topic Re: Should I pull the trigger on AmEx? in Credit Cards

Should I pull the trigger on AmEx?

LTomBerry — Wed, 03 Aug 2011 15:02:31 GMT

I'm very tempted to apply for an American Express Blue Cash Preferred right now but my inner voice keeps telling me to wait a year. Should I listen to him?

Here's what they will find on my EX:

(I PIF every month) (No baddies anywhere)

Open

USAA MC, $1200 Balance, $14000 limit, opened 10/2009

Discover More, $200 Balance, $2500 limit, opened 5/2010

Federal Student loan, $2400 balance, $10000 original amt, opened 09/2001

USAA Auto loan, $12000 balance, $15000 original amt, opened 07/2010

Closed

Macys CC AU from 1999

3 auto loans from 2001, 2002, 2003

2 inquiries - Apr 2010, July 2010

I had an Amex Blue for Students back in 2002 - 2003 but it has fallen off the 7 yr cliff. (Still have the acct # so they can backdate)

FICO in the 720-750 range

Income $50k

There is a big gap in the 2004-2008 range where I went through my Dave Ramsey period and paid a lot of stuff off.

My main concern is that my current open cards have been open less than 2 years, I have heard the Blue Cash is the hardest card to qualify for and they want 2+ yrs history on CCs to get it. Also, if I decide to applyand they turn me down for that card will they automatically consider me for a different card so the hard inq doesn't go to waste? I suppose I cound get a green card or clear or something, then upgrade it after 12 months. Should I try or should I wait?

Re: Should I pull the trigger on AmEx?

Anonymous — Wed, 03 Aug 2011 15:33:21 GMT

How about get green or zync card now to get backdating effect to boost AAoA and go for blue cash preferred in next 3 months?

Re: Should I pull the trigger on AmEx?

LTomBerry — Wed, 03 Aug 2011 16:09:23 GMT

That's an interesting idea. The only problem I see is that I hear you have to have a card open for something like 12 or 13 months before you can change it to a different card. I'd rather change it than open a second card - I'm not really interested in having 2 AmEx cards, especially not 2 that have annual fees. But I guess having 2 won't really hurt anything because the AAoA will backdate. Hmmm, I'm gonna have to think about your idea some more.

Re: Should I pull the trigger on AmEx?

ArisGreek — Wed, 03 Aug 2011 16:48:58 GMT

I may hold off. You do have a long credit history, but if you do not have balances reported from your CCs I believe AMEX has a rejection reason of not using your revolving lines. I've seen some folks saying that AMEX likes to see a little balance report (not excessive).

But, you only have 2 inquiries which occured last year. I think it is up to you. I probably would wait but I'll let others chime in.

Re: Should I pull the trigger on AmEx?

Anonymous — Wed, 03 Aug 2011 18:00:55 GMT

You can close green/zync before next AF hit. I'm more concerned about auto loan which is at 80% UTI will trigger auto-decline but you could recon to get manual review on that.

Re: Should I pull the trigger on AmEx?

LTomBerry — Wed, 03 Aug 2011 18:13:21 GMT

I thought balance on an installment loan was not figured into utilization the same as revolving credit. It doesn't mean I'm maxing out my credit, it just means I'm a year into a 5-year loan.

@ArisGreek, I do have balances reporting on my revolving CC lines. I put all my monthly spending on my MC and use the Discover for the 5% categories. I pay in full after the statement but before the due date so my monthly balance reported is usually in the $1-2K range unless I made a big purchase that month.

Re: Should I pull the trigger on AmEx?

LTomBerry — Wed, 03 Aug 2011 20:25:10 GMT

Next month I will receive my money from a travel voucher and I should have enough to pay off the student loan once and for all. Would I be better off doing that or putting the $2400 toward the car loan? I'm thinking pay off the SL because that will give me an extra $100 a month and it will improve my monthly debt to income ratio which I know is a big factor for AmEx.

Re: Should I pull the trigger on AmEx?

doublespaces — Fri, 05 Aug 2011 06:58:49 GMT

Don't mess up your credit mix by paying off your student loan. keep that in mind.

Re: Should I pull the trigger on AmEx?

Anonymous — Fri, 05 Aug 2011 20:13:14 GMT

Do it. I just got a plat card and from what you posted you look better than I do...

Re: Should I pull the trigger on AmEx?

IowaGuy — Fri, 05 Aug 2011 20:28:09 GMT

Make sure you contact customer service and get the 100,000 mr points new plat members have been getting. That's a 1000 home depot gc or 6 domestic roundtrips with deltas 50% transfer bonus...if your not sure what I am talking about google up American express platinum flyer talk...

