topic Re: Getting in with AMEX in Credit Cards

Getting in with AMEX

jenn_bar — Sun, 16 Jun 2013 12:32:50 GMT

I've decided to get my third credit card with AMEX. I currently have a Freedom (5k limit) and CSP (5k limit) and a Fico score of 735. I also have am an authorized user of a Costco AMEX. I just received the CSP at the end of May, so I would like to add one more card so I will be hard inquiry free in two years when I go to buy a house.

I am a 22 year old law student with a steady job (during the school year too). I use the Freedom only for the 5% categories and CSP for everything else.

What do you think is the best American Express card that I would benefit from? I do not mind another hefty annaul fee, as in with the Gold card, but how would a charge card affect my credit compared to a credit card? Also, how should I share my expenses with the CSP and the Amex?

Thanks!! You guys are amazing and I give you all full props for bringing my credit score up 16 points in the past few months, due to the moves with CSP, etc.

Re: Getting in with AMEX

jamesdwi — Sun, 16 Jun 2013 12:51:51 GMT

A revolver's CL would help overall UTL if you let a balance report on any of your cards. On the other hand a charge card wouldn't effect your UTL even if you let a balance report on it but it has to be paid every month and some lenders might like to see a better mix of credit types so it could help. If you apply for a Charge card the Premier Rewards Gold (PRG) is the way to go unless you travel a lot, the PRG has the best rewards of the charge cards, and the AF is waived for the first year. All Charge cards have the same underwriting requirements so you can choose the ones you want.

Re: Getting in with AMEX

unc0mm0n1 — Sun, 16 Jun 2013 13:14:20 GMT

@jenn_bar wrote:
I've decided to get my third credit card with AMEX. I currently have a Freedom (5k limit) and CSP (5k limit) and a Fico score of 735. I also have am an authorized user of a Costco AMEX. I just received the CSP at the end of May, so I would like to add one more card so I will be hard inquiry free in two years when I go to buy a house.

I am a 22 year old law student with a steady job (during the school year too). I use the Freedom only for the 5% categories and CSP for everything else.

What do you think is the best American Express card that I would benefit from? I do not mind another hefty annaul fee, as in with the Gold card, but how would a charge card affect my credit compared to a credit card? Also, how should I share my expenses with the CSP and the Amex?

Thanks!! You guys are amazing and I give you all full props for bringing my credit score up 16 points in the past few months, due to the moves with CSP, etc.

Another law student? There are a ton of us on this site.

Re: Getting in with AMEX

jenn_bar — Sun, 16 Jun 2013 13:27:25 GMT

I usually spend about $3k a month on the credit cards; however, most of them report of a balance around $30-$60 each time they get pulled because I do pay them off quite frequently. I do believe that this has benefited my credit, but would it be beneficial to allow more to show up?

Due to the fact that a charge card would not affect my UTL, and I'd ideally like to get the most credit that I can, would you suggest against a charge card? What if I applied for both the PRG and the Hyatt Visa Signature? I figure that combination would let me build a relationship with Amex, as well as get a decent CL for the Hyatt as many people say that they tend to provide you with a great limit if you are strong with Chase. I could then share my ultimate rewards with Hyatt as well.

Re: Getting in with AMEX

Open123 — Sun, 16 Jun 2013 15:00:37 GMT

For Amex, the first thing is to determine which rewards you fine the most valuable. In time, you can have them all, but it's best to focus one initially.

1. Air Travel - MR program with charge cards. PRG with first year fee waived + sign-up bonus.

2. Hotel Rewards - SPG - first year fee waived + 25K sign-up bonus (this card, in my view is the best domestic non-bonus category spend, if you frequent startwood hotels).

3. Cash - BCE or BCP - the former if you spend less than approx $2,500 in groceries, and the latter if more.

With Amex, it's pretty simple. Find the rewards you value most, and pick the best 1st year deal.

Good luck!

Re: Getting in with AMEX

jenn_bar — Sun, 16 Jun 2013 15:11:30 GMT

I think if I get the Hyatt card with Chase (more interested in saving points for international travel in the future) then I should get a charge card with Amex. I just need to get more credit, so I definitely need a credit card in the mix.

Now I just have to figure out which hotel chain to claim! The Hyatt card has great perks for long-time members, but the Hilton has great references too.

Re: Getting in with AMEX

Open123 — Sun, 16 Jun 2013 15:18:13 GMT

@jenn_bar wrote:
I think if I get the Hyatt card with Chase (more interested in saving points for international travel in the future) then I should get a charge card with Amex. I just need to get more credit, so I definitely need a credit card in the mix.

Now I just have to figure out which hotel chain to claim! The Hyatt card has great perks for long-time members, but the Hilton has great references too.

The Hyatt's free 2 nights is an awesome deal! Citi Reserve has a nice Hilton card you might like. For most, I think the Citi Hilton is better than the Amex one.

Re: Getting in with AMEX

jenn_bar — Sun, 16 Jun 2013 16:38:31 GMT

Yes and Hilton has more options as far as locations within one city...

