Hi, Bit of background on my question, E-3 in the navy, just passed my year 1 Mark, and I’ve stayed away from credit cards to stay debt free. However, starting to have major issues with my vehicle of seven years, which was to be expected but with current financial situation, is it smart to have a credit card that would have a big limit on the in case situation? I plan to forget about it because I don’t want to incur debt, but it’s getting to the point I may need something that if I have to dip into funds I don’t have, it makes the most sense.
I’ve heard that AMEX Platinum is the way to go because they waive the fee for military but is this the best option? Thank You!
Is the AMEX Platinum Card worth it?
byu/Organic_Future3456 inMilitaryFinance
Posted by Organic_Future3456
7 Comments
You absolutely, positively under no circumstances never ever should you plan to get a credit card to use to front money that you don’t have and can’t repay. If your car takes a dump, first off, there’s a good chance you don’t actually NEED a car unless you’re married/living off base, but second off, a car loan will have far, far lower interest rates than a credit card will.
Don’t get a credit card to buy a car you can’t afford with.
Credit cards can be handy, but the way you’re planning to use it makes me nervous. If your best bet is to take a 22% loan when your car breaks down then you’re close to the cliff edge.
Recommend you reevaluate your monthly costs, cut what you don’t need, and start working on an actual emergency fund.
If you can get by with no car for a few months then maybe sell your car and go without until you can get something more reliable.
Your plan to use a credit card will technically work, but it’s also potentially a stepping stone on the road to perpetual credit card debt.
The amex plat card is not a credit card. Its a charge card. You’re expected to pay it off within a month.
Only put charges on there that you can pay off at the end of the month.
You will only benefit from the card if you can completely pay it off each month.
Otherwise your best bet is to use a zero % interest credit card to make those purchases then pay it off before interest kicks in.
Even better option, ask your CDR for an AER loan that is interest free.
The platinum wouldn’t work in this use case anyway coz it’s a charge card, not a credit card. You best pay the balance in full every month, otherwise AMEX get very upset at you.
You should have an emergency fund for things like repair bills and other unexpected expenses. Create a budget and start putting a portion of your pay into a savings account to build this up. Credit cards can be useful, but you shouldn’t use them for short term expenses if you know you can’t pay it back.
I wouldn’t get any Amex card unless I could spend enough for the welcome bonus.
You absolutely should sign up for every high value credit card IF YOU HAVE THE SELF RESTRAINT TO NOT OVERCHARGE THEM OR JUSTIFY EXCESS SPENDING “BECAUSE I’M GETTING POINTS BACK”.
With that warning out of the way, you should absolutely open at minimum, one credit card to start building your credit score. Start with a no-annual-fee credit card that you’ll hold for life. Otherwise, Pick a card that can later one day be downgraded to a free no-annual-fee card. For example, the AmEx Hilton Aspire is a premium card but there is a directly subordinate Hilton AmEx card. When you leave the military, you can call amex and ask them to convert it to the free one. Your credit score is partly based on the age of your oldest credit account. So you want to keep that old card forever.
The perks are amazing for these premium cards that cost you zero annual fee in the military. You can close most of them down when you leave AD. Take the hit now to your credit score while you don’t need it so you can reap all the free benefits. Free hotel nights, free flights, cash bonuses, free airport lounges, Global Entry, etc.
For AmEx, get the Green first, then the Gold, then the Platinum. You only get the Sign Up Bonus if you get them in a ladder in the order of lowest to highest. You can never go down the ladder and still earn sign up bonuses. Your credit score is probably bad right now anyway, so you might only qualify for Green. Space out the cards so you have enough time to hit the spending requirement to earn the bonuses. (For example, spend $3,000 in the first 3 months to get 50,000 points or something.)