topic how to deal with amex? in Credit Cards

how to deal with amex?

in0wh3r3ul1v3 — Mon, 05 Sep 2011 02:38:44 GMT

so i've just gotten my first amex, a ZYNC.

ultimately, i would like to have the blue cash everyday or blue cash preferred... but i know that i must wait a while before i app. i also know that i'm kind of jumping the gun, but does it make sense to have a revolving amex AND a charge? once i'm approved for blue cash, do i keep the charge card open? does that benefit me at all?

i'm in college, so i don't have substantial income... just worried that the AF on a charge AND a revolving would be too much. what do most people do with their charge after they open a revolving account with amex?

Re: how to deal with amex?

Anonymous — Mon, 05 Sep 2011 02:41:40 GMT

@in0wh3r3ul1v3 wrote:
so i've just gotten my first amex, a ZYNC.

ultimately, i would like to have the blue cash everyday or blue cash preferred... but i know that i must wait a while before i app. i also know that i'm kind of jumping the gun, but does it make sense to have a revolving amex AND a charge? once i'm approved for blue cash, do i keep the charge card open? does that benefit me at all?

i'm in college, so i don't have substantial income... just worried that the AF on a charge AND a revolving would be too much. what do most people do with their charge after they open a revolving account with amex?

I'd like to piggyback on your post and ask how long is long enough before reapping AMEX?

Re: how to deal with amex?

Anonymous — Mon, 05 Sep 2011 03:19:56 GMT

@in0wh3r3ul1v3 wrote:
so i've just gotten my first amex, a ZYNC.

ultimately, i would like to have the blue cash everyday or blue cash preferred... but i know that i must wait a while before i app. i also know that i'm kind of jumping the gun, but does it make sense to have a revolving amex AND a charge? once i'm approved for blue cash, do i keep the charge card open? does that benefit me at all?

i'm in college, so i don't have substantial income... just worried that the AF on a charge AND a revolving would be too much. what do most people do with their charge after they open a revolving account with amex?

Most of Blue cards have no AF. I suggest wait until the AF is due and try to switch it. I don't see the point of having both for you.

Re: how to deal with amex?

Anonymous — Mon, 05 Sep 2011 03:35:47 GMT

Blue cash everyday and the preferred card are not easy cards to get to begin with.

My daughter is a college student and also has the Zync. AMEX revolvers are harder to get than charge cards.

I would say wait a minimum of 1 year before applying for Blue. The longer the history you have, the better chance at approval.

I know Chase won't consider until there is a least a 2 year credit history.

The Blue card may not be the best rewards card for a student either, unless you are spending a lot on groceries and gas.

My daughter gets more use from her CITI Forward card. It has rewards for dining, entertainment and books.

Another card to look at is the DISCOVER student card. It give 5% back in rotating catagories quarterly. I would wait to apply for this one until there is at least a 6 month to 1 year credit history.

Re: how to deal with amex?

Anonymous — Mon, 05 Sep 2011 07:16:00 GMT

@Anonymous wrote:
@in0wh3r3ul1v3 wrote:
so i've just gotten my first amex, a ZYNC.

ultimately, i would like to have the blue cash everyday or blue cash preferred... but i know that i must wait a while before i app. i also know that i'm kind of jumping the gun, but does it make sense to have a revolving amex AND a charge? once i'm approved for blue cash, do i keep the charge card open? does that benefit me at all?

i'm in college, so i don't have substantial income... just worried that the AF on a charge AND a revolving would be too much. what do most people do with their charge after they open a revolving account with amex?
Most of Blue cards have no AF. I suggest wait until the AF is due and try to switch it. I don't see the point of having both for you.

The annual fee for Blue Cash Preferred is $75.

http://www304.americanexpress.com/getthecard/learn-about/BlueCash-Preferred/40600

Re: how to deal with amex?

Anonymous — Mon, 05 Sep 2011 07:18:37 GMT

@Anonymous wrote:
Blue cash everyday and the preferred card are not easy cards to get to begin with.
My daughter is a college student and also has the Zync. AMEX revolvers are harder to get than charge cards.
I would say wait a minimum of 1 year before applying for Blue. The longer the history you have, the better chance at approval.
I know Chase won't consider until there is a least a 2 year credit history.

The Blue card may not be the best rewards card for a student either, unless you are spending a lot on groceries and gas.

My daughter gets more use from her CITI Forward card. It has rewards for dining, entertainment and books.
Another card to look at is the DISCOVER student card. It give 5% back in rotating catagories quarterly. I would wait to apply for this one until there is at least a 6 month to 1 year credit history.

+1 on Citi Forward's rewards probably working best for a college student.

I don't know if OP needs to wait 1 year before apping for Blue Cash Preferred though. I think we'd need to know how clean OP's report is, and what his/her revolving history looks like.

Re: how to deal with amex?

Anonymous — Mon, 05 Sep 2011 07:25:48 GMT

@in0wh3r3ul1v3 wrote:
so i've just gotten my first amex, a ZYNC.

ultimately, i would like to have the blue cash everyday or blue cash preferred... but i know that i must wait a while before i app. i also know that i'm kind of jumping the gun, but does it make sense to have a revolving amex AND a charge? once i'm approved for blue cash, do i keep the charge card open? does that benefit me at all?

i'm in college, so i don't have substantial income... just worried that the AF on a charge AND a revolving would be too much. what do most people do with their charge after they open a revolving account with amex?

in0wh3r3ul1v3--

You need to spend a lot of money on groceries to make Blue Cash Preferred payoff compared to other cards. And, keep in mind, that the groceries must be purchases from a merchant who is coded as grocery to count (no Wal-Mart, Target, Costco, etc.).

