topic Re: For what they offer, are the Amex charge card AF justified? in Credit Cards

For what they offer, are the Amex charge card AF justified?

Denny33142 — Mon, 11 Feb 2013 03:55:23 GMT

I was having a conversation with my brother about credit cards and he told me that he cancelled his PRG because the AF was too high and that he already has a Chase Sapphire with similar benifits but no AF.

This got me thinking, There are many cards out there with no AF that offer similar or better rewards than the AMEX charge cards, Even the CSP which is the top tier Chase card has a lower AF than even the Amex Gold.

So if you have an annual income of <30K why would you want a charge card? It would seem to me like you would need to spend a good amount of your income just to break even with Green/Gold/PRG....probably more than you could spend if you made less than 30K. I would say that out of all the Charge Cards the Zync would be the only one that would have truly been worth it, Since you would only need to spend about 2.5K to break even.

Really from what i have gathered there are 2 reasons why you would want to have an Amex Charge Card:

Backdating

The sense of Prestige

Keep in mind that this thread is about people who have a charge card with a lower income, obviously if you run $50K+ through your card then this thread wouldn't make too much logic to you, Also i am not making this thread to bash AMEX in any way.

Re: For what they offer, are the Amex charge card AF justified?

navigatethis12 — Mon, 11 Feb 2013 03:56:22 GMT

I suggest you put your thick skin on; I reckon you will need it.

Re: For what they offer, are the Amex charge card AF justified?

Anonymous — Mon, 11 Feb 2013 03:57:32 GMT

I was wondering the same thing. Except when they have those juicy sign up bonuses of 25k MR points or higher w/ annual fee waived for first year. I guess you could always cancel before the annual fee hits and wait 13 months to repeat the cycle...

Re: For what they offer, are the Amex charge card AF justified?

Swapmeet — Mon, 11 Feb 2013 03:58:44 GMT

I am not sure that the Amex charge cards were designed for people who make les than 30k per year.

Re: For what they offer, are the Amex charge card AF justified?

chnceit — Mon, 11 Feb 2013 04:02:12 GMT

Dont forget to add current cardmembers are SPd if denied for another card and revolvers 3Xs CLI at 61 days never heard of with other lenders

I believe they made different levels of Charge cards for income reasons. IMO.

Re: For what they offer, are the Amex charge card AF justified?

jsucool76 — Mon, 11 Feb 2013 04:04:55 GMT

Even if you are pushing 50k+ through your charge card, there are still MUCH better options. Obviously cards like the plat, you pay for benefits/perks, not rewards, but with the green, gold, and even PRG, no matter how much you spend on them you can still get better rewards elsewhere, cheaper.

Re: For what they offer, are the Amex charge card AF justified?

navigatethis12 — Mon, 11 Feb 2013 04:08:43 GMT

@chnceit wrote:
revolvers 3Xs CLI at 61 days never heard of with other lenders

The thing with American Express is that you can only get an increase of up to three times the current limit. On a 1000 card that is only 3000, while with other lenders you can ask for any amount you want and most will counter with something, but they do not restrict you to just three times the limit. Many lenders let you request an increase whenever you want, not making you wait sixty-one days from opening the account. Their six month rule per cardholder is also rubbish in my opinion. With General Electric I went from 1000 - 10000 in one month. This was through normal customer service channels, not the analyst number. With American Express that would have taken over one year. This is on a card that can be used anywhere, not just Dillards.

Re: For what they offer, are the Amex charge card AF justified?

Open123 — Mon, 11 Feb 2013 04:14:27 GMT

If you have lots of MR points accrued, you must have a charge card (or, fee MR Open card) to transfer points to airlines.

Re: For what they offer, are the Amex charge card AF justified?

