American Express is leading in offering high-value credit cards for its customers. American Express has the answer for those looking to have a card with luxurious and exclusive offers, rewards, and benefits. American Express credit cards are known for having the best a credit card can offer, but the applicant needs higher-than-average credit scores.
For example, the Platinum Card from American Express requires applicants to have a credit score above 690. Thus, such a card will remain exclusive since not many can retain a good credit score and positive credit history.
The Platinum Card from American Express is an example of a card that offers maximum benefits to its cardholders. However, the steep $695 annual fee is one of many factors that make the card unattainable for many. The high credit score required by applicants also ensures that only a few can qualify for the card.
Additionally, there are several other factors that the credit card issuer considers during card application. The article below explains further what the applicant needs to stand a chance to qualify for the Amex Platinum Card.
Key Takeaways
· The Amex Platinum Card requires applicants to have a good or excellent credit score of between 690 and 850
· There are several more factors that American Express takes into consideration for applicants to qualify for the Platinum Card
· The Platinum Card from American Express remains exclusive due to the factors that make it unattainable for many, including a steep annual fee
Amex Benefits
The rewards and benefits of the Platinum Card from American Express attract customers to apply for the card. Additionally, the card is modified for frequent travelers confident in spending big to receive rewards. The Amex Platinum Card is a rewards credit card; thus, the cardholder will receive Membership Rewards points for eligible purchases.
Therefore, the cardholder will recover the annual fees with the statement credits every calendar year from different categories. The card’s value will remain quite high, even after the welcome bonus offer of 80,000 Membership Rewards points worth $800.
Some of the other card benefits and exclusive perks of the Platinum Card include the following:
· There is a one-time 80,000 Membership Rewards points welcome bonus offer for cardholders who spend $6,000 within six months of card membership. However, cardholders must meet the conditions set by American Express to receive the offer.
· Cardholders will earn 5X Membership Rewards points for flights and prepaid hotels booked directly. Also, the cardholders will earn 5X Membership Rewards points for airfare and prepaid hotels booked through Amex Travel.
· American Express partnered with two well-renowned artists to create a preferred metal card design for cardholders. Therefore, the cardholder can choose the classic Platinum, Platinum x Julie Mehretu, or Platinum x Kehinde Wiley.
· Cardholders will receive statement credits for travel and travel purchases annually, including an airline credit. The cardholder receives a $200 statement credit at one select qualifying airline for incidental fees, including baggage fees.
· Cardholders enjoy trip delay insurance with reimbursements, trip cancellation, baggage insurance, and interruption insurance during their flights every calendar year.
· Cardholders will receive complimentary airport lounge access to major airport lounges, such as Priority Pass Select lounges. The Amex card also partners with the Centurion network, offering complimentary entry to the Centurion Lounge and Studio locations worldwide.
· Annual statement credits exist for using programs such as CLEAR, Global Entry, and TSA PreCheck services during travel. For example, the Global Entry fee credit is up to $100 for using the traveler programs annually.
· Cardholders also receive $200 annual credits for Uber Cash as they enjoy Uber VIP status in Uber Rides and Eats. However, the Uber Cash and Uber VIP status offer is available for a Basic Card Member only.
· Cardholders will receive a $200 hotel credit for prepaid hotels booked through Fine Hotels Resorts for a minimum two-night stay. Prepaid Fine Hotels earns the cardholder gifts, while The Hotel Collection bookings attract a $100 statement credit for a minimum two-night stay.
· Cardholders will enjoy a gold elite status in the Hilton Hotels and the Marriott Bonvoy Hotels without requiring a co-branded credit card. However, a few requirements are needed to achieve the gold elite status of each hotel.
· A $300 statement credit for eligible Equinox Club memberships is up for grabs by the cardholder. Equinox fitness club is one of the most exclusive fitness clubs, although there is prior enrollment required to receive the benefit.
· Cardholders will receive a $155 credit on Walmart+, which also covers the $12.59 monthly membership fee and applicable local sales tax. Walmart also accepts gift card redemptions for the Membership Rewards points earned through the American Express Platinum Card.
The Credit Score Needed for the Amex Platinum
Now that the benefits of using the Amex card are, as shown above, the credit card does not come by easily. American Express credit cards have a reputation for being hard to qualify for, maintaining their exclusiveness. Thus, the average minimum credit score an individual is required to have for a credit card application stands at 715.
Therefore, the applicant should have a good to excellent credit score to increase their chances of a successful application. However, it is important to note that there are more financial factors considered during an application, but an excellent credit score is a boost.
