Desire for American Express Card.

[Open123]

Here's my take.

If you just "like" Amex (like I do!) and if having one will enhance your enjoyment when using a CC, then I see no harm in applying for one.  However, approval isn't assured, but that would be true regardless of what you app'ed for, except for First Premier, I suppose.

If you think you're up to meeting the min spend on the PRG for the bonus, I see nothing wrong with this either.  It isn't a starter card per se, but the risk of mismanagement exists in any form of loan, whether it's a student loan, or any other kind of obligation.  You can earn 50K (around $600 - $700 worth of air fare), $200 airline credits, roadside service, and no fee for the first year.  In the future, the bonus could be more, but it could also be less.  No one knows.

Don't like it?  Get the no fee ED, and cancel it.  An extra HP and an extra closed account won't harm your long term profile.  Far and away the most important thing is to meet your obligations period.  That's it.

In end, read all points of view, and make the choice you feel best about and is best for you.

Good luck!

[kdm31091]

---

@Open123 wrote:

Here's my take.

If you just "like" Amex (like I do!) and if having one will enhance your enjoyment when using a CC, then I see no harm in applying for one.  However, approval isn't assured, but that would be true regardless of what you app'ed for, except for First Premier, I suppose.

If you think you're up to meeting the min spend on the PRG for the bonus, I see nothing wrong with this either.  It isn't a starter card per se, but the risk of mismanagement exists in any form of loan, whether it's a student loan, or any other kind of obligation.  You can earn 50K (around $600 - $700 worth of air fare), $200 airline credits, roadside service, and no fee for the first year.  In the future, the bonus could be more, but it could also be less.  No one knows.

Don't like it?  Get the no fee ED, and cancel it.  An extra HP and an extra closed account won't harm your long term profile.  Far and away the most important thing is to meet your obligations period.  That's it.

In end, read all points of view, and make the choice you feel best about and is best for you.

Good luck!

---

But there is no need to obtain the card to figure out if they will like it. They can run the numbers and figure out if PRG makes sense without applying for it. There is nothing that changes between researching and approval.

No, one extra HP and a closed account won't hurt OP; the point is that it's not something to start a new person off with getting in the habit of doing. That's my 2 cents.

[Open123]

---

@kdm31091 wrote:

---

@Open123 wrote:

Here's my take.

If you just "like" Amex (like I do!) and if having one will enhance your enjoyment when using a CC, then I see no harm in applying for one.  However, approval isn't assured, but that would be true regardless of what you app'ed for, except for First Premier, I suppose.

If you think you're up to meeting the min spend on the PRG for the bonus, I see nothing wrong with this either.  It isn't a starter card per se, but the risk of mismanagement exists in any form of loan, whether it's a student loan, or any other kind of obligation.  You can earn 50K (around $600 - $700 worth of air fare), $200 airline credits, roadside service, and no fee for the first year.  In the future, the bonus could be more, but it could also be less.  No one knows.

Don't like it?  Get the no fee ED, and cancel it.  An extra HP and an extra closed account won't harm your long term profile.  Far and away the most important thing is to meet your obligations period.  That's it.

In end, read all points of view, and make the choice you feel best about and is best for you.

Good luck!

---

But there is no need to obtain the card to figure out if they will like it. They can run the numbers and figure out if PRG makes sense without applying for it. There is nothing that changes between researching and approval.

No, one extra HP and a closed account won't hurt OP; the point is that it's not something to start a new person off with getting in the habit of doing. That's my 2 cents.

---

Of course, the choice is the OP's based on his/her preferences on what's best for his/her situation.  Maybe he flies a lot?  Maybe he could use the Airline credit?  Maybe he could redeem the 50K MR points for 3 or 4 free flights where it could have cost him $700?

In my view, if almost $1,000 in *FREE* benefits derived from the PRG is of real value to the OP.  If he's comfortable with handling the PRG (OP said he wanted Charge, to keep from holding a balance), ok with the extra HP (meaningless), closed account a year later (meaningless), I don't see an issue.  Matter of fact, spending $1,000 for $1,000 in travel rewards benefits is a 100% return.  In this case, it would be financial malpractice to advice agasint it, in my view.

