American Express prepaid card

[ppiresny]

Is it a good idea to get an AMEX prepaid card? I just got an email from them about it, I think I will be able to get approved for an AMEX in like 3 months since I will be debt free, should I do this now just to start a history with them. Will a prepaid card have any negative effect on my report (looking like a newbie/delinquent?)

[Adalen]

With your score, you can do a lot better than a prepaid card.  Especially if that is where you plan to go anyway.

[pizzadude]

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@ppiresny wrote:

Is it a good idea to get an AMEX prepaid card? I just got an email from them about it, I think I will be able to get approved for an AMEX in like 3 months since I will be debt free, should I do this now just to start a history with them. Will a prepaid card have any negative effect on my report (looking like a newbie/delinquent?)

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No pre~paid cards ( including AMEX's ) show on your credit reports, as they are not credit cards.    AMEX has advertised that their pre~paid card *might* lead to a pre~approval for a charge card, but IMO it's probably not going to make or break your application.   It all comes down to what is on your credit reports.

[Coldness]

It's nothing but a gift card. They'll probably soft you since they'll have your name and address, which is the only reason it'd get you a pre approval. It does not build history or do anything for you.

[aussiesareforever]

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@ppiresny wrote:

Is it a good idea to get an AMEX prepaid card? I just got an email from them about it, I think I will be able to get approved for an AMEX in like 3 months since I will be debt free, should I do this now just to start a history with them. Will a prepaid card have any negative effect on my report (looking like a newbie/delinquent?)

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What else do you have on your credit report? Any late payments, collections or negative information. How many inquiries do you have?

Based on your credit score, you might actually be qualified for one of their charge cards, like a Zync. I believe that is the easiest AMEX card to get. That is if you don't have any significant negatives on your credit report and your utilization is not too high.

[ppiresny]

7% utilization...4 negatives from being in a DMP which should be coming off within a year since they are paid in full and also a few lates from 2010 (bet Jun and Dec).9 inquiries which will drop to 4 by Dec of this year.

[Anonymous]

Hmmm actually you should go ahead and apply for the Zinc now. Doubtful you will get approved with NPSL but you might get offered a hard limit + autopay. Worst case you get rejected then you wait until the end of the year for some baddies to fall off and you have a much better shot.

A prepaid card does nothing for you, even if you don't get the Zinc you are probably qualified for a Cap 1 unsecured card for average credit.

Since with your scores and credit report you can get something much better than a prepaid debit card I would just skip it entirely and go for some cards that will actually build history.

[aussiesareforever]

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@ppiresny wrote:

7% utilization...4 negatives from being in a DMP which should be coming off within a year since they are paid in full and also a few lates from 2010 (bet Jun and Dec).9 inquiries which will drop to 4 by Dec of this year.

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Are all those inquires on EX. Amex usually pulls EX so if you only have a couple of EX you might have a better chance. Do you currently have other credit cards? I might recommend waiting six months to a year, have a few inquiries drop and especailly your negative accounts. Do DMP accounts usually come off once they have been satisfied? Your utilization is pretty good, I think they will be happy with that.

If you chose to apply earlier and you get denied, AMEX will usually give you reasons why you are declined, which will provide you with things to work on.

[Revelate]

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@Anonymous wrote:

Hmmm actually you should go ahead and apply for the Zinc now. Doubtful you will get approved with NPSL but you might get offered a hard limit + autopay. Worst case you get rejected then you wait until the end of the year for some baddies to fall off and you have a much better shot.

A prepaid card does nothing for you, even if you don't get the Zinc you are probably qualified for a Cap 1 unsecured card for average credit.

Since with your scores and credit report you can get something much better than a prepaid debit card I would just skip it entirely and go for some cards that will actually build history.

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+1 for almost all of it.

With his scores and history, he's qualified for a lot better than a C1 unsecured as well.

The Amex prepaid debit card turned out to be much ado about nothing unfortunately, and with the credit history esposed (if you have baddies coming off this year, that means you had at least 6 years of history) it isn't going to do squat for.  It also means he has some tradelines already.  With Amex assuming the Zync isn't your goal card (it might be, it sort of is in my case but eventually I'd prefer a revolver) then whether you get it now or at the end of the year isn't a big deal since back-dating only looks at the year; however, in the OP's situation I'd apply now, and if denied for whatever reason, again in December this year as you correctly suggest.

[ppiresny]

Thank you for your kind replies. I do not need it now so I will give it a month or two. I have been on a tight plan and love it, I havent been shopping in forever and I make substantially more than last year now. I want to have $0 debt and I am currently in the process of sending GW letters out to Macys, Barclays, Chase and Capital One so they can remove some lates because all my accounts are paid.

I figure if I don't need the Zync or any other AMEX now, waiting a month or two for my score to bump up a little won't hurt.

Also would applying for a credit card ( whether approved or denied) affect my chances of getting an auto loan for around $20k?