Why do so many people have American Express cards?

[odd_dog]

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@FutureBillionaire wrote:

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@enharu wrote:

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@FutureBillionaire wrote:

People talk about the credit thatyou get for global entry and airline fees.  If you're savvy enough to use cards for miles and points to help defray the costs of travel, how is a consumer not savvy enough to find ways to avoid airline fees.I travel all the time and I don't pay a cent in baggage fees. Yes, its called flying business / first class, or just not checking in any luggage. International flights however do waive baggage fees for economy class as well. Some people go too far in trying to scrimp on those baggage fees which is why you sometimes see obnoxious people trying to squeeze in oversized luggage in overhead compartments. Would you have preferred if airlines do an across-the-board raise in fees for everyone? The companies create a charge and then make the consumer feel good by telling them they can pay or do something special to get out of it.  That's ridiculous. A lot of things are ridiculous. Just look at your cellphone bill for instance. Compared to what cell phone companies are charging, the airlines industry doesn't seem that bad.  You've essentially paid for the baggage fees up front through Amex.  $400, or whatever the amount is, still left your pocket. If you are getting the card solely because you want baggage fees waived, then you are obviously getting the wrong card for wrong reasons..... The value is oversstated for these products.  I'm sure the execs at Amex are laughing all of the way of the bank. They are, and so is any executive in a TBTF bank. And this is relevant because.....?

Regarding the warranty, how long does it last?  I broke the screen on my laptop that I purchased on Black Friday last year in August or so of this year.  Would Amex have covered that? if you broke it intentionally or by accident, then it is not covered. However if it died on its own, then it is covered. Accidentals are only covered for first 90 days of purchase. Other issuers have this coverage too. Amex just have an easier claims process.

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There are carriers that don't charge fees for checking a bag.  Some carriers let you check two bags. 

Your counterargument about the cell phone industry doesn't seem to answer the question: why does it make sense to pay up front for fees that you A. Don' have to pay if you pick the right carrier or have the right status or B.  Probably aren't necessary for travel any way.  Essentially, you're saying that every company and industry does it this way, so it's ok. I reject that notion.

Regarding the $400, you're still paying up front for things that you don't NEED.  Sure, you might want a drink or an inflight movie. You get these things free or cheaper through other avenues.  The comment about laughing all the way to the bank is relevant because banks can charge exorbitant and ridiculous fees and consusmers will argue about the right and necessity to pay them.  Again, their marketing department is outstanding.

I understand that Amex has an easier claims process.  How frequently do people use claims? I've never broken a cell phone, though I've cracked a screen. I've owned several computers and just recently cracked a screen.  I've bought one electronic device that failed on me in the past 5-6 years; maybe longer.  Insurance is one of the biggest ripoffs in this great nation of ours. You're paying for ACCESS to something that you may not even need. 

I haven't even discussed the lack of rewards that the card earns. 

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LOL this is turning into a "political like" conversation, apparently Future has NO NEED for Amex and NO MATTER what constructive benefit any AMEX card may have is either useless or not relevant to him/her...so to that I would say AMEX is not good for you move on. For a lot of us AMEX is great, FEEs and all, if you don't like/understand our praise of AMEX, then just move on and use what card company you like......good luck at becoming a "future billionaire" I hope you get there soon!!

[FutureBillionaire]

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@odd_dog wrote:

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@FutureBillionaire wrote:

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@enharu wrote:

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@FutureBillionaire wrote:

