Our Verdict
The American Express Optima® Credit Card* is an invitation-only card offered solely to American Express members who have settled a debt with the card issuer. Designed strictly for rebuilding credit, the card doesn’t offer any rewards or benefits, and it charges a modest annual fee. With more and more options available to people with low credit scores, you may be able to find something better.
Editor’s note: This review focuses on the version of the Amex Optima that is invitation-only for rebuilding credit and carries an annual fee. Over time, some holders of the Amex Optima may be upgraded to the Optima Platinum version of the card, which carries no annual fee. This review does not cover any upgraded versions of the Amex Optima.
Pros
- Can help you rebuild credit with responsible use after a debt settlement with Amex
- Doesn’t require a security deposit
Cons
- Not publicly available
- High penalty APR
- Doesn’t offer rewards or benefits
- Charges an annual fee
Introduction
Not a lot is known about the American Express Optima Credit Card because it’s not publicly available. It’s considered a “second chance” card for Amex members who have defaulted on a balance with the card issuer in the past and settled for less than what they owed.
The card doesn’t require a security deposit, and its annual fee is lower than some other unsecured credit cards marketed to consumers with low credit scores. But its variable APR can be high if you miss a payment and trigger its penalty APR.
It doesn’t offer rewards or any other benefits for that matter, but if your only other option is a secured credit card, it could be worth considering.
Compare alternatives from our Partners
Quick Facts
- $49 annual fee
- No rewards or welcome bonus
- Doesn’t allow cash advances or balance transfers
- Available by invitation only
Other American Express Optima Credit Card Benefits
- Zero-fraud liability: If someone uses your account without your permission, you are not liable for any of the charges.
- Build credit: Although Amex doesn’t publicize this, it’s reasonable to assume that on-time payments will be recorded to credit bureaus like other Amex payments are.
Fine Print
Interest Rates
- Regular APR: Prime Rate + 14.99% variable
- Purchase intro APR: N/A
- Balance transfer intro APR: N/A
Fees
- Annual fee: $49
- Balance transfer fee: N/A
- Cash advance: N/A
- Foreign purchase transaction fee: 2.7% of each transaction after conversion to US dollars
How the American Express Optima Credit Card Stacks Up
American Express Optima® Credit Card* vs. SuperCash Card
The SuperCash card is a unique hybrid secured credit card. Like a prepaid debit card, you can only spend what you load onto your SuperCash account. But as you pay off your purchases each month, the card issuer reports your activity to the three major credit bureaus, helping you build credit. What makes the SuperCash card an excellent fit for people considering the Amex Optima Card is that it doesn’t require a credit check to get approved. What’s more, there are no annual or foreign transaction fees, no interest charges, and you’ll earn a minimum of 1% cash back on every purchase you make. However, there are some limitations on how much you can load to the account and spend.
American Express Optima® Credit Card* vs. Tomo Credit Card*
The Tomo Credit Card* is another solid alternative to the Optima Card because it doesn’t require a credit check or security deposit, and it doesn’t charge interest. You’ll pay your monthly balance in full, which the card issuer will report to the three major credit bureaus. And depending on your financial situation, you could qualify for a credit limit of up to $30,000. With that in mind, the card does charge a monthly fee of $2.99, which amounts to $35.88 annually, and it doesn’t offer rewards.
American Express Optima® Credit Card* vs. Discover it® Secured Credit Card
The Discover it® Secured Credit Card requires a security deposit of at least $200 to get approved. But if you use your card responsibly and practice good credit habits in general, you can get the deposit back as soon as seven months after approval. The card offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases. What’s more, Discover offers Unlimited Cashback Match™ - Discover will automatically match all the cash back earned at the end of the first year. There’s no annual fee or foreign transaction fee, but the card charges a hefty 28.24% variable APR on purchases and balance transfers.
Is the American Express Optima Credit Card for You?
If you’ve defaulted on an American Express credit card and settled your balance for less than what you owe, accepting an invitation to apply for the Optima Credit Card could be worthwhile if you want to get back in the card issuer’s good graces.
But if your top priority is to rebuild your credit history, there are other options available that may offer lower costs and better features. Because there isn’t a lot of publicly available information about the card, make sure you read the fine print American Express provides with its invitation. Then, take your time to shop around and compare multiple credit cards before you decide which one is the right fit for you.
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors, including:
- Annual fees
- Welcome bonus offers
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
*The information for the following card(s) has been collected independently by Forbes Advisor: American Express Optima® Credit Card, Tomo Credit Card. The card details on this page have not been reviewed or provided by the card issuer.