Anonymous — Mon, 11 Feb 2013 04:19:22 GMT

You're paying more for the buying power and the protections that come with the cards than you are the rewards.

most average people can charge more on their AMEX Charge cards than they can on their personal credit cards, at the time I got mine my highest limit was 1200$ and my total limits were around 4k. I was able to Charge over 4k on my card in just my second month of having it. It's a great option for people who travel for work and get reimbursed, you are no tying up your personal credit or money and it doesn't count against your utilization so it's not affecting your credit score like a normal card would

Re: For what they offer, are the Amex charge card AF justified?

jsucool76 — Mon, 11 Feb 2013 04:24:44 GMT

Yeah but if you're travelling a lot for work, chances are between that, and your personal spending, you're spending enough to offset the AF.

Re: For what they offer, are the Amex charge card AF justified?

chnceit — Mon, 11 Feb 2013 04:26:16 GMT

@navigatethis12 wrote:
@chnceit wrote:
revolvers 3Xs CLI at 61 days never heard of with other lenders

The thing with American Express is that you can only get an increase of up to three times the current limit. On a 1000 card that is only 3000, while with other lenders you can ask for any amount you want and most will counter with something, but they do not restrict you to just three times the limit. Many lenders let you request an increase whenever you want, not making you wait sixty-one days from opening the account. Their six month rule per cardholder is also rubbish in my opinion. With General Electric I went from 1000 - 10000 in one month. This was through normal customer service channels, not the analyst number. With American Express that would have taken over one year. This is on a card that can be used anywhere, not just Dillards.

GE is one lender that is currently generous with CLI's, but does not offer low APR which AMEX does.

Also AMEX is considered as conservative and GE not so.....

Re: For what they offer, are the Amex charge card AF justified?

Anonymous — Mon, 11 Feb 2013 04:34:04 GMT

@chnceit wrote:
@navigatethis12 wrote:
@chnceit wrote:
revolvers 3Xs CLI at 61 days never heard of with other lenders

The thing with American Express is that you can only get an increase of up to three times the current limit. On a 1000 card that is only 3000, while with other lenders you can ask for any amount you want and most will counter with something, but they do not restrict you to just three times the limit. Many lenders let you request an increase whenever you want, not making you wait sixty-one days from opening the account. Their six month rule per cardholder is also rubbish in my opinion. With General Electric I went from 1000 - 10000 in one month. This was through normal customer service channels, not the analyst number. With American Express that would have taken over one year. This is on a card that can be used anywhere, not just Dillards.
GE is one lender that is currently generous with CLI's, but does not offer low APR which AMEX does.

Also AMEX is considered as conservative and GE not so.....

GE cards grow super fast and they give people limits much higher than what they have had in the past, but they're APR is normally pretty high so it's really hard to use those limits

Re: For what they offer, are the Amex charge card AF justified?

chnceit — Mon, 11 Feb 2013 04:45:37 GMT

@Anonymous wrote:
@chnceit wrote:
@navigatethis12 wrote:
@chnceit wrote:
revolvers 3Xs CLI at 61 days never heard of with other lenders

The thing with American Express is that you can only get an increase of up to three times the current limit. On a 1000 card that is only 3000, while with other lenders you can ask for any amount you want and most will counter with something, but they do not restrict you to just three times the limit. Many lenders let you request an increase whenever you want, not making you wait sixty-one days from opening the account. Their six month rule per cardholder is also rubbish in my opinion. With General Electric I went from 1000 - 10000 in one month. This was through normal customer service channels, not the analyst number. With American Express that would have taken over one year. This is on a card that can be used anywhere, not just Dillards.
GE is one lender that is currently generous with CLI's, but does not offer low APR which AMEX does.

Also AMEX is considered as conservative and GE not so.....
GE cards grow super fast and they give people limits much higher than what they have had in the past, but they're APR is normally pretty high so it's really hard to use those limits

Re: For what they offer, are the Amex charge card AF justified?

navigatethis12 — Mon, 11 Feb 2013 04:46:19 GMT

@chnceit wrote:
GE is one lender that is currently generous with CLI's, but does not offer low APR which AMEX does.

Also AMEX is considered as conservative and GE not so.....