People talk about the credit thatyou get for global entry and airline fees.  If you're savvy enough to use cards for miles and points to help defray the costs of travel, how is a consumer not savvy enough to find ways to avoid airline fees.I travel all the time and I don't pay a cent in baggage fees. Yes, its called flying business / first class, or just not checking in any luggage. International flights however do waive baggage fees for economy class as well. Some people go too far in trying to scrimp on those baggage fees which is why you sometimes see obnoxious people trying to squeeze in oversized luggage in overhead compartments. Would you have preferred if airlines do an across-the-board raise in fees for everyone? The companies create a charge and then make the consumer feel good by telling them they can pay or do something special to get out of it.  That's ridiculous. A lot of things are ridiculous. Just look at your cellphone bill for instance. Compared to what cell phone companies are charging, the airlines industry doesn't seem that bad.  You've essentially paid for the baggage fees up front through Amex.  $400, or whatever the amount is, still left your pocket. If you are getting the card solely because you want baggage fees waived, then you are obviously getting the wrong card for wrong reasons..... The value is oversstated for these products.  I'm sure the execs at Amex are laughing all of the way of the bank. They are, and so is any executive in a TBTF bank. And this is relevant because.....?

Regarding the warranty, how long does it last?  I broke the screen on my laptop that I purchased on Black Friday last year in August or so of this year.  Would Amex have covered that? if you broke it intentionally or by accident, then it is not covered. However if it died on its own, then it is covered. Accidentals are only covered for first 90 days of purchase. Other issuers have this coverage too. Amex just have an easier claims process.

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There are carriers that don't charge fees for checking a bag.  Some carriers let you check two bags. 

Your counterargument about the cell phone industry doesn't seem to answer the question: why does it make sense to pay up front for fees that you A. Don' have to pay if you pick the right carrier or have the right status or B.  Probably aren't necessary for travel any way.  Essentially, you're saying that every company and industry does it this way, so it's ok. I reject that notion.

Regarding the $400, you're still paying up front for things that you don't NEED.  Sure, you might want a drink or an inflight movie. You get these things free or cheaper through other avenues.  The comment about laughing all the way to the bank is relevant because banks can charge exorbitant and ridiculous fees and consusmers will argue about the right and necessity to pay them.  Again, their marketing department is outstanding.

I understand that Amex has an easier claims process.  How frequently do people use claims? I've never broken a cell phone, though I've cracked a screen. I've owned several computers and just recently cracked a screen.  I've bought one electronic device that failed on me in the past 5-6 years; maybe longer.  Insurance is one of the biggest ripoffs in this great nation of ours. You're paying for ACCESS to something that you may not even need. 

I haven't even discussed the lack of rewards that the card earns. 

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LOL this is turning into a "political like" conversation, apparently Future has NO NEED for Amex and NO MATTER what constructive benefit any AMEX card may have is either useless or not relevant to him/her...so to that I would say AMEX is not good for you move on. For a lot of us AMEX is great, FEEs and all, if you don't like/understand our praise of AMEX, then just move on and use what card company you like......good luck at becoming a "future billionaire" I hope you get there soon!!

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That post would be amusing, if it were accurate. I carry 2 American Express cards.  Also, I value the backdating and the customer service.

[FutureBillionaire]

My answer to the OP's original question (this is a forum, is it not) is ultimately centered on this premise:  Invididuals see value in the service and perks that they offer.  They're willing to pay a premium for this value.  I, am not apt to pay this premium because I don't see as much value.  That doesn't mean there isn't value, however.

[FutureBillionaire]

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@myjourney wrote:

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@FutureBillionaire wrote:

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@myjourney wrote:

Amex has some great features 

Warranty

Backdating 

3X CLI

Fraud Protection which I think is unmatched 

The other day I made 2 online purchases out of my spending pattern.

They jumped into action sent me an email and 3 calls to verify I made the purchases.

While 3 calls maybe a lot I'll take that for my financial security

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Discover and Bank of America routinely call me about purchases outside of my spending pattern.  Discover will text me and let me reply back.  I don't even have to talk on the phone.  Plus, I don't pay any fee to Discover.

Other cards offer warranties.  But, how often do you use the warranty?  Are you getting value or are they selling you features that you most often won't use?

Backdating is the only perk that is substantial that you can't get with another company.  But, it is only helpful when applying for credit cards.  It's not going to be helpful for mortgage purchases.

