Getting into the AMEX family

[KatherineLee]

Do any of you have a savings account with AMEX?

I am curious if this would somehow down the road help me in getting an AMEX credit card. 

I haven't tried to apply for one because I assume I wouldn't be able to get one.

Additionally, I don't really need more credit right now.

About me now:

October 2010  Equifax 723

Feb 2011 Transunion 724  both pulled thru myFICO.com

24,500/year income 

1. US Bank Platinum Visa opened early 2009, 4k limit

2. Kohl's store card, 1.5 years old  $600 limit

3. Chase Slate, November 2010  $3k limit

4. Discover More, March 2011, $2.5k limit

Also have 2.5k backup credit on a checking account with US Bank.

I have a short history with my oldest account being student loans 4 years old now.

I always pay my credit cards in full before period ends (have yet to pay a penny!).  I think I piggybacked off my parents when I got my first card at age 20 because they co-signed a student loan.

Anyways, I feel I don't have a chance with AMEX right now.  I'm not interested in a card with an AF.  I do want to take the hits on my FICO score now for adding credit cards rather than 5+ years down the road when I try to get a mortgage - then my AAoA for my credit cards will be "older."

So, back to my question - does getting a savings with AMEX do anything to help me?  Should I just go for it and try to get a card in the next few months? What should I go for?  Should I hold off?  I basically have 12k in credit on a 24k income, so I'm probably going a bit excessive here.

[andyaycw]

Here are my thoughts:

It's a good idea to get credit when you don't need it, so you shouldn't use that as the only reason to not try for Amex. Are there any specific cards from them that you see as a big benefit? If they have a CC product that would be beneficial to you, then you should go for it regardless of whether you need or don't need any more credit. Furthermore, many people here have credit limits more than their income level, so don't let that deter you from applying either. My credit limits, for instance, are 2x my annual income. Just put your income at what you can prove, and Amex will give you a credit limit they feel comfortable with.

On the basis of just your credit scores, I'd say you have a good shot of approval. You may have a short history, but you've got a few cards with major issuers and you've really only got one account that was opened "recently" (Chase Slate from November 2010). Assuming you don't have any derogatories on your credit report and you don't have many inquiries in the last 6 months, I see no reason not to app for Amex.

I can't speak to whether getting a savings account with Amex would help, so perhaps someone else can comment on that.

[danisgods]

AMEX sucks, no one takes it....

[joestay]

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@danisgods wrote:

AMEX sucks, no one takes it....

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I've never been denied before.  Every place I go takes AMEX.

[CHARGE_IT]

Wow, your comments are taking on a harsher tone. They must have burned you, or else you never leave home with or without it, 'cause they are about as everywhere as they can get. Don't take credit issues too personally. It isn't personal

CI

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@danisgods wrote:

AMEX sucks, no one takes it....

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[jefftca925]

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@KatherineLee wrote:

Do any of you have a savings account with AMEX?

I am curious if this would somehow down the road help me in getting an AMEX credit card. 

I haven't tried to apply for one because I assume I wouldn't be able to get one.

Additionally, I don't really need more credit right now.

About me now:

October 2010  Equifax 723

Feb 2011 Transunion 724  both pulled thru myFICO.com

24,500/year income 

1. US Bank Platinum Visa opened early 2009, 4k limit

2. Kohl's store card, 1.5 years old  $600 limit

3. Chase Slate, November 2010  $3k limit

4. Discover More, March 2011, $2.5k limit

Also have 2.5k backup credit on a checking account with US Bank.

I have a short history with my oldest account being student loans 4 years old now.

I always pay my credit cards in full before period ends (have yet to pay a penny!).  I think I piggybacked off my parents when I got my first card at age 20 because they co-signed a student loan.

Anyways, I feel I don't have a chance with AMEX right now.  I'm not interested in a card with an AF.  I do want to take the hits on my FICO score now for adding credit cards rather than 5+ years down the road when I try to get a mortgage - then my AAoA for my credit cards will be "older."

So, back to my question - does getting a savings with AMEX do anything to help me?  Should I just go for it and try to get a card in the next few months? What should I go for?  Should I hold off?  I basically have 12k in credit on a 24k income, so I'm probably going a bit excessive here.

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Based on what you've told us so far I think you'd have a shot at an AMEX charge card (green, zinc, gold).  If you find the right link you can get the card with the first year AF being waived and that would get you established with them.  Then in a few months or so you can try for a credit card (Amex Blue, Delta, etc.) and see where that goes.  Your scores look good enough and you've got some decent history.  As long as you do not have any recent baddies I'd say "GO FOR IT!"

[JayRizzo]

Hmmmm, andyaycw, unless your first sentence was a typo -- we would never encourage any member to apply for credit when they don't need it.  We "do" encourage gardening what you currently have for growth and maturity.  I think the OP was just asking if having a savings account would increase an applicants chances of approval -- kinda like Chase bank does with its existing customers, for example.

OP, I also cannot answer that question as each lender have their own set of approval criteria.  Perhaps a call to a CSR may or may not provide you with the answer you are seeking in the event no one in the forum have the answer.

[KatherineLee]

Thanks for the replies everyone.

I may try giving AMEX a call to inquiry about a charge card.  However, honestly I don't really anticipate that I would want to use an AMEX over my Discover More or US Bank card (1% cash back on everything, all the time).  I just assume that eventually I'll want to be in the AMEX family and if I get in now it'll help in the AAoAs in the long run.  My AAoA is taking a huge hit right now since I added a Chase Slate and Discover More in the past 6 months.  Paying an annual fee to use a charge card doesn't sound appealing to me right now. 

I might just hold off for half a year and then go for a credit card.  At least then I should have no hard inquiries on my reports (unless my current lenders pull one without me knowing prior) and I should have a few thousand more paid off on some installment loans (student loans).

I do need at least one more savings account so I was looking at AMEX online accounts and was curious if that would help me get into the door.  Any of you have general suggestions about online banks to use for savings accounts?   Chase? AMEX?  BoA?   (sorry, I realize I'm drifting from credit cards, but I figure several of you have some opinions in this regard)

[jefftca925]

American Express, Discover, and Capital One actually have some decent rates, by comparison, for savings accounts.  Chase is horrid so I wouldn't even bother.  I've had an ING account for 6 years or so and it has drifted from 5% down to 1%.  They used to be great but not anymore.  I'm thinking of moving my savings to Amex or Discover.  I would leave some money in a brick and mortar bank though in case of emergencies.  The online accounts can take up to 3 days to transfer funds.

[Open123]

It can't hurt to have a savings account or CD with them when applying for the card, but the main criteria will be based more on how you rate on their internal scoring system.

In my view, if you don't plan on using the charge card now, you'd likely will be much better off applying when you are ready to use it since you'll have a longer history of on time payments and invariably higher credit limits.

Just remember to lower your utilization when applying and use the cards you currently have.  From what I've gathered, Amex dislikes high balances and low usage.