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.