Need a Beginners AMEX card. I have "Bottom Feeder" cards.

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Deighton
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Postby Deighton » Sat Jan 28, 2012 9:52 pm

CC Deville wrote:How old are you? 25-30? older? Even though you have had a credit card for 7 years, there is a term called Average Age of Account (abbreviated as AAoA). Essentially, any new credit added will lower your AAoA. So you may have one card that is 7 but if your other credit is only a year or two old, that can drag down your AAoA to 3 years or less. To find your AAoA, write down all of your credit cards/loans (and even collections) and the month and year they were opened. Next to each account, figure out the age in months. So, for example, if you opened your oldest account in January 2009 that would be 36 months as 1/09 was three years ago (3 x12 = 36) and so forth. Once you have done this, add up all of the months. Then divide by the total number of tradelines (this includes credit card accounts, installment loans, mortgages and even collection accounts). Then divide that number by 12 and you get a number that should be a decimal with a leading number (i.e 3.25). If you divide the .25 by 12, that gives you months. So three years, .02 months. The credit bureaus will not register the .02 months, so the average age would be 3 years.

So they may be looking at the AAoA of your accounts in determining the age of credit.

Amex also uses an internal scoring system for approval, so it is really hard to determine what they will accept. When I was 20 and I had only had credit for 1 year and 3 months (and 7 recently opened accounts) they sent me a preapproval for a Gold card and they approved me with a score of 620. So who knows....I would wait for your Experian inquiries to be mostly a year old and get your utilization down to 30% and apply again. Zync is regarded as being the easiest to be approved for as it was designed with the 18-22 year old in mind. But the Green is likely just as easy.


CC thanks for your help. I just turned 29 last month. I'm gonna see how my credit score looks next month, then I will re-apply if it looks better. So should I go with the green charge card, since I got denied from the Zync?


Deighton
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Postby Deighton » Sun Jan 29, 2012 12:17 am

So I got greedy and applied for 2 cards and got apporoved. One from capital one for CL$300 and a USAA AMEX CD secured card. On the AMEX I have to put atleast $250.00 on it. So Its basically like a credit card right? Also will it build my credit for an unsecured AMEX card in the future?

Deighton
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Postby Deighton » Sun Jan 29, 2012 12:18 am

CC Deville wrote:How old are you? 25-30? older? Even though you have had a credit card for 7 years, there is a term called Average Age of Account (abbreviated as AAoA). Essentially, any new credit added will lower your AAoA. So you may have one card that is 7 but if your other credit is only a year or two old, that can drag down your AAoA to 3 years or less. To find your AAoA, write down all of your credit cards/loans (and even collections) and the month and year they were opened. Next to each account, figure out the age in months. So, for example, if you opened your oldest account in January 2009 that would be 36 months as 1/09 was three years ago (3 x12 = 36) and so forth. Once you have done this, add up all of the months. Then divide by the total number of tradelines (this includes credit card accounts, installment loans, mortgages and even collection accounts). Then divide that number by 12 and you get a number that should be a decimal with a leading number (i.e 3.25). If you divide the .25 by 12, that gives you months. So three years, .02 months. The credit bureaus will not register the .02 months, so the average age would be 3 years.

So they may be looking at the AAoA of your accounts in determining the age of credit.

Amex also uses an internal scoring system for approval, so it is really hard to determine what they will accept. When I was 20 and I had only had credit for 1 year and 3 months (and 7 recently opened accounts) they sent me a preapproval for a Gold card and they approved me with a score of 620. So who knows....I would wait for your Experian inquiries to be mostly a year old and get your utilization down to 30% and apply again. Zync is regarded as being the easiest to be approved for as it was designed with the 18-22 year old in mind. But the Green is likely just as easy.


So I got greedy and applied for 2 cards and got apporoved. One from capital one for CL$300 and a USAA AMEX CD secured card. On the AMEX I have to put atleast $250.00 on it. So Its basically like a credit card right? Also will it build my credit for an unsecured AMEX card in the future?

CC Deville
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Postby CC Deville » Sun Jan 29, 2012 9:36 am

Deighton wrote:So I got greedy and applied for 2 cards and got apporoved. One from capital one for CL$300 and a USAA AMEX CD secured card. On the AMEX I have to put atleast $250.00 on it. So Its basically like a credit card right? Also will it build my credit for an unsecured AMEX card in the future?


