topic Re: AMEX Pre-paid card...will it help? in Credit Cards

AMEX Pre-paid card...will it help?

Anonymous — Wed, 07 Sep 2011 23:06:56 GMT

After I applied for Zync and was denied (twice) I kept getting emails from AMEX telling me to try their pre-paid card. So I bit. Been using it for a couple months now.

My question is, when I go to apply for a real AMEX in the future, will it benefit me at all having this card? I don't know if it would show up in their system when I apply or what. I figured if nothing else I could call and do a recon (if I got denied again) and tell them I've been giving them my business via the prepaid card for X amount of months, hoping it'd sway them a little. Because I know even though I pay no fees, they're making money off all of my purchases.

Any thoughts? I'm just curious...it'll be a while before I apply, but maybe someone else has had experience with this. The card is usefull for me regardless, because it's an easy way for me to budget myself (I only load x amount of dollars every 2 weeks for "luxury" items, so I don't overspend). Plus I just like having an AMEX...even if it's prepiad.

Re: AMEX Pre-paid card...will it help?

bobebob — Thu, 08 Sep 2011 00:16:13 GMT

@Anonymous wrote:
After I applied for Zync and was denied (twice) I kept getting emails from AMEX telling me to try their pre-paid card. So I bit. Been using it for a couple months now.

My question is, when I go to apply for a real AMEX in the future, will it benefit me at all having this card? I don't know if it would show up in their system when I apply or what. I figured if nothing else I could call and do a recon (if I got denied again) and tell them I've been giving them my business via the prepaid card for X amount of months, hoping it'd sway them a little. Because I know even though I pay no fees, they're making money off all of my purchases.

Any thoughts? I'm just curious...it'll be a while before I apply, but maybe someone else has had experience with this. The card is usefull for me regardless, because it's an easy way for me to budget myself (I only load x amount of dollars every 2 weeks for "luxury" items, so I don't overspend). Plus I just like having an AMEX...even if it's prepiad.

My best guess would be that the pre-paid card will not help you. There is nothing that show up from a pre-paid card in your credit report and that is what will probably matter.

Your best bet is to start with a secured card to build your credit rating. They want to see a certain amount of time where you show that you pay CC acounts on time to be comfortable with offering you an unsecured card. And AmEx tends to be pickier than others about history.

Re: AMEX Pre-paid card...will it help?

Anonymous — Thu, 08 Sep 2011 01:07:22 GMT

@bobebob wrote:
My best guess would be that the pre-paid card will not help you. There is nothing that show up from a pre-paid card in your credit report and that is what will probably matter.

Your best bet is to start with a secured card to build your credit rating. They want to see a certain amount of time where you show that you pay CC acounts on time to be comfortable with offering you an unsecured card. And AmEx tends to be pickier than others about history.

Appreciate the response, but I think you misunderstood me. I know prepaid cards don't report on my credit, I was wondering if it would at all factor into AMEX's decision, since it's their prepaid card. Because I know it's a big deal with AMEX if you have a history with them...but I don't think a prepaid account would count.

I already have 3 unsecured CC's, so I don't need a secured card. I'd go for an AMEX secured if they offered it. Really wanting to get in with AMEX as soon as I can.

Re: AMEX Pre-paid card...will it help?

flyingmd — Thu, 08 Sep 2011 01:12:10 GMT

NO - it will not help you get a real AMEX card at all. Sorry

Re: AMEX Pre-paid card...will it help?

Red1Blue — Thu, 08 Sep 2011 01:42:52 GMT

What is the reason they gave you for decline? You might want to look into clearing the issues on your CR and then go for Zync again. It is the most easy to get card.

Re: AMEX Pre-paid card...will it help?

Anonymous — Thu, 08 Sep 2011 01:49:15 GMT

I believe it was because my FICO was too low and I have a collections on my report. The collections is SUPPOSED to be coming off soon, but we'll see. The other reason my scores were so low was because 1) I'm new to credit, so my 3 CC's are all less than a year old, and 2) I have a crapload of INQ on my reports.

If this collection gets off and my scores are upper 600's, I may reapply. It's a new collection so I imagine it's greatly affecting my score....hopefully getting it taken off will give me a sizeable boost.

Re: AMEX Pre-paid card...will it help?

flyingmd — Thu, 08 Sep 2011 14:17:11 GMT

AMEX generally requires at least 12-18 months of history (except college students sometimes). That has been the consensus of people's experience on this board. Good luck.

Re: AMEX Pre-paid card...will it help?

cdtotten — Thu, 08 Sep 2011 14:42:18 GMT

Not to mention that no creditor is going to approve someone who has a recent collection. Having a lot of inquiries is another reason that you can be declined. If I were you, I would:

1. Do my best to get the collection removed - if you cannot, then you are going to have trouble getting an AMEX at all.

2. Wait until all those credit inquries age off your report. When the computer reviews your app and sees a lot of INQs, you will usually be declined automatically.

3. Establish a solid 2 years of positive credit history

Then if you still want an AMEX, apply.

