Amex PRG preapproval questions

[MrPSS]

Hey everyone,

I'm looking for a little info on the Amex PRG. I've been checking Amex preapproval for a few weeks and finally received a preapproval for the Amex PRG w/ 25K points after $2K spend offer, but I noticed the annual fee is $195! 

A lot of you on this board seem to speak highly of the PRG and there always seems to be a lot of positive talk about it, but I'm wondering what all of the hype is? $195 seems steep for the mediocre (imo) benefits that it offers.

Can anyone please help shed some light on this for me? Am I missing something? What is the main reason one would want or apply for this card?

I am interested in getting my first Amex, but I don't feel like this is a good offer. 

Last, has anyone done any calculations on minimum spend requirements in order to justify the $195 AF?

Thanks!

[Medic981]

If Amex is offering you a 25K preapproval PRG and you are not impressed with the benefits included for the $195 AF then I would not apply for it. As Amex is offering you a 25K LOC, I would imagine you could apply for a no AF card and get an approval for a card that you feel would benefit you better. 

[MrPSS]

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@Medic981 wrote:

If Amex is offering you a 25K preapproval PRG and you are not impressed with the benefits included for the $195 AF then I would not apply for it. As Amex is offering you a 25K LOC, I would imagine you could apply for a no AF card and get an approval for a card that you feel would benefit you better. 

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Sorry for the confusion! I just edited my post... I meant 25K points w/ $2K spend offer! Not 25K LOC. No spending limits or anything of that nature were mentioned in the offer.

[Medic981]

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@MrPSS wrote:

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@Medic981 wrote:

If Amex is offering you a 25K preapproval PRG and you are not impressed with the benefits included for the $195 AF then I would not apply for it. As Amex is offering you a 25K LOC, I would imagine you could apply for a no AF card and get an approval for a card that you feel would benefit you better. 

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Sorry for the confusion! I just edited my post... I meant 25K points w/ $2K spend offer! Not 25K LOC. No spending limits or anything of that nature were mentioned in the offer.

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So you are talking about a sign-up bonus (SUB) of 25K points. Again, if you do not see the benefits of the PRG AF of $195, I would not recommend you apply. Personally, I do not like AF cards.

[Medic981]

Looking at your signature line, I realized that your FICOs are not yet high enough to get a revolving Amex card. The PGR is a charge card with I believe Amex does not require as high of a FICO as they do for revolvers. That being said, if you want to start a relationship with Amex, PGR is one way to do so. Still, it is a $195 AF, and I do not think that you can PC or downgrade to a no AF charge card. 

[Caught750]

Afternoon OP. First off in less than 24 hrs the PRG will change drastically. The card becomes net positive if you use the credits and Restaurants and grocery stores become 4x categories. The card also comes with lots of other little benefits.

[MrPSS]

I agree, Medic. I think the reason for preapproval all the sudden is because I was recently successful in getting a bogus $147 collection account removed and my EQ score shot up from 625 to 659. So I’m hoping the other bueros follow suit.
How beneficial/ potentially damaging would it be to open the PRG with the goal of establishing a relationship with AMEX and collecting the sub and then applying for a no AF Amex in 61 days? If successful with an approval on a new Amex, I could then cancel the PRG prior to the AF kicking in.

[FinStar]

It really depends on your spend, whether you value MRs, and how you can maximize the PRG as a whole. Not all cards are a fit for everyone. That being said, there's been some recent buzz regarding upcoming changes to PRG.

If it's of interest to you, then you can click on the link below to learn more:

https://ficoforums.myfico.com/t5/Credit-Cards/Amex-PRG-Just-Got-Better/td-p/5362466

[CGeorge]

I completely agree with you. I have gotten really nice cash rewards with the Blue card. After my first year with the PRG - and it came time to review - I decided that I just can't justify that $195 AF. So I called them and downgraded to the Green card - so that I could keep my points. They have since upgraded my Blue to the Blue Preferred (with an annual feel of $95) - BUT - I now get 6% back at grocers. I love the Blue Preferred - and my Cash Magnet is on its way (NO annual fee - but nice rewards). When I can't even meet the SUB - I decide against that card - as it would not be right for me. You are thinking smart!

[CGeorge]

I completely agree with you. I have gotten really nice cash rewards with the Blue card. After my first year with the PRG - and it came time to renew (with the AF of $195) - I decided that I just can't justify that $195 AF. So I called them and downgraded to the Green card - so that I could keep my points. They have since upgraded my Blue to the Blue Preferred (with an annual feel of $95) - BUT - I now get 6% back at grocers, as opposed to the previous 3%. I love the Blue Preferred - and my Cash Magnet is on its way (NO annual fee - but nice rewards). When I can't even meet the SUB - I decide against that card - as it would not be right for me. You are thinking smart!