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Valued Contributor
Duncanrr
Posts: 2,841
Registered: ‎06-08-2012

Re: Amex Paying in Full..Myth?

Just to clarify, Amex makes a ton off merchant fees. Every swipe they get paid. Amex has some of the highest fees for merchants. That's why many font accept AMEX. To say Amex only makes money off interest when you carry a balance is just flat out wrong.


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
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Valued Contributor
jsucool76
Posts: 2,770
Registered: ‎12-11-2011

Re: Amex Paying in Full..Myth?

+1 to duncarr

Also, amex uses an internal risk scoring method, so I could definitely see how carrying large balances could make you riskier by their scoring, doesn't mean you're guaranteed AA for carrying a balance though.
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Frequent Contributor
pdog661
Posts: 377
Registered: ‎03-31-2012

Re: Amex Paying in Full..Myth?


lionsfan20 wrote:

I keep seeing new comers ask the question and then being told they must treat it like a charge card and pif. Ive had the card for about 5-6 months and have always carried a 1-2k balance and pay about 200 dollars a month and have had no problem. I want someone who has had a negative issue with amex because of carrying a balance that can come and post their story. I honestly think people are just way to paranoid about pif and that amex truly could give two **bleep**s..hence why someone chose their revolver over their charge card to begin with. SO someone with a story that has nothing to do with ANYTHING ELSE ON THEIR CR please post their story.

 

And I know this is kind of like a rant but its frustrating to see so many people post about pif when I honestly think it makes no difference in your relationship with amex.


I am not sure they care if they have always seen you carry a balance. I think AMEX gets spooked by drastic changes in your behavior.

 

IE PIF every month for 6 years, and then wham - 6 K carried balance. 

 

They seem to like consistance IMO.  I PIF each month for years, and then maxed out my card , and started making minium payments.  The CLD me with every payment until I got it back under control.  My credit score also dived pretty severe during this time frame, and I am sure that was part of the problem as well.

Regular Contributor
lionsfan20
Posts: 195
Registered: ‎11-26-2012

Re: Amex Paying in Full..Myth?


pdog661 wrote:

lionsfan20 wrote:

I keep seeing new comers ask the question and then being told they must treat it like a charge card and pif. Ive had the card for about 5-6 months and have always carried a 1-2k balance and pay about 200 dollars a month and have had no problem. I want someone who has had a negative issue with amex because of carrying a balance that can come and post their story. I honestly think people are just way to paranoid about pif and that amex truly could give two **bleep**s..hence why someone chose their revolver over their charge card to begin with. SO someone with a story that has nothing to do with ANYTHING ELSE ON THEIR CR please post their story.

 

And I know this is kind of like a rant but its frustrating to see so many people post about pif when I honestly think it makes no difference in your relationship with amex.


I am not sure they care if they have always seen you carry a balance. I think AMEX gets spooked by drastic changes in your behavior.

 

IE PIF every month for 6 years, and then wham - 6 K carried balance. 

 

They seem to like consistance IMO.  I PIF each month for years, and then maxed out my card , and started making minium payments.  The CLD me with every payment until I got it back under control.  My credit score also dived pretty severe during this time frame, and I am sure that was part of the problem as well.


finally someone..although it is still a small percentage..everytime I see someone comment about it all I see is "IVE HEARD" , which means absolutely nothing. To respond to the kid about him and his wife , as I stated before , that wasnt the point of thread and your case is common sense. If you owe somebody alot of money and pay slowly , why would they issue you more money..thats just common sense. The whole point as Ive said is to see if they credit decrease , cancel or do a fr for carrying a balance and so far only one person has said it has happened to them.

Regular Contributor
dude11
Posts: 237
Registered: ‎06-07-2011

Re: Amex Paying in Full..Myth?

IMO you should do what you think works best for you. Don't be paranoid or afraid of a lender for any reason. If you are then they are not worth your business.

Established Contributor
Cdnewmanpac
Posts: 767
Registered: ‎01-16-2012

Re: Amex Paying in Full..Myth?

"kid"? I'm 42. As to the rest, I give up. If you set up conditions where you only want to hear what you want to hear, then fine. Hear what you want to hear. But most rational people would consider a decline to be an adverse action. And now you have another example. And its a public forum. And there is plenty of evidence that amex treats balances differently than other issuers. etc. etc. etc. If your goal is to "win the argument" within the narrow confines you've constructed, then consider it won. But to make the argument that credit card companies like to earn money from interest, then simultaneously argue that declining someone who carried a balance and paid interest over time is "common sense" is to be deliberately obtuse.

