topic Re: American Express v. Discover in Credit Cards

American Express v. Discover

LawStudentCivilis — Sun, 16 Jun 2013 23:08:38 GMT

Ah, I dont know if this myfico forum is a blessing or curse?? I research so much I seem to have even more questions!

Ok here is my current credit profile:

Chase Freedom 3.7k

Capital One CW (no AF) 3k

Dillard's American Express 1.5k

The freedom is my oldest and Capital One is the newest. I have had two additional cards with Chase in the past that I have closed. I am on the fence about Chase. Apparently, after much research my Dillards is still considered a store card. I would like to add ONE more card without dragging down my AAOA and would like to get a great CL to make a desirable CR when I graduate and decide to open a mortgage.

This long winded story now brings you to my question. Which is a better card with better rewards American Express or Discover? I have recently received a Discover IT offer in the mail. I noticed a discussion on here stating that lenders pay attention to issuers of cards. Which is more highly favored or prestigious between American Express and Discover? Who is harder to obtain and who is more generous with CLs?

So many questions. This brain of mine is always turning.

Re: American Express v. Discover

Open123 — Sun, 16 Jun 2013 23:18:21 GMT

@LawStudentCivilis wrote:
This long winded story now brings you to my question. Which is a better card with better rewards American Express or Discover?

Discover is better with non-grocery cash rewards, especially if redeeming for GCs.

Amex is better for travel related rewards and every other way imaginable. If you're starting out, go with Amex. There's no need to have a Discover early, since they'll be there later and likely not change in the next 50 or 100 years.

Re: American Express v. Discover

Anonymous — Sun, 16 Jun 2013 23:20:03 GMT

*1 to Open

I would add if you don't want the charge, app for the revolver.

Re: American Express v. Discover

LawStudentCivilis — Sun, 16 Jun 2013 23:21:06 GMT

Thanks! That was a nice summary. I'm sorry but what does the abbreviation GC stand for? My next thread will be about travel and redemption. Sigh, I thought I was a pro, but definitely an amateur when it comes to learning about cards and how to utilize their programs.

Re: American Express v. Discover

LawStudentCivilis — Sun, 16 Jun 2013 23:21:53 GMT

@Anonymous wrote:
*1 to Open

I would add if you don't want the charge, app for the revolver.

Do you mean if I don't want a charge card? I would much rather a CL

Re: American Express v. Discover

Open123 — Sun, 16 Jun 2013 23:22:40 GMT

@LawStudentCivilis wrote:
Thanks! That was a nice summary. I'm sorry but what does the abbreviation GC stand for?

Sorry, Gift Card! Sometimes, I get carried away with the acronyms.

Re: American Express v. Discover

LawStudentCivilis — Sun, 16 Jun 2013 23:24:30 GMT

@Open123 wrote:
@LawStudentCivilis wrote:
Thanks! That was a nice summary. I'm sorry but what does the abbreviation GC stand for?
Sorry, Gift Card! Sometimes, I get carried away with the acronyms.

Thanks! I am learning a lot. I wonder if AMEX has a generous 0% APR intro like Discover?

Re: American Express v. Discover

Open123 — Sun, 16 Jun 2013 23:33:17 GMT

@LawStudentCivilis wrote:
Thanks! I am learning a lot. I wonder if AMEX has a generous 0% APR intro like Discover?

They do have 0% promo rates, but only for 12 months and *only* on certain cards. SPGs and full MR program cards will never have the 0% promos, except for the MB which is set to 6 months.

Re: American Express v. Discover

LawStudentCivilis — Sun, 16 Jun 2013 23:34:56 GMT

Your acronyms have once again escaped me.

You are nonethless invaluable to my credit's future.

Re: American Express v. Discover

Open123 — Sun, 16 Jun 2013 23:37:19 GMT

@LawStudentCivilis wrote:

Your acronyms have once again escaped me.

You are nonethless invaluable to my credit's future.

LOL...sorry!

SPG = Starwood Preferred Guest

MR = Membership Rewards Program

MB = Mercedes Benze

You just get used to the aconyms after a while.

Re: American Express v. Discover

Anonymous — Sun, 16 Jun 2013 23:42:24 GMT

I meant that if you are looking for reportable CL's then go with a revolver. It's been mentioned that charge cards are easier to get then once you have your foot in the door, try a revolver. If you don't want or need a charge card and aren't interested in adding more TLs ( you mentioned your AAOA a couple of times) app for what you want now. IMO, your profile is strong enough for a revolver.

Re: American Express v. Discover

LawStudentCivilis — Sun, 16 Jun 2013 23:47:17 GMT

Thanks 09Lexie!

Re: American Express v. Discover

Open123 — Mon, 17 Jun 2013 00:00:08 GMT

Also, depending on the state of your CR and if you can "unearth" the Green's promo with 25K sign up bonus and first year fee waived, you can app for both a charge and revolver.

For instance, let's say you decide you like the Membership Rewards program to use with their Frequent Flyer partners. Apply for the Green charge (for the bonus) and Blue Revolver. Before the fee is due on the Green in year two, request if they'll product change it to a Senior Green for $35. This way, you can sort of get the best of both worlds. A 25K gift to start and ongoing Amex membership rewards card for $35 per year, instead of the regular $95.

PS - Or, go with the PRG for 50K and request a PC to the Sr Green in year two for $35.

Re: American Express v. Discover

LawStudentCivilis — Mon, 17 Jun 2013 00:21:11 GMT

Thanks, I will take a look at Amex products. Very interesting strategy. If I were not pre-mortgage I would apply for two but I think I should not go past 4 major CC. (Well if you count the Dillards AMEX). I will be sure to let you know my questions. I am interested in travel. I do a little of everything lol

Re: American Express v. Discover

GuyInFlorida — Mon, 17 Jun 2013 00:22:23 GMT

I'd app for a Discover IT card--

They offer a nice cashback program, and generous credit lines. Seems to be what the OP is looking for.

Re: American Express v. Discover

Open123 — Mon, 17 Jun 2013 00:22:48 GMT

Just curious, but why did you app for the Dillard's Amex?

Re: American Express v. Discover

Anonymous — Mon, 17 Jun 2013 00:24:19 GMT

Took the word right out of my mouth

Re: American Express v. Discover

LawStudentCivilis — Mon, 17 Jun 2013 01:50:56 GMT

GuyinFlorida-- What promo is for Discover IT at this time? I thought I read Amex is generous as well especially with their 3xCLI. Thanks for the info by the way. It's nerve wracking because I have to pick one card and get it right.

Open123 and 09Lexie--because I was 19 at the time and I wanted a bunch of clothes from Dillard's while shopping with my mom and the lady at the register suggested I apply for a card and I guess my credit was good enough for the Amex version.

Re: American Express v. Discover

jadankert94 — Mon, 17 Jun 2013 02:12:37 GMT

I have both and personally I prefer my AMEX. Their website is much better, as is their customer service. Their card rewards program is also nice. Overall I feel like a more valued customer with AMEX.

Re: American Express v. Discover

LawStudentCivilis — Mon, 17 Jun 2013 03:15:09 GMT

Thanks I will have to research the pros and cons of each. It helps a lot to get everyone's opinion firsthand.