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AMEX Raising my APR AGAIN

New Contributor

Re: AMEX Raising my APR AGAIN


MattH wrote:

 

With my FICO scores ranging from the upper 700s to low 800s, do they actually think I will ever pay interest at such an outrageous APR?  The only interest I pay at present is the mortgage, but if I ever I needed to carry a CC balance I'd put that on my Chase card where my purchase APR is still 5.25%.

 


Sorry to hear about AMEX - I am a cardholder since 1983 and will look forward to the same treatment.  As for Chase.... I just had my 5.24% rate jacked to 12.24%.

Message 11 of 34
Senior Contributor

Re: AMEX Raising my APR AGAIN

The problem is that the rate on most revolving credit agreements is a spot rate of undefined duration. You don't own that rate. If you put yourself in the position where you are dependent on it without an escape plan in place you could be creating a large future headache for yourself. If you want term rate of defined duration get yourself an installment loan.
Message 12 of 34
Senior Contributor

Re: AMEX Raising my APR AGAIN


creditwherecreditisdue wrote:
The problem is that the rate on most revolving credit agreements is a spot rate of undefined duration. You don't own that rate. If you put yourself in the position where you are dependent on it without an escape plan in place you could be creating a large future headache for yourself. If you want term rate of defined duration get yourself an installment loan.

Exactly.  At the moment my emergency cash is approximately equal to the balance on my mortgage; the other day a friend asked me, "so if you could pay off that mortgage why don't you?"  I replied, "because I get cash flow flexibility this way, and also because I expect in a year or two inflation's gonna skyrocket (due to all the debt being incurred by the government bailouts), so I'd be crazy to give up a fixed-rate mortgage."  If inflation takes off, I can put my cash into money market funds or whatever, but the bank holding my loan has to take it and like it.

 

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Message 13 of 34
Super Contributor

Re: AMEX Raising my APR AGAIN

I'm wating to get approve for a Blue AMEX.  That is the last card I need for my portfolio. 
Message 14 of 34
Moderator Emeritus

Re: AMEX Raising my APR AGAIN

I just got my AmEx RJ letter.  Same as MattH - prime plus 11.99%.  That's not much higher than what I'm currently at (13.24%), but it's annoying nonetheless.
Message 15 of 34
Senior Contributor

Re: AMEX Raising my APR AGAIN

Chase and AMEX in a contest to see who can inflict the most damage the fastest...
Message 16 of 34
Established Member

Re: AMEX Raising my APR AGAIN

I got a letter yesterday in the mail, I felt anger looking at this odd amex envelope. (was not the standard billing envelop). I was expecting the worse. It states in october that rates fo rthe following will go up.

 

1- cash advances

2- late fees

3- over the limit fee.

 

No mention of APR.  Wheew.

 

This is on a AMEX Blue card. so the 9.99% will remain, I just check online if it was still there. I will check again in october.

 

 I got a letter last week from Chase.  I have a chase freedom.  They are increasing APR + prime.  It says as of this month it would be 10.33%. 

 

I never carry balance on any cards, PIF, I will only carry on a rainy day.

Message 17 of 34
Frequent Contributor

Re: AMEX Raising my APR AGAIN

I got the letter from AMEX today regarding my Blue Sky. Here's what it said:

Like all companies large and small, our pricing has to be responsive to the business and economic environment. As a result, we have found it necessary to increase rates and fees on some of our products. Below are the princinpal changes to your account:

We are raising APR on cash advances

We are raising APR on any balances that have penalty rate because of late payment

We are increasing the late fees. Please remember that you can avoid late fees by paying on time.

 

In addition, we are pleased to let you know that we WILL NOT charge you a fee if you go over your credit limit. Don't

forget, it's still important to keep your balance under your credit limit.

 

OKAY, that's a bit funny..

Give me your opinion about AMEX raising rates and some funny things they do..

 

Message 18 of 34
Moderator Emeritus

Re: AMEX Raising my APR AGAIN

I received my letter yesterday.  Like MattH and Lel, my APR will increase to Prime+11.99%.

EQ 814 / TU 815 / EX 842
Message 19 of 34
Senior Contributor

Re: AMEX Raising my APR AGAIN


CreditCard101 wrote:

I got the letter from AMEX today regarding my Blue Sky. Here's what it said:

Like all companies large and small, our pricing has to be responsive to the business and economic environment. As a result, we have found it necessary to increase rates and fees on some of our products. Below are the princinpal changes to your account:

We are raising APR on cash advances

We are raising APR on any balances that have penalty rate because of late payment

We are increasing the late fees. Please remember that you can avoid late fees by paying on time.

 

In addition, we are pleased to let you know that we WILL NOT charge you a fee if you go over your credit limit. Don't

forget, it's still important to keep your balance under your credit limit.

 

OKAY, that's a bit funny..

Give me your opinion about AMEX raising rates and some funny things they do..

 


You are being handled with kid gloves.

Message 20 of 34