In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
Frequent Contributor
pdog661
Posts: 377
Registered: ‎03-31-2012

Re: Amex Paying in Full..Myth?


lionsfan20 wrote:

pdog661 wrote:

lionsfan20 wrote:

I keep seeing new comers ask the question and then being told they must treat it like a charge card and pif. Ive had the card for about 5-6 months and have always carried a 1-2k balance and pay about 200 dollars a month and have had no problem. I want someone who has had a negative issue with amex because of carrying a balance that can come and post their story. I honestly think people are just way to paranoid about pif and that amex truly could give two **bleep**s..hence why someone chose their revolver over their charge card to begin with. SO someone with a story that has nothing to do with ANYTHING ELSE ON THEIR CR please post their story.

 

And I know this is kind of like a rant but its frustrating to see so many people post about pif when I honestly think it makes no difference in your relationship with amex.


I am not sure they care if they have always seen you carry a balance. I think AMEX gets spooked by drastic changes in your behavior.

 

IE PIF every month for 6 years, and then wham - 6 K carried balance. 

 

They seem to like consistance IMO.  I PIF each month for years, and then maxed out my card , and started making minium payments.  The CLD me with every payment until I got it back under control.  My credit score also dived pretty severe during this time frame, and I am sure that was part of the problem as well.


finally someone..although it is still a small percentage..everytime I see someone comment about it all I see is "IVE HEARD" , which means absolutely nothing. To respond to the kid about him and his wife , as I stated before , that wasnt the point of thread and your case is common sense. If you owe somebody alot of money and pay slowly , why would they issue you more money..thats just common sense. The whole point as Ive said is to see if they credit decrease , cancel or do a fr for carrying a balance and so far only one person has said it has happened to them.


I agree with you.  I believe AMEX is getting a bad wrap on this forum.  I completely deserved the CLD.  My fault complete, and I did get over my head in debit.  They were right to CLD me.  Personally I believe my fall in credit score had more to do with it then my carrying a balance.  I went from a Mid 7's to a mid to low 6 is a period of 3 months.  AMEX had every right to take action against me, and once I resolved my issue they Auto increase me higher then my previous limit. 

 

AMEX is a tough lendor, but they are fair.  I think people get into trouble with them when they ask AMEX for a high limit and state a low income...... get denied, and then decide to "household" income a much high income level to try and get it pushed through.  AMEX soft pulls me almost every month.  They expect me to keep my credit score high to keep my high limits on my revolvers, and my charge card. 

Senior Contributor
Open123
Posts: 4,019
Registered: ‎02-23-2011

Re: Amex Paying in Full..Myth?

[ Edited ]

Like most "universal adages," the truth is somewhere in between.

 

There's little question what Amex's perceives as an "ideal" cardmember.  One who pays fees, charges tons, and pays in full so he can charge even more.  This is the spend-centric model that Amex was built on, and sill operates on today.  Of course, this isn't to suggest they eschew cardmembers carrying a balance.  After all, they have more credit cards than charge cards.

 

However, I believe their internal risk modelling does favor pay in full more; not just pay in full, but the transaction scores of what you're paying for also counts.  Spending at Walmart or paying rent would carry a lower score than the equivalent spending at fine dining and air travel.  Amex covets big spenders who spend on luxury goods, which gives the company leverage to demand a higher fee from the merchants.  Carrying a balance while profitable from a different perspective, isn't conducive to Amex's business model.

 

Of course, just carrying a balance isn't going to mean AA.  Nor, does paying in full ensure exemption from AA.  It just means, that all things being equal, the person who pays in full (in a single lump sum payment, not 5 smaller ones from 5 different accounts before the balance reports), has legitmate luxury spending (not amazon payments, willampspaid rent, and other pseudo fake spending), and willingly pays a fee will have the higest "internal risk" score for them.

 

Citi, Chase, BofA and other carriers I'm sure measure in their own way.  

 

PS - There are no absolutes in the credit world; but, "Amex prefers being paid in full; Citi prefers a balance; and Barclays AA after new accounts" comes close.

Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012

Re: Amex Paying in Full..Myth?


Cdnewmanpac wrote:

"kid"? I'm 42. As to the rest, I give up. If you set up conditions where you only want to hear what you want to hear, then fine. Hear what you want to hear. But most rational people would consider a decline to be an adverse action. And now you have another example. And its a public forum. And there is plenty of evidence that amex treats balances differently than other issuers. etc. etc. etc. If your goal is to "win the argument" within the narrow confines you've constructed, then consider it won. But to make the argument that credit card companies like to earn money from interest, then simultaneously argue that declining someone who carried a balance and paid interest over time is "common sense" is to be deliberately obtuse.


I think your example was a perfect representation.

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