I can't see any reason why a pre-paid card would be considered at all with AMEX. It proves nothing to them about being able to handle credit, which is the whole point of past experience.

Re: AMEX Pre-paid card...will it help?

Anonymous — Thu, 08 Sep 2011 14:46:10 GMT

Yea weird... Amex rep on Twitter told me to open a checking and savings account with them. I looked endlessly and couldnt find out what she was talking about by checking and found out it's one of those prepaid cards.. Idk why she'd tell me opening one would help if it really doesnt?

Re: AMEX Pre-paid card...will it help?

llecs — Thu, 08 Sep 2011 15:42:49 GMT

Hmmm...I wonder if the pre-paid cards help with backdating [when you apply for future Amex CCs]?

Re: AMEX Pre-paid card...will it help?

Anonymous — Thu, 08 Sep 2011 15:44:18 GMT

I think that any kind of relationship with them helps build a future relationship with the credit or charge card department. I've had a Personal Savings account with them for since jan 10 and was recently approved for a plat card after previously being declined.

So yes, as their rep said open some accounts with them and work on the other stuff others have mentioned.

Re: AMEX Pre-paid card...will it help?

Anonymous — Thu, 08 Sep 2011 15:58:46 GMT

@jmzd is there a min balance you need to keep in that savings or a reg amount you would deposit in your experience? I have 2 savings accounts and don't need another but wouldnt mind shelling $100 into a bank account and leaving it be while I work my credit to a good enough score for them.

Re: AMEX Pre-paid card...will it help?

steve23111 — Sat, 24 Dec 2011 11:46:26 GMT

I know this thread is a few months old but I just came across something interesting on the AMEX Prepaid web site that I thought y'all might be interested in. Take a look at the FAQ section on the AMEX Prepaid web site (here)and scroll all the way down to the section talking about "Make Your Move." I have never noticed this section before and can't find any record of it ever being discussed on this board.

Apparently when you have their Prepaid card, they are now monitoring your usage and will proactively reach out to responsible card holders with an offer to apply for a charge card product after six months (I would assume it would be a Zync, but that's just a hunch). They do emphasize that the credit report is still taken into consideration at the time of the application for the charge product (IOW, hard pull) and that the prepaid card still does not report anything to the bureaus.

It does look like this prepaid card is now a useful tool in establishing a relationship with AMEX with a limited credit history.

Re: AMEX Pre-paid card...will it help?

-Cain- — Sat, 24 Dec 2011 16:26:22 GMT

Good eye steve23111! I do believe that is new, as I had looked through the FAQs myself previously for that type of info and couldn't find it. It appears the prepaid care will be a useful tool for some.

Re: AMEX Pre-paid card...will it help?

LS2982 — Sat, 24 Dec 2011 16:57:30 GMT

@Red1Blue wrote:
What is the reason they gave you for decline? You might want to look into clearing the issues on your CR and then go for Zync again. It is the most easy to get card.

Re: AMEX Pre-paid card...will it help?

LS2982 — Sat, 24 Dec 2011 17:12:33 GMT

I'd feel tainted carrying this card around. Like im not wanted by AMEX so here take these scraps. No thank you, I'll improve my credit on my own and get my AMEX like every cardmember has by the strength of my creditworthiness.

Re: AMEX Pre-paid card...will it help?

Anonymous — Sat, 24 Dec 2011 17:15:26 GMT

@LS2982 wrote:
I'd feel tainted carrying this card around. Like im not wanted by AMEX so here take these scraps. No thank you, I'll improve my credit on my own and get my AMEX like every cardmember has by the strength of my creditworthiness.

Some may not have a choice, and some may be starting out and thier parents want to teach them responsibility. Myself I had a debit card since I was 14, learning about budgeting and making sure I had enough money before swping that precious plastic card.

Re: AMEX Pre-paid card...will it help?

LS2982 — Sat, 24 Dec 2011 17:18:43 GMT

@Anonymous wrote:
@LS2982 wrote:
I'd feel tainted carrying this card around. Like im not wanted by AMEX so here take these scraps. No thank you, I'll improve my credit on my own and get my AMEX like every cardmember has by the strength of my creditworthiness.
Some may not have a choice, and some may be starting out and thier parents want to teach them responsibility. Myself I had a debit card since I was 14, learning about budgeting and making sure I had enough money before swping that precious plastic card.

I agree for the younger crowd it's a good idea. For someone older and trying to rebuild, it feels like a slap in the face handing that card to someone for payment. Man up, get where you got to be and earn your card.

Re: AMEX Pre-paid card...will it help?

Anonymous — Sat, 24 Dec 2011 17:21:10 GMT

The card itself looks pretty cool imo.. I wouldn't mind having that.

Clicky

Re: AMEX Pre-paid card...will it help?

LS2982 — Sat, 24 Dec 2011 17:22:31 GMT

@Anonymous wrote:
The card itself looks pretty cool imo.. I wouldn't mind having that.

Clicky

Yea it does look nice, but that "prepaid" above the AMEX logo is enough for me to pass on it. Put it on the back in small letters at least let the cardholder have a sense of pride lmao.