Odds of Approval For First AMEX

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RGL
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Odds of Approval For First AMEX

Postby RGL » Sun Jan 25, 2015 5:04 pm

Hello,
I am new to this forum and I was hoping you guys might be able to help me out here. I am 20 years old, a college student, and have income of about $30k/year. I have recently begun trying to build my credit history, and the only credit card that I have is a Chase Freedom card of which I am an Authorized User (I did not have a SSN at the time of opening the account so I could not apply as the primary account holder).
When I received my SSN the first thing I did was add it to my Chase bank account so that it would hopefully link the credit card to my SSN as well, effectively affecitng my credit score. I got in touch with AMEX as they had sent me pre-approved Gold Cards in the past (since my parents are long time costumers) and their sales rep encouraged me to apply despite me telling her I had non-existent credit history. She said that, "there are so many factors they consider in approving/denying applications that [I] could get approved with no credit score." She talked to me about the cards and I told her I don't carry balances, and explained the type of rewards I prefer. She then referred me to the Gold Card. I was setting my sights on the Blue Cash Everyday since I thought the standards of approval might be lower but she insisted the Gold Card was the way to go for me.
So I applied and got denied. Why? No credit history. I then applied for a Discover IT Student card. Discover said they were unable to approve me because of insufficient credit history (again :mad :) and encouraged me to fill out a joint app (which I turned in today and expect to hear back from by Wednesday).
At the time of all this applications (about 2 weeks ago) my credit score was non-existent (at least on Credit Karma it was), however, now when I check my score it shows my Chase Freedom Card! :oooo It also shows my Equifax and TransUnion scores both at 706. It says my history is 5 months old (since I opened the card in August) and I was considering re-applying for an AMEX since the sales rep on the phone (I called to see if they would re-consider) told me "apply for a different card, preferably a student card, and then comeback in 5-6 months and try again when you have a credit score."
Well, now there is a 5-6 month old credit history that's reflected on my credit report and I have a good score. So what are the chances AMEX might approve me now? Also, if you think I have a shot, which card do you think I should apply for?

I should note that the Chase Freedom Card ($1,200 limit) is reported at 32% Credit Utilization (which is untrue. I use up to 98% of the credit and pay it off in full every month since it's my only card, but Chase reports that I use about $380 of my line.:cool :)

Thanks in advance!


ncosky290
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Postby ncosky290 » Sun Jan 25, 2015 7:31 pm

Amex will auto decline if your application is within 30 days. They also do not like short history. I would say that you should maybe go to (ugh) Capital One or Bank of America and open a Secure Card with them to help with the reporting of open lines of credit and then go back to amex in about 8 months and try again for the Delta Sky Miles Gold Card...

Just my thoughts for you...
-AMERICAN EXPRESS DELTA GOLD SKYMILES - AMERICAN EXPRESS EVERYDAY -AMERICAN EXPRESS PLATINUM - CITI DOUBLE CASH - CITI PLATINUM AADVANTAGE - CITI THANK YOU PREFERRED - BARCLAYCARD ARRIVAL PLUS - DISCOVER IT - CHASE SAPPHIRE PREFERRED-

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CarefulBuilder14
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Postby CarefulBuilder14 » Sun Jan 25, 2015 8:07 pm

I'd wait until you hear back from Discover before you do anything else. Unless you want to shop at Costco or a small number of other stores that don't take Visa or Discover credit cards, the Freedom and It are pretty good cards to have while you build some history.

It's true that the Amex Gold is easier to get than the BCE, but that doesn't mean it's a good card for you. The Amex Gold has a fee higher than I think it merits, and you didn't mention a special signup bonus or fee waiver. What she suggested is what is most profitable for Amex - not what is necessarily best for you.

Issuers may not really care that you've been an AU on a Chase card for a few months. Being an AU doesn't have the value it did before the financial crisis. It's not bad - it's just of very little positive value. Having a joint Discover and using it responsibly for a few months will probably do more to help you.

I have all four cards you've mentioned - the Freedom, It, Amex Gold, and BCE. I have the PRG variant of Gold, which I got a special signup deal on, and probably wouldn't otherwise have. I use Freedom and It more than either Amex.

