First Timer - Reaching for Gold/Platinum

[Anonymous]

Hi guys. I want to preface this by apologizing in advance for not being at the same level as everyone else seems to be. I found you all doing some digging on approval odds and you all clearly really know your stuff. I respect that. I'm obviously very new to this, so I ask for your patience.

I've been looking to get my first Amex after starting a credit recovery journey 3 years ago and the Gold or Platinum charge cards, or even a combination of both, would be the ultimate goal. I've done extensive reading in the forum about score threshold and pre-qualifications and such, so I know it's ultimately going to come down to me going for it, I just am hoping for some confidence ahead of time.

I checked the pre-qual page and was shown 3 cards: Delta Reserve / Delta Gold / Delta Plat

Here are my stats:

36 y/o

Income: $140,000

EX Fico8: 664

TU: 667

EQ: 671

Revolving:

Capital One: $0 / $750

Credit One: $75 / $500

Chase Sapphire Reserve: $554 / $41,945 (AU)

Schools First FCU: $2024 / $7500 (just paid down to $400, will update on 10/28)

Installment:

Mercedes Benz: $30k due on $33k loan

100% payment history (2 60 day lates on a closed account)

Zero Derogatory Marks

5 Hard Inquiries

Oldest Account: 3.7 years

Newest: 1 Month

AverageL 1.3 years

Probably just gave way too much info, but I want to be thorough.

Anyway. Would love some input and suggestions. My plan is to wait until the 28th and then check pre-quals. If I still don't show gold or plat, then would just cold app.

I can't figure out how to include my EX screenshot, but you can check it out here: Experian Fico

Thanks in advance, guys. Appreciate all of the help you give to newcomers like myself!

[K-in-Boston]

Welcome to the forums!  You likely have pretty good odds of approval for either Platinum or Gold based on the stats you've provided.

[Anonymous]

I'm curious as to why your scores are where they are.  Your utilization doesn't seem to be in a bad place and with just two 60Ds on a single account I'd expect your scores to be maybe 700-710.  I would attempt to pay off 2 of the 3 balances you currently have... the Credit One and AU account to get them to report $0.  Then you'll just have the $400 balance on that $7500 credit line, putting both your aggregate and AZEO individual account at single-digit (ideal) utilization.  That should help you grab some more points.

Who is the lender with which you have the 60D lates on the closed account?  Have you tried getting them removed?  GW letters?  If those are your only negative items, removing them would easily bump your scores up 60-80 points and at that point anything you want would essentially become fair game.

That would be my more conservative approach prior to apping, but ultimately the decision is yours.

[Anonymous]

Thanks for the warm welcome! Always daunting trying to jump into a new forum, but from what I can tell you are a bunch of really help guys/gals with some solid advice.. So, I'm glad I'm here!!

And thank you for the insight. I feel good about it, but it's the whole "not on pre-qual" that worries me. 

[Anonymous]

Thanks for the first block of info. That's great advice. I've just paid the $75 down on the Credit One and the Chase will be paid as well. So by end of month I should be showing only that $400 on my FCU.

Re: the 60D, they were for a Kia Motor Finance account. I basically got in a wreck and insurance paid all by $3k of my loan. I kept making regular payments after that, but apparently you're supposed to pay it all up front. So, they put it as a charge off and my late payments were from the transition. It's now showing as a charge off but paid in full and closed. Do you think writing them a letter would help with that? Just explaining my situation and asking for some forgiveness? What specifically would I ask for? 

[notmyrealname23]

Are you interested in the AMEX Gold/Platinum charge cards or the Delta Gold/Platinum revolvers? Your post isn't clear on that since you mention both.

If you're looking at Delta cards, do you actually fly on Delta enough that keeping them long term makes sense? Is the amount you'd check luggage/fly with a companion/accrue MQM from spend something that pencils out for you?

As for the Gold/Platinum charge cards- so if they're aspirational, do your spending trends support this being a positive long term play versus a less fancy no-AF card? AMEX charge cards very, VERY much a "I spend lots of money in specific areas and AMEX wants those swipes and will pay handsomely for them, but my annual fees are a huge slash off the top of return unless I can make this all pencil out" play in the credit card field. Do you spend enough time at airports that Centurion lounges are nice to have? Shop at Saks? Use airline incidental fees? What is the aspiration other than "they're shiny and they have a satisfying clack when I put them on a table?"

Of course you're allowed to have any aspirations you'd like and it isn't a requirement for things to be practical , but I get the impression you've thought about and are asking "how" regarding AMEX but have left "why" unstated. Certainly it's not incumbent on you to answer why, but I am curious.

[Anonymous]

Thanks for the input and response!

I am looking at gold/plat charge cards, not co-branded. I currently have gold 75k status with Alaska and don't plan on changing airlines any time soon.

As for using, I am traveling over 40% of the time even in this current pandemic and usually average between 60% - 75% in a normal setting. I would look to the Platinum for all of my flight/hotel expenses and the gold for all things dining and my everyday shopping when home. Outside of work expenses, I currently spend roughly $4.5k / mo on variable expenses that are just being put on a debit card. I am getting no reward for the swipe, hence my browsing for something that will pay me back!

[GrandBaker]

Welcome!

Wow! That much travel in these times? I think AMEX had you in mind when they created their Platinum card.

One concern is your lower scores for a Platinum. So my recommendation is to apply for Gold and use it as your main card for 6 months. This will allow both for you to get in AMEX's good graces while also testing out their ecosystem. At that point you will know if you want to get their Platinum card. It will be a soft pull at that point in time and (considering no big -ve changes) your Platinum card approval is almost guaranteed.

If I were traveling as much as you do I would get both Platinum and Gold in a heartbeat.

Good luck!

[K-in-Boston]

Because of what you have told us and with you having a pre-approval for Delta Reserve, I think your odds are quite good for charge cards.  That is a LOT of rewards to be losing out on paying with a debit card.

One thing I would ask - do you have status with any hotel chains currently, or are you looking to bulk up with either Marriott or Hilton after you acquire these cards?  Platinum isn't the best card for hotel spend (other than prepaid through Amex Travel, which won't count for elite perks or credits) but certainly better than the debit card.

Do you already have a plan for using the MRs?   If you are thinking of using them through Amex Travel, I would encourage you to consider getting Business Platinum rather than personal, as you get a 35% rebate effectively making MRs worth 1.54 cents each for Y flights on your chosen airline for the credit (not sure what fees if any would count for you on Alaska since you are Gold 75K already) or for J/F flights on any airline.

Get the cards first; we'll work on converting you to Delta later.  🥳

[Anonymous]

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@Anonymous wrote:

Re: the 60D, they were for a Kia Motor Finance account. I basically got in a wreck and insurance paid all by $3k of my loan. I kept making regular payments after that, but apparently you're supposed to pay it all up front. So, they put it as a charge off and my late payments were from the transition. It's now showing as a charge off but paid in full and closed. Do you think writing them a letter would help with that? Just explaining my situation and asking for some forgiveness? What specifically would I ask for? 

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I would ask for the negative information to be removed from your CR as a gesture of GW considering the situation (provide the details) and your otherwise stellar payment history.