I was just stating that some lenders give high limits in a short period of time. Interest rate means nothing to me as I never have and never will carry a balance when the interest rate is not zero.

@Anonymous wrote:

GE cards grow super fast and they give people limits much higher than what they have had in the past, but they're APR is normally pretty high so it's really hard to use those limits

I don't see how a high interest rate makes a card difficult to use. If you need to carry a balance you would obviously do it on another card. I have no idea what the interest rate is on the General Electric cards I have.

Re: For what they offer, are the Amex charge card AF justified?

Denny33142 — Mon, 11 Feb 2013 04:51:12 GMT

I don't think many jobs that require you to travel would pay you 30K per year, I think we can all agree that most people in this income range will not be doing a great deal of traveling.

I am just trying to figure out why people in this income range have a charge card or want one so badly, and what they think the benifits of such a card will actually give them.

Also talking about APR is a moot point since you cannot normally carry a balance on a charge card.

Re: For what they offer, are the Amex charge card AF justified?

E150GT — Mon, 11 Feb 2013 04:53:03 GMT

The backdating is nice. Also, they are a good way to get in with amex. I have not been a customer long enough with amex to get a revolver, but I was able to get the green. Now if I am ready to go to a revolver I can just apply and if I dont get it, its a soft pull and if I do get it the account gets backdated. I do like my green but I have been seriously thinking of getting rid of it in a year or so and getting an MB amex as it will earn MR points at a faster rate than my green and it costs the same. I could also use the voucher at dealer for accessories.

Re: For what they offer, are the Amex charge card AF justified?

navigatethis12 — Mon, 11 Feb 2013 05:02:28 GMT

@Denny33142 wrote:
I don't think many jobs that require you to travel would pay you 30K per year, I think we can all agree that most people in this income range will not be doing a great deal of traveling.

I am just trying to figure out why people in this income range have a charge card or want one so badly, and what they think the benifits of such a card will actually give them.

It doesn't apply to me, but I believe you were right in the first post about people getting for the "prestige" of having an American Express card. Even the $25 for the Zync is outrageous to me for such a worthless card.

@E150GT wrote:
The backdating is nice. Also, they are a good way to get in with amex. I have not been a customer long enough with amex to get a revolver, but I was able to get the green.

I am not sure where you are getting this information from. I applied for the Blue Cash Everyday and received it straight away, as well as the Simply Cash. You do not need to obtain a charge card before receiving a revolving credit card.

Re: For what they offer, are the Amex charge card AF justified?

E150GT — Mon, 11 Feb 2013 05:04:52 GMT

youre right, you do not need one, but I think that I would have. I applied for the BCE and was denied. I was approved for the green.

Re: For what they offer, are the Amex charge card AF justified?

bluesnowman — Mon, 11 Feb 2013 06:00:56 GMT

tbh, the only reason I got my PRG was because I really wanted an Amex (but I didnt think I would get approved for a revolver, but I was certain that I had a chance at a charge card) and it helped me get in. But I probably will cancel if I am approved for the BCE in a few months. The PRG is good if you travel a good amount and spend enough for the annual fee. It is a good card IMO, but I think it is better if I close or cancel it now and go for the BCE (which meets my current needs) soon and maybe open up a charge card later on after graduation.

Re: For what they offer, are the Amex charge card AF justified?

Swapmeet — Mon, 11 Feb 2013 06:32:27 GMT

Just for the record, you are trying to compare a GE retail store card to an Amex revolver. GE is one company that is very generous with credit limits, loose on underwriting, and only uses soft pulls while they let you ask for a cli every day. I do not think that there are many card companies that operate that way. Let's not compare apples and oranges. I have not heard of another company that does that. Have you? 3x CLI at 61 days and another at 6 months is more than fair. You go to the extreme and use 1,000 credit limits as your example, but what if they started out at 5k? That is 15k at 61 days. And 25k 6 mos later, on your word alone. Seems pretty generous to me.