topic Re: Interesting, got a pre-approval offer for Amex PRG the other day... in Credit Cards

Interesting, got a pre-approval offer for Amex PRG the other day...

galahad15 — Sat, 19 Dec 2015 19:31:08 GMT

I got a pre-approval offer for an Amex PRG in the mail yesterday. I am not planning to actually app for it -- currently in the garden, plus I am not very fond of AF-based cards anyway. J/c, what is the major incentive about why the PRG is so highly desired here on the forum, if you can also get AF-based credit cards with the same or better rewards structure, also with the ability to revolve if needed? I have never really understood the allure of Amex cards like the PRG, Platinum, etc., when they would seem to offer so much less flexibility in their basic card terms than a revolving credit card? Plus the $195 AF is no small amount of change either....if I had no choice but to pay a fee to a cc issuer, I think I would most likely prefer to pay interest rather than an AF, b/c at least with interest, I would be able to pay the balance over time?

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

Anonymous — Sat, 19 Dec 2015 19:38:49 GMT

I app'd for the PRG for a few reasons:

1. No AF first year. Easy way to see how well it fits my life and spend.
2. I generally PIF anyway and if I don't, the spend goes on my NFCU card because it's my lowest APR.
3. 50,000 MR (thank you incognito mode)
4. AF is $95 when you take the airline credit into account.
5. While it doesn't reward all travel like CSP does, extra points for booking airline tickets and gas are certainly attractive on a card like this. To me at least.

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

manyquestions — Sat, 19 Dec 2015 19:41:08 GMT

I think the charge cards being easier to get approved for is one attraction. I know people who applied for one of the AMEX revolving cards, got denied, and then applied for a charge card (with first year fee waived) as a way to get in with AMEX to build a little history in order to enable them to get the card they really want.

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

Anonymous — Sat, 19 Dec 2015 19:48:39 GMT

A 50K offer on the PRG is worth at a minimum $500 and if you use it right worth a lot more. The Platinum's 100K offer worth is $1000+. Not a whole lot more value needed to make it worthwhile to get this card. Far too many people here get hung on the 'I don't want a card with an AF' and competely lose out on some etremely valuable cards. If you pigeon hole yourself into these kind of 'rules' you're hurting yourself.

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

Anonymous — Mon, 21 Dec 2015 15:01:10 GMT

@Anonymous wrote:
I app'd for the PRG for a few reasons:

1. No AF first year. Easy way to see how well it fits my life and spend.
2. I generally PIF anyway and if I don't, the spend goes on my NFCU card because it's my lowest APR.
3. 50,000 MR (thank you incognito mode)
4. AF is $95 when you take the airline credit into account.
5. While it doesn't reward all travel like CSP does, extra points for booking airline tickets and gas are certainly attractive on a card like this. To me at least.

I have this card also and really like it. I currently have three rewards cards with annual fees and am not sure I will keep them all next year or not. I like AMEX Customer service and one thing I really like about this card is the rewards catagories are ones I spend in quite a bit. I also have CSP but only get double points for dinning. Probably should get the freedom card one day to get the extra bonus catagories. Like the Prestige card for the 4th night hotel benifit but could see myself going AMEX platnium to earn membership rewards instead of thankyou points. Gets hard having so many different rewards cards. For now I keep the prestige for travel and that 4th night free benifit or for the prece rewind and focus on PRG and CSP for travel rewards. Curious if you prefer your CSP card for rewards or you PRG card. I'm like you and PIF every month.

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

takeshi74 — Mon, 21 Dec 2015 15:17:17 GMT

@galahad15 wrote:
I am not very fond of AF-based cards anyway.

Do not focus solely on the AF. Always consider total cost/benefit, running the numbers for your own spend. I'm not saying that running the numbers will justify the card for you. I'm saying that you need to do so when considering any cards. My biggest rewards come from cards with AF's and they earn me orders of magnitude more than the AF. However, as with any subjective matter, YMMV. Everyone's situation, spend, needs/ wants, preferences, priorities, etc vary and that's why selecting cards is such a subjective matter.

@galahad15 wrote:
J/c, what is the major incentive about why the PRG is so highly desired here on the forum, if you can also get AF-based credit cards with the same or better rewards structure, also with the ability to revolve if needed?

It's never a matter of just the cards themselves but what suits the individual. Instead of trying to see if a random card suits you, sort out your needs/wants and use that to find cards that suit you. The PRG is suited to those that can leverage redemption methods with the Membership Rewards program that maximize point value and have spend that benefits from the earn rates on the PRG. It is also of benefit to those who have spend that they do not want impacting revolving utilization. People that frequently have reimbursable expenses that are reimbursed in a sufficiently timely fashion would be one example. There are other features and benefits of the PRG that people find useful such as the airline fee credit, etc.

If you need to revolve then a charge card is the wrong tool for the job even though AmEx does offer Pay Over Time to those that qualify.

Better is always highly subjective. If there are cards with better rewards structures for you and rewards are a priority then why are you worrying over cards with rewards structures that are worse for you? Definitely go with what works for you but never assume that better for you is better for everyone.

All that said, there are those that buy into the "prestige" and "image" of AmEx (not just AmEx but for other creditors and/or products as well) so you always have to consider your sources and rely on your needs/wants versus wondering why X is popular. Neither prestige nor image comes from a card. Don't rely on popularity. Rely on your needs/wants to define your criteria for selecting cards as, again, how well a given card suits an individual is a very subjective matter.

