Will 4% in Utilization Make a Difference?

[Uncle_Money]

Hey Folks,

I was recently approved for the Amex Green Rewards card. At the time I applied, my utilization was 9%. Today it is 13%. I want to apply for the Amex Plum card. Does this 4% really make a difference? This is the only thing that has changed.

- UM

[Anonymous]

plum is pretty expensive isn't it?  I don't think anything under 15 is bad.

[Uncle_Money]

I'm thinking I should be ok with that utilization. Annual fee is waived for the first year, thereafter it is $185.

[Anonymous]

You might take a very small ding, since there is a break-point at 10%. Nothing disastrous, and as soon as you pay down you'll get your 3 to 5 FICO points back.

[Anonymous]

It could lower your score more.

Plum is a very nice card. It was designed for people that spend over $5k monthly to receive 2% early payment, 1% for below $5k.

Amex doesn't really go by FICO scores alone. They've been watching us for a while and make their own credit choices using their credit formula too. I'd want to apply with as little revolving debt as possible even $0. If your score is borderline where you have to worry about 4% you might be looking at an F/R, but if the card will benefit you and save you money go for it.

SimpleCash gives 5% back on office supplies.

But I think the Platinum Business Cash Rebate wins. 2.5% unlimited rebates on everything and 5% from Open partners. No annual fee!

IMO it just looks better to Amex to PIF before applying, sorta like tucking in your shirt for a meeting, unless you need those few extra points for peak UTL. Amex likes PIF'rs.

Message Edited by ilovepizza on 08-28-2008 01:22 AM

[Uncle_Money]

Good points.

Last Fico EX check was 712. I know Amex is big on low utilization, which is why I'm debating at the moment. Although, I don't believe 13% is high at all. Getting my utilization all the way to $0 will be somewhat of a challenge, though I don't believe it has to be that low.

Then of course there's always inquiries. I had 10 affecting my score when I applied for Green and was instantly approved via phone. If I apply now, I'll have 9. Thoughts?

[Anonymous]

Have you accepted the green? If so be prepared for a possible F/R in a few weeks if you get both. No biggie, it can't hurt to try and app for a second card. Green is a personal card. The Plum is business. They go together like checking and savings accounts. You may be approved for both, if not you probably can convert green to plum. I'd apply. Why not. They may even just soft hit you this time. I don't think Plum will show up on your CRs because it is for your business not personal use.

Then again you could be denied. But you won't know unless you apply again. I don't get worried when applying with the same company more than once. Now if you apply with someone else and then apply for a second Amex that might look very bad.

I don't know the outcome. I'm app happy so I'd apply, but don't know if that would be the best advice.

Message Edited by ilovepizza on 08-28-2008 04:18 AM

[Creditaddict]

they are both charge cards, you will be fine. and I don't think charge cards are going to get you FR either.

[Uncle_Money]

Well you guys gave me the push I was looking for, especially you Creditaddict! I was just approved for the Plum Card! Uncle Money's credit card shopping has now come to an end for a long while!