Additionally, the Amex Platinum Card does not work as a traditional credit card since it was originally a charge card. Charge cards do not have a pre-set credit limit, but the cardholder must pay back the card balance in full. However, the Platinum Card from American Express has two payment plans available for cardholders to pay back the card balance.
The Pay Over Time plan allows cardholders to pay back on eligible purchases at an interest set during account opening. All other purchases the card makes must be paid back in full monthly without interest or a monthly fee.
The nature of the Amex card makes it exceptional, with only a few qualifying for the credit card application. That is why a good or excellent credit score is the required credit score for the applicant before applying. An individual’s creditworthiness will greatly impact the rates and interest set by American Express for the Platinum Card during card membership.
However, there are a few exceptions that an applicant will have a lower score and still qualify for the credit card. Factors like credit mix, credit report, and approval odds of an applicant will greatly influence the success rate of an application.
Credit Score Factors
A credit score is a numerical figure indicating a person’s creditworthiness, usually between 300 and 850. A credit card issuer will offer you a loan or credit if your credit score is higher. Several factors will influence an individual’s credit score, for example, their payment habits, debt levels, or open credit accounts.
Thus, American Express will use the individual’s credit score as a measure of qualification for American Express credit cards. Different credit cards will require a different range of credit scores to qualify for the credit card.
Some of the factors that influence an individual’s credit score when applying for a Platinum Card from American Express include the following:
Payment History
An individual’s payment history is a measure of how often they are making on-time payments of their credit. The payment history is the most important part of a credit score since it makes up 35% of the overall credit score. Therefore, an applicant who makes late payments or racks up many late fees and penalties will not qualify for a successful application.
The credit card issuer will see that the applicant is unreliable and will not extend any credit to them.
You can improve your payment history by changing your payment settings to auto-pay, which automatically pays your balance after receiving your payment. That way, you will not be late or miss any payment, and your credit report will indicate that you make your payments on time. Alternatively, you can make your payments before the due date to completely avoid any chance of delay that may occur.
Thus, the credit card issuer will see that you are reliable for credit extended, even increasing your credit limit.
Credit Utilization
Credit utilization is the total percentage of credit you use based on the credit limit provided on your credit card. Credit utilization makes up 30% of your overall credit score, which is also an important aspect of your score. For example, if your total credit card limit is $3,000 and you use $1,500, then your credit utilization is 50%.
That means you have used half of your total credit limit, as seen on your billing statements.
It is advisable to keep your credit utilization at 30% or less, even on other credit accounts, to boost your credit score. Contrary to popular belief, maxing out your credit card will negatively impact your credit score instead of building it. Even if you are making on-time payments on your credit balances, maxing out credit cards is a negative action.
Thus, ensure you utilize your credit card only partially, even as you continue paying for your credit card balances.
The Average Age of the Accounts
The average age of credit card accounts is also a determining factor in your credit score, carrying 15% of the score. These three main factors total 80% of your credit score, which will heavily influence the applicant’s application process. The average age of the accounts is an aggregate of all the credit card accounts currently opened.
It is calculated by adding the total number of months of open accounts and dividing them by the number of accounts.
For example, if the cardholder opened one account three years ago and another two years ago, the average age of accounts is 2.5 years. The average age of accounts will determine how long an individual has taken different types of credit. However, this factor greatly depends on other factors since a large average age does not equally mean an excellent credit score.
A great average age of the accounts will guarantee a successful application if the individual has a positive credit history.
New Credit
New credit generally means the new credit accounts you have opened up recently, especially if your credit history is new. New credit is a factor that carries only 10% of your credit score, although it is quite impactful. Thus, opening up too many new accounts within a short period will greatly hurt your credit score.
Additionally, new accounts will lower your average age of accounts, making you seem like an unqualified applicant.
Many recent credit card applications will show the credit card issuer you cannot keep up with the card payments. Also, getting rejected for a new credit card application will hurt your credit score due to a hard inquiry. A hard inquiry will show on your credit report, alerting other credit card issuers that you may not be a fit credit card applicant.
Thus, you have to be careful about how many new credit card accounts you can open at a given time.
Credit Mix
A credit mix includes different types of credit accounts making up your credit report, constituting 10% of your overall credit score. Thus, the major credit bureaus will also check your existing student loans, mortgages, and car loans. Credit card issuers, such as American Express, will note your credit mix and check whether you are a reliable applicant.
The more forms of credit extended to you, the higher the chances of a successful credit card application.
