American Express APR increase

[Themanwhocan]

I just received a USPS letter from American Express regarding my Blue Cash Everyday card. The letter states that they are increasing the APR starting October 21, 2017.

The new APR is 14.74% , and checking my latest statement my current APR is 11.24% , so this is a 3.5% increase.

They mention the rates and fees table in the credit card agreement will be changing to Prime+10.49% for purchases, and also for Balance Transfers. They did not list a range of APRs, so I wonder if everyone is being switched to that variable rate?

Later on in the letter they say they obtained my FICO score and used it in making this decision. My FICO score on Aug 16 was 771. Its not clear to me if the rate really was based on my FICO score, but I guess this means I can claim a free Experian credit report (making the best of a bad situation...)

So, what did you receive from American Express lately?

[Anonymous]

I received a letter from them a few years ago, maybe 2015. They bumped my 9.24% Blue to 12.9% because they said they wanted to be more in line with compeititors....my letter did not indicate that FICO scores were used. 

You've slowed down on your app sprees so it shouldn't be that.....

[Berk]

Well, you're doing better than I am. I'm currently at 17.24% on Delta Sky Miles card. First time I've checked it in years. At one point it was down around 12% as well.

[K-in-Boston]

Perhaps because you had an APR much lower than their current range they are just adjusting people in that scenario to the lowest of the current range? I hope that's not going to start happening with lenders since I have a few cards (notably Citi and Chase) where my x + prime is lower than the current lowest advertised x + prime.

[CreditMagic7]

Might consider that action less extreme or fortunate.

And so it begins? Bares watching who else also weighs in on barclays cousin.

http://ficoforums.myfico.com/t5/Credit-Cards/Amex-CLD/td-p/5034053

[wasCB14]

Practically speaking, APRs seem to come in two varieties these days:

A: We want to be an attractive financing option for you.

B: We want to milk you for being disorganized and/or short of cash.

Maybe they figure that as long as they are offering a "B" APR, they might as well make some more money.

[CreditCuriosity]

Hop on chat and ask for an apr reduction.. I have had good luck with APR reductions on chat although they have certainly pulled back.. My ED card is way below published rate.  Hopefully I am not getting rate hike.  I remember a few years ago this happened I believe on the same card for the masses as they claimed their rates were below other similar card rate from other lenders or something along those lines and people got their apr's back down over time by requests.

[kdm31091]

Amex was typically very generous with APR reductions. It seems they have been tightening up as of late. It sucks to see a rate go up, but my guess is they will start lining people up with the published rates more.

[Themanwhocan]

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@kdm31091 wrote:

Amex was typically very generous with APR reductions. It seems they have been tightening up as of late. It sucks to see a rate go up, but my guess is they will start lining people up with the published rates more.

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Well, so far it seems like i'm the only one posting about a recent APR increase. Perhaps they don't like that I don't use that card very much.

[Anonymous]

I honestly don't even know what my APR is, but I'm sure it's worse than what they're raising yours to. I would definitely hop on the chat to request a reduction, and ask what the reasoning for raising it is.