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

Originally Posted by FutureBillionaire

I have the Gold card. I was sent an offer for the green and the gold. I chose to go for the Gold and was approved. I recently received a notice saying that I could finance purchases with the Gold card, but I'm not very interested in that. I honestly only have the card for the perks and the prestige. I will see this year if the annual fee is actually worth it to me.

Several of you have mentioned USAA. I looked into them at one point, but didn't see great rewards. I'm really only interested in rewards because I pay the new balance on my card every month. I saw someone mention NAVY FCU as well. How does Navy FCU compare to PenFED?

Navy FCU is regarded as having better customer service and much better credit card rewards/rates. PenFed's credit cards are pretty much a fail. Their Platinum Cash Back Visa used to be one of the most recommended reward cards out there but they have been slowly chipping away at the rewards. I believe starting next month new applicants will only be getting decent cash back on gas with that card and they are trying to get existing cardmembers to change to a new point card. I like PenFed's loan rates but I would never consider a card from them.

Got the same situation here

OK, it doesn't seem that anyone's addressed this, so just real quick -- SCRA does not work the way you think it works. If it did, it'd essentially be a get-out-of-jail-free card for servicemembers to spend and not pay their bills. Uncle Sugar loves you, but he doesn't love you that much.

Salient points, in brief:

• Interest on consumer debt accounts incurred before entering active duty, and only for the period of active duty, capped at 6% interest.
• This only applies if entry onto active duty materially effects your ability to pay the debt -- as in, you make less once you're on active duty then you did before. (Though to be fair, this specific point is generally not verified.)
• Any consumer debt incurred after date of entry on active duty is at whatever rate you agreed to -- whether that's 9% or 29.99%.
• You are still obligated to pay your debts, both under civil law through the contract you have with the respective companies, and under UCMJ.

I point this out, because the impression you seem to have on how SCRA impacts your obligations will put you on the fast-track to financial, and potentially legal, trouble. I know you don't know me from any other random-nonymous Internet user, but I assure you that I speak with authority on this topic.

Originally Posted by Deighton

I pay my cards on time. I'm in the military. I fall under the Soldiers and Sailors Civil Relief Act, which credit companies can't report anything negative to the credit bureau's. Basically if i don't make a payment, its not at my fault because I'm on military orders. But they won't update my balance also. Even if its paid off, unless I request it. So I'm looking into the AMEX world, where can I start at. My score is about 620. Please help me. I need to bee in a tier 1 category. Thanks

Deighton,

The SCRA (Servicemembers Civil Relief Act) specifically 50 USC § 524; do protect you from having wages garnished or liens placed during the duration of your contract, only if you are unable to respond to the court due to mobilization, duty or training. I see service members frequently hit with garnishments due to unpaid loans, or their car seized because they made a stupid title loan. But that is not why you are being denied, nor does it grant you qualified immunity from being sued, it just stays proceedings until you are able to appear, respond and have the court empower jurisdiction over you.

You are being denied because you have a 620 credit score, and probably quite a few hard pulls recently. My personal suggestion to you, is to wait 12 months. Take some financial literacy and readiness courses offered to you by your finance office/S-1 shop.
Also read DOD Instruction 1342.77 and feel free to ask your JAG office to give you some pointers.

I also recommend you look heavily into Navy FCU, as a member myself I have been very pleased during both active and reserve service; as well as upon ETSing out completely. They are a great credit union with good cards, and financial advisors which will help you get your credit on the right track.

I also suggest the USAA secured mastercard/amex, take $250 now, and put it on there and make smart financial decisions. As you can afford to, per pay period add more to it because it will increase your credit limit and help to build good, solid functional credit history for you with a larger credit limit.

Stray away from your use of applications as they generate hard inquiries, after 2 years they will go away, but during the mean time they weaken your credit score.

Good luck and Semper Fi.