Just Got Approved: A Couple Questions

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
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VictorSuede
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Just Got Approved: A Couple Questions

Postby VictorSuede » Sat Jul 27, 2013 5:06 pm

Hello!

I just got approved for a PRG American Express after applying online following an offer letter I got in the mail. The approval was instant, much to my surprise. I'm not really sure why, but I'm certainly not going to complain.

The only other card I've ever had is a Discover IT. I applied for the AMEX to be able to get rewards points when making purchases where my Discover isn't accepted. Since one of them will theoretically be accepted wherever I am, I think I'm done applying for cards for the foreseeable future.

I also prefer the idea of using a charge card as my primary to force myself to pay my balance in full at the end of every month. I was an authorized user on my parents' AMEX Platinum when I was in high school, and I learned to use it basically as a debit card.

So, a couple of questions:

1. What does "No Set Spending Limit" mean? It says I can't spend infinite money, so how exactly does that work? Do you have an "invisible" credit limit? I actually like knowing where the line is.

2. Is it possible to pay your monthly bill with another card (say, a Discover)? I very much doubt it.
Victor Suede

My Cards
  • Discover IT (1% Everything; 5% Rotating): $15.7k (Credit Limit Increase: 3/15)
  • American Express Premier Rewards Gold (1 Point per Dollar Everything; 3 Points per Dollar Travel; 2 Points per Dollar Gas and Groceries): NPSL (7/13; Credit Limit Adjustment 8/14)
  • Chase Slate: $500 (4/14)
  • Barclaycard MasterCard (1 Point per Dollar Everything; 2 Points per Dollar Gas, Groceries, Utilities): $2.9k (8/14; Credit Limit Increase 4/15)
  • Citi Simplicity MasterCard: $1.5k (4/15)

Total CL: $20.6k


mdl28
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Postby mdl28 » Sun Jul 28, 2013 11:37 pm

As it statea on you card terms and on the website. "No pre set limit" does not mean endless credit. It will adjust after a period of ragular use. Example: if you only spend and avg of 200- 500 dollars a month for a year or so on your card and all of a sudden you charge 3,000 on it. Your card will likely be declined until you make a phone call amd explain to amex the reason and they them may or may not approve it. However if your usage is in a few thousands per month, you will likely start to buol a large line of credit with amex. Yoi also do have the tool of checking your charging ability by putting the amount you will be charing soon and it will tell you of it will or will not be approved. And to answer your 2nd question: NO.
MDL

Amex Gold Prem'r
Amex BCP
Amex Green
Barclays Ring Platinum MasterCard
Citi Diamond Pref'd
Chase Sapphire Pref'd Visa Signature
Chase Freedom MasterCard
Discover It
New York Life Visa Signature

mdl28
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Postby mdl28 » Sun Jul 28, 2013 11:41 pm

mdl28 wrote:As it statea on you card terms and on the website. "No pre set limit" does not mean endless credit. It will adjust after a period of ragular use. Example: if you only spend and avg of 200- 500 dollars a month for a year or so on your card and all of a sudden you charge 3,000 on it. Your card will likely be declined until you make a phone call amd explain to amex the reason and they them may or may not approve it. However if your usage is in a few thousands per month, you will likely start to buol a large line of credit with amex. Yoi also do have the tool of checking your charging ability by putting the amount you will be charing soon and it will tell you of it will or will not be approved. And to answer your 2nd question: NO.


Sorry about all the spelling errors and such, using my phone. Am not a fan of touch phones. Still waiting on the blackberry q10 to be released for Sprint customers.
MDL

Amex Gold Prem'r
Amex BCP
Amex Green
Barclays Ring Platinum MasterCard
Citi Diamond Pref'd
Chase Sapphire Pref'd Visa Signature
Chase Freedom MasterCard
Discover It
New York Life Visa Signature

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Terry
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Postby Terry » Mon Jul 29, 2013 6:23 am

VictorSuede wrote:Hello!

I just got approved for a PRG American Express after applying online following an offer letter I got in the mail. The approval was instant, much to my surprise. I'm not really sure why, but I'm certainly not going to complain.

The only other card I've ever had is a Discover IT. I applied for the AMEX to be able to get rewards points when making purchases where my Discover isn't accepted. Since one of them will theoretically be accepted wherever I am, I think I'm done applying for cards for the foreseeable future.

I also prefer the idea of using a charge card as my primary to force myself to pay my balance in full at the end of every month. I was an authorized user on my parents' AMEX Platinum when I was in high school, and I learned to use it basically as a debit card.

So, a couple of questions:

1. What does "No Set Spending Limit" mean? It says I can't spend infinite money, so how exactly does that work? Do you have an "invisible" credit limit? I actually like knowing where the line is.

