topic Re: AMEX Prepaid or wait for BCE? in Credit Cards

AMEX Prepaid or wait for BCE?

Anonymous — Fri, 01 Mar 2013 20:33:26 GMT

Has anyone had experience with Amex Prepaid graduating to another card, namely the BCE? I'm anticipating getting the BCE in September, but I received an offer today for the Prepaid with no credit check (I failed the app on the BCE a few days ago). I'm hoping it'll be a shoe in the door, even though it's a different class of card. So far, Amex CSRs don't know... I'm on hold for my fourth department transfer.

Re: AMEX Prepaid or wait for BCE?

Alcibiades — Fri, 01 Mar 2013 20:36:59 GMT

From what I've seen, AMEX has graduated very few prepaid cards to credit products...

Re: AMEX Prepaid or wait for BCE?

sakhalin070 — Fri, 01 Mar 2013 21:20:05 GMT

Your best chance at getting in the door with AMEX is through a charge card (since you already got denied for the BCE app). Prepaid cards do not contribute to your credit history and AMEX and other credit lenders won't see/care that you have prepaid cards. If I were you, I'd apply for the Green to get in the door with AMEX and then eventually apply for the BCE.

Re: AMEX Prepaid or wait for BCE?

Alcibiades — Fri, 01 Mar 2013 21:24:53 GMT

@sakhalin070 wrote:
Your best chance at getting in the door with AMEX is through a charge card (since you already got denied for the BCE app). Prepaid cards do not contribute to your credit history and AMEX and other credit lenders won't see/care that you have prepaid cards. If I were you, I'd apply for the Green to get in the door with AMEX and then eventually apply for the BCE.

Amex claims that it monitors usage and activity of its own prepaid cards to identify customers that would be good candidate for charge cards after 6 months activity. In practice, I haven't seen many people on forums saying that this has worked.

Re: AMEX Prepaid or wait for BCE?

sakhalin070 — Fri, 01 Mar 2013 21:41:04 GMT

@Alcibiades wrote:
@sakhalin070 wrote:
Your best chance at getting in the door with AMEX is through a charge card (since you already got denied for the BCE app). Prepaid cards do not contribute to your credit history and AMEX and other credit lenders won't see/care that you have prepaid cards. If I were you, I'd apply for the Green to get in the door with AMEX and then eventually apply for the BCE.
Amex claims that it monitors usage and activity of its own prepaid cards to identify customers that would be good candidate for charge cards after 6 months activity. In practice, I haven't seen many people on forums saying that this has worked.

I see. Well in that case, it wouldn't hurt the OP to try it out since there is no credit check.

Re: AMEX Prepaid or wait for BCE?

Revelate — Fri, 01 Mar 2013 23:20:14 GMT

@sakhalin070 wrote:
@Alcibiades wrote:
@sakhalin070 wrote:
Your best chance at getting in the door with AMEX is through a charge card (since you already got denied for the BCE app). Prepaid cards do not contribute to your credit history and AMEX and other credit lenders won't see/care that you have prepaid cards. If I were you, I'd apply for the Green to get in the door with AMEX and then eventually apply for the BCE.
Amex claims that it monitors usage and activity of its own prepaid cards to identify customers that would be good candidate for charge cards after 6 months activity. In practice, I haven't seen many people on forums saying that this has worked.
I see. Well in that case, it wouldn't hurt the OP to try it out since there is no credit check.

Except it only helps (maybe) with Amex, and it doesn't with any other lender... realistically one's better off spending through some other credit card that will show utilization and therefore profitability for every other lender as well as Amex.

That said, I had the pre-paid for a month and used it fairly regularly; however, after reading the updated fine print (which I likely just missed the first time) it really didn't look all that attractive. I think *maybe* one or two folks here received an email offer to apply for an alternate card; I did not, but was approved for a Zync and a BCP with apparently marginal scores without invitation. Hard for me to say if the prepaid helped or not though I doubt it since I didn't use it much after that first month.

Personally if I were the OP, I'd simply go the charge card route sometime this year instead. In fact, that's what I did. Prepaid really isn't worthwhile when looked at building a credit report, it may help with Amex specifically, but their charge products aren't terribly difficult to obtain anyway within a year of establishing positive history.

Re: AMEX Prepaid or wait for BCE?

toppers555 — Sat, 02 Mar 2013 00:42:08 GMT

@Revelate wrote:
@sakhalin070 wrote:
@Alcibiades wrote:
@sakhalin070 wrote:
Your best chance at getting in the door with AMEX is through a charge card (since you already got denied for the BCE app). Prepaid cards do not contribute to your credit history and AMEX and other credit lenders won't see/care that you have prepaid cards. If I were you, I'd apply for the Green to get in the door with AMEX and then eventually apply for the BCE.
Amex claims that it monitors usage and activity of its own prepaid cards to identify customers that would be good candidate for charge cards after 6 months activity. In practice, I haven't seen many people on forums saying that this has worked.
I see. Well in that case, it wouldn't hurt the OP to try it out since there is no credit check.
Except it only helps (maybe) with Amex, and it doesn't with any other lender... realistically one's better off spending through some other credit card that will show utilization and therefore profitability for every other lender as well as Amex.

