AMEX Card with limited credit history

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columbusohio
 
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AMEX Card with limited credit history

Postby columbusohio » Mon Jan 11, 2016 12:22 pm

I'm 18, I started my credit back in October by getting a Chase Freedom Card, they approved me with a $500 limit, in November I signed up for 3 more cards, capital one secure $200 limit, discover it secured $200 limit and a lowes card at a $400 limit, I want to know what AMEX card would I qualify for, I know the limit on the AMEX will be very low If I do get approved but at least I'm getting my foot in the door with AMEX. Credit karma says my scores are 620. So do I have any chances at getting a AMEX? if so what card? Thanks!


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Vattené
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Re: AMEX Card with limited credit history

Postby Vattené » Mon Jan 11, 2016 6:00 pm

Regarding your two secured cards: did you apply for unsecured cards and were forced to accept secured?

Either way, I don't think you're likely to get accepted for an Amex at this point. Three months of history on your profile is nothing in the credit world. You have a very thin file, too; three new accounts and three recent hard pulls put you on very shaky ground. Applying for any account from any lender would be iffy, and I'd speculate Amex would turn you down right now.

I wouldn't recommend applying now, but I believe the credit card they offer with the least restrictive underwriting criteria is the Gold Delta SkyMiles, but a card with a $95 annual fee and that's meant to earn airline miles probably isn't well suited to you at this point. It's also relatively easy to qualify for any of the charge cards (Green, Gold, PRG, and Platinum). Charge cards are a different animal than regular credit cards: they must be paid in full (which you should be doing with a credit card anyway), and there is no hard credit limit (it is a hidden, dynamic limit). They also have annual fees.

You are off to a good start, though. The Freedom is a good card, and many aren't able to get accepted for one at all as their first credit card. Your other three accounts will help you establish a good history. Just make sure you always pay the bill on time and always pay the amount of the statement in full when you do. I'd give it twelve months before going for an Amex. You probably still won't get a large limit, but your chances of approval will be better and you can get something that is actually useful to you.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

yfan
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Re: AMEX Card with limited credit history

Postby yfan » Mon Jan 11, 2016 6:15 pm

columbusohio wrote:I'm 18, I started my credit back in October by getting a Chase Freedom Card, they approved me with a $500 limit, in November I signed up for 3 more cards, capital one secure $200 limit, discover it secured $200 limit and a lowes card at a $400 limit, I want to know what AMEX card would I qualify for, I know the limit on the AMEX will be very low If I do get approved but at least I'm getting my foot in the door with AMEX. Credit karma says my scores are 620. So do I have any chances at getting a AMEX? if so what card? Thanks!

Just... wait. You will get your Amex in due time. But right now, use the credit you have and build a responsible history.

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Dcyphrz
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Re: AMEX Card with limited credit history

Postby Dcyphrz » Mon Jan 11, 2016 10:03 pm

Chase Freedom is nice! :)

You have really great card issuers. No junk at all.
Image

EX 756 - TU 776 - EQ 749

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CarefulBuilder14
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Re: AMEX Card with limited credit history

Postby CarefulBuilder14 » Mon Jan 11, 2016 10:27 pm

Dcyphrz wrote:Chase Freedom is nice! :)

You have really great card issuers. No junk at all.

"Junk" is a relative term. For someone who already has a $500 (unsecured) Freedom, I think a $200 secured card without rewards (Capital One) is junk.

Discover, at least, gives good rewards for a no-AF card and has a better history of converting secured cards to unsecured ones.
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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Dcyphrz
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Re: AMEX Card with limited credit history

Postby Dcyphrz » Mon Jan 11, 2016 10:38 pm

CarefulBuilder14 wrote:"Junk" is a relative term.

I'll give you that. I was impressed to see something besides Credit One and First Premier for somebody starting out.
Image

EX 756 - TU 776 - EQ 749

kdm31091
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Re: AMEX Card with limited credit history

Postby kdm31091 » Tue Jan 12, 2016 7:28 am

Use your existing cards well and wait. I don't think Amex would approve you at the moment, but like stated earlier in the thread, a year or so of history will be a huge help. The only thing applying for amex will get you right now is wasted HPs.

takeshi
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Re: AMEX Card with limited credit history

Postby takeshi » Tue Jan 12, 2016 9:38 am

columbusohio wrote:I'm 18, I started my credit back in October by getting a Chase Freedom Card, they approved me with a $500 limit, in November I signed up for 3 more cards, capital one secure $200 limit, discover it secured $200 limit and a lowes card at a $400 limit, I want to know what AMEX card would I qualify for, I know the limit on the AMEX will be very low If I do get approved but at least I'm getting my foot in the door with AMEX.

Given those low limits, age of your credit history and recent activity I wouldn't recommend anything. 3 months is no time at all in the credit world and you have a lot of new accounts for a new and thin profile like yours.

There's no benefit to getting your "foot in the door". If you qualify you qualify. Being approved doesn't provide additional benefit. Your entire credit profile and income at time of consideration are assessed with every credit decision.

columbusohio wrote:Credit karma says my scores are 620.

Credit Karma's scores are irrelevant. AmEX does not use VantageScore. They typically pull EX and not TU or EQ.

Always consider the specific scoring model & CRA when referencing scores. Also consider the relevance of the model/CRA combo to a given creditor. Creditors do not all use the same scoring model or CRA and you cannot use a score generated by one model to determine a score generated by a different model. For AmEx you'll want to look at your EX FICO 8.

kdm31091
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Re: AMEX Card with limited credit history

Postby kdm31091 » Tue Jan 12, 2016 10:14 am

I agree that "getting your foot in the door" is extremely overhyped. You either qualify for the card you want or you do not, like takeshi said. Having a lesser/different card with the creditor in the meantime doesn't guarantee anything. Remember that when you app, the creditors see ALL of your payment history and habits, not just the ones with them, which is why "foot in the door" makes little sense



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