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Before jumping to conclusions the Amex in question does not have an AF associated with it and I still get the same great service. As for the warranty I'm not paying anything for it another bonus so weather I use it or not is completely irreverent its there if needed. It's all in the consumers eyes as to which card you prefer to use for your warranty I have Discover as well but prefer my bigger purchases to be covered by Amex

Just and FYI

Discover is well known to side with the merchant and deny claims whereas Amex not only puts the consumer first but will also take the merchandise itself should the merchant refuse your return

As to the text alert comment Amex will also text you I just hadn't used the feature but it was added the day on the incident so IMHO Discover is lagging sadly behind Amex in all phases including CLI's 

Just out of curiosity what was meant by "its not going to be helpful during mortgage purchases"? 

Because history is history and the first card is still the oldest card so I'm not sure of your analogy 

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Regarding mortgage purchases, the lender can look at the actually payment history on a 2nd or 3rd Amex card and know that I don't have, as an example, 10 years of history with all of my Amex cards as opposed to 5.

[Luscher]

I don't even understand the question: "why do SO MANY people have amex?" They don't. Visa and Mastercard have waaayyy more marketshare than amex. I think visa is somewhere around 35%, MC close to that and AMEX is like less than 10%

[vanillabean]

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FutureBillionaire wrote

Insurance is one of the biggest ripoffs in this great nation of ours. You're paying for ACCESS to something that you may not even need.

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If there are two things that I have come to know about people, it is that they don't like upfront costs, say a monthly bus pass instead of paying cash every day, and that they don't like to be regulated, say being told a bottle of soda can be only so big. You can make of this what you like, but for the discussion here it helps to take a step back and be reminded that insurance is not the problem, not considering the unexpected is. In the land of credit cards, one unlucky day without perks can wipe out years of rewards. Or put differently, you cannot scratch a lottery ticket to see if it's winning or losing until you have purchased it!

[FutureBillionaire]

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@Anonymous-own-fico wrote:

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FutureBillionaire wrote

Insurance is one of the biggest ripoffs in this great nation of ours. You're paying for ACCESS to something that you may not even need.

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If there are two things that I have come to know about people, it is that they don't like upfront costs, say a monthly bus pass instead of paying cash every day, and that they don't like to be regulated, say being told a bottle of soda can be only so big. You can make of this what you like, but for the discussion here it helps to take a step back and be reminded that insurance is not the problem, not considering the unexpected is. In the land of credit cards, one unlucky day without perks can wipe out years of rewards. Or put differently, you cannot scratch a lottery ticket to see if it's winning or losing until you have purchased it!

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I see the wisdom in what you are saying.  But, that doesn't justify paying a hefty fee to Amex for 90 days worth of protection. Now, if it protected it from loss or damage for a year, I'd be all over it.  I invest in cases or items of that nature to help protect my purchases.  (I get rewards on those purchases, too.)

[enharu]

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@FutureBillionaire wrote:

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@enharu wrote:

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@FutureBillionaire wrote:

People talk about the credit thatyou get for global entry and airline fees.  If you're savvy enough to use cards for miles and points to help defray the costs of travel, how is a consumer not savvy enough to find ways to avoid airline fees.I travel all the time and I don't pay a cent in baggage fees. Yes, its called flying business / first class, or just not checking in any luggage. International flights however do waive baggage fees for economy class as well. Some people go too far in trying to scrimp on those baggage fees which is why you sometimes see obnoxious people trying to squeeze in oversized luggage in overhead compartments. Would you have preferred if airlines do an across-the-board raise in fees for everyone? The companies create a charge and then make the consumer feel good by telling them they can pay or do something special to get out of it.  That's ridiculous. A lot of things are ridiculous. Just look at your cellphone bill for instance. Compared to what cell phone companies are charging, the airlines industry doesn't seem that bad.  You've essentially paid for the baggage fees up front through Amex.  $400, or whatever the amount is, still left your pocket. If you are getting the card solely because you want baggage fees waived, then you are obviously getting the wrong card for wrong reasons..... The value is oversstated for these products.  I'm sure the execs at Amex are laughing all of the way of the bank. They are, and so is any executive in a TBTF bank. And this is relevant because.....?