American Express Membership Rewards - Just got a SSN, no credit history so far.. chances for credit cards?

Hey guys,

I just became a U.S. permanent resident (yeah!!) and am willing to start my credit history by opening a (or a couple, if possible) credit card. I'm 18, my SSN is like a month old, but I have had my checking account with Bank of America since mid-2003.

While I really want to start with a card that earns me miles/points, I'm worried that because I have no credit history for creditors to refer to it would be hard for me to get such mileage cards like United Mileage Plus (FirstUSA/Chase). I'm not in college yet (I'm starting this September) so I'm also worried that I might not be qualified for the college cards too.

My BOA checking account doesnt have much balance (usually stays at around $200-300), and unfortunately I've had about 4 bounced check card payments over the last 2 years.......

I was thinking of just going to BOA and open their credit card (the woman there offered one for me before but I couldn't get one since I didn't have a SSN then), but I really do want those cards that I can make miles with..

Any thoughts/possibilites? Thanks a lot in advance!

I'd say just forget about those travel cards. You sound like you're struggling to get above $300 in your checking. And, those issuers are pretty strict on mininum income for those with little or no credit background. They also charge hefty annual fees. Whatever rewards you're going to get is paltry if you don't charge a lot.

If you like travel, I'd say get yourself one of the student cards from AMEX. Build your credit. Eventually, they'll offer you one of their other cards. And, if you have already have a card with them, the minimum income requirement is waived.

A lot of people on FlyerTalk seem to like AmericanExpress, but from my quick research, I don't know what's so attractive about AMEX..? Am missing something here? Don't less merchants accept AMEX?

You did say you want a card that can give you travel awards...

Look at the Membership Rewards program on the AMEX site to see if it fits your needs.

A lot of people on FlyerTalk seem to like AmericanExpress, but from my quick research, I don't know what's so attractive about AMEX..? Am missing something here? Don't less merchants accept AMEX?

The AMEX Starwood card effectively gives you 1.25 miles per dollar spent. Better than the usual 1:1 ratio. Read about it on the Free Cards page of the Credit Card section of my website, Free Frequent Flyer Miles (http://www.freefrequentflyermiles.com/index.htm).

One way to start a credit record is to find a bank that will issue you a card that is guaranteed by a bank account you own. Usually the card limit is half the value of the account. But be absolutely sure to pay your account in full and on time each month. In full because the miles are not worth the intersest you would have to pay. And on time because otherwise your credit card is screwed.

I got an amex Gold in the USA on a student F visa, so amex is probably the easiest to get.

When I was fresh out of college, I applied for an AMEX and Citibank Visa. AMEX accepted me and Citibank turned me down (no credit history).

I don't know why, but I held a grudge against Citibank for a long time.

I would start with the cards you think you might want and fill out one application at a time. If you get turned down the first time, then move on to your second choice, and so on. If you get turned down repeatedly, then you might need to get someone to co-sign or get it backed through your bank.

Filling out applications doesn't take too much time. Give it a try and see what happens.

I've known plenty of students when they were in college with proof of enrollment, Citibank was generous and gave them their first credit cards.

AMEX, however, wasn't so generous. Even with established credit in their own names, AMEX rejected everyone I knew who had applied for the Starwood and Hilton cards on the grounds their minimum income wasn't high enough.


When selecting a card, I'd suggest picking one(s) where you get something in return that matches your level of spending, be it service and/or rewards. I've known too many who picked good cards, but they were the wrong cards for them, which they later regret after paying all those annual fees.

Discover and AmEx market heavily to university students, or at least they used to. I had both within about two months of starting college, when my checking account was only two months old itself, and actually managed to survive without a Visa or MC for almost a decade till I broke down for the UA 20,000 mile bonus. Back in the day, AmEx had a partnership with Continental which included two vouchers for $249 round trip tickets anywhere in the lower 48, quite valuable when you're in a small town on the opposite coast as your family.

For the last 10-15 years, the threshhold for revolving credit has dropped precipitously. CC companies, like all companies, want to gain name recognition and loyalty among younger customers, and it's progressed from college graduates to college students and now you see news reports every now and then about some high school student who's run up an unmanageable debt load.

AMEX markets heavy to students with student accounts. These accounts are not the same as Starwood and Hilton AMEXs, which seemed to have higher standards before getting one.

