American Express

[Rushie]

I got a notice from American Express informing me that they are raising my interest rate from 8% to 15% because they pulled my FICO score and it is 834 on a scale of 300 to 850. Wtf???

All I can figure is they're raising everyone's rates and mine would be raised even more if my score weren't great but that's not what it said. It is 6 pages of threatening legalese making it sound like they are punishing me for my score by doubling my interest rate.

The corporate world has lost any sense of communication with customers as feeling human beings.

I've been a American Express card carrier for over 30 years. I think I'm done.

 

[Heftiger]

Ha!
I got an offer from Amex last week. Almost too good to pass up.

NO FEES (for the first year)
ZERO INTEREST (when you pay your bill at the end of each month)

WTF, really?

 

[denverpilot]

Just think what a great deal the folks with bad credit scores get.

 

[weilke]

850 is the max score you can get. It's not like you can do much better.

I think I had an interest charge on my amex once. It was after i purchased appliances and bathroom fixtures for a home remodel.

 

[benyflyguy]

Just think what a great deal the folks with bad credit scores get.

I always found that quite humorous. The CC companies have no problem doling out the credit cards to ppl with questionable credit but they set them up for failure by jacking up the rates!!! Very predatory IMO
I remember in college way back when, late nineties, being able to get a credit card with a $1000 limit the seemingly jumped every couple of months and I didn’t have a job. Wtf!?!

 

[Ghery]

I had an American Express Optima card back in the mid 1990s. Someone put a bunch of fraudulent charges on it shortly after I moved to Oregon and it had never been out of my wallet. It took a couple months and was like pulling teeth to get those charges removed. Once they were I cancelled the card and account. Haven't considered AMEX since. Never had a similar problem with any other card issuer.

 

[Rushie]

I had an American Express Optima card back in the mid 1990s. Someone put a bunch of fraudulent charges on it shortly after I moved to Oregon and it had never been out of my wallet. It took a couple months and was like pulling teeth to get those charges removed. Once they were I cancelled the card and account. Haven't considered AMEX since. Never had a similar problem with any other card issuer.

Wow. I have had that happen recently on my Amex (been about three years) and the charges were credited immediately. I have never had a problem with any credit card removing fraudulent charges. Knock on wood.

 

[denverpilot]

I always found that quite humorous. The CC companies have no problem doling out the credit cards to ppl with questionable credit but they set them up for failure by jacking up the rates!!! Very predatory IMO
I remember in college way back when, late nineties, being able to get a credit card with a $1000 limit the seemingly jumped every couple of months and I didn’t have a job. Wtf!?!

They’ll happily own your income for a decade or more if you let them.

 

[asicer]

I got a notice from American Express informing me that they are raising my interest rate from 8% to 15% because they pulled my FICO score and it is 834 on a scale of 300 to 850. Wtf???

All I can figure is they're raising everyone's rates and mine would be raised even more if my score weren't great but that's not what it said. It is 6 pages of threatening legalese making it sound like they are punishing me for my score by doubling my interest rate.

The corporate world has lost any sense of communication with customers as feeling human beings.

I've been a American Express card carrier for over 30 years. I think I'm done.

They're probably hurting a bit after they lost Costco. I know they got dumped from my household the moment Costco switched to Visa.

 

[tawood]

AMEX is my main card, I use it for EVERYTHING...2% cash back and in 8 years I’ve never once paid interest, a fee, or anything else, yet they pay me up to $1000 every year. All you guys paying interest and fees are saving me a fortune! Lol

 

[Sundancer]

Back in the 70s my company paid the fee for a "standard" AMEX card, to simplify our travel cost tracking and reimbursement, not too unlike a present day gov't travel card. Anyway, I had cause to call on AMEX a few times in travel "situations", and they came through. Being a real bank and a travel company was a big help - anyway, I love the thing, and stayed with them iver the years - I don't use a debit card in retail busineses, just the AMEX, or cash. And they'll clear a phony charge almost instantly. Maybe I've been lucky?

 

[denverpilot]

They're probably hurting a bit after they lost Costco. I know they got dumped from my household the moment Costco switched to Visa.

We went the other route. Dumped Costco. LOL. Their deal with Visa wasn’t nearly as good for their customers as their deal with AMEX was.

But we were headed toward leaving them anyway. It was just a convenient reminder to go do it.

 

[deonb]

Does the interest rate on Amex really matter? Don’t you have to pay it off every month in full anyway? I didn’t think you can keep a long running balance on Amex.

 

[Ken Ibold]

Does the interest rate on Amex really matter? Don’t you have to pay it off every month in full anyway? I didn’t think you can keep a long running balance on Amex.

