Credit Cards Center Credit cards from our partners
Reply
Highlighted
Regular Contributor
Posts: 114
Registered: ‎03-17-2009
0

What to do with AMEX?

I have an AMEX Blue card with a $0 balance. In January and February my average use was $1,500 per month and I always PIF. I found these forums in March and ever since I have been totally AMEX paranoid. I haven't used the card since March. I do not want to receive AA. What in your opinion is the best course of action. No Use, minimal use, carry a balance let them earn a little interest, go back to my original spending. I really do not have a clue what is best to do. I would appreciate solid informed advice.
Established Member
Posts: 49
Registered: ‎05-08-2009
0

Re: What to do with AMEX?

[ Edited ]
Dont see any reason not to use the card like in the past. I would never let a credit card company earn any interest (even if this give some extra points on the score)  With every swipe I make, they earn a fee from the merchant, that"s enough!
Message Edited by Buckzball on 05-16-2009 04:04 PM
Valued Contributor
Posts: 2,791
Registered: ‎03-18-2007
0

Re: What to do with AMEX?


GomerPyle wrote:
I have an AMEX Blue card with a $0 balance. In January and February my average use was $1,500 per month and I always PIF. I found these forums in March and ever since I have been totally AMEX paranoid. I haven't used the card since March. I do not want to receive AA. What in your opinion is the best course of action. No Use, minimal use, carry a balance let them earn a little interest, go back to my original spending. I really do not have a clue what is best to do. I would appreciate solid informed advice.

 

Unfortunately, with AmEx, there IS no 'best practice' regarding use - users with all kinds of spending/payment patterns, including non-use, have received AA of one kind or another, including account closure, from what I've read.  Because the "reasons" for AA and closures that are given in their letters usually seem to have nothing to do with reality or the actual, underlying causes of their decisions, we here have no way to find a pattern to their behavior that might guide us.  Only thing I would avoid absolutely is carrying a balance, right now.  Use it some if you like, but be sure it's an amount you can PIF right away.

 

Myself, I've been using my charge card with them for something once every few months, and my own Blue has a couple of recurring auto-charges on it that get PIF'd as soon as they have both posted and I can pay them off in one shot.  So far, I've not received AA except for an across-the-board APR increase on my Blue that happened to quite a number (if not all) Blue card holders. 

 

However, there's not a whole lot of AA short of closure that they could do to me, since my Blue only has a $1K limit.

 

Best bet for now, in my opinion, is to treat that CL as if it is NOT part of your overall available credit, if at all possible, and to manage your use and payment of other cards (and this one if you decide to start using it again) as if the Blue CL did not exist.  That way, if it does get AA'd or closed (or one followed by the other), your score won't be impacted by a suddenly skyrocketed util ratio, and you won't be as shocked nor miss it as much because you've already gotten used to behaving as if it didn't exist.

 

Not much help, I know, but about the best I can offer whilst AmEx's behavior seems to be dictated by the ever-changing Voices in their collective head.

 

Hang in there.  With a bit of luck, when things settle down and AmEx has sorted out for itself what it wants to be as a company and lender, something worthwhile will be left of them - and of our charge and credit cards with them!

_____________________________________________________________________________
It's never too late to become the person you might have been. ~George Eliot

02/12/09 EX: 701 / 02/08/10 EQ: 719 / 02/08/10 TU: 723

Backdoor Numbers, Credit Scoring 101, Understanding Your FICO Score PDF
Moderator Emerita
Posts: 28,098
Registered: ‎04-01-2007
0

Re: What to do with AMEX?

I have my ridiculously high Verizon bill on my Blue, and I use it for a restaurant charge, etc once a month. No problems with it.

I used my Gold card a lot for the year that I had it, before switching to the Blue, and never a problem with it, either. There was some fraudulent use of the account number, and they were very helpful --we kept it going for a week or two in hopes that the thief would give up and go elsewhere, but after a few more attempts, we gave up and switched numbers.

I never carried balances or took advantage of the offers they dangled at me, and I always have very low util.

So at any rate, I've never had any problems with them, but I am indignant on behalf of those who've been whipsawed. And I do also have back-up cards when I go out. Smiley Wink
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Regular Contributor
Posts: 114
Registered: ‎03-17-2009
0

Re: What to do with AMEX?


Scamp wrote:

GomerPyle wrote:
I have an AMEX Blue card with a $0 balance. In January and February my average use was $1,500 per month and I always PIF. I found these forums in March and ever since I have been totally AMEX paranoid. I haven't used the card since March. I do not want to receive AA. What in your opinion is the best course of action. No Use, minimal use, carry a balance let them earn a little interest, go back to my original spending. I really do not have a clue what is best to do. I would appreciate solid informed advice.

 

Unfortunately, with AmEx, there IS no 'best practice' regarding use - users with all kinds of spending/payment patterns, including non-use, have received AA of one kind or another, including account closure, from what I've read.  Because the "reasons" for AA and closures that are given in their letters usually seem to have nothing to do with reality or the actual, underlying causes of their decisions, we here have no way to find a pattern to their behavior that might guide us.  Only thing I would avoid absolutely is carrying a balance, right now.  Use it some if you like, but be sure it's an amount you can PIF right away.

 

Myself, I've been using my charge card with them for something once every few months, and my own Blue has a couple of recurring auto-charges on it that get PIF'd as soon as they have both posted and I can pay them off in one shot.  So far, I've not received AA except for an across-the-board APR increase on my Blue that happened to quite a number (if not all) Blue card holders. 

 

However, there's not a whole lot of AA short of closure that they could do to me, since my Blue only has a $1K limit.

 

Best bet for now, in my opinion, is to treat that CL as if it is NOT part of your overall available credit, if at all possible, and to manage your use and payment of other cards (and this one if you decide to start using it again) as if the Blue CL did not exist.  That way, if it does get AA'd or closed (or one followed by the other), your score won't be impacted by a suddenly skyrocketed util ratio, and you won't be as shocked nor miss it as much because you've already gotten used to behaving as if it didn't exist.

 

Not much help, I know, but about the best I can offer whilst AmEx's behavior seems to be dictated by the ever-changing Voices in their collective head.

 

Hang in there.  With a bit of luck, when things settle down and AmEx has sorted out for itself what it wants to be as a company and lender, something worthwhile will be left of them - and of our charge and credit cards with them!


Thanks for the reply. I am very concerned because this card has a $16,200 CL. Losing this would be a very hard pill to swallow. I am not convinced that PIF is the right thing to do. It could be that they would like me to revolve some of that CL. What is truly crazy is that you apparently cannot know which is best. You can't call them, you cant do anything but just sit and hope the hammer does not fall on you. Catch-22 for sure.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.