The only qualm I have with getting an Amex charge card is the fact that I can't take advantage of the 3x CLI possibility with a soft pull after 60 days, and every six months after that. I don't want to touch my credit (going into the garden?) after these two transactions occur for at least two years. With Amex, the soft pull would be awesome for the next two years. This is totally correct right?

That is what keeps leading me to BCE and Hyatt/Hilton combo.

Thanks for sticking along! I know I keep throwing scenarios out there, but I am so interested in getting this figured out for good this week. I start a new job on Monday (I will keep two jobs for now until school starts, I'll stick with the law firm), so they will for sure credit me, so I want to get all these hard inquiries done and out of the way for my gardening time!

Re: Getting in with AMEX

Open123 — Sun, 16 Jun 2013 16:55:38 GMT

@jenn_bar wrote:
The only qualm I have with getting an Amex charge card is the fact that I can't take advantage of the 3x CLI possibility with a soft pull after 60 days, and every six months after that. I don't want to touch my credit (going into the garden?) after these two transactions occur for at least two years. With Amex, the soft pull would be awesome for the next two years. This is totally correct right?

Yes, this is correct. Amex has a SP 3X CLI after the 61st day, and 6 months thereafter. Your strategy makes perfect sense!

Re: Getting in with AMEX

jenn_bar — Sun, 16 Jun 2013 16:57:28 GMT

@Open123 wrote:
@jenn_bar wrote:
The only qualm I have with getting an Amex charge card is the fact that I can't take advantage of the 3x CLI possibility with a soft pull after 60 days, and every six months after that. I don't want to touch my credit (going into the garden?) after these two transactions occur for at least two years. With Amex, the soft pull would be awesome for the next two years. This is totally correct right?
Yes, this is correct. Amex has a SP 3X CLI after the 61st day, and 6 months thereafter. Your strategy makes perfect sense!

So the question becomes... "to diversify or not to diversify" because every tip I've gotten from creditors is to diversify. However, this is not very attainable when I don't plan to buy a car or mortgage a house for 2+ years.

Re: Getting in with AMEX

Open123 — Sun, 16 Jun 2013 16:59:39 GMT

@jenn_bar wrote:
@Open123 wrote:
@jenn_bar wrote:
The only qualm I have with getting an Amex charge card is the fact that I can't take advantage of the 3x CLI possibility with a soft pull after 60 days, and every six months after that. I don't want to touch my credit (going into the garden?) after these two transactions occur for at least two years. With Amex, the soft pull would be awesome for the next two years. This is totally correct right?
Yes, this is correct. Amex has a SP 3X CLI after the 61st day, and 6 months thereafter. Your strategy makes perfect sense!
So the question becomes... "to diversify or not to diversify" because every tip I've gotten from creditors is to diversify. However, this is not very attainable when I don't plan to buy a car or mortgage a house for 2+ years.

Always better to diversify, at least when it comes to credit. If I were you, I'd app for both Chase and Amex simultaneously. In my view, these are the two best creditors to start off with this early in your career.

They'll become more and more valuable as time passes.

Re: Getting in with AMEX

jenn_bar — Sun, 16 Jun 2013 17:02:24 GMT

@Open123 wrote:
@jenn_bar wrote:
@Open123 wrote:
@jenn_bar wrote:
The only qualm I have with getting an Amex charge card is the fact that I can't take advantage of the 3x CLI possibility with a soft pull after 60 days, and every six months after that. I don't want to touch my credit (going into the garden?) after these two transactions occur for at least two years. With Amex, the soft pull would be awesome for the next two years. This is totally correct right?
Yes, this is correct. Amex has a SP 3X CLI after the 61st day, and 6 months thereafter. Your strategy makes perfect sense!
So the question becomes... "to diversify or not to diversify" because every tip I've gotten from creditors is to diversify. However, this is not very attainable when I don't plan to buy a car or mortgage a house for 2+ years.
Always better to diversify, at least when it comes to credit. If I were you, I'd app for both Chase and Amex simultaneously. In my view, these are the two best creditors to start off with this early in your career.

They'll become more and more valuable as time passes.

When speaking diversity, that could mean a variety of charge and credit cards? So, applying for Chase Hyatt and Amex Gold charge card? Or Amex BCE and Chase Hyatt?

Re: Getting in with AMEX

Open123 — Sun, 16 Jun 2013 17:09:20 GMT

@jenn_bar wrote:
When speaking diversity, that could mean a variety of charge and credit cards? So, applying for Chase Hyatt and Amex Gold charge card? Or Amex BCE and Chase Hyatt?

I meant diversity in lenders, not charge or credit. In your case, I don't think a charge card is necessary, unless you value MR points. If not, I'd forget the charge card until the time when and if the MR program becomes more appealing to you.

If you can spare the inquiry, I'd app for BCE and Chase Hyatt now. Then, the following year in Jan, round it off with the Amex Hilton.