There are different Amex cards. Some you can, some you can't.

I use the clear card that ironically they call Blue. It's great. The travel rewards are really good. The times I've had fraud or merchant disputes (like online orders becoming subscriptions you can't cancel) they're all over it. It's the card I sent with my kids to college.

 

[SkyDog58]

I've never quite understood FICO scores anyway. Why the 300-850 range? Why not start at zero? Why a range of 550 points? Why not just 500? Why does Credit Karma tell me my score just dropped by 20 points because I ran my credit cards up a few thousand dollars for a home project even though in a couple of weeks when the bill comes, I'll be paying it off? I don't think credit card balances should affect your score unless you carry a balance over into the following billing cycle. I haven't paid a cent in credit card interest in a number of years. Though in reality, I remain in the excellent point range and that point swing really won't affect my ability to get a loan if I needed one but I find it to be stupid algorithm that will do it that way.

 

[midlifeflyer]

I got a notice from American Express informing me that they are raising my interest rate from 8% to 15% because they pulled my FICO score and it is 834 on a scale of 300 to 850. Wtf???

It was before the recession. I had been a CapitalOne user for years. Apparently, they were trying to get rid of folks who did not carry a big balance (I wonder how well that worked out) I get a notice if a rate increase. Thinking it was like others I had seen, I expected the usual - call, threaten to cancel, be passed on to "customer retention," and have it taken care of. This time though, when I called, the recording said, "if you are calling about the rate increase, press 1 to close your account."

So, guess what is not in my wallet and will never be there again despite the solicitations I receive weekly.

 

[midlifeflyer]

I've never quite understood FICO scores anyway. Why the 300-850 range? Why not start at zero? Why a range of 550 points? Why not just 500? Why does Credit Karma tell me my score just dropped by 20 points because I ran my credit cards up a few thousand dollars for a home project even though in a couple of weeks when the bill comes, I'll be paying it off? I don't think credit card balances should affect your score unless you carry a balance over into the following billing cycle. I haven't paid a cent in credit card interest in a number of years. Though in reality, I remain in the excellent point range and that point swing really won't affect my ability to get a loan if I needed one but I find it to be stupid algorithm that will do it that way.

I suspect most of the algorithm is based on credit underwriting averages (like insurance) in which a sudden jump in credit card use is often associated with financial problem. They are not looking at what the spending is for. The result is definitely going to be stupid results like yours.

 

[SkyDog58]

I suspect most of the algorithm is based on credit underwriting averages (like insurance) in which a sudden jump in credit card use is often associated with financial problem. They are not looking at what the spending is for. The result is definitely going to be stupid results like yours.

I can understand that to a degree but one would think there would be a dwell period of at least one billing cycle before any credit card usage would drive down your score. The other odd thing is that I was still far below my total available credit. But in the end, it will have no true ill effect as my score remains high overall and I'm not in the market for a loan. I just thought it was a dumb result.

 

[C-1 PILOT]

Back in the 70s my company paid the fee for a "standard" AMEX card, to simplify our travel cost tracking and reimbursement, not too unlike a present day gov't travel card. Anyway, I had cause to call on AMEX a few times in travel "situations", and they came through. Being a real bank and a travel company was a big help - anyway, I love the thing, and stayed with them iver the years - I don't use a debit card in retail busineses, just the AMEX, or cash. And they'll clear a phony charge almost instantly. Maybe I've been lucky?

I agree, the few times over the past 42 years that a problem arose or noticed a sham charge, they fixed it. I have only one other card, a VISA, which i use those few times Amex isn’t accepted. I only use debit cards for ATM withdrawals.

 

[frfly172]

Had the jet blue Amex,but they dropped them in favor of Barclays. The Amex was getting harder to use in some places,due to high fees they charge the merchant.

 

[forsonsinc]

I would encourage you all,when possible to use cash. Most of the places will gladly give you more than 1-2% off for cash.
The 3-6% increase the stores are charging per transaction,does not quite cover the 1-2% all the dilegent bill payers are receiving for the honor of borrowing money for 30 days.
This isnt advertised but when accomplished you'll save much more than you could ever earn with rewards

 

[weilke]

I can understand that to a degree but one would think there would be a dwell period of at least one billing cycle before any credit card usage would drive down your score. The other odd thing is that I was still far below my total available credit. But in the end, it will have no true ill effect as my score remains high overall and I'm not in the market for a loan. I just thought it was a dumb result.