Re: Should I pull the trigger on AmEx?

Creditaddict — Fri, 05 Aug 2011 20:32:07 GMT

@doublespaces wrote:
Don't mess up your credit mix by paying off your student loan. keep that in mind.

Crazy talk... I would never worry about a credit mix if I can have debt gone and not pay interest... in addition the positive trade line will still be on reports for 10 years.

If you want Blue, apply... if declined go back and try for charge card... only 1 pull.

Re: Should I pull the trigger on AmEx?

LTomBerry — Fri, 05 Aug 2011 20:51:51 GMT

I just talked to an AmEx rep who said it would be multiple pulls if I tried for different cards in close proximity. Does anyone here have any experience otherwise?

At any rate here's the plan: Get home from this deployment this month, pay off the SL with my travel voucher, and pay down the CCs before the statements close so they show ~5% util, then apply for the Blue Cash Preferred in about a month. I'll also pull an EX Fico to make sureeverything's good. I dunno if I can get the conditions to be any more optimal than that. I'll post when I apply to let everyone know how it turns out.

Re: Should I pull the trigger on AmEx?

clocktick — Fri, 05 Aug 2011 23:09:05 GMT

I have the Preferred and it's a great card in my opinion.

What is your interest rate on your student loans vs. auto? Usually they're lower and give you more time to pay. I wouldn't worry too much with the inquiries. I was approved for their Preferred with 6 inquiries on EX (2 from them already for other cards) within the last year and 10 inquiries on EX in the last 2 years. I don't think it's a hard card to get and am not sure why I keep reading this. Also, you can't buy your EX score anymore, but pulling your other ones may give you a similar indication of what's on your reports.

Please keep us updated!

Re: Should I pull the trigger on AmEx?

IowaGuy — Fri, 05 Aug 2011 23:10:25 GMT

Only allow 1 card to show a balance. Make sure the balance is low util for both the card and total lines.

Re: Should I pull the trigger on AmEx?

LTomBerry — Sat, 06 Aug 2011 00:01:22 GMT

I guess I meant I'll pull my Experian report and whatever score comes with it (Vantage) just to make sure there are no surprises.

The APR on my SL is 2.11% and the car is 4.69% so mathematically yes it is better to put it toward the car, but getting the student loan monkey off my back after 10 years will be a relief, not to mention the extra $100 a month it will free up. After a couple more deployments I should be able to pay off the car anyway.

After AmEx I plan on rounding out the CC collection with a Visa, probably BofA Cash Rewards or PenFed, then go into permanent gardening mode with one of each V,MC,AX,DSC.

Re: Should I pull the trigger on AmEx?

LTomBerry — Mon, 22 Aug 2011 16:24:35 GMT

I couldn't stand it anymore so I went for it. I figured my MC and Disc both had decent Util and paying off the SL may or may not help. Besides if I don't get it the inq will be mostly moot in a year. I got the dreaded 14 day wait message but I guess that's better than an insta-decline like they've given me before. This is going to be a long 2 weeks!

Re: Should I pull the trigger on AmEx?

Walt_K — Mon, 22 Aug 2011 16:33:31 GMT

Not sure which you applied for, but I hope it was the credit product you wanted. I noticed earlier in the thread there was a discussion about upgrading from a charge product. You can't do a product change from a charge product to a credit product. Only charge to charge and credit to credit. In any event, hope you are approved. And worst case scenario if you did go for a charge product is that you would have to take another inquiry later on to get a credit product, not really that big of a deal.

Re: Should I pull the trigger on AmEx?

LTomBerry — Mon, 22 Aug 2011 16:42:02 GMT

Nah, I decided to shoot the moon and go for the Blue Cash Preferred. Dealing with a charge card is not in my long term plan so I decided against that.

Re: Should I pull the trigger on AmEx?

LTomBerry — Mon, 22 Aug 2011 16:50:37 GMT

OK so my itchy trigger finger got the better of me again, (I know, it's only been like 15 minutes) so I hit the app status button and got the following:

Congratulations! Your application has been approved and you should receive your new card within 7-10 days.

Woohoo! Now to call them and see if they can backdate it before they actually send it out.

Re: Should I pull the trigger on AmEx?

Anonymous — Mon, 22 Aug 2011 18:30:38 GMT

@LTomBerry wrote:
OK so my itchy trigger finger got the better of me again, (I know, it's only been like 15 minutes) so I hit the app status button and got the following:

Congratulations! Your application has been approved and you should receive your new card within 7-10 days.

Woohoo! Now to call them and see if they can backdate it before they actually send it out.

Congrats, indeed! It's wonderful to hear that you were able to get the card that you actually wanted.