From the ads, it seems like its pushing Blue, Green or Optima to the students.

My partner got his first credit card (and only I hope) by applying at amex.com. He wasn't even US PR, but pending at the time.

Gosh, old memories of my first credit card. :) Like a lot of US students, I got my first credit card when I did my junior semester abroad, in which case Amex was really nice to have (they had offices where you could pick up mail and get money, etc...). The world of student travel has changed since I was a student (postal mail, what's that?) but I found that Amex was a good choice for overseas. You had to pay off your balance every month, but doing that helped me establish my credit rating.

I am now on the west coast of the US (Bay Area) and Amex is definitely less widely accepted than Visa or MC. So if you can only start with one, maybe you want Visa or MC.

The most important thing -- pay off your balance!! I know that credit card companies have great "transfer your balance" deals, but this is a clever marketing ploy to get more of your money. CC interest rates make credit cards THE most expensive form of borrowing money, short (but not by much) of your local loan shark. You are establishing a history which will stay with you for a very very long time -- be smart about your money. That will help you more than any extra airline points. [/lecture]

Good luck!

My BOA checking account doesnt have much balance (usually stays at around $200-300), and unfortunately I've had about 4 bounced check card payments over the last 2 years.......

Any thoughts/possibilites? Thanks a lot in advance!


Just apply for an Amex Platinum because any dope willing to pay $395/year for a charge card can get one. I am serving a ten years bit in prison, making 18 cents an hour in the kitchen, and I declared bankruptcy before I entered the joint so the old lady wouldn't have problems with bill collectors. I applied for Amex Platinum the day I entered the joint, and I was truthful on the application, and Amex sent me a shiny, Amex Platinum card. Only problem is they don't take Amex in the commisary but it's a solid card for slipping the lock on the door to my counselor's office. My old lady tells me that her welfare card suffices as a government ID for airport lounge access, and just like you, my old lady ONLY bounced 4 check card payments over the last 2 years.

/s/ Amex Platinum Holder in Cell Block "D"

P.S. Welcome to America, loser!

Just apply for an Amex Platinum because any dope willing to pay $395/year for a charge card can get one. I am serving a ten years bit in prison, making 18 cents an hour in the kitchen, and I declared bankruptcy before I entered the joint so the old lady wouldn't have problems with bill collectors. I applied for Amex Platinum the day I entered the joint, and I was truthful on the application, and Amex sent me a shiny, Amex Platinum card. Only problem is they don't take Amex in the commisary but it's a solid card for slipping the lock on the door to my counselor's office. My old lady tells me that her welfare card suffices as a government ID for airport lounge access, and just like you, my old lady ONLY bounced 4 check card payments over the last 2 years.

/s/ Amex Platinum Holder in Cell Block "D"

P.S. Welcome to America, loser!

You have a great sense humor .... ^ Dovster has competition now ... :D

Auracon:

I would think that you have a very slim chance getting a credit card ....

Awesome post from Cell Block "D".

LOL. ^ :D

Amex used to be a mail/post/transport/traveller's cheque company before the first credit card was issued in 1958 in NYC. Used to be good for students...but now, get a visa or MC attached to a good affinity program if you are in for value for money.

Another thing - I've looked at a lot of credit reports over the year and it doesn't really matter - green/gold/plat/cent - they all look the same on a credit report. Get a regular green amex if you can and just use it for your usual expenses - gas, etc. Never be late on the payment. In a year you wil be in great shape.

It used to be Citibank would give you a card with a wopping $300 credit line just by showing them your student ID. Amex also had some sort of student deal, too. Go to any college bookstore by the cashier and you will see tons of handouts for these student cards.

--Doug

Actually, I just found out today that American Express is not as eager as some to give student credit cards to those with no credit history. After having enjoyed the convenience of a Visa Checkcard for years without ever having been irresponsible with it or the associated checking account, I decided that I might as well build some positive credit history with the small transactions that I make with a card every month. Despite having received offers from Capital One, Chase, etc. for years, I decided to apply for the Blue for Students card because the online monitoring and payment system seemed like the easiest way to watch what I spend and promptly pay my card in full each month. I applied online for the card yesterday and checked the status of my application today to find that has been declined. I expect to find that it is due to my limited/nonexistent credit history. The last time I checked my credit report, the only accounts shown are my student loans, which are in good standing because payment will not become due until 6 months after I graduate. I would apply instead for an American Express charge card, but an annual fee of $55 does not strike me as particularly reasonable for a card that will rarely see total monthly charges in excess of $100. I'd take advantage of the Capital One Visa offer that I received in the mail today, but Capital One's web site does little to assure me of quality customer service.