Re: Getting in with AMEX

jenn_bar — Sun, 16 Jun 2013 17:32:27 GMT

Yes, I think that is a great idea. I love the idea of the BCE because I don't eat out so I easily spend $$$ in groceries each month. Don't know if I can justify the annual fee on top of CSP though for the BCP...

Re: Getting in with AMEX

LawStudentCivilis — Sun, 16 Jun 2013 18:41:18 GMT

@unc0mm0n1 wrote:
@jenn_bar wrote:
I've decided to get my third credit card with AMEX. I currently have a Freedom (5k limit) and CSP (5k limit) and a Fico score of 735. I also have am an authorized user of a Costco AMEX. I just received the CSP at the end of May, so I would like to add one more card so I will be hard inquiry free in two years when I go to buy a house.

I am a 22 year old law student with a steady job (during the school year too). I use the Freedom only for the 5% categories and CSP for everything else.

What do you think is the best American Express card that I would benefit from? I do not mind another hefty annaul fee, as in with the Gold card, but how would a charge card affect my credit compared to a credit card? Also, how should I share my expenses with the CSP and the Amex?

Thanks!! You guys are amazing and I give you all full props for bringing my credit score up 16 points in the past few months, due to the moves with CSP, etc.
Another law student? There are a ton of us on this site.

Yea, quite a few of us here. Quick question, I am considering buying a home in a few years as well. I am afraid if I get a fourth credit card it will make conservative mortgage lenders think I'm a young credit chaser that can easily get over my head. Any thoughts on this?

jenn_bar I am toying with the idea of getting an American Express too except I am trying to compare it to Discover.

Re: Getting in with AMEX

LawStudentCivilis — Sun, 16 Jun 2013 18:46:28 GMT

Always better to diversify, at least when it comes to credit. If I were you, I'd app for both Chase and Amex simultaneously. In my view, these are the two best creditors to start off with this early in your career.

They'll become more and more valuable as time passes.

Hi Open123

My oldest card is with Chase, but I have two other cards that are paid off with them and closed on my terms. I also have one card with Capital One, and one Dillard's Amex. So would another prestigious lender be AMEX? Who is ranked more favorably than the other?

Or should I take my business back to Chase and open a second card. (I doubt I'll do this, those other cards are closed for a reason).

Re: Getting in with AMEX

Open123 — Sun, 16 Jun 2013 18:54:08 GMT

@LawStudentCivilis wrote:

Always better to diversify, at least when it comes to credit. If I were you, I'd app for both Chase and Amex simultaneously. In my view, these are the two best creditors to start off with this early in your career.

They'll become more and more valuable as time passes.
Hi Open123

My oldest card is with Chase, but I have two other cards that are paid off with them and closed on my terms. I also have one card with Capital One, and one Dillard's Amex. So would another prestigious lender be AMEX? Who is ranked more favorably than the other?

Or should I take my business back to Chase and open a second card. (I doubt I'll do this, those other cards are closed for a reason).

This all depends on when you're going to app for a mortgage.

If you're going to apply soon (within a year), I wouldn't apply for any credit for the time being; however, if 2 years away, then I would definitely app for an Amex. In my view, I think it's best to start with Chase and Amex as general creditors while adding "niche" issuers as you go.

So, if your oldest card is with Chase, I'd app for an Amex (if, you're going to app).

Re: Getting in with AMEX

LawStudentCivilis — Sun, 16 Jun 2013 19:01:19 GMT

Thanks. It'll more than likely be two years since I have one year of school left.

Re: Getting in with AMEX

jenn_bar — Sun, 16 Jun 2013 19:17:03 GMT

@LawStudentCivilis wrote:

Always better to diversify, at least when it comes to credit. If I were you, I'd app for both Chase and Amex simultaneously. In my view, these are the two best creditors to start off with this early in your career.

They'll become more and more valuable as time passes.
Hi Open123

My oldest card is with Chase, but I have two other cards that are paid off with them and closed on my terms. I also have one card with Capital One, and one Dillard's Amex. So would another prestigious lender be AMEX? Who is ranked more favorably than the other?

Or should I take my business back to Chase and open a second card. (I doubt I'll do this, those other cards are closed for a reason).

I am in this same boat, although I am only a 2L. However, by June, 2015 I want to have no hard inquiries whatsoever, so that is why I am trying to get this done now. I would hate to be considered a credit-chaser as well, but I don't think we will by that time because the cards will have aged (as long as you don't open anything else) and inquiries will be gone. The only inquiry I could see happening is by moving firms, which hopefully will not be the case!

Re: Getting in with AMEX

LawStudentCivilis — Sun, 16 Jun 2013 20:05:09 GMT

If I apply for an Amex it will for sure be within the next month. So if I do apply for an AMEX, My cards will be: Chase Freedom, Cap One CW, Dillard's Amex, and AMEX?? Good point about them aging in a few years. My last worry is I just opened the Cap One to balance off my last Chase card that I closed and if I open another AMEX it will drag down the overall age of my accounts. Sigh decisions decisions.