If I was in your shoes, assuming you get approved for the joint Discover, I'd skip the Gold and apply for a BCE in 6 or 7 months.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

popamode72
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Postby popamode72 » Sun Jan 25, 2015 10:13 pm

You might want to get a secured card from Bank of America if that Discover one doesn't work out. I've heard a lot about how people have been able to get it unsecured even before the 12 month mark and they are a great prime lender to start out with. I remember when I tried getting their student card in late December 2013 and they countered with a $99 deposit $500 limit secured card.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

ingramjuan
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Postby ingramjuan » Sun Jan 25, 2015 11:18 pm

This is a hard one? As noted in some of the pervious threads, I would suggest holding off with applying for an amex and possible get a secured card from capital one.
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Capital One Platinum (2001) |Capital One QuickSilver World (2002) | Amex Gold Delta (2013) | Best Buy Visa (2013) |Discover It (2015) | Amex Platinum (2015)

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takeshi
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Postby takeshi » Mon Jan 26, 2015 9:26 am

RGL wrote:Well, now there is a 5-6 month old credit history that's reflected on my credit report and I have a good score.

Keep in mind that it's the scoring model and CRA that the creditor uses that matters. AmEx does not use the VantageScore 3.0 that the CK site redesign provides nor do they use the TranUnion New Account model or older VantageScore from the older CK site design.

RGL wrote:I should note that the Chase Freedom Card ($1,200 limit) is reported at 32% Credit Utilization (which is untrue. I use up to 98% of the credit and pay it off in full every month since it's my only card, but Chase reports that I use about $380 of my line.:cool :)

Chase updates your balance with the CRA's when statements are generated. Your balance on the statement date is what is reported. It doesn't matter if you pay in full after they report. If you want to manage reported utilization then you need to pay prior to the date that a creditor reports.

If you apply with AmEx they don't have access to your current balance with Chase. They see what's on your report.

RGL
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Postby RGL » Tue Jan 27, 2015 7:04 pm

CarefulBuilder14 wrote:you didn't mention a special signup bonus or fee waiver.


You're right I forgot to mention I the first year the fee was waived and I believe I would get 25,000pts if I spend $1,000 within the first 3 months.

If I was in your shoes, assuming you get approved for the joint Discover, I'd skip the Gold and apply for a BCE in 6 or 7 months.


The discover card was unfortunately declined as my wife had an outstanding balance with Discover in her account (aka her card was maxed out). Personally, I wanted the Gold Card. Maybe because it's the card my parents used to have and, since I don't carry a balance, it seemed to make sense.

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CarefulBuilder14
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Postby CarefulBuilder14 » Tue Jan 27, 2015 10:30 pm

RGL wrote:You're right I forgot to mention I the first year the fee was waived and I believe I would get 25,000pts if I spend $1,000 within the first 3 months.



The discover card was unfortunately declined as my wife had an outstanding balance with Discover in her account (aka her card was maxed out). Personally, I wanted the Gold Card. Maybe because it's the card my parents used to have and, since I don't carry a balance, it seemed to make sense.


Sorry to hear about the Discover. As far as the Amex Gold, my reason for not liking it has more to do with the rewards and benefits than the fact that you have to pay in full. If you want an Amex charge card, you might compare it to the PRG and find the PRG is a better value and warrants an annual fee 40% higher than the regular Gold. You'll have to look over your own expected spending to decide.

For now, I'd get a secured card from Bank of America or a credit union. I would not use Capital One except as a last resort. Bank of America often lets secured cards later become unsecured (normal) cards after a year or two. Capital One has a reputation for not allowing this.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

RGL
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Postby RGL » Wed Jan 28, 2015 12:08 am

For now, I'd get a secured card from Bank of America or a credit union. I would not use Capital One except as a last resort. Bank of America often lets secured cards later become unsecured (normal) cards after a year or two. Capital One has a reputation for not allowing this.


I am looking into potentially applying for a Chase Freedom card. Since we bank with Chase, and basically my entire credit history is based on Chase (the 6 month old Freedom card I'm an AU on), I think they might be my last shot at a unsecured credit card. If that fails, I was going to look into Bank of America for a secured card as you suggest.
I would love your opinion on whether or not I have a shot with Chase. I'd hate to waste another hard pull.

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CarefulBuilder14
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Postby CarefulBuilder14 » Wed Jan 28, 2015 9:26 am

RGL wrote:I am looking into potentially applying for a Chase Freedom card. Since we bank with Chase, and basically my entire credit history is based on Chase (the 6 month old Freedom card I'm an AU on), I think they might be my last shot at a unsecured credit card. If that fails, I was going to look into Bank of America for a secured card as you suggest.
I would love your opinion on whether or not I have a shot with Chase. I'd hate to waste another hard pull.


When I got my Freedom, my only credit history (the only thing in my file) was a declined GECRB app from the year before. I did have a Chase checking account at the time. I was in a comparable credit position as you, except I had no history as an AU and no recent inquiries. I was instantly approved for a $600 starting limit on the Freedom.

So applying for your own Freedom could work. It's definitely one of the easier prime cards to get.

I'd go for the Freedom, and then take the secured route if that doesn't work. That probably should have been my original advice, though it didn't occur to me at first.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when



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