On the other hand, if the travel rewards are of *NO* value, the $500 cash redemption par value (MR + Airline GCs, if it works) isn't enough to overcome the price of a HP and closed account, then either don't app, or go with the ED.  

Even with the ED, why not take the $1,000 value today for free, app for the ED next year with another 10K bonus, and have it all for free?  Anyone here seriously advise the cost for the OP (new cr file) would be better served and advised to forgo this tremendous value (that may no longer be available in the future), just because of an HP and closed account?

So long as OP spends $1,000, he's golden.  100% return.  We're advising not to do this?  Seriously?

*Edited*  PS - Think of it this way.  How much spend is required for a normal person to earn $1,000 in rewards?  (money the OP may spend anyway).  Or, how much spend to earn the $500 in cash equivalent value?  A lot!  OP can accomplish all of this on his very first $1,000!  

[kdm31091]

---

@Open123 wrote:

---

@kdm31091 wrote:

---

@Open123 wrote:

Here's my take.

If you just "like" Amex (like I do!) and if having one will enhance your enjoyment when using a CC, then I see no harm in applying for one.  However, approval isn't assured, but that would be true regardless of what you app'ed for, except for First Premier, I suppose.

If you think you're up to meeting the min spend on the PRG for the bonus, I see nothing wrong with this either.  It isn't a starter card per se, but the risk of mismanagement exists in any form of loan, whether it's a student loan, or any other kind of obligation.  You can earn 50K (around $600 - $700 worth of air fare), $200 airline credits, roadside service, and no fee for the first year.  In the future, the bonus could be more, but it could also be less.  No one knows.

Don't like it?  Get the no fee ED, and cancel it.  An extra HP and an extra closed account won't harm your long term profile.  Far and away the most important thing is to meet your obligations period.  That's it.

In end, read all points of view, and make the choice you feel best about and is best for you.

Good luck!

---

But there is no need to obtain the card to figure out if they will like it. They can run the numbers and figure out if PRG makes sense without applying for it. There is nothing that changes between researching and approval.

No, one extra HP and a closed account won't hurt OP; the point is that it's not something to start a new person off with getting in the habit of doing. That's my 2 cents.

---

Of course, the choice is the OP's based on his/her preferences on what's best for his/her situation.  Maybe he flies a lot?  Maybe he could use the Airline credit?  Maybe he could redeem the 50K MR points for 3 or 4 free flights where it could have cost him $700?

In my view, if almost $1,000 in *FREE* benefits derived from the PRG is of real value to the OP.  If he's comfortable with handling the PRG (OP said he wanted Charge, to keep from holding a balance), ok with the extra HP (meaningless), closed account a year later (meaningless), I don't see an issue.  Matter of fact, spending $1,000 for $1,000 in travel rewards benefits is a 100% return.  In this case, it would be financial malpractice to advice agasint it, in my view.

On the other hand, if the travel rewards are of *NO* value, the $500 cash redemption par value (MR + Airline GCs, if it works) isn't enough to overcome the price of a HP and closed account, then either don't app, or go with the ED.  

Even with the ED, why not take the $1,000 value today for free, app for the ED next year with another 10K bonus, and have it all for free?  Anyone here seriously advise the cost for the OP (new cr file) would be better served and advised to forgo this tremendous value (that may no longer be available in the future), just because of an HP and closed account?

So long as OP spends $1,000, he's golden.  100% return.  We're advising not to do this?  Seriously?

---

I'm advising against it not because it's a bad value -- it's a good value, yes. But OP is just starting off. Just building credit. The first priority in building credit isn't rewards, or bonuses. It's merely establishing a payment history. A charge card is really not the best way to start off, IMO. On this site, we tend to prioritize rewards, bonuses and "return" above anything else and it is not 100% of the time the best advice. You may be giving the best advice rewards wise, but there are other factors!

