision?

Anonymous — Wed, 31 Dec 2014 06:21:05 GMT

I think about the cash back and I always find myself liking that more than MR points. Ugh, such a bind. LOL.