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Epic Contributor
Creditaddict
Posts: 20,187
Registered: ‎10-23-2007
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Re: American Express cancelled my account


southernstylin wrote:

WhirledPeasPlease wrote:

southernstylin wrote:

 

So, why in October, when this bad stuff happened to this couple, American Express decides to drop my APR  to 8.99 and then to 7.99 in December?

 


Is your rate tied to the prime rate?


 

Neither card from American Express has the APR tied to the prime rate. For example, my Blue Cash APR has been 10.99 since I received the card last year and hasn't changed.
All of my dads amex cards, they are all over a year old if that matters, are all adjusted based on Prime. all 5 of his accounts have gone down in the last few months

 

Fico Scores: EQ- HATE U, TU 671 GE, EX 669 Chase(09-15-14)
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Established Member
southernstylin
Posts: 31
Registered: ‎12-11-2008

Re: American Express cancelled my account

Creditaddict, I am far from invisible from American Express whenever they want to "hit" me. I'm out there with a huge bullseye in day-glo paint. However, that's my point. Not only do I fit these so-called "patterns" that are getting people hit with CLD and rate-jacking, I have two American Express credit cards which should amount to twice the amount of attention and risk.

 

 

 

 

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Creditaddict
Posts: 20,187
Registered: ‎10-23-2007
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Re: American Express cancelled my account


southernstylin wrote:

Creditaddict, I am far from invisible from American Express whenever they want to "hit" me. I'm out there with a huge bullseye in day-glo paint. However, that's my point. Not only do I fit these so-called "patterns" that are getting people hit with CLD and rate-jacking, I have two American Express credit cards which should amount to twice the amount of attention and risk.

 

 

 

 


To me that just shows how out of control and irrational amex is being to there cardholders... They are just so random, but I find, once your in there sights, you will always be there EVERY 6 months!

 

Fico Scores: EQ- HATE U, TU 671 GE, EX 669 Chase(09-15-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Walmart $400
Over 45 Cards in between :smileytongue:
Established Member
southernstylin
Posts: 31
Registered: ‎12-11-2008

Re: American Express cancelled my account

I just double-checked the Blue statements from the past six billing cycles. The APR was 8.99 from June to November, and dropped to 7.99 for December. I've had the Blue for four years; my Blue Cash APR has been set at 10.99 since I got it last February.

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ChemGuy
Posts: 286
Registered: ‎05-02-2007
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Re: American Express cancelled my account


southernstylin wrote:

To me, this is interesting - I went to a Sunoco last week since they are all over the place here in Virginia as well several times over the past several months. I live in an area of the country that has a great deal of foreclosures taking place in addition to me being a rentor. So, why in October, when this bad stuff happened to this couple, American Express decides to drop my APR  to 8.99 and then to 7.99 in December?

 


 


It's important that people remember that having your interest rate lowered is not necessarily a favorable sign from the CCC.  Remember that the interest rate is tied to the Prime.  The Prime has dropped to between 0 and .25 in the time period that you are mentioning (basically it dropped a ~1% from where it previously stood).  Hence, your interest rate has dropped as well.  The prime is tied to the fed funds rate, which is the rate banks charge each other to borrow.  So, banks take the rate they charge each other, tack on 3%, (this part is risk irrelevant), and then tack on an additional interest rate associated with risk.  So whenever you hear "the fed lowered interest", you can always expect an equivolent decrease in your interest rate on your card, and when you hear "the fed raised interest" you can expect an equivolent increase in your rate regardless of how much or how little the company likes you.  