It's a reporting cycle effect. If your CC happens to report while you have an increased balance , you'll get a score ding just for the increase, regardless of your limit. I can see that statistically, people who suddenly increased CC balances are correlated with higher risk than those who don't. Interestingly that ding stays with you for a couple of months even if the balance drops back to zero the next month.

 

[weilke]

I would encourage you all,when possible to use cash. Most of the places will gladly give you more than 1-2% off for cash.
The 3-6% increase the stores are charging per transaction,does not quite cover the 1-2% all the dilegent bill payers are receiving for the honor of borrowing money for 30 days.
This isnt advertised but when accomplished you'll save much more than you could ever earn with rewards

May or may not work. I haven't found many vendors who would even be able to process a cash discount. I am not going to be ''that guy' who holds up the line at Safeway to wait for the assistant associate deputy general manager to get a $2 discount on a $100 grocery bill.
You can get the same discount by using a cash-back card. For me personally, the miles and perks I get with the airline are worth more than one or two percent I could haggle out by paying cash.
With small businesses such as independent restaurants or coffee shops I pay cash. Not to haggle out a 10c discount on a $4 latte, more as a nod to folks who run that kind of business.
When I had the big supply house bill for the home remodel I tried to get a cash discount. They went back and forth but wrerent able to do it for a non-commercial buyer. I figured suit yourself, here is my amex and rang up a pile of miles on my account.

 

[Van Johnston]

I would encourage you all,when possible to use cash. Most of the places will gladly give you more than 1-2% off for cash.
The 3-6% increase the stores are charging per transaction,does not quite cover the 1-2% all the dilegent bill payers are receiving for the honor of borrowing money for 30 days.
This isnt advertised but when accomplished you'll save much more than you could ever earn with rewards

I think it is not advertised because it is a violation of the merchant agreement with each credit card company if they do offer a cash discount. Don't know know that for a fact; just what I've heard. I do see some small businesses imposing a minimum amount, like $10, on credit card purchases. And also a surcharge of a few percent on large purchases.

 

[Van Johnston]

I got a notice from American Express informing me that they are raising my interest rate from 8% to 15% because they pulled my FICO score and it is 834 on a scale of 300 to 850. Wtf???

My first thought was 8% is a totally unrealistic rate to begin with. I went and looked at all my rates (because I never pay attention since I don't carry a balance). Rates varied from 14.5 - 17.5% with reported scores of 842-850.

Except my USAA card. That rate is 7.5% with a score of 824. Go figure.

 

[Sac Arrow]

Credit scores are irrelevant to me. I always pay the card off prior to incurring interest. I don't finance vehicles. So many places around here won't take AMEX so I've never considered getting a card. My main card is a BofA Visa (2% cash back), and my backup is a USAA Mastercard.

 

[eman1200]

I've never quite understood FICO scores anyway. Why the 300-850 range? Why not start at zero?...

It’s like getting 200 points just for signing your name on the SAT’s. You get 300 fico points just for being a ‘Murican.

 

[JCranford]

I am not going to be ''that guy' who holds up the line at Safeway to wait for the assistant associate deputy general manager to get a $2 discount on a $100 grocery bill.

But you’ll happily be that guy that chases that same 2% cashback bonus by using s CC. The guy above somewhere that’s getting $1000 cashback had to risk $50,000 on a credit card to get his ‘reward’. Not really worth the effort if you ask me. Run the AmEx thru the shredder!

 

[Rushie]

I've never quite understood FICO scores anyway. Why the 300-850 range? Why not start at zero? Why a range of 550 points? Why not just 500? Why does Credit Karma tell me my score just dropped by 20 points because I ran my credit cards up a few thousand dollars for a home project even though in a couple of weeks when the bill comes, I'll be paying it off? I don't think credit card balances should affect your score unless you carry a balance over into the following billing cycle. I haven't paid a cent in credit card interest in a number of years. Though in reality, I remain in the excellent point range and that point swing really won't affect my ability to get a loan if I needed one but I find it to be stupid algorithm that will do it that way.

I read some stuff online that says Credit Karma doesn't give you the real score. They use some kind of algorithm to estimate your score. Maybe because they are trying to worry you into buying their services. That happened to my husband but I checked it out and his hadn't dropped at all.

 

[frfly172]

Another thought,most FBOs give a discount for self serve gas,which all take a credit card. I know the theory of the difference is the savings in labor. But they still pay a fee to give you a discount.

 

[Maciej]

AMEX is my main card, I use it for EVERYTHING...2% cash back and in 8 years I’ve never once paid interest, a fee, or anything else, yet they pay me up to $1000 every year. All you guys paying interest and fees are saving me a fortune! Lol

Agreed, between all of the 0% offers I get and benefits from the cards it's awesome.