I'd get a no AF, simple credit card, whether it has cash back or not, and build my credit before worrying about sign up bonuses. I understand what you are saying with advocating PRG, but just remember -- you are coming from a place of someone who has built credit, has an excellent history, and can open and close cards pretty much willy nilly, enjoy bonuses, etc, etc. OP isn't there yet. They need to start slow.

[Open123]

---

@kdm31091 wrote:

I'm advising against it not because it's a bad value -- it's a good value, yes. But OP is just starting off. Just building credit. The first priority in building credit isn't rewards, or bonuses. It's merely establishing a payment history. A charge card is really not the best way to start off, IMO. On this site, we tend to prioritize rewards, bonuses and "return" above anything else and it is not 100% of the time the best advice. You may be giving the best advice rewards wise, but there are other factors!

I'd get a no AF, simple credit card, whether it has cash back or not, and build my credit before worrying about sign up bonuses. I understand what you are saying with advocating PRG, but just remember -- you are coming from a place of someone who has built credit, has an excellent history, and can open and close cards pretty much willy nilly, enjoy bonuses, etc, etc. OP isn't there yet. They need to start slow.

---

None of which I disagree with, except that if OP feels he can handle it, he should.  Young, new, or starting out does't mean he'll be ineffective on handling it well.  Some young people are incredibly astute on maximizing value.

My point is the OP is young and with a student income.  All CCs are the same and carry the same risk.  Rewards are MORE valuable the lower the income, and LESS valuable with higher income.  

One time benefits are $1,000+ in rewards for $1,000 spend.  Not recommending an app spree here, just do this onec, reap the rewards when there (never wait on opportunity), try out Amex for free and build a relationship.

Win/win, in my view.

[Anonymous]

Ed and prg are great combo young and old. Heck with AU he can treat mom or dad to a flight, or keep for himself. AU can go both ways it's not to ride coat tails for score bumping its all shared too.

Im pro amex because I cannot score any Citi products. Citi offers great rewards even for cards with low limits, and they grow.

[Open123]

---

@Anonymous wrote:
Ed and prg are great combo young and old.

---

Right, I think it's a mistake to assume a person, just by nature of being young, is less equipped to handle credit responsibly.  Each person, young or old, should make a decision based on his/her criteria armed with the best information available.

Just because I mishandled credit when young, doesn't mean every young person would do so.  The advice to "take it slow" with everyone, like every kind of blanket policy, neglects the merits of the individual.  Many young peope I know can read up on this in a day or two, and become near credit experts and easily have the discipline to master both rewards maximation and/or credit score efficiency.

Let's not resort to the lowest common denominator thing here, and expect that some individuals may excel quickly, and aren't well served by taking it slow.

*Edited*  PS - We know many very young people on this forum who handle credit and have a rewards astuteness far greater than many of the much older "credit veterans" that I know IRL and on these forums.

[red259]

There is an amex everyday offer out right now that is 25k points for 2k spend in three months. For a no AF card that is pretty outstanding. Is the PRG 50k for 1k spend still around? 

[Open123]

---

@red259 wrote:

There is an amex everyday offer out right now that is 25k points for 2k spend in three months. For a no AF card that is pretty outstanding. Is the PRG 50k for 1k spend still around? 

---

As far as I know, yes.

To reiterate, if were me, I'd app for the PRG.  Enjoy the no annual fee, 50K MR points, $200 Airline credit, roadside service, and no forex fee.  Before the annual fee, app for the ED for another bonus, and cancel the PRG.

2 Amex TLs without a single $$ out of pocket.  The price?  An extra HP and closed account.

[kdm31091]

You're missing my point. lm not saying "because OP is young they cant handle an amex" or anything. Nothing to do with that. Its the pure fact that someone who is young doesnt often have the time or income to spend and travel enough for such a card to make sense. The only useful redemptions are travel related. Most young people cannot afford constant vacations. Thats more my point