My conclusion: Scrupulous, customer service-oriented creditors (an oxymoron?) simply don't loan money to students with no credit history. Since credit reports only reflect borrowing rather than the picture of your complete financial responsibility, only companies that want to make a quick buck off driving you into near bankruptcy will want to give you a credit card. I recommend simply going with a debit card until you can build good credit through paying off student loan debt.

My conclusion: Scrupulous, customer service-oriented creditors (an oxymoron?) simply don't loan money to students with no credit history. Since credit reports only reflect borrowing rather than the picture of your complete financial responsibility, only companies that want to make a quick buck off driving you into near bankruptcy will want to give you a credit card. I recommend simply going with a debit card until you can build good credit through paying off student loan debt.

I think it's an excellent idea for Amex not to give credit cards to students, as some students (especially with no income and no experience with credit) may go overboard with their spending and get into many thousands of dollars of credit card debt.

But I doubt that Amex has changed their policy of easy student credit at all. After all, the money they make off of interest (finance charges) is quite substantial compared to the delinquency rate of their customers. That's why credit card issuers have been earning huge profits. It's very odd that you were declined, especially if you have student loans with a positive history showing up on your credit reports.

I received a Blue for Students with an $800 limit in 2001 with absolutely zero credit history. Amex had to verify my enrollment with the university registrar, but once they did so they gave me a card.

I received a Blue for Students with an $800 limit in 2001 with absolutely zero credit history. Amex had to verify my enrollment with the university registrar, but once they did so they gave me a card.


I wonder if Amex bases its card issuance decision on the reputation of the college that a student attends with an automatic approval for Princeton and Harvard students and an automatic rejection for community college students while tossing the dice with regard to state university students.

In the UK banks issue credit cards like candy to students, albeit with a 500 pound limit (no damn pound symbol on this keyboard :mad: ). Anyway, IIRC in the UK it is actually illegal to give someone credit if they can't afford it (i.e. giving someone a 10k limit when the bank knows they couldn't afford the monthly repayments if they max it out). There was a case (on watchdog I believe) where a family had 4k (+ interest) of 6k of debt wiped as the courts felt that Lloyds TSB had taken advantage of them.

Wasn't there a woman in the US taking Amex to court about giving her a Cent card and raking up 900k or something?

I think credit/charge cards should only be issued to persons that the issuer knows can feasibly afford to pay it back.

Chris

I think credit/charge cards should only be issued to persons that the issuer knows can feasibly afford to pay it back.

Chris

Yes. And unsecured lines of credit should only be granted based on one's present income, not on future income or a parent's income as it is with most student cards.

Yes. And unsecured lines of credit should only be granted based on one's present income, not on future income or a parent's income as it is with most student cards.

I agree. If banks want to get the business of students, then they should do so by offering other goods/services such as 2-1 cinema and perhaps interest free overdrafts (this is what I get in the UK).

Unsecured lines of credit based on parent's income isn't too bad, although I would encourage all banks to get the permission of the oldies first :p

I know a few people through friends etc that have gone and opened 4 student bank accounts, got 1k overdrafts on each as well as £500-£1k credit cards and virtually maxed all out in a year :rolleyes: This kind of thing needs to be stopped. My friend who earns approx £25k a year was given a Virgin Mastercard with a £20k limit, to me that seems a bit excessive. How on earth does Virgin expect them to pay of a balance like that in 1 month? Granted, the idea of credit cards is to spread payments over a month or two if that person really needs to, but they should not be designed to get them into debt for the rest of their lives.

Chris

If all else fails, a secured card is a good way to establish credit AND earn miles. While the don't promote it too aggressively, Citibank offers a secured AAdvantage card that establishes a credit line equal to a companion savings account. After a short period (between 9 and 18 months, usually) of on-time payments and effective credit line management, they refund your savings amount and the credit line becomes unsecured.