 

[wsuffa]

I read some stuff online that says Credit Karma doesn't give you the real score. They use some kind of algorithm to estimate your score. Maybe because they are trying to worry you into buying their services. That happened to my husband but I checked it out and his hadn't dropped at all.

There are multiple scores. Each industry - sometimes each financial institution - has it customized to them. Neither FICO nor the institutions will tell you that without your asking multiple times. Just saying "834 on a scale of 500" doesn't mean much, other than whatever scoring system they're using at the time gives you an 834. It may be an entirely different score for your insurance company (and yes, insurance rates are based on scores in many places, including Texas) than for your bank than for AmEx than for a Visa card. Some weight on-time payments more, some weigh total outstanding more, and some weigh long-term (mortgage) differently than revolving.

I recall getting a car insurance renewal in Texas with a credit score above 820 (per the credit bureau), and being told that I didn't qualify for the best rate due to the score. At the time, they wouldn't disclose the score but told me if it were 10 points better I'd get the best rate. They also informed me that they calculated score differently. But wouldn't tell me how to improve. And this was with a nearly perfect driving record (and being with that company for 25 years). It was finally the state insurance regulator that told me that each company used a slightly different score and that the scoring criteria were approved by the state but could not be disclosed because they were proprietary.

AmEx has revised some of their policies and interest rates. I have an AmEx card that's paid monthly, and I don't use the "pay over time" feature. But I do recall seeing some notice in the last bill about changing rates if you use those features.

It's also true that AmEx has a multitude of cards - some their own, some co-branded with others (hotels, banks, merchants, and the like). Each of those carry their own terms. And some of the cost of those cards is related to the benefits provided.

What irks me more are merchants that make unrealistic payment deadlines and mail the bill late enough that you have about 2 days to pay. I get that they want to force people to electronic payments, but I have no interest in giving them unfettered access to my checking account.

 

[weilke]

But you’ll happily be that guy that chases that same 2% cashback bonus by using s CC. The guy above somewhere that’s getting $1000 cashback had to risk $50,000 on a credit card to get his ‘reward’. Not really worth the effort if you ask me. Run the AmEx thru the shredder!

What 'risk' do I take by using a credit card ?

More than once I have managed to fix problems with vendors by involving the CC company. Once they are faced with the possibility of a chargeback, suddenly they can work around their inability to process a return merchandise authorization.

As a vendor, I hate amex for their fee structure and expensive incentive programs. As a consumer, I'll gladly take advantage of every perk and protection they offer.

 

[weilke]

I think it is not advertised because it is a violation of the merchant agreement with each credit card company if they do offer a cash discount.

That's what I thought until I bothered to read my merchant agreements. There are some strings attached on what you have to do, but discounts, minimum purchases or convenience fees are not a violation per se.

 

[Clip4]

I got a notice from American Express informing me that they are raising my interest rate from 8% to 15% because they pulled my FICO score and it is 834 on a scale of 300 to 850. Wtf???

All I can figure is they're raising everyone's rates and mine would be raised even more if my score weren't great but that's not what it said. It is 6 pages of threatening legalese making it sound like they are punishing me for my score by doubling my interest rate.

The corporate world has lost any sense of communication with customers as feeling human beings.

I've been a American Express card carrier for over 30 years. I think I'm done.

An 8% is abnormally low for an unsecured loan.

 

[luvflyin]

What’s with all these in the 800’s scores? Mine range from 760 to 790 with the 3 big scorers. I have NO unpaid or overdue bills. No collections. Nothing negative that I can see.

 

[forsonsinc]

Their grown up report card is just better than yourz.

 

[Rushie]

Their grown up report card is just better than yourz.

Yeah I think age has a lot to do with it. We have a history of many mortgages each with perfect payment, revolving lines of credit the same and a dozen credit cards the same. It's because we are old now and have this 40 year history of always paying our bills on time and always paying off loans.

 

[forsonsinc]

Yah - what were you thinkin. Specially in 08 with the economy crash you coulda walked on payments and got a gold star for doin that.
-sarcasm.

But no worries - same story from others i know.
Me myself havent been perfect which bugs the tar outta me.
Prob why i dont like credit

 

[Craig]

What’s with all these in the 800’s scores? Mine range from 760 to 790 with the 3 big scorers. I have NO unpaid or overdue bills. No collections. Nothing negative that I can see.

Credit utilization rate has a big influence on your score. This is the ratio between what the total credit limit that has been reported to the bureaus and what you actually owe against that limit at the time the score is calculated. The higher the ratio, the more it drags the score down.

Ours has run at about zero, for more than 15 years now.