Valued Contributor
oracles
Posts: 1,699
Registered: ‎08-18-2007

Re: American Express cancelled my account

why are you guys arguing with southernstylin. The day, if it should happen, that he/she too will get hit by AMEX ( I am sure he/she will not tell us if it does happen out of pure embrassment) then they will understand. Just because it has not happen so far does not mean you should go around speaking confidently about "WHY, WHY, WHY not me huh, huh? lol The fact is if you think AMEX has gone through their list of customers and you were pased over, continue to live in la la land. They may have not reach your name yet or maybe it will be the 2nd, third, or fourth go around.  This is only the begin my friend and we are not invincible to what is about to come. I am happy for your confidence southernstylin and truly hope nothing happen to you by AMEX but unless you have a crystal ball that truly works and tells the future, I would not be so cocky as to it not happening to you and speaking in the manner you are doing.(P.S. Second wave of mortgage foreclosures are coming - watch out)
Established Member
southernstylin
Posts: 31
Registered: ‎12-11-2008

Re: American Express cancelled my account

[ Edited ]

Creditaddict, let's go back to that Wall Street Journal article I hyperlinked. The couple interview is quoted to say they put $5000 on their American Express charge (not credit) card per month. Forget the thought right now they are charging $5000 per month.

 

Multiply $5000 times twelves months. Just on one card, that couple is spending $60,000 a year. Let's put it this way - that is the amount of money I make in one year that they are charging on one card.

 

We're not including the payments on the Adjustable Rate Mortgage they have. We're not including utilities, broadband internet, or cable television/Direct TV.

 

It's not going to Wal-Mart that has American Express in a panic. Or going to Sunoco. Or Marshalls. It's the fact that the husband, who is a realtor and probably not making a lot on commission right now in this severely depressed housing market in addition to having that ARM mortgage, and wife are spending money like water every month.

 

I'm extrapolating from the article, but here's the rub. We only know what they told the WSJ. We don't know how much the mortgage payment is, if they have other credit cards or not, car loans, etc., which come back to my point. If Amex is hitting people with broad strokes, I should have been smitten long, long ago, and I don't have a problem with that because I recognize the devil with the details. However, I have not been while I fit the "profile" that people keep mentioning, and I bet there are others here as well that are in the same boat with me, paddling along. While it's nice to think that it is dumb luck "saving" me, I don't think that is happening.

Message Edited by southernstylin on 01-05-2009 09:01 PM
Established Member
southernstylin
Posts: 31
Registered: ‎12-11-2008

Re: American Express cancelled my account

Don't worry oracles. If Amex smacks me around, I'll let you know. I doubt I was passed over, but, my friend, I just got my Blue bill today. Still at 7.99%, still with a credit limit at $27,000 for that card.

oracles wrote:
why are you guys arguing with southernstylin. The day, if it should happen, that he/she too will get hit by AMEX ( I am sure he/she will not tell us if it does happen out of pure embrassment) then they will understand. Just because it has not happen so far does not mean you should go around speaking confidently about "WHY, WHY, WHY not me huh, huh? lol The fact is if you think AMEX has gone through their list of customers and you were pased over, continue to live in la la land. They may have not reach your name yet or maybe it will be the 2nd, third, or fourth go around.  This is only the begin my friend and we are not invincible to what is about to come. I am happy for your confidence southernstylin and truly hope nothing happen to you by AMEX but unless you have a crystal ball that truly works and tells the future, I would not be so cocky as to it not happening to you and speaking in the manner you are doing.(P.S. Second wave of mortgage foreclosures are coming - watch out)

 

Valued Contributor
oracles
Posts: 1,699
Registered: ‎08-18-2007

Re: American Express cancelled my account


southernstylin wrote:
Don't worry oracles. If Amex smacks me around, I'll let you know. I doubt I was passed over, but, my friend, I just got my Blue bill today. Still at 7.99%, still with a credit limit at $27,000 for that card.

 


With many, many more months (maybe years) to come of Adverse Actions. What you have today can easily be gone tomorrow. Cockiness brings a person to reality qucikly in a heartbeat. (often with a loud thump) lol I do hope you well on your journey

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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: American Express cancelled my account

I understand where both sides are coming from, but I'd like to ask everyone to pull it back about 33%, minimum.

There are some cases where it's easy to see why someone got nailed, and others where all you can say is, huh?

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