Lots of folks looking to build credit ask about American Express secured cards. They’re searching for options that aren’t the usual ones. Now, American Express doesn’t have a classic secured card that needs a deposit. But they do offer other cards that work in a similar way to help build credit. Knowing this difference helps people make smarter choices. They can better compare Amex products with secured cards from other companies. This guide takes a close look at how Amex helps build credit. We’ll check out their alternative options and see how they stack up against regular secured cards out there.
Table of Content
- American Express Secured Card Availability and Alternatives
- Credit Building Strategies with American Express Products
- Comparing Amex Options to Traditional Secured Cards
- American Express Application Process and Requirements
- Managing Your American Express Account Responsibly
- Alternative Options When Amex Isn’t Available
- Conclusion and Next Steps
- Frequently Asked Questions About American Express Secured Cards
American Express Secured Card Availability and Alternatives
Current Amex Secured Card Offerings
Right now, American Express doesn’t have a traditional secured credit card. That’s the kind where you put down a security deposit to set your credit limit. This makes them different from lots of other card companies.
Those competitors really push secured cards that are made to help rebuild credit. But Amex does offer other choices. They have the Bluebird debit card and Serve prepaid cards. These give you some features to build credit, and you don’t need a security deposit or a credit check.
Even without a secured card, American Express has a few products that can help you build a credit history. You just need to use them responsibly. Their charge cards are one option.
You have to pay the full balance each month, but they report to the credit bureaus. That means they can help your credit score over time. The company is more focused on charge cards and regular credit cards.
They don’t really do secured options. This fits with their image as a premium brand in the financial world.
Why Amex Doesn’t Offer Traditional Secured Cards
American Express’s whole business is about premium financial products. That doesn’t really match up with traditional secured credit cards. Those cards usually target people with bad credit or not much credit history.
They also have much stricter approval standards. That’s compared to issuers who specialize in subprime lending. This approach helps Amex keep its good reputation. It also cuts down on potential abuse that can sometimes happen with secured cards.
Industry analysts point out that Amex isn’t in the secured card market for a reason. Their strategy is focused on higher-income folks and businesses. Recent Federal Reserve data shows that only about 3% of cards from big issuers are secured.
Most of those are from banks that specialize in subprime lending. Instead, American Express offers cards like the Platinum Card. These are meant for affluent consumers who already have good credit histories.
Wondering if Amex has a secured credit card? Let’s talk about how to build credit with their products instead.
First up, starter cards for building credit.
If you’re looking to build or fix your credit with Amex, they’ve got some starter cards. These are good options instead of secured cards. Cards like the Amex Green or Blue Cash Everyday often accept people
with fair to good scores—usually around 670 or above. They report to all three credit bureaus. So if you use them responsibly, you can build a good payment history.
Another way is to become an authorized user on someone else’s Amex account. You can start building credit without even applying. Lots of people do this first before getting their own Amex card. Amex also has prequalification tools.
They let you check if you’ll likely get approved without hurting your score. That means no unnecessary hard inquiries while you’re building credit.
You can also use charge cards to build credit.
Amex charge cards—like the Green, Gold, and Platinum—aren’t regular credit cards, but they still help build your credit history. You have to pay the full balance each month. That teaches good money habits, and they report your payments to the bureaus.
Unlike secured cards that need a deposit, charge cards give you spending power without collateral. And they still help you build credit.
Just keep in mind: charge cards affect your credit utilization differently than regular cards. They don’t have preset limits like other cards, so they don’t factor into your utilization ratio the same way.
That can actually help your score if you manage it well, since utilization makes up about 30% of your FICO score.
Comparing Amex Options to Traditional Secured Cards
Key Differences in Requirements and Benefits
With traditional secured cards, you usually need to put down a refundable deposit. It can range from $200 to $2,500, and that amount sets your credit limit. But American Express options are different. They don’t ask for a security deposit.
Instead, some might charge an annual fee—from zero to hundreds of dollars for their premium cards. Secured cards usually accept people with poor credit, like scores under 580. Amex cards, though, typically need fair to excellent credit—think 670 or above.
And the benefits? They’re totally different too. Secured cards give you basic features with little rewards. Amex is famous for its strong rewards programs, purchase protections, and premium perks.
Here’s a big difference: after 6 to 12 months of good use, other issuers secured cards often graduate to unsecured. You get your deposit back and keep the credit line. Right now, Amex doesn’t offer that.
Cost Comparison and Fee Structures
Now, let’s talk costs. Traditional secured cards often have annual fees between $0 and $50, and sometimes extra program fees. Amex cards usually charge annual fees from zero up to $695.
Their premium cards come with big benefits that can make the fee worth it for the right person. Secured cards hardly ever give good sign-up bonuses. But many Amex products have valuable welcome offers—you can get hundreds of dollars worth.
Interest rates are another area where they really differ. Secured cards usually have high APRs, around 25% to 28%. Amex offers better rates, from 15% to 26%, for folks with good credit.
Recent data from the Consumer Financial Protection Bureau shows the average secured card costs about $35 a year. Premium rewards cards run $150 to $250. That makes secured cards a more accessible choice for people watching their budget while rebuilding credit.
American Express Application Process and Requirements
Credit Score Requirements and Eligibility
If you want an American Express card, you’ll usually need good to excellent credit. That means scores from about 670 up to 850, depending on which card you pick. That’s very different from secured cards.
Secured cards often take people with much lower scores, like between 300 and 580. Amex doesn’t just look at your FICO score. They also use their own system. They check your income, any debt you have, and if you’ve paid Amex bills on time before.