That said, I had the pre-paid for a month and used it fairly regularly; however, after reading the updated fine print (which I likely just missed the first time) it really didn't look all that attractive. I think *maybe* one or two folks here received an email offer to apply for an alternate card; I did not, but was approved for a Zync and a BCP with apparently marginal scores without invitation. Hard for me to say if the prepaid helped or not though I doubt it since I didn't use it much after that first month.

Personally if I were the OP, I'd simply go the charge card route sometime this year instead. In fact, that's what I did. Prepaid really isn't worthwhile when looked at building a credit report, it may help with Amex specifically, but their charge products aren't terribly difficult to obtain anyway within a year of establishing positive history.

Pretty much what Revelate said. I got a prepaid card about a month or 2 before applying for blue cash. all previouse app were declined. I dunno if it was fact I had prepaid card, or that recently I opened a simply cash card with them.

Re: AMEX Prepaid or wait for BCE?

LS2982 — Sat, 02 Mar 2013 00:49:20 GMT

@Anonymous wrote:
Has anyone had experience with Amex Prepaid graduating to another card, namely the BCE? I'm anticipating getting the BCE in September, but I received an offer today for the Prepaid with no credit check (I failed the app on the BCE a few days ago). I'm hoping it'll be a shoe in the door, even though it's a different class of card. So far, Amex CSRs don't know... I'm on hold for my fourth department transfer.

AFAIK AMEX does not graduate any prepaid cards to a credit product. You would have to apply for the card. They may send you a pre-approval invite tho from good usage on the prepaid card.

Re: AMEX Prepaid or wait for BCE?

Anonymous — Sat, 02 Mar 2013 02:08:35 GMT

Thank you for the responses so far. It seems that the answer is no. Still, I'll be interested to hear any answer leaning toward yes, based on getting an approval and the rep saying that having the prepaid helped.

I called twice today, and after 7 or 8 transfers, I finally got an answer from a rep in the approvals dept that the prepaid is not considered because it does not play a role on credit (I felt like saying, "Well, duh!"). I pressed my point, saying that the main reason I thought it may be beneficial is because I would be using a product of the company. Still, no. Then I asked, "Even if I carry a balance over and keep adding the maximum $2500 per month?" Still...no. And there you have it.

I just have my sights set on the BCE, so was worth asking anyway. I have excellent usage on my other cards, but want an Amex.

Re: AMEX Prepaid or wait for BCE?

Anonymous — Sat, 02 Mar 2013 03:12:40 GMT

Prepaid cards are not credit in any sense - they are like a debit card. An American Express prepaid card can graduate to any form of credit or charge card no more easily than a Green Dot card can become a Visa, or a debit card a credit card. A prepaid card is not a secured card. A secured card can graduate. A prepaid card can not graduate in any sense, and can not be taken in to account when decisioning a credit card application any more than Chase will take in to consideration use of their checking account when applying for a CSP.

I kept getting offers for the prepaid card (no one can be turned down for a prepaid card, so there's no such thing as "pre-approval": everyone is pre-approved) after being denied for a Zync a year ago, and a couple of months ago I got the BCE with $2000 and the SPG for $5500 which promptly tripled, without ever having held an Amex charge product.

Re: AMEX Prepaid or wait for BCE?

Revelate — Sat, 02 Mar 2013 04:40:10 GMT

Your scores from whatever lender (mortgage?) pulled doesn't show you as far away from Amex revolver territory anyway. I'd read whatever the denial letter states, and hang out for another six months and see if you can make some progress on the reasons for denial. At that point you can take the shot again, and if it fails, have time to take a first year free offer in a charge card and establish yourself through that.

Re: AMEX Prepaid or wait for BCE?

myjourney — Sat, 02 Mar 2013 08:04:02 GMT

The program is called

"Make your Move"

And it was launched early 2012 not sure if its still available but here's a qoute from an AMEX spokes person

"“This program is intended to help consumers with thin or no credit files. All they need to do is load and use their American Express prepaid card regularly,” spokeswoman Vanessa McCutchen says via email. AmEx doesn’t report how people use their prepaid cards to any credit bureau, but they keep tabs on it internally. Customers it deems credit worthy may, after a minimum of six months using the prepaid card, be invited to apply for a conventional American Express charge card.

Read more: http://business.time.com/2012/03/23/amex-gives-prepaid-card-users-a-chance-to-graduate-to-a-regular-charge-card/#ixzz2MMpiXZvi

Re: AMEX Prepaid or wait for BCE?

Anonymous — Sun, 03 Mar 2013 03:37:34 GMT

I can't see where it's still offered. I'll call them when I get the chance. Good lead.

Re: AMEX Prepaid or wait for BCE?

eriknyc — Fri, 29 Mar 2013 01:24:40 GMT

I believe American Express quietly shut down the Make Your Move program around the end of last year (December 2012). The only reference to the program I can now find is through the search site here, though that points to the Prepaid card FAQ, which no longer has details on this program.

I'm still using my Amex Prepaid card in the hope that they are still reviewing accounts internally. I think the Make Your Move program just sounded like too much of a promise, which they don't want to have to keep.

Additionally, I'm still curious about American Express' plans with prepaid. It seems they have a lot of overlapping products at this point.. Amex Prepaid, Amex Bluebird, Amex Serve. Wondering if they're planning on shutting down the plain-ol Prepaid in favor of one of the others.