Some algebra tells us that comparing Blue Cash Everyday and Blue Cash Preferred (soley on the basis of grocery purchases), one would need to spend more than $2,500/year ($48.08/week) on groceries just to break even with the $75 annual fee.

Z*6%(0.06) - Z*3%(0.03) = $75
0.06Z-0.03Z=$75
0.03Z=$75
Z=$75/0.03
Z=$2,500

Re: how to deal with amex?

SevenNEW — Mon, 05 Sep 2011 12:15:07 GMT

@Anonymous wrote:
@in0wh3r3ul1v3 wrote:
so i've just gotten my first amex, a ZYNC.

ultimately, i would like to have the blue cash everyday or blue cash preferred... but i know that i must wait a while before i app. i also know that i'm kind of jumping the gun, but does it make sense to have a revolving amex AND a charge? once i'm approved for blue cash, do i keep the charge card open? does that benefit me at all?

i'm in college, so i don't have substantial income... just worried that the AF on a charge AND a revolving would be too much. what do most people do with their charge after they open a revolving account with amex?
in0wh3r3ul1v3--

You need to spend a lot of money on groceries to make Blue Cash Preferred payoff compared to other cards. And, keep in mind, that the groceries must be purchases from a merchant who is coded as grocery to count (no Wal-Mart, Target, Costco, etc.).

Some algebra tells us that comparing Blue Cash Everyday and Blue Cash Preferred (soley on the basis of grocery purchases), one would need to spend more than $2,500/year ($48.08/week) on groceries just to break even with the $75 annual fee.

Z*6%(0.06) - Z*3%(0.03) = $75
0.06Z-0.03Z=$75
0.03Z=$75
Z=$75/0.03
Z=$2,500

True, and there are links that did this math fairly well. Also, don't forget that BCP gives 3% back on gas...

Re: how to deal with amex?

Anonymous — Mon, 05 Sep 2011 14:18:30 GMT

@SevenNEW wrote:
@Anonymous wrote:
@in0wh3r3ul1v3 wrote:
so i've just gotten my first amex, a ZYNC.

ultimately, i would like to have the blue cash everyday or blue cash preferred... but i know that i must wait a while before i app. i also know that i'm kind of jumping the gun, but does it make sense to have a revolving amex AND a charge? once i'm approved for blue cash, do i keep the charge card open? does that benefit me at all?

i'm in college, so i don't have substantial income... just worried that the AF on a charge AND a revolving would be too much. what do most people do with their charge after they open a revolving account with amex?
in0wh3r3ul1v3--

You need to spend a lot of money on groceries to make Blue Cash Preferred payoff compared to other cards. And, keep in mind, that the groceries must be purchases from a merchant who is coded as grocery to count (no Wal-Mart, Target, Costco, etc.).

Some algebra tells us that comparing Blue Cash Everyday and Blue Cash Preferred (soley on the basis of grocery purchases), one would need to spend more than $2,500/year ($48.08/week) on groceries just to break even with the $75 annual fee.

Z*6%(0.06) - Z*3%(0.03) = $75
0.06Z-0.03Z=$75
0.03Z=$75
Z=$75/0.03
Z=$2,500
True, and there are links that did this math fairly well. Also, don't forget that BCP gives 3% back on gas...

I'm about to switch my primary spending card over to Blue Cash Preferred from Blue Cash (once I get my SPG minimum spend finished), and I didn't really take the extra 1% (from 2% to 3%) gas rewards for Blue Cash Preferred compared to Blue Cash Everyday into consideration.

Here's why:

1) If I'm really interested in gas rewards, I should be considering PenFed's Visa Platinum Cashback Rewards Card. The cash back is 5% on gas, and it is credited to your statement every month (no accuring rewards, and having to redeem them).

2) Based on the car I drive (36 mpg average), my annual mileage (10,000 miles/year) and my budgeted average cost for a gallon of gas ($3.75), I estimate that the difference between Blue Cash Preferred and Blue Cash Everyday will amount to less than $11/year.

Re: how to deal with amex?

SevenNEW — Mon, 05 Sep 2011 18:41:57 GMT

True, and there are links that did this math fairly well. Also, don't forget that BCP gives 3% back on gas...
I'm about to switch my primary spending card over to Blue Cash Preferred from Blue Cash (once I get my SPG minimum spend finished), and I didn't really take the extra 1% (from 2% to 3%) gas rewards for Blue Cash Preferred compared to Blue Cash Everyday into consideration.

Here's why:

1) If I'm really interested in gas rewards, I should be considering PenFed's Visa Platinum Cashback Rewards Card. The cash back is 5% on gas, and it is credited to your statement every month (no accuring rewards, and having to redeem them).

2) Based on the car I drive (36 mpg average), my annual mileage (10,000 miles/year) and my budgeted average cost for a gallon of gas ($3.75), I estimate that the difference between Blue Cash Preferred and Blue Cash Everyday will amount to less than $11/year.

Makes perfect sense -- literally, YMMV!