They also see how many cards you’ve applied for lately. And if you already have a good history with them, that really helps your application. So if you’re already a good customer, you’ve got a better shot at getting approved for another Amex card.
But if you can’t get a regular Amex card, you might look at their Bluebird or Serve prepaid cards. These don’t need a credit check and have some card features, but they won’t help you build your credit.
Income and Documentation Requirements
Amex also wants to know you can pay your bills. So when you apply, they’ll ask about your yearly income to make sure it’s solid. They don’t say the exact minimum, but for basic cards, you probably need to make at least $10,000 to $15,000 a year.
For their fancy premium cards, you’ll need a lot more income. If something doesn’t match up with your credit report, they might ask for proof like pay stubs or tax returns.
Secured cards use a cash deposit as collateral. Amex is different—they care more about your income and good credit history. This fits with their high-end brand, but it means a lot of people who could use a secured card can’t get an Amex.
So if Amex turns you down because of your income or credit, try a secured card from another company first. Build your credit up, and then you can try for an Amex again later.
Managing Your American Express Account Responsibly
Payment Strategies and Credit Building
Managing your Amex account responsibly means you should always pay at least the minimum amount by the due date. But if you can pay the full balance, that’s even better for your finances.
Setting up auto-pay is a smart move – it helps you avoid missing payments, which can hurt your credit score. Amex gives you several ways to pay: online, through their mobile app, or even by phone. Makes it super convenient.
To build credit effectively, try to keep your credit usage low. For revolving cards, stay under 30% of your limit. With charge cards that need full payment each month, paying on time consistently shows credit bureaus you’re responsible with money.
Cards like the Amex Platinum report your payments to all three major credit bureaus. If you handle them right over time, you’ll build good credit history.
Avoiding Common Credit Management Pitfalls
Some common credit mistakes: using all your available credit, paying late, applying for too many cards at once, or closing old accounts when you don’t need to. Amex customers really want to avoid late payments.
The company might hit you with higher interest rates or even restrict your account if you pay late. If you’re getting a card like the Milestone credit card, make sure you understand all the terms before activating it. That way you won’t get surprised by any fees.
Abusing your credit card – like trying to game your credit limit or get around the rules – can get your account closed and hurt your credit report. Amex keeps an eye on accounts for weird activity.
They might take action if they see signs you’re struggling financially or misusing the card. Good cardholders spend only what they can afford, check their accounts often for fraud, and call customer service right away if something looks wrong.
So, what if you can’t get an Amex secured credit card?
Don’t worry, there are other great secured cards out there.
If you need a secured card, you’ve got some really good choices besides Amex. Take the Discover it® Secured Card. It gives you cash back, and after about seven months, they might automatically upgrade you to a regular, unsecured card.
Then there’s the Capital One Secured Mastercard. It’s great if you’re short on cash. You could get a $200 credit line with a security deposit as low as $49.
Other top picks are the Citi® Secured Mastercard, which has no yearly fee, and the Bank of America® Customized Cash Rewards Secured card that even lets you earn rewards. Most of these cards need a security deposit, usually between $200 and $500.
The best part? They all report your payments to the three major credit bureaus. This helps you build your credit score as long as you use the card responsibly. Oh, and just so you know, big card issuers generally block things like buying guns with their cards to follow federal rules.
How to build your credit the smart way
If you can’t get an American Express card right now, you need a good plan to build your credit. A common path is to start with a secured card from another company. After you build some history, you can upgrade to an unsecured card.
Eventually, you might qualify for those great Amex cards. You could also try a credit-builder loan from a credit union or a local bank. It’s another way to show you can make payments on time, without using a credit card.
Another cool trick? Ask a family member to add you as an authorized user on their old credit card account. You can build credit history without even applying for a card yourself.
Many secured cards made for rebuilding credit also come with free tools and lessons to teach you about credit and help you track your score. Using these strategies can eventually help you get approved for premium cards, like American Express, which have awesome rewards and benefits.
Conclusion and Next Steps
American Express doesn’t have traditional secured credit cards. But they do offer other products. These can help you build credit history if you qualify.
It helps to understand how secured cards differ from Amex’s options. That way, you can make smarter money choices based on your credit and goals. If you can’t get an Amex card right now, try secured cards from other banks first. They’re great stepping stones to eventually getting an Amex.
Start by checking your credit score for free on sites like AnnualCreditReport.com. Look into secured cards if you need to. And always use prequalification tools before applying. Use your card responsibly and pay on time.
You’ll build credit history that can qualify you for Amex cards and their awesome benefits. Just remember: building credit is a marathon, not a sprint. Staying consistent with good habits gives you the best results over time.
Got questions about Amex secured cards? Here are some common ones.
So, does Amex actually have a secured credit card?
Nope, Amex doesn’t do traditional secured cards right now. You won’t need to put down a security deposit. But they do have other options. Things like charge cards and regular credit cards. These can help you build credit if you’ve got fair to good scores.
What’s the easiest Amex card to get if your credit isn’t great?
Amex isn’t really going after folks with bad credit. Their easiest products to get are prepaid cards like Bluebird and Serve. No credit check needed for these. But remember – they’re not credit cards, so they won’t help build your credit history.
Can you build credit with an Amex charge card?
Yes! Cards like the Amex Green, Gold, and Platinum do report to credit bureaus. If you use them responsibly, they can help build your credit. Just know – you’ll need to pay the full balance each month. And you’ll typically need good to excellent credit to get approved.
How can you eventually qualify for an Amex card?
Start with secured cards or credit builder products from other companies. This helps you build a positive payment history. Keep your credit usage low, always pay on time, and slowly build up your score.
You’ll want to hit a 670 FICO score and have verifiable income to meet Amex’s usual requirements.