2. Is it possible to pay your monthly bill with another card (say, a Discover)? I very much doubt it.


No spending limit means that your internal limit changes based on your spending and payment history unlike a credit limit which stays the same. You can pay your Discover with another credit account that allows balance transfer; however, you will incur a fee for that service.
AMEX Green Card - NPSL [Member Since 1995] ;)
AMEX Everyday Card ($25,000) 6/14 Backdated to 1995 - For 20% Extra Points Benefit
Chase Freedom Visa Signature ($17,000) - For 5% rotating categories
Citi ThankYou Preferred Visa Signature ($16,000) - 2% dining
Discover IT Humane Society Design ($16,500) - For 5% rotating categories
Firestone ($2,600) - For 0% financing
Home Depot ($10,000) - For 0% financing
JCPenney Credit Card ($7,000) - For special discounts
Sam's Club MasterCard - ($20,000) - 5% off gas at any fuel pump
Wells Fargo Personal Line of Credit - ($15,000)

FICO's - 767 EX, 778 EQ, 790 TU [02/2015]

MemberSince99
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Postby MemberSince99 » Mon Jul 29, 2013 6:41 am

You would be wise to treat EVERY credit card as a debit card. It's really hard to get into trouble that way - you have to really try. I speak from personal experience.

I would not try to use one card to pay another just pay from your checking/bank account.

And the others have explained the pre-set limit concept really well. The line isn't "invisible" it will report on your credit report but there is no limit reported. So only the limit doesn't show because it's variable.

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nismoZtuner
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Postby nismoZtuner » Mon Jul 29, 2013 2:51 pm

MemberSince99 wrote:You would be wise to treat EVERY credit card as a debit card. It's really hard to get into trouble that way - you have to really try.


im doing that, i pay all my balances in full days before my closing date...- some of the people who i know say that credit cards are the devil and that im selling my self to the banks.. >_<

They are hard to convince that what they are saying isnt true- its the way one is responsible and able to manage...
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

VictorSuede
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Postby VictorSuede » Mon Jul 29, 2013 11:20 pm

Thanks for all the replies.

The explanation about the credit limit makes sense, though coming from Discover it still seems a bit strange.

I went ahead and got the AMEX because I wanted to have a card that would be accepted at places where my Discover would not be, and also for some of the member benefits (I'm already enrolled in the Premium Car Rental insurance). Now, though I find myself trying to decide how to maximize my rewards by best splitting my purchases between the cards.

Here's my understanding of AMEX vs. Discover IT so far. Does this seem about right?

  • If I understand correctly, 1 point (AMEX) is basically equal to $0.01 (1 percent cash back from Discover) so for baseline purchases there would be no difference.
  • AMEX offers 3 points per dollar for travel purchases, so it would be the superior option over Discover in this category, right?
  • AMEX gives 2 points for gas stations and groceries, so barring a 5 percent rotating category from Discover, AMEX is better for this.
  • I need to run $1000 through the AMEX to get the 90 day 50,000 point ($500) sign-up bonus.
  • I need to run $30,000/yr through the AMEX to get the yearly 15,000 ($150) point bonus

So, my thought is that unless I can get something through a rotating category on my Discover IT or through ShopDiscover, the AMEX spending bonuses mean its better to use the AMEX. Is that about right?

I'll still use the Discover as necessary for large purchases I want to pay out over time. In fact, I prefer to always pay my card in full at the end of the month, but I had an emergency come up that made that impossible, so it was fortunate I had the Discover card to deal with it.

I'm planning to cash in my points/cash back as gift cards/Amazon discounts either way.

(I know it's silly, but part of me feels a bit guilty that I'm soon to be using my Discover card a lot less. They have been extremely generous with the card I opened in March, giving me a CL much, much higher than the average I've seen on this site and then upping it substantially after the first 90 days.)
Victor Suede

My Cards
  • Discover IT (1% Everything; 5% Rotating): $15.7k (Credit Limit Increase: 3/15)
  • American Express Premier Rewards Gold (1 Point per Dollar Everything; 3 Points per Dollar Travel; 2 Points per Dollar Gas and Groceries): NPSL (7/13; Credit Limit Adjustment 8/14)
  • Chase Slate: $500 (4/14)
  • Barclaycard MasterCard (1 Point per Dollar Everything; 2 Points per Dollar Gas, Groceries, Utilities): $2.9k (8/14; Credit Limit Increase 4/15)
  • Citi Simplicity MasterCard: $1.5k (4/15)

Total CL: $20.6k

takeshi
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Postby takeshi » Tue Jul 30, 2013 4:11 pm

nismoZtuner wrote:im doing that, i pay all my balances in full days before my closing date...

You want low utilization but not 0.

MemberSince99
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Postby MemberSince99 » Tue Jul 30, 2013 4:40 pm

nismoZtuner wrote:im doing that, i pay all my balances in full days before my closing date...- some of the people who i know say that credit cards are the devil and that im selling my self to the banks.. >_<

They are hard to convince that what they are saying isnt true- its the way one is responsible and able to manage...


Yeah I know what you mean there. I have quite the time convincing people you don't HAVE to pay them thousand in interest - you can have it where they pay you. But when their mind is already made up, nothing you say makes much difference.

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nismoZtuner
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Postby nismoZtuner » Wed Jul 31, 2013 1:39 pm

MemberSince99 wrote:you can have it where they pay you. But when their mind is already made up, nothing you say makes much difference.


Exactly! once they see me theyll change their minds- my brother who is 2 years younger than me is evading all credit card offers or anything that has to deal with credit- tells me the banks will own me in a few years..
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



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