Congrats on your approvals. Keep in mind that the Capital One probably won't grow with you so after about two years you may want to close it and get a Visa/MasterCard from a prime bank.

In terms of the secured USAA Amex helping you gain an unsecured Amex: even though the USAA Amex is an Amex network card, it has nothing to do with an Amex issued directly from Amex themselves. Now, having this account will help you build your credit which can lead to an approval from Amex themselves but it won't be backdated to your USAA Amex. And USAA will likely unsecure your card within a year. USAA is a great company to do business with. Sit tight for now though, if your goal is an Amex, you need to watch your Experian inquiries.

In regards to your other post re Zync vs. Green. When you do apply for an Amex again, your credit will be more solid so you should apply for the one that benefits you most as you will likely be approved for any of the charge cards by then. If you just want to get your foot in the door until you are ready for the Amex that you really want, a Zync can be a good choice as it has the lowest charge card annual fee. But if you want the Membership Rewards that Green and Gold offer, then I say go for it at that point. Because they are charge cards, Amex takes less of a risk with them and threfore, they are relatively easy to obtain. Amex would gladly take your $95 or $125 annual fees over the $25 Zync.

Deighton
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Postby Deighton » Sun Jan 29, 2012 11:43 am

Got it. Thanks. I rather have the green card over the Zync card. I'm not in my early 20's. So maybe I should just wait on my offers. Hopefully by the summertime.

UPS Gregg
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Postby UPS Gregg » Sun Jan 29, 2012 12:11 pm

Deighton wrote:Got it. Thanks. I rather have the green card over the Zync card. I'm not in my early 20's. So maybe I should just wait on my offers. Hopefully by the summertime.


I'd go for USAA. No annual fees.
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*Amex Macy's CL-$8,000.00
*JPMorgan Chase Marriott Rewards Premier Visa Signature CL-$20,000.00

Deighton
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Postby Deighton » Sun Jan 29, 2012 2:54 pm

UPS Gregg wrote:I'd go for USAA. No annual fees.


Yeah but the only problem with the USAA AMEX, it doesn't really have to do anything with AMEX itself. That sucks.

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PlatinumAMEX94
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Postby PlatinumAMEX94 » Sun Jan 29, 2012 4:04 pm

Deighton wrote:Yeah but the only problem with the USAA AMEX, it doesn't really have to do anything with AMEX itself. That sucks.


On the bright side, you will deal with USAA customer service instead of AmEx customer service, so it should always be an amiable experience. There are different levels of customer service with AmEx (based by card), with USAA, you always get the same excellent service.
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momoneyg08
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Postby momoneyg08 » Sun Jan 29, 2012 4:33 pm

Check out some of the American Blue cards, I heard the American Blue Cash has a very good cash back percentage. I also love my American blue sky which I got back in 2008, its good as you can use points to 'refund' any money spent on flights, hotel stays etc. It has served me faithfully over the year, APR is around 7% which is the best out of all the cards I have.

One stupid stupid time I maxed out my card and they were nice enough to extend my limit and not charge me for it. Just got Amex Gold this month (actually another stupid stupid move I accidentally applied for Amex Green first, talked to Amex that I actually wanted the Gold and they just told me not to activate the green and instead just apply for Gold, unfortunately that still results in 2 hard pulls consecutively). Sky cash is good if you travel or ever go to hotels, no annual fee, great APR and you start building a relationship with Amex

CC Deville
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Postby CC Deville » Sun Jan 29, 2012 7:51 pm

Deighton wrote:Got it. Thanks. I rather have the green card over the Zync card. I'm not in my early 20's. So maybe I should just wait on my offers. Hopefully by the summertime.


Sounds good. I am in my early 30s and I was approved for Zync on Friday ;) I chose Zync because it is the cheapest of the charge cards (I already have Blue). I should explain that my Member Since year is 1999. I opened the Zync for backdating purposes: it will report as opened 1/99. As a side note: I read on Amex's press releases from 2010 when Zync was introduced that indicated that Zync is actually meant for individuals in their 20s and 30s so I don't feel too badly now:

http://about.americanexpress.com/news/pr/2010/zync.aspx

I opened a Gold Card at 20 (and long since closed). One of the smartest d@mn things I ever did because that locked in my 1999 Member Since year and have now had two new Amex's backdated.



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