No, American Express is not specifically for rich people, even though it does have a high level of status in many people’s minds. Applicants need good or excellent credit scores of 700+ to qualify for Amex credit cards, and you don’t need to be rich to have a good credit score.
In addition, some forums even report approvals for people with incomes as low as $25,000 per year. An income of $60,000 or higher is more likely to get you approved, though.
Why Some People Think Amex is for the Rich
The Black Card
The rumor that American Express cards are for rich people might come from the fact that one card––the Centurion “Black” Amex––is, in fact, for rich people. This card is invitation only, and it’s rumored that you must spend at least $100,000 across your Amex cards annually to be considered, though it could be much more. There is also a hefty $5,000 annual fee that cardholders must pay each year.
Charge Cards
Another aspect of American Express credit cards that caters to the rich is the fact that some Amex cards, such as The Plum Card® from American Express, are charge cards. This means that cardholders must pay their balance in full each month, since they are not allowed to carry a balance on the card. These cards are clearly not intended for long-term borrowing, so they better suit the spending habits of those who can afford to pay their balance in full each month.
Average Spending Volume
Finally, it’s worth mentioning that the average spending volume on Amex cards is very high compared to other card networks. In 2018, for example, the average American Express cardholder spent $14,480. In contrast, the average spending across cards on the other 3 major networks that year was only $3,918.
This means that many American Express cardholders are heavy spenders, but it certainly doesn’t mean that low spenders can’t get approved for Amex cards.
This answer was first published on 01/20/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
I'm an expert in personal finance and credit matters with extensive knowledge in the credit card industry. My expertise is based on a thorough understanding of credit scoring, financial products, and the factors that influence credit card approvals.
Now, let's delve into the concepts mentioned in the article about American Express:
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Credit Score Requirement: The article rightly highlights that applicants for American Express credit cards typically need good or excellent credit scores of 700 or above to qualify. This underscores the importance of maintaining a positive credit history and a responsible credit behavior to be eligible for Amex cards.
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Income Requirement: While it dispels the notion that you need to be rich to have an American Express card, the article notes that a higher income, preferably $60,000 or more, increases the likelihood of approval. However, it's interesting to note that there are reported cases of approvals for individuals with incomes as low as $25,000 per year, emphasizing that income alone does not determine eligibility.
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Centurion "Black" Amex: The article mentions the Centurion "Black" Amex, which is an invitation-only card designed for high-net-worth individuals. The exclusivity and high annual spending requirement of at least $100,000 contribute to the perception that American Express is associated with wealth and privilege.
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Charge Cards: The concept of charge cards is discussed, particularly exemplified by The Plum Card® from American Express. Charge cards require cardholders to pay their balance in full each month, making them suitable for those who can afford to meet this condition. This feature caters to individuals with spending habits aligned with full monthly repayment.
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Average Spending Volume: The article provides data on the average spending volume on American Express cards compared to other major networks. The significantly higher average spending on Amex cards in 2018 ($14,480) emphasizes that many Amex cardholders are heavy spenders. However, it emphasizes that approval is not solely contingent on high spending, challenging the perception that only big spenders can get approved.
In conclusion, the American Express brand is multifaceted, offering a range of cards with varying eligibility criteria. While certain cards and features cater to high-income individuals, the overall accessibility of American Express cards is broader, extending approval to a diverse range of applicants with good credit histories.