Other Approval Consideration
As seen above, the credit score comprises five main factors that greatly influence the applicant’s credit card application. However, the Amex Platinum Card is exclusive, and American Express must consider more factors. Usually, an applicant can look at their approval odds by comparing other applicants’ credit profiles.
That way, the applicant will know what credit scores the credit card issuer, like American Express, is looking for during an application. Having outstanding approval odds does not guarantee successful approval from American Express.
Some of the other considerations made during an American Express Platinum card application include the following:
Income
An applicant’s annual income will greatly influence their approval odds during application. The credit card issuer will judge how well they can be able to maintain their credit card bills based on their income. The higher the income, the better applicant’s approval odds and the higher chance of approval.
The Amex Platinum Card is a high-spending card, meaning you will need to spend more to receive your rewards.
Having an income of above $50,000 annually will improve your chances of receiving the Platinum Card from American Express. Since the card lacks a pre-set credit limit, the credit card issuer needs to be sure you can pay back the balance in full every month. A relatively higher-than-average income maintains the card’s exclusive status since few can afford it.
However, high income does not completely guarantee a successful application since other factors are at play.
Length of Credit
It is quite hard for an individual with a new credit history to receive a credit card, especially one like the Platinum Card. Although you may have a high credit score, the credit card issuer will see you as a risky applicant. Thus, the minimum number of years to have as your length of credit is two years.
Additionally, your credit history should be clean without any negative aspects, including late credit payments.
Alternatively, you can become an authorized user before making an application for the Platinum Card from American Express. American Express allows cardholders to add up to three extra Platinum Cards, charged at $175 each annually. Anyone 18 years and above can qualify as an authorized user, but only those 21 and above can apply for the Platinum Card.
Therefore, you can grow your credit history as an authorized user before applying for the Platinum Card to increase your length of credit.
How to Improve Your Credit Score
· Avoid late penalties by making on-time payments on your credit card and other forms of credit. Late payments will negatively impact your credit report, ultimately negatively affecting your credit score.
· Avoid making hard inquiries on your credit report by taking pre-qualification tests before card application. A pre-qualification test will show your approval odds before application without damaging your credit score.
· Get a starter credit card, that is, a secured credit card or a credit card with a low initial credit limit for your first credit card. It is best suited for those who have yet to have a credit card before and are building a credit history.
· Monitor your credit report through the major credit bureaus to avoid errors that may lower your credit score. If any errors hurt your credit score, the major credit bureaus will fix them before your card application.
Conclusion
The Platinum Card from American Express is seen as an elusive credit card due to the requirements needed from an applicant. One such requirement is a good credit score that should be above 700 by the time of card application. Few people can achieve that, along with other requirements like a high income, clean credit history, and a credit report.
Thus, the Platinum Card remains an exclusive high-value card since only some can achieve the set conditions.
However, the card’s benefits usually make the Platinum Card hard to apply for and receive after an application. Cardholders will receive Membership Rewards points as they use the card to finance eligible purchases. Other competitors do not carry the rewards and benefits the American Express Platinum Card offers.
However, the Platinum Card maintains its exclusivity since it is associated with a lavish lifestyle, especially for travel.
FAQs
What’s the credit limit for the Amex Platinum Card?
The American Express Platinum Card lacks a pre-set credit spending limit. However, it does not mean that there are no limits on the Platinum Card. The Amex card will still have a limit depending on a few factors, including the income stated during the application.
The cardholder has a range pre-determined by American Express depending on their payment history, credit report, and monthly spending. Additionally, American Express has a spending power tool that allows you to see whether your larger-than-average purchase will be approved during spending. American Express will notify you immediately to know how much you can make on a single purchase at a time.
What are the differences between Amex Platinum personal and business cards?
The Platinum Card from American Express usually has two formats: one for personal use and business use. The American Express Platinum Card for personal use is available for everyone who can qualify for the card. However, the business Platinum Card is only available to business owners who qualify for the card by showing proof of business.
Additionally, the requirements, benefits, and rewards for both cards may differ, although they are both a rewards credit card. Therefore, you should contact American Express to check whether you qualify for a business or personal card.
Do I qualify for the Amex Platinum Card?
You can only qualify for the Amex Platinum Card by meeting all the requirements and conditions. For example, an applicant should have a good to excellent credit score, usually above 700, even to consider an application. However, other factors such as credit payment methods, income stated, and existing credit account influence your application.
Therefore, you may find that some applicants with a fair credit score may qualify for the card. You can check on your approval odds to see how well you can qualify for the Platinum Card from American Express.
