Amex Gold, Green, or Zync questions

[Mekitcat]

LisaPA wrote:

I got the exact same letter a few days ago and got the exact same results on the pre-selection page. First time I've ever been "selected" rather than "pre-approved" for a card. I can't decide if I want to go for it or not - I've read so many conflicting accounts on these boards of whether or not an AmEx is worth it any more. Me Too! My scores are in the mid-700s, I wish I was but I have some nasties from 2007 that might be a problem. And I really hate annual fees.

Sorry, I'm not really being helpful, I just wanted to share that I'm in the same spot. Good luck! 

Don't be sorry hopefully we can both get some answers to help us both decide, and good luck to you as well, thank you

[Mekitcat]

*bump*

[tinuviel]

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@Walt_K wrote:

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@Mekitcat wrote:

Tinuviel, your post was interesting. I too am getting soft pulls on my EX report, 5 to be exact 3 are from EL Paso, TX and 2 are from Phoenix, AZ but they all have different names for each pull. The 3 from EL Paso are all the same address but it shows as:

American Express CO

PO BOX 981537
EL PASO TX 79998
(800) 874-2717

Date of request: 02/28/11

American Express 2

PO BOX 981537
EL PASO TX 79998
(800) 874-2717

Date of request: 03/30/11

Amex Account Review

PO BOX 981537
EL PASO TX 79998
(800) 874-2717

Date of request: 05/07/11

The ones for Phoenix have two different  numbered street addresses:

AMERICAN EXPRESS
19640 N 31ST ST. AVE
PHOENIX AZ 85027
No phone number available

Date of Request: 05/07/11, 08/03/10, 07/06/10, 08/05/09

AMEX
20022 N 31ST AVE # MC080403
PHOENIX AZ 85027
No phone number available

Date of Request: 08/26/10

Was any of you soft pulls like mine? Did they back date you? That would be great if I was able to get it back dated, I had my card in the late 90's great for timeline for sure!

I don't know if they pulled any more recently my CR was dated 06/16/11

I did a Google search on the addresses thinking maybe they moved because they were so close and I found this interesting link to a page here on my fico.

http://ficoforums.myfico.com/t5/Credit-Cards/Duration-of-Amex-Blacklist/td-p/851168

Oh the letter from them has a return envelope to Salt Lake City UT so I really wonder now more than ever what to do. I was hoping that someone would give me answers to my first questions I asked, like if it would help or hurt my credit having one of these cards. The back dating would help me I know.

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You need to clarify your question.  Whether you have an Amex charge card isn't in and of itself a factor in your credit score.  Whether it is going to help or hurt your credit depends on a few factors.  If you dont' have any revolving lines, then adding the card will likely help your score.  But if you already have a decent mix of credit, then adding another account is likely going to hurt your score at first.  If your card isn't backdated, you will have a new account so it will lower your AAoA.  You'll also take a couple point hit for another inquiry.  I wouldn't count on it being backdated.  You should view Tinuviel's success as an exception rather than a rule.  If you do get backdated, that would be a good bonus, but don't count on it with a charged off account.

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I just went back to an old copy of one of my Experian reports. Yes, those were the same type of inquiries. Same creditor names, same addresses.

I do agree that my experience should be considered "an exception rather than a rule." I still can't say with any degree of certainty WHY I was approved. So, it just seems to be proof that YMMV.

[Walt_K]

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@Mekitcat wrote:

Walt_K thank you for your reply.

I do have two other cc's one with Cap 1 and the other is HSBC both of which I just got 4/11, still new.

I also have a mortgage, and a van payment, none of which I have never been late on since I opened them. 2yrs on the home 1yr on the van.

I do however have a CA on my report that might fall off next month, I say might because on one of my CR's it says "to continue on record till Aug 2011" but the other report says "estimated date of removal 10/2011" That is the only thing on my reports that is bad.

I guess what I was really asking does a charge card look good on a report considering it isn't revolving? and would it be wise to sock drawer it?

Also would it look favorable to other companies to have a big name like Amex on your reports?

I want to be hopeful that it would be backdated it seems a few people on here had such luck.

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Your scores in your signature are from Credit Inform, not sure what that is, are they FICOs?  Even if they are FICOs, they're borderline for Amex.  You do have the preapproval or selection letter or whatever it is, so maybe that counts for something, but I wouldn't count on it.

Since you have a CA that is getting ready to fall off, I would just wait for it to fall off.  It's only a couple months. 

As far as how the card looks on your report, I'm unaware of any negative association with a charge card.  The only thing that is different is that it doesn't factor into utilization the same wasy as a CC.

I personally would not get an Amex to sock-drawer it.  Every card that you're considering comes with annual fees.  I think the Amex benefits are more than worth the AF, especially if you put heavy use through the card.  My everyday card is the Amex PR Gold.  But I'd never keep it if I was going to sock-drawer it.

You shold not let backdating be a factor in your decision.  With an unpaid CO for Amex, you should be prepared to be denied.  Backdating if it happens, is just a bonus.

If I were you, I'd wait until the CA falls off.  Then I'd apply for the Amex, but only if I planned to use the card enough to outweigh the AF.  It will hit your AAoA, but it sounds like your AAoA is already pretty low because you have several new TLs.

