American Express Zync Card Review
The American Express Zync Card, a charge card geared towards twenty-somethings, is my most recommended credit/charge card product for anybody under 30. I have always been a big a fan of Amex charge cards (I use one myself), and the Zync Card is even better that their other charge cards because it only costs $25 a year.
So what’s the Zync Card all About?
You may have noticed that American Express has been running ads to renew interest in the product that made Amex famous to begin with—charge cards.
Basically, Amex is betting that as consumers wrestle with the recession, try to spend wisely, and face credit cards that have raised rates and slashed credit lines, Amex’s charge cards will look attractive. Why is that, exactly? Charge cards like the American Express Green, Gold or Platinum card work like credit cards, with some key differences:
- Charge Cards Are Always Due-in-Full: You must pay your balance, in full, every month. Failure to pay results in steep late fees and the suspension (if not cancellation) of your card. That’s not pretty, but it’s actually better than getting caught in a credit card debt spiral for years.
- Charge Cards Do Not Charge Interest: There are no finances changes, but they do charge an annual fee.
- Charge Cards Do Not Have Credit Limits: That is, you don’t have a predefined credit limit. You can spend a reasonable amount per month based upon your income and history with American Express. If you want to make a big purchase, you should call them first to avoid the embarrassment of having your card declined.
Plus, unlike most debit cards:
- Charge Cards Protect You: They provide fraud and purchase protection so that if your card gets stolen or you make a purchase from a sketchy merchant that doesn’t deliver, you won’t lose any money.
- Charge Cards Reward You: Just like rewards credit cards, charge cards pay rewards points for purchases. These rewards can typically offset these cards’ annual fees.
- Charge Cards Help You Build Credit: It’s something your debit card simply can’t do, and if you ever want to buy a home someday, you’re going to need to build credit some how.
Although Amex charge cards enjoy a classic, sophisticated image, to many young people they mind as well be their great-grandfather’s credit card. Amex is looking to change all that with the Zync Card.
Behind the Amex Zync Card
The American Express Zync Card works just like all its other charge cards:
1. You apply for it like a credit card. So although this card is aimed at youngish adults, you do need the beginning of a good credit history.
2. You make monthly charges to the card. There’s “no pre-set credit limit”, but you generally won’t be able to spend more than what Amex thinks you should be spending in a month based upon your income. Then, you pay the balance, in-full, the next month.
3. As with all American Express Charge Cards, the Zync Card has an annual fee. Good news is, at $25, it’s a bargain. The Green Card charges $95, the Gold Card $125 or $175 depending on your rewards program, and the Platinum Card charges $450. Although there are some benefits with each level of card, I have concluded that spending more for the various levels is mostly a prestige thing.
For the $25 annual fee, the Zync Card comes with the Amex Membership Rewards program, but users can also choose to pay an additional $20 a year for four different “packs” that yield additional rewards. For example, the Go pack doubles the points you earn on airfare; the Social pack doubles points at restaurants and on concert and theater tickets. Amex says it may add or adjust these pack benefits according to user feedback.
Should You “Go Charge”?
I started using an American Express charge card about two years ago. Personally, I enjoy having the protection of a credit card without the temptation to rack up debt. I could avoid paying an annual fee and either use a fee-free credit card or my debit card, but I choose to pay a little bit to combine the convenience of both.
I admit, however, that charge cards aren’t perfect.
Even though you have to pay them in full every month, you can still spend money on a charge card when you don’t have the cash in your checking account, making it possible to overspend.
Plus, there’s the “no pre-set spending limit” thing. As I’ve written before American Express cards do have spending limits. Amex takes your credit history, your income (albeit the one you provide to them), and your spending history to calculate how much they think you can spend in any one month. If you exceed that amount, your card can be declined. I ran into this problem when I was using my card for business travel. Traveling for business, I was spending far more than I would’ve on myself, but Amex didn’t see the distinction. That said, I haven’t had a problem since I started using my card just for personal purchases.
What do you think? Do you use a charge card? Would you be interested in this new American Express Zync Card? Or does the idea of paying a fee something that is neither credit card or debit card seem crazy?
