American Express - Amex. (balance, buy, customer, custom)
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"In the old days, having an American Express card was a sign of prestige, possibly because the balance was due and payable each month. Their standards in those days was tougher than today."
In the old days, there was Diner's Club, American Express, and some gasoline company credit cards. If you wanted a real credit card you could use most anywhere, Amex was the choice, period. When MasterCard came out, Amex was still seen as the high end card for many years because of past market dominance and catering to the wealthy. Since then, a lot has changed. Back in the early 1990s, Amex threw a conference/vacation for its employees in south Florida. Word that went around town was that the employees totally trashed the place and were so drunk and rude that the company was told to NEVER come back. A number of merchants dropped Amex around that time because of the high fees and lack of recourse on illegitimate chargebacks. Those comments blew away the impression that the marketing hype had made on me. Carl Maulden was just a man using a credit card.
Eventually, I got tired of paying a yearly fee to keep that "prestige" card in my wallet. I wised up and realized that I didn't care a rodent's bottom if waiters or store personnel were marginally impressed by my flashing the card, and became bored with the constant promotional material arriving in my mailbox. It is funny to see their marketing hype still working on the young crowd though.
Here's a clue for the 18 yo. Skip the card and invest the money. Real money is more impressive than a hunk of plastic and always has been. These days, people who pull out plastic to pay are often up to their eyeballs in debt and just trying to pretend to be something they are not. They might as well dress up in Superman and Wonderwoman costumes for all the impression they make on people with real money. "Aww, isn't that CUTE, he just paid with an American Express card."
Here's a clue for the 18 yo. Skip the card and invest the money. Real money is more impressive than a hunk of plastic and always has been. These days, people who pull out plastic to pay are often up to their eyeballs in debt and just trying to pretend to be something they are not. They might as well dress up in Superman and Wonderwoman costumes for all the impression they make on people with real money. "Aww, isn't that CUTE, he just paid with an American Express card."
Totally disagree. Having a credit card and building a credit history are important. The OP knows himself better than we can and if he thinks he can be responsible with ir getting a credit card, and paying it off every month, at a young age can have a tremendous impact on your credit score. Just make sure the card you get has no annual fee since you will need to keep it forever to experience the credit score boost. Also "get a credit card" or "invest the money" is a false choice. The two have no relation at all. Even if you "invest the money" you still need to buy essentials (food, etc) which easily go on a credit card.
As for Amex, that is the only card I would get (they have some no annual fee cards too). It is not about some BS "prestige" it is about service. Whenever I have had a dispute they had my back and took care of it. Also their warranty extension program is excellent.
Sounds fair. I do that with myself regularly. A lot of stuff I used to think important I now find unimportant, and visa versa.
"Having a credit card and building a credit history are important. The OP knows himself better than we can and if he thinks he can be responsible with ir getting a credit card, and paying it off every month, at a young age can have a tremendous impact on your credit score. Just make sure the card you get has no annual fee since you will need to keep it forever to experience the credit score boost."
They didn't have credit scores when I grew up. There was a local bank, and you went to talk with the manager, who was your neighbor. IIRC, the card that the OP liked was one that has a fee. Maybe it has changed now.
Having a CC and using it properly is a good thing for building credit scores, but at that age (just 18) a lot of other things are more important.
"Also "get a credit card" or "invest the money" is a false choice. The two have no relation at all. Even if you "invest the money" you still need to buy essentials (food, etc) which easily go on a credit card."
Here I totally disagree. Starting out adult life with a mindset of "I'm only going to buy what I can pay for" and having a positive balance in bank accounts, is radically different than immediately using credit cards, becoming comfortable with negative balances, and slipping into forgetting where that money is coming from. Paying a fee to a CC company is a dumb move. There is no tangible ROI. Paying in cash for at least a while when first starting out gives a sense of real money in contrast to playing with the virtual money of a CC balance.
"As for Amex, that is the only card I would get (they have some no annual fee cards too). It is not about some BS "prestige" it is about service. Whenever I have had a dispute they had my back and took care of it. Also their warranty extension program is excellent."
Never cared for their constant sales calls, found that most other CCs had comparable auto rental coverage. Never had a need for the warranty extension stuff, so can't comment on that.
Anyway, my response was to the puppy love expressed by the OP towards AMEX and not towards someone who has used credit wisely for a number of years.
They didn't have credit scores when I grew up. There was a local bank, and you went to talk with the manager, who was your neighbor. IIRC, the card that the OP liked was one that has a fee. Maybe it has changed now.
