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Valued Member
Posts: 34
Registered: ‎05-21-2011
0

Got new AmEx, now to negotiate APR.

[ Edited ]

History for those that are curious:

 

Currently 23

 

Got Capital One "Platinum" with went from 300 to 500 limit at 18: Stayed there since. %14.9 APR. Speaking of which, I called them today about lowering the APR and raising the limit. Both of which were promptly declined. I threatened to close the account to which they responded "I can take care of that right now if you like." Well, they called my bluff and I'm just going to let the card go unused until I develop a little longer term with AmEx so my credit profile doesn't drastically change on their next soft, when I request my 3x CLI, etc.)

 

About 2.5 years ago, opened a new CC with a local Credit Union, 500 limit again. Just got hiked (albeit, to all holders of this card) to 15.9% APR, apparently due to some 'new contract with MasterCard.' Misery loves company so at least they're doing it to everyone, but with mediocre rewards... not a whole lot keeping me to this card (for their credit card products at least, their banking/loans and customer service are superb though). I asked about an increase, but they basically require a new application, resubmission of financials/proof of residency, etc. Too much work for what will likely be a miserly increase without any additional benefits.

 

Recently approved for AmEx Blue Cash Preferred with 2000 limit (17.99% APR). The terms that came with the card indicated I was getting 17.99% APR. A separate mailing said my Experian Fico was 785. Now, I'm not intending to pay any interest to AmEx, but I'd like interest rate reduced as a matter of principle. I've done some research and I've heard, "You can't get a reduction during the 0% period" to "I've had my APR reduced twice and I have x months left of the 0% period." Some caution not to do this as it may bring scrutiny on the account. No problem here, I was 100% honest with everything on the application and can prove it.

 

Any (preferably recent) experiences with getting an APR reduction with a profile similar to mine?

Senior Contributor
Posts: 6,279
Registered: ‎08-16-2012
0

Re: Got new AmEx, now to negotiate APR.

I have tried, as a precautionary measure, to get my post 0% aprs reduced across the board...
Amex, Discover, and even Barclay's.. Have ALL told me I have to wait until the 0% expires lol...
So good luck, but I don't think it's possible.

I have been using 0% credit for years and ALWAYS pay in FULL before the 0% expires. I'm not paying those huge high teen to 20+% aprs all these crazy card companies are charging these days!
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Valued Contributor
Posts: 1,997
Registered: ‎01-24-2012
0

Re: Got new AmEx, now to negotiate APR.

Wouldn't it be ideal to apply for a card that has a low interest rate and use that when you can't afford to pay for something? I don't get people saying "you never know". Even if they reduce it to 11.99, that isn't exactly low for carrying a balance. The Barclay Ring has an 8% rate and some small banks and credit unions have lower or about the same as that.

Senior Contributor
Posts: 6,279
Registered: ‎08-16-2012
0

Re: Got new AmEx, now to negotiate APR.

Banks are scared to death of people defaulting on their credit cards these days...
In 2006, a high rate was considered 11.99... Now that's considered low. :-/
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Valued Member
Posts: 34
Registered: ‎05-21-2011
0

Re: Got new AmEx, now to negotiate APR.

Yeah, after the CC Reform Act my formerly 10% APR went to something like 24%. It's obviously come down since, but not quickly.

I think the reform act had more to do with the rate hike than fear of default. Government essentially banned a lot of ways lenders made money and made it harder to raise rates in the future. So, they all start out very high and might let you work your way down now. Even my CU has a crappy APR.
Valued Contributor
Posts: 1,238
Registered: ‎07-18-2009
0

Re: Got new AmEx, now to negotiate APR.

I'm retired. It would be nuts to ever carry a balance. It's rarely a good idea unless you are in the ramping up (early) start of your career or if you have an emergency.


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Senior Contributor
Posts: 6,279
Registered: ‎08-16-2012
0

Re: Got new AmEx, now to negotiate APR.

I'm in the early start of my career :-) lol Debt isn't really an issue as long as you can manage it effectively with cash flow and assets that you as an individual have :-)
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Valued Contributor
Posts: 1,997
Registered: ‎01-24-2012
0

Re: Got new AmEx, now to negotiate APR.


youngandcreditwrthy wrote:
I'm in the early start of my career :-) lol Debt isn't really an issue as long as you can manage it effectively with cash flow and assets that you as an individual have :-)

That's the problem. People think they can handle it, they lose their job, and then bankruptcy. I know not everyone can afford to buy a house with cash, but you should buy one that costs too much to deal with if income changes. People put money on credit cards and pay the minimum, thinking they will pay it off soon, but they don't,

Senior Contributor
Posts: 6,279
Registered: ‎08-16-2012
0

Re: Got new AmEx, now to negotiate APR.

You mean *not* lol

Im not even going to attempt to interpret your demeanor.
As you can see though, my point was to manage debt effectively..and clearly, that involves knowing the level of debt you can handle.

Either way, fizzle is correct imo...lenders start high with cc rates these days and go down mostly after you prove your creditworthiness
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Got new AmEx, now to negotiate APR.


youngandcreditwrthy wrote:
You mean *not* lol

Im not even going to attempt to interpret your demeanor.
As you can see though, my point was to manage debt effectively..and clearly, that involves knowing the level of debt you can handle.

Either way, fizzle is correct imo...lenders start high with cc rates these days and go down mostly after you prove your creditworthiness

But navigatethis12's point is good.  "Knowing the level of debt you can handle" depends on what scenarios you consider.

 

So I'm not going to buy this $120K car, or this $3M house, because I really can't afford the payments.   So I buy a $40K car and $800K house, which are within my means.  Clever, fiscally responsible me!

 

But then a bad recession hits, I lose my job and can't find anything remotely comparable in salary, unemployment runs out, and suddenly those house and car payments are WAY too much....

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