@galahad15 wrote:
I have never really understood the allure of Amex cards like the PRG, Platinum, etc., when they would seem to offer so much less flexibility in their basic card terms than a revolving credit card? Plus the $195 AF is no small amount of change either....if I had no choice but to pay a fee to a cc issuer, I think I would most likely prefer to pay interest rather than an AF, b/c at least with interest, I would be able to pay the balance over time?

You don't have to understand everything that does not suit you -- not just with cards but with any topic. However, again, do not conflate "does not suit me" with "does not suit anyone". Focus on products that work for you. If your needs/wants lead to you the PRG, Platinum, etc then consider them.

Those that are suited to the PRG have spend that will earn much more in rewards than the AF. Platinum users can make use of the premium travel benefits associated with the card.

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

galahad15 — Mon, 21 Dec 2015 17:32:14 GMT

@Anonymous wrote:
A 50K offer on the PRG is worth at a minimum $500 and if you use it right worth a lot more. The Platinum's 100K offer worth is $1000+. Not a whole lot more value needed to make it worthwhile to get this card. Far too many people here get hung on the 'I don't want a card with an AF' and competely lose out on some etremely valuable cards. If you pigeon hole yourself into these kind of 'rules' you're hurting yourself.

True and touche that the monetary bonus value derived from the cards are and of themselves a very nice reward, but after the desired bonus is earned from the card, I guess the question then becomes how is the card intended to be used in the future, as far as the longer term? If a person is the type of individual to PIF every billing cycle, I could see how it could be of further long-term use perhaps in terms of earning rewards over time. Even then (i.e., PIF every cycle) aren't the rewards that are being obtained still technically being eaten up by the AF? Kind of the same way that some posters here have mentioned that if a person is revolving a balance, s/he is having his or her rewards diluted by the interest paid on the revolving balance? (Also, looking at the numbers a certain way, isn't a $195 AF mathematically equivalent to paying $16.25 in interest every month, if the card was a revolving card with a balance?)

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

Anonymous — Mon, 21 Dec 2015 17:55:19 GMT

The PRG has been a great addition this year. I get 3x on airfaire, which adds up quickly. 2x gas and grocery an dining. Its a solid rewards card with basic categories covered. I applied for the 50k sign on bonus. Other benefits I like are the 100 airfare credit (used towards gift cards) and the premium roadside service (allows me to cancel AAA). These two benefits cover the AF and both I actually would use / pay for regardless of the card.

I am on the verge of adding the EDP to maximize my grocery / gas and non-category spending but waiting on a better sign on bonus.

i take the total likely rewards with the AF card, less the annual fee for net rewards. If that is more than the card w/o an AF, i have a winner.

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

galahad15 — Mon, 21 Dec 2015 18:12:37 GMT

A few posters have helpfully mentioned on this thread about the 3x airfare benefit and the airline statement credit among other things (also thanks for the helpful datapoints as well), but if instead you had a 2% general-purpose card that was AF-free, such as Citi DC, FNBO BucksBack, and/or some others, sans AFs, is there still a major advantage to the Amex charge cards that I am still not seeing or factoring into the equation here? One poster had mentioned roadside assistance services as well with Amex PRG, but can't you also obtain similar coverage from a no-AF MC or VISA that also has roadside benefits coverage?

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

Anonymous — Mon, 21 Dec 2015 23:57:20 GMT

@galahad15 wrote:
A few posters have helpfully mentioned on this thread about the 3x airfare benefit and the airline statement credit among other things (also thanks for the helpful datapoints as well), but if instead you had a 2% general-purpose card that was AF-free, such as Citi DC, FNBO BucksBack, and/or some others, sans AFs, is there still a major advantage to the Amex charge cards that I am still not seeing or factoring into the equation here? One poster had mentioned roadside assistance services as well with Amex PRG, but can't you also obtain similar coverage from a no-AF MC or VISA that also has roadside benefits coverage?

I think you may be conflating MRs with %. So 3x airfare really means 3MR per $ spend, and you can (potentially) redeem MRs at much more than 1MR per cent 2c per point is achievable making this 6% on airlines, and taking into account the $100 airline credit, it won;t take lots of flights for the additional earn to overcome the net $95 fee.

But as others have said, if you don't take flights often enough, or can't use MR partners, this is definately not a good match

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

Anonymous — Tue, 22 Dec 2015 00:18:25 GMT

@Anonymous wrote:
@galahad15 wrote:
A few posters have helpfully mentioned on this thread about the 3x airfare benefit and the airline statement credit among other things (also thanks for the helpful datapoints as well), but if instead you had a 2% general-purpose card that was AF-free, such as Citi DC, FNBO BucksBack, and/or some others, sans AFs, is there still a major advantage to the Amex charge cards that I am still not seeing or factoring into the equation here? One poster had mentioned roadside assistance services as well with Amex PRG, but can't you also obtain similar coverage from a no-AF MC or VISA that also has roadside benefits coverage?
I think you may be conflating MRs with %. So 3x airfare really means 3MR per $ spend, and you can (potentially) redeem MRs at much more than 1MR per cent 2c per point is achievable making this 6% on airlines, and taking into account the $100 airline credit, it won;t take lots of flights for the additional earn to overcome the net $95 fee.

But as others have said, if you don't take flights often enough, or can't use MR partners, this is definately not a good match

Very easy to get $.02 per point. I'm redeeming mine for trip to Australia on Virgin Australia and I'm getting almost $.06 per point in business class which is their highest seat level. That was with redeeming them with 25% bonus but shows that the MR points can be very valuable.

Re: Interesting, got a pre-approval offer for Amex PRG the other day...

galahad15 — Tue, 22 Dec 2015 00:21:11 GMT

Thank you for explaining more about the MR program so helpfully longtimelurker, I deeply appreciate the valuable info!