Lessons learned in retrospect

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MemberSince99
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Lessons learned in retrospect

Postby MemberSince99 » Fri May 25, 2012 9:49 am

I'm going to post my recent experience here in the hopes it may be useful to others.

I recently in the last month got two Amex charge cards - Zync and Gold, which were backdated.

In hindsight, I'd say two in the same month (as well as Discover and a Visa Signature neither of which has reported yet) is a bit extreme. As I've gotten new cards I've closed old ones. I'm not looking to run up a bunch of debt and walk away but these guys don't know that.

Then I really decided to push my luck. I was going to wait 6 months to a year and apply for the Blue Cash Preferred. But I went for it because I'd been on a roll. I got it, but the credit limit wasn't anything to write home about, and I did notice that they gave me their highest APR, 22.24%. That told me they consider me a risk. It's quite an ironic feeling to see your Experian FICO of 788 and then see the highest APR and the reasons why you got it (new accounts, inquiries, length of revolving account age, etc etc etc etc etc) on the same page.

What I would say is, I made a mistake in going for the Blue early. Or even two charge cards from Amex. I should have gotten one, and waited. Say at LEAST 6 months, maybe a year. With my luck the new accounts will trigger FR anyway.

But you know, I can live with that. If they decide to shut me down, I'll just use my new Discover more (hahaha bad pun there) and my Visa sig and go on with life. I really like Amex, and I hope I remain a customer, but I think I just tried to do too much too soon and in retrospect I wish I hadn't.

I just am posting this in hopes that anyone who is thinking of doing the same, will think twice, and follow a different road. Even if you get what you want it's not always all you thought it was gonna be. Just my 2 cents and words of wisdom for the day! Happy Friday!


thomaswhitehall
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Postby thomaswhitehall » Fri May 25, 2012 12:30 pm

Zync and Gold?

2 charge cards? Any reason why?

Just don't carry a balance on the BCP.

MemberSince99
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Postby MemberSince99 » Fri May 25, 2012 2:10 pm

thomaswhitehall wrote:Zync and Gold?

2 charge cards? Any reason why?

Just don't carry a balance on the BCP.


Zync was first. Simple reason honestly was I figured it was the easiest to get. All my previous applications with Amex ended with an instant denial. The reason I even applied was on a whim (I'll never know why) I decided for fun to see if I was "preselected" and was shocked to find I was. I never had been before so I figured obviously they must have seen something in a soft pull. So the Zync was just because I figured it was a foot in the door. But, also I liked the packs and the way I can pay my cell and cable bills with the card for bonus points.

Then they sent me via mail an invitation to apply for Gold. Why apply for Gold with Zync? Several reasons - first backdating - that would give me 2 accounts dating back to 1999. Plus then my MR Express points could become full MR points if I needed them to, and it didn't hurt that they waived the first year fee and offered enough bonus points to pay for the 2nd year if you spend enough.

I don't carry a balance on anything. Not even during the introductory 0% period. It's funny that they would give you a revolver but not really want you to use it that way though if you think about it.

CC Deville
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Postby CC Deville » Fri May 25, 2012 3:45 pm

+1

Just give it some time and you can request a CLI and an APR reduction. I would say request a CLI at 61 days and the APR reduction after a year. Since it is a rewards card you wouldn't want to pay interest anyway.

A lot of people have two Charge cards and it can make sense if used correctly for rewards. Zync with Membership Rewards Express is not as valuable; however, with the right packs you can earn a lot of points and if you have Gold, those "worthless" Membership Rewards Express get automatically upgraded to regular Membership Rewards. Again, it isn't for everybody but for those that make the right purchases and want to reap the benefits, two charge cards can make sense.

MemberSince99
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Postby MemberSince99 » Fri May 25, 2012 4:24 pm

CC Deville wrote:+1

Just give it some time and you can request a CLI and an APR reduction. I would say request a CLI at 61 days and the APR reduction after a year. Since it is a rewards card you wouldn't want to pay interest anyway.

A lot of people have two Charge cards and it can make sense if used correctly for rewards. Zync with Membership Rewards Express is not as valuable; however, with the right packs you can earn a lot of points and if you have Gold, those "worthless" Membership Rewards Express get automatically upgraded to regular Membership Rewards. Again, it isn't for everybody but for those that make the right purchases and want to reap the benefits, two charge cards can make sense.


Thanks CC. Good advice. I put it on my cell phone calendar to call for CLI in 61 days. I hear 3 times starting limit is normal? Or what you should ask for?

agp
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Postby agp » Fri May 25, 2012 6:20 pm

Question about backdating - if you apply and get approved for card A in 2000, and then apply and get approved for card B in 2008. In 2009, you close card A, does that mean your age of account is 1 year? Or is it 9 years?

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

MemberSince99
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Postby MemberSince99 » Fri May 25, 2012 6:35 pm

agp wrote:Question about backdating - if you apply and get approved for card A in 2000, and then apply and get approved for card B in 2008. In 2009, you close card A, does that mean your age of account is 1 year? Or is it 9 years?


Based on my experience, all your Amex cards SHOULD backdate to your first card's member date. So, your second card should have a member since date and backdate to 2000.

CC Deville
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Postby CC Deville » Fri May 25, 2012 7:03 pm

MemberSince99 wrote:Thanks CC. Good advice. I put it on my cell phone calendar to call for CLI in 61 days. I hear 3 times starting limit is normal? Or what you should ask for?


The general rule is that they will likely approve up to three times your limit. So if they gave you $2,000 to start out with they will likely allow you to go up to $6,000. $25K seems to be the max that they will allow before they want financials and other info. You have excellent credit and history with them, so I would go for the full 3x request.

CC Deville
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Postby CC Deville » Fri May 25, 2012 7:08 pm

agp wrote:Question about backdating - if you apply and get approved for card A in 2000, and then apply and get approved for card B in 2008. In 2009, you close card A, does that mean your age of account is 1 year? Or is it 9 years?


Your question isn't really backdating as it is a reporting question....if an account was opened in 2000 and closed in 2009 it should report as a 12 year old account that was closed 3 years ago. That open date should never change. Now what is backdating is that Card B even though opened in 2008 should also report to the bureaus as opened in 2000.

My "real" Amex was a Gold Card that I opened 4/99. I closed that card in 2005 but it still reports as a 13 year old account closed 7 years ago. It will fall off my credit bureaus in 2015 as it will have been closed 10 years. Now, in 2008 when I opened my Blue account, it reports as opened 9/99 and my Zync that I just opened in January reports as opened 1/99. So all of my Amex's are/will be 13 this year. That is the beauty of backdating!

agp
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Postby agp » Fri May 25, 2012 8:52 pm

Okay but if I get my first Amex card, Card A in 2000, then get Amex Card B in 2008 (BEFORE I close A), then in 2009, I close A. Assume A and B are the only cards I ever had, in 2009 will my average age of Amex Card B be 9 years old or 1 year old?

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred



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