[Mekitcat]

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@Walt_K wrote:

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@Mekitcat wrote:

Walt_K thank you for your reply.

I do have two other cc's one with Cap 1 and the other is HSBC both of which I just got 4/11, still new.

I also have a mortgage, and a van payment, none of which I have never been late on since I opened them. 2yrs on the home 1yr on the van.

I do however have a CA on my report that might fall off next month, I say might because on one of my CR's it says "to continue on record till Aug 2011" but the other report says "estimated date of removal 10/2011" That is the only thing on my reports that is bad.

I guess what I was really asking does a charge card look good on a report considering it isn't revolving? and would it be wise to sock drawer it?

Also would it look favorable to other companies to have a big name like Amex on your reports?

I want to be hopeful that it would be backdated it seems a few people on here had such luck.

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Your scores in your signature are from Credit Inform, not sure what that is, are they FICOs?  Even if they are FICOs, they're borderline for Amex.  You do have the preapproval or selection letter or whatever it is, so maybe that counts for something, but I wouldn't count on it.

Since you have a CA that is getting ready to fall off, I would just wait for it to fall off.  It's only a couple months. 

As far as how the card looks on your report, I'm unaware of any negative association with a charge card.  The only thing that is different is that it doesn't factor into utilization the same wasy as a CC.

I personally would not get an Amex to sock-drawer it.  Every card that you're considering comes with annual fees.  I think the Amex benefits are more than worth the AF, especially if you put heavy use through the card.  My everyday card is the Amex PR Gold.  But I'd never keep it if I was going to sock-drawer it.

You shold not let backdating be a factor in your decision.  With an unpaid CO for Amex, you should be prepared to be denied.  Backdating if it happens, is just a bonus.

If I were you, I'd wait until the CA falls off.  Then I'd apply for the Amex, but only if I planned to use the card enough to outweigh the AF.  It will hit your AAoA, but it sounds like your AAoA is already pretty low because you have several new TLs.

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Thanks for the reply.

My TU & EQ are fico, EX is from my Cap1 account. I will fix the confusion in my siggy.

As far as putting it in the sock drawer thats good to know, It may of been a silly question now that I think about it 

Its no big deal to wait, and yes I will use it if I can get it.

I just didn't know how that would effect my scores, but I guess other then the TU98 score I would be ok on EQ & EX with it.

Thanks so much for everyones input it all helps for a newbie like me

[score_building]

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@tinuviel wrote:

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@DI wrote:

I think you should wait for them to send you  3-4 more pre-approval.  Also you may want to wait until you get your scores in the mid 700s.  In regards to backdating, my understanding is if you defaulted with them in the past, they won't backdate your account. 

This is just a suggestion.  I would call to see if my name/SSN is in AMEX's system before apping.  If not, that means they may not have a record of the default account.  And you may be able to get the account backdated if they just take your word, if you decide to apply for a new account.  Good luck! 

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They did for me.

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+1

[haulingthescoreup]

When it comes to how a revolving account affects your scores, a healthy open tradeline (credit account) = a healthy open tradeline = a healthy open tradeline. There is no real difference among a First Premier card, a Chase Freedom, and an American Express Centurion, except in the calculation of util (the Centurion is ignored, as it is a charge card.) But charge cards are equally useful in establishing and maintaining clean credit history, which is the main concern.

Besides charge cards not influencing util, either for good or for bad, there is a separate issue which might have changed (not sure on this): cards from credit unions and local banks didn't carry quite as much punch as those from national banks. There was nothing wrong with them, but for better scoring, you "needed" at least one national bank card. Again, I'm not sure if this is still in effect. Even if it is, it doesn't mean you should avoid or get rid of CU/ local bank cards. Just be sure to have at least one open national bank card in addition. Same deal with store cards: they don't hurt (or help) your reports by being store cards, but you do need to have some bank-type cards as well for optimum scoring.

Anyway, after all that babbling (too much coffee): the presence of a charge card like those from American Express does not hurt your credit reports or FICO scores.

[Open123]

Hi Mekitcat,

I echo Walt's views on allowing your CA to drop off, especially since it's only in a couple of months.  The only reason to apply "now" as opposed to a cleaner report is if you're being offered a time sensitive deal such as "approved by X date for 50k points."

Go on their website, and see if you're pre-approved for the card.  If it shows that you are, than the odds are very good that you'd be approved.

As to the backdating, I wouldn't count on it if there you've caused Amex a financial loss.  However, in some cases, they do forgive old debts and willingly backdate, but usually after a long period of time (20 years), and for a relatively small amount.  It's hard to say, and you'll never know until you try.

A charge card doesn't affect Fico's utilization.  The good thing here is you can charge at your leisure without having to keep tabs on the 10% Utilization parameter ensuring you pay "x" amount before each card's statement cuts except for one.  While it isn't too much of an effort, I've never been a big fan of micromanaging credit cards, especially when the novelty of it wears off in a few months.  In my view, the best thing about a charge card is you can just spend, not worry about Fico, and pay the bill whenever it arrives without having to micromanage the thing, such as pay before statement, and leave a little balance, and pay again after it cuts.