Your credit score is very important and can save you thousands of dollars on a mortgage and get you better rates on all other kinds of loans. It is a big component of how a bank determines how big a risk you are.
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Here I totally disagree. Starting out adult life with a mindset of "I'm only going to buy what I can pay for" and having a positive balance in bank accounts, is radically different than immediately using credit cards, becoming comfortable with negative balances, and slipping into forgetting where that money is coming from. Paying a fee to a CC company is a dumb move. There is no tangible ROI. Paying in cash for at least a while when first starting out gives a sense of real money in contrast to playing with the virtual money of a CC balance.
We must use credit cards very differently. I have never paid a fee to Amex. My card has no annual fee and I pay my bill in full every month so there is no fee. It is the same price I would pay if I had paid cash for everything except that money got to sit in an interest bearing account for several weeks instead of being taken out immediately. Not to mention the gobs of reward points and the credit score boost you get. Yes, if you are going to carry a balance a credit card is not for you. However, if you are going to pay it off every month the added benefits (reward points/cash back, extra interest, detailed statement, credit score boost, etc) are tremendous.
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Never cared for their constant sales calls, found that most other CCs had comparable auto rental coverage. Never had a need for the warranty extension stuff, so can't comment on that.
Anyway, my response was to the puppy love expressed by the OP towards AMEX and not towards someone who has used credit wisely for a number of years.
So opt out. Amex has never once called me trying to sell me something. Sometimes there are ads in my bill for other Amex products but I have never gotten a phone call about them. They have an opt-out policy. It was the first thing I did after I signed up.
The bottom line is that whether you are 18 or 80 if you are going to pay your balance in full every month a credit card can be a very useful tool. If you aren't it is a mistake and you should just stay away.
I have had my AmEx for over 20 years (how time flies) - it is the one card I definitely do not leave home without.
I closed my Sears card that had a 35 year history when they decided to charge me 25% ... they could have cared less that I and my family had been loyal, paid on-time customers.
I have to agree with Petey Nice re: credit building with credit cards. One of criterias for high credit score is the length of your credit history. So the earlier you start building your credit history, the better. Obviously you need to pay attention to other criterias too, such as pay your bills on time, not to have too many credit accounts, keep your credit limit reasonably balanced to your income, etc.
Back to Amex, I've had them for 10 years now and have been happy with their services. That's the only card I bring with me other than my debit card.
American Express doesn't charge an annual fee. I've had it for years but this was the only company that has ever bothered to call me when I've made out of state charges on my account. The only problem is, is that since this isn't a 'revolving' account, I think it makes a 'hit' on your credit score each time you use it. I'm not sure how to explain it but it has to do with dissappearing credit amounts on your credit report. I'm referring to the charge card, not the credit card.
American Express doesn't charge an annual fee. I've had it for years but this was the only company that has ever bothered to call me when I've made out of state charges on my account. The only problem is, is that since this isn't a 'revolving' account, I think it makes a 'hit' on your credit score each time you use it. I'm not sure how to explain it but it has to do with dissappearing credit amounts on your credit report. I'm referring to the charge card, not the credit card.
Amex Green/Gold/Platinum (the classic AMEX cards) charge annual fees. I have the Platinum and it's worth the hefty annual fee if you travel a lot. You get free access to all airport clubs and 4 free companion airfares a year, along with a great concierge program and tons of other perks.
God. I love American Express. I can't wait till I turn 18 and can get one of these cards.
.. Am I the only one that is in total awe with amex?
I have been pleased with AMEX. I used to work for a company that was contracted to work for them, and I learned their products pretty well - it was my job.
This card shown is one of my two AMEX cards. It's the the cheapest of the charge cards. The annual fee is $95 and the balance is due in full each month, I don't pay interest. It's great to set up all my reoccuring expenses - cell phone, insurance, cable, gym, etc. I earn points and don't have to track different due dates. The rewards program is one of, if not THE best, if you use points for travel, don't bother with the merchandice. You should be able to get at least 1% return - one dollar spent=one point... 25,000 points=$250 off a plane ticket or a gift certificate.
Their website has a ton of info, every darn word is a link to something else, but there are good features, like double points for shopping online through links on their site (double points mall).
My other card is a no-fee credit card and not nearly as pretty. The rewards program is better for the charge cards, and the credit card earns points under the same program, they add up together.
It's not accepted everywhere and I still have to carry a Visa, though. But I've never had to wait long to get a real person at AMEX on the phone, I think they're a notch above.
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