Thread: Best Time to Apply for BCE or Green to get backdating

Hi,
My oldest tradeline is currently 3/12. My understanding is that, if I can open an amex in my own name (with me as the primary cardmember) by the end of this calendar year, because of backdating, in 2014 my credit history (and the opening date for the amex) will go back to 1/12 and future amex cards will have this opening date as well. I really, really want this. And if I wait until 2013, my oldest tradeline will always be 3/12.

The bad: I have multiple relatively new (1 mo. old) accounts, 3-6 hard inquiries w./ each bureau (many of them from Jan-Feb when I was credit illiterate), only 8 months of history, and an AAOA of just 3 months. I am only 18 (and so they are nervous because of the CARD act) and my occupation is student. My income (because I am a full time student) is only $30k. Amex is very picky and this is more than enough to scare them.

The good: My mom, a few days ago, added me as an authorized user on her Costco Amex with a $30k credit limit and years of good standing. I hope this will enable me to be associated with that relationship. Unfortunately, I have to have my own amex to get backdating. My credit score is relatively decent (low 700s), and I have many CC accounts, all in good standing w./ 100% on time payments, always pay most of the new purchases before the statement closing date, always pay remaining statement balance in full, 2% debt utilization, no student or car loans, no long term debt, no derogatory marks. They also take into account assets, and I have $14k+ in liquidable assets.

Bottom Line: Should I apply for the Amex Green, which is easier to get, or the BCE since I want to keep the account for backdating and would prefer not to have an annual fee? Do I have a decent chance of getting approved for either one of these? Should I apply ASAP before my balance for my Citi card posts to the bureaus after 11/21 (their system won't let me pay anything less than the statement balance, so I can't pay it down until the statement closes) or wait until mid-December, to let my accounts and inquiries age as much as possible? Will the AU amex help me get my foot in the door in any way?

That's not really how it works.

Your first Amex card will show an opening date of 12/12 (or whenever you open it). You should open it in 2012 to get the best backdating possible.

From there, any new Amex card will show that it was opened in the month you opened it, but the year will backdate to 2012. By example, if you get your first card now and open a second in July of 2013, the new card will show that it was opened in July of 2012.

Being as young as you are, you may have trouble getting an Amex. The CARD act isn't the only thing holding you back. You have a very limited history. However, other than the extraneous applications earlier in the year, you seem to be doing well. If you really really really want an Amex, I suggest waiting until your Cash+ and Citi Forward report at least once. Then apply for one of Amex's charge cards - the Green, Gold, etc. Don't worry about the annual fee. It's waived for the first year. Conventional wisdom around the internet says that the charge cards are more lenient in approvals so you'll have a better chance.

If you're approved for the Green, use it responsibly for a year. Wait until January, 2014, to apply for the BCE. It will be backdated to January, 2012. Do not apply for anything else in the meantime. You have plenty of credit.

One final note - even if you cancel the Green before the annual fee hits, your BCE will still be backdated.

Ah I see. Still, using the path you suggested I can get credit history from 1/12 eventually. And that still requires I get an amex in 2012. I don't see how I can get the backdating without paying an annual fee if I start with Green though. Sure, its waived for the first year, but then it will be assessed Dec next year right (assuming I get it December this year)? If I need to keep it open until I get the BCE in 1/14, I will pay that $95 at least once and for a card that offers lower rewards than any of my existing accounts. It might be worth it, but do I have a shot at approval for BCE off the bat? And if I apply and don't get approved how much harm will that 1 hard inquiry (from Amex themselves) cause to my chances of then getting Green by default? Could I call and recon into green if I get denied BCE to spare another inquiry? By the way, my Cash+ has already reported once and will turn 2 months old 12/1. My Citi reported with $0 balance when opened and will report $105 balance after the statement closes 11/21, which might raise my DUR and DTI ratio.