Related Posts
- Charge Cards: American Express Offers an Attractive Alternative to Credit Cards
- American Express Cards DO Have Spending Limits
- More Amex No Pre Set Spending Limit Fun
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I love using a charge card. It keeps me honest with my purchases by having to pay them off every month. This may be a great alternative to credit cards for young adults.
FORGET about AMEX
Customer Service = CRAP
Missed one payment and they stopped my card without noticing me. I filled complaint with police and case is going to be tried … in 2 years or so maybe… cause they didnt respect their contract with me… AMEX is not serious anymore in doing business.
Seb, I deleted the subsequent comment you posted here under the name “Marko”. Although it’s fine to post “anonymous” comments, it is not okay to assume identities or otherwise create the impression you are multiple people when you are, in fact, one.
I’m sorry to hear about your frustrations with Amex. We do not know the specifics of your grievance, and this is probably not the proper forum to discuss them, but I often find myself trying to gently remind readers that in most cases, when you open a credit card, you are at the mercy of the card issuer.
They have the power, not you. The are lending you money, and they will go to great lengths to make sure they see it again. That’s what creditors do. Amex and every other creditor out there.
If you don’t like how the game is played, don’t use credit/charge cards.
I agree that charge cards are probably better than credit cards, but I am still a big fan of the debit card, especially when fighting the war against debt.
Since “the average outstanding credit card debt for households that have a credit card was $10,679 at the end of 2008.” [Source: Nilson Report, April 2009], most people should only spend what they have and nothing more.
Just curious, What kind of penalties occur if you carry a revolving balance one month with a charge card?
I like that this new Zync card offers much of the $95/year Amex Green Card benefits including $1 for 1 point Membership Rewards for only $25/year. This would make it a great alternative to an airline credit card which earns points which typically have annual fees exceeding $49. Airline rewards should only be earned by people who actually fly as only charging your way to a free ticket is a poor way to earn awards. Then again if you frequently fly coach on Continental, then you may want their card just to avoid the checked luggage fee.
Membership Rewards points should only be redeemed for airline frequent flyer or hotel loyalty program points. The value of merchandise and cash awards is worth much less than using typical cash rewards Visa or MasterCard.
I’ve learned from another report that Zync offers Membership Rewards Express, which is NOT the same as “standard” Membership Rewards, so Zync does not have the ability to transfer to airline programs. So in this case, Zync is not a cheaper way to into the Membership Rewards program as I previously reported.
Now that you mention the fact that it gives you membership in the Rewards Express version, what are the differences between Membership Rewards Express and the standard Membership Rewards programs?
I would say that for the demographic I fall into the charge card is rather ideal. I’m 29, steadily employed, have never had a credit card, have a small student loan that I have mostly paid on time every month, and otherwise, non-existent credit history. I’ve been told the only way I can get a card is to secure a card, but had no interest in tying up my savings like that. I pretty much missed the magic window in college where they were falling over themselves to give everyone $10,000 limits, because I didn’t want the possibility of debt and been punished for my responsibility since, as I am “non issuable”. Every year or two I try to get a card, clean up my credit report and check for errors, and every time I am declined.
The zync card is something I am really excited about getting in the mail [I was approved!], since it will allow me to build my credit history for the nominal fee of $25, that’s why I think it is a great tool. The member rewards of amex are great and all, but I don’t care so much about that and I think it’s something the other commenters kind of missed. I want to be mortgage-able one day, and this is a great step to get to that place. Yup, finally feeling like a grown up.
What is the credit limit on a ZYNC card? Also I was curious about the details on the travel rewards. That is one reason why I got this Card for the Travel rewards.
Julio: Charge cards (like the Zync Card), don’t have predetermined credit limits. Typically, they allow you to spend whatever AMEX considers a reasonable amount based upon your income per month. Then, if you spend more than that on average per month and pay your bills on time, they increase it.
In my experience, if you’re a new charge card customer, you can probably spend up to about $1,000 per month on the card to start.
As for the travel rewards, I’m not sure more than what’s posted here, but you could check the AMEX site for details.