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American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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OnTheHouse
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Welcome to ....green!

Postby OnTheHouse » Wed Jul 17, 2013 9:11 pm

Hi! I stumbled upon this website as a result of a simple Google search: "Why is American Express so sought after?" I just got approved for the AMEX Green card yesterday. I weeded through the Google results and read the many benefits (mostly airline/travel perks), but am a little concerned about the numerous cons.

Briefly, I'll say that I'm a 23 year old post-grad, young professional making about 35k/year. I travel only seldomly, so that clearly wasn't my motive for applying for the card. I know that AMEX is the "elite" of CC's, is very selective, and frankly, I felt honored when the little miracle arrived in my mailbox. I was "pre-selected" for the AMEX Green card! I applied online and was instantly approved. My credit score, which I monitor monthly on CreditKarma (experian) and FreeCreditScore (transunion) is 724. I've never missed a payment, but my total credit line between 3 VISA cards is only $5,500.00, so I was a little surprised that they had "chosen" me. 'They' must have seen something they liked! Essentially, I'm excited that I've been granted admittance to this lofty "club" of cardmembers, but I'm not sure how to go about establishing my relationship with AMEX. I feel like I've been invited to sit at the popular kids' table at lunch, and I don't want to say the wrong thing. I want this AMEX to make a positive statement about me in my portfolio... I've heard that AMEX is good to have in your corner. Is this true?

I know that, because it is a charge card and not a credit card, there is an 'exposure limit' rather than a credit limit. I've read on multiple sites that AMEX uses your highest balance as your exposure limit. I don't make huge purchases each month... how should I go about establishing my exposure limit? I don't want to have a low "limit" reported to my credit and, as a result, drop my score because it will appear that I'm maxing out the 'limit' each month. For example, do I need to make a huge purchase off the bat to "raise the ceiling" so to speak? Help, please? Any feedback is much appreciated.

Cheers! :cool:
M


MemberSince99
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Postby MemberSince99 » Thu Jul 18, 2013 6:32 am

I don't mean at all to burst your bubble, but "elite" is an image they push that isn't all that accurate anymore. Just deal with their offshored CS sometime and you'll get the first hint of what I mean. I've seen people with sub 700 scores, I mean well south of 700 get approved for an Amex charge. They aren't as hard to get as people think they are, especially if you have a decent income and/or assets.
(Their revolvers are harder, though the Delta card doesn't seem really tough to get).

I would suggest that you not spend in any way different than you will normally use the card. Especially do not spend above what a person with your income could reasonably be expected to spend. You might trigger F/R if you do that. Just do normal spending especially at first do not rock the boat too hard or you may make the sort of impression that causes them to suspend your charging while you allow them to scrutinize your tax documents. As always YMMV but it's best to start off right so just use it normally.

Your highest balance doesn't mean much in regards to your Amex internal limit, more than likely - you could hit it, but it might be quite different. They are different things. Your Amex intneral limit is simply the current amount they will allow you to charge on the card, which changes each month with use and your history. So the high balance doesn't really correlate.

Don't overthink the hell out of trying to game the system, just use the card normally and you will see the intenal limit grow and be on your way to growing your credit too. Congratulations on your aproval!

takeshi
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Postby takeshi » Thu Jul 18, 2013 8:14 am

OnTheHouse wrote:I know that AMEX is the "elite" of CC's

It's not, really. It is perceived that way by many. They're a good card company but not elite. Some products, like the Centurion may be "elite" but they're still just cards.

OnTheHouse wrote:Essentially, I'm excited that I've been granted admittance to this lofty "club" of cardmembers, but I'm not sure how to go about establishing my relationship with AMEX. I feel like I've been invited to sit at the popular kids' table at lunch, and I don't want to say the wrong thing.

Nothing to it, really. Use it responsibly. You're aware that it's a charge card. Just use it and pay it off on time each month.

OnTheHouse wrote:I've heard that AMEX is good to have in your corner. Is this true?

Good's always subjective on any topic. If it meets your needs it's good. If it doesn't then it's really not of any benefit. You need to assess how well AmEx suits you versus relying on broad generalizations.

OnTheHouse
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Postby OnTheHouse » Thu Jul 18, 2013 4:15 pm

Thanks so much for the responses :)

MemberSince99 wrote:Your highest balance doesn't mean much in regards to your Amex internal limit, more than likely - you could hit it, but it might be quite different. They are different things. Your Amex intneral limit is simply the current amount they will allow you to charge on the card, which changes each month with use and your history. So the high balance doesn't really correlate.

Don't overthink the hell out of trying to game the system, just use the card normally and you will see the intenal limit grow and be on your way to growing your credit too. Congratulations on your aproval!


I'm sorry, I may have been unclear; I know that I won't hit my internal limit that AMEX sets for me. I've heard, however, that AMEX does report a 'limit' to the credit bureaus, and that my utilization will look extremely high if I hit this "limit" often. I.e. If my highest reported balance is $500.00 and I spend around that much each month... it looks as if I'm "maxing out" , even though it's technically a NPSL. Is that train of thought correct?

MemberSince99
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Postby MemberSince99 » Thu Jul 18, 2013 9:12 pm

From what I've heard, the new scoring models take into account the type of card it is and you won't be penalized, though this was a problem with the older models. (The ones that as you mentioned consider your high balance your "limit").

Personally I have a bunch of other cards that do report a limit, so I never see any negative impact from this. Hopefully what I've heard is accurate about the newer scoring models and you won't either.

HookEmHorns
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Postby HookEmHorns » Thu Jul 18, 2013 9:36 pm

I got one at 20 with a $10,000 salary, while in school full time..Got a blue cash everyday a month later. Amex cards aren't that hard to get. But Welcome!
AMEX PRG~1/14--backdated to 2012
AMEX BCE~6/13--backdated to 2012
Chase Freedom~5/13
Discover IT ~12/12

:cool:

OnTheHouse
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Postby OnTheHouse » Fri Jul 19, 2013 6:26 pm

MemberSince99 wrote:From what I've heard, the new scoring models take into account the type of card it is and you won't be penalized, though this was a problem with the older models. (The ones that as you mentioned consider your high balance your "limit").

Personally I have a bunch of other cards that do report a limit, so I never see any negative impact from this. Hopefully what I've heard is accurate about the newer scoring models and you won't either.


Good to know. Thanks for the reply - I really appreciate everyone's feedback :) I guess I may have been over-glorifying AMEX... but I'm still excited to start building a relationship with them.

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nismoZtuner
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Postby nismoZtuner » Sat Jul 20, 2013 3:40 pm

>_<

hmm..
So if i have the Gold Premier at 20 what makes me? :cool:

***I may try and go for the platinum once im 25+ years old
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
TCL-$19,800
Age-22

rockyrock
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Postby rockyrock » Sat Jul 20, 2013 8:28 pm

nismoZtuner wrote:>_<

hmm..
So if i have the Gold Premier at 20 what makes me? :cool:


It makes you a person that is willing to pay $175 a year for a charge card. If you've had it (the PRG) long enough and are willing to pay $450/yr you could have the Platinum tomorrow--or maybe Monday.
Sapphire Reserve: travel & dining
Blue Cash Preferred: groceries & gas
Freedom: 5% cats
Double Cash: everything else

rockyrock
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Postby rockyrock » Sat Jul 20, 2013 8:33 pm

OnTheHouse wrote:Thanks so much for the responses :)



I'm sorry, I may have been unclear; I know that I won't hit my internal limit that AMEX sets for me. I've heard, however, that AMEX does report a 'limit' to the credit bureaus, and that my utilization will look extremely high if I hit this "limit" often. I.e. If my highest reported balance is $500.00 and I spend around that much each month... it looks as if I'm "maxing out" , even though it's technically a NPSL. Is that train of thought correct?


Sounds like you have a pretty good handle on things. If you have the means, think about spending a lot for one month to get a high balance reported; that way in the future if you close with a lower balance it won't appear you are at high utilization.

Congrats, enjoy your card and don't let anyone here drag you down.
Sapphire Reserve: travel & dining
Blue Cash Preferred: groceries & gas
Freedom: 5% cats
Double Cash: everything else



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