How do Amex Charge Cards Work

[jetsfan2013]

Amex seems to be more willing to open up to newbies to their products. In the course of 60 days, I have 3 (PRG revolver, Blue Cash, Gold Delta Skymiles) approx 700 FICO 25% util at time of app

[drboxing]

true

[SouthJamaica]

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@Anonymous wrote:

Thanks, all!

This is the first prequalification that i've seen onliine for AMEX.  I am just curious.  This could also be my first prime card.  Amex would look good in the wallet.  I don't plant to use it much, only ocassionally to keep it open.  When I first saw that I am prequalified, I know it isn't certain, my first thought was that it could get me in the door with AMEX.

Thanks again!

Peace!

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I used to think that, too, but I've come to realize that it's baloney. When you stick the card in a parking meter it doesn't know how prestigious it is, and if you're buying someone lunch they don't care what you're paying with.

IMHO it isn't worth the annual fee to have an Amex charge card, unless you do a lot of travel and can justify the fee through travel perks.

[Anonymous]

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@Anonymouswrote:

My data points:

1. Burned Amex over 10 years ago on their secured card although the security deposit paid the delinquent account in-full.
2. Never had a prequalified Amex offer even with EX > 700.  Not one.
3. Cold apped for BCP in November, instant $2000 approval but never saw prequalified offers.
4. In December, I started seeing preapprovals ONLY on credit cards, NEVER on charge cards.
5. In January, I am preapproved for everything (I think) -- sometimes if I check if I am preapproved, the card will completely disappear from the site for 1-2 weeks (can't even see the card if I wanted to).

Amex charge cards are for responsible people who have enough in their payment checking account or savings account BEFORE making a charge.  NEVER make a charge assuming you can pay it with a future check.  I have seen at last 20 people in the past year who got into massive financial trouble over a $1000 balance because they charged work stuff to a charge card and their reimbursement didn't come in time.  Don't do this, ever.

If you need the card for work, make it REQUIRED that you build a stronger savings balance.  In fact, if you use a charge card for personal needs, don't charge more than your emergency fund can cover -- and if you have to use that, don't do any new charges until you replenish your savings balance.

Amex MR points can be VERY beneficial but not for everyone.  I'd say that 80% of people get no benefit out of MRs, and of the remaining 20% who can, probably 80% of those don't have enough in checking/savings to cover their charges.  So maybe 1 in 25 people benefit from the MR points and can use it without payment anxiety or stress.

I want the Platinum card but I am waiting to see if I can get CSP instead.  CSR would blow away Platinum, but CSP would let me horde URs until CSR comes around.  If I don't get CSP by June 2018, I will snag Platinum, but I also want to maximize benefits!

The Green card is pretty meh, but it has its place for those who just want a charge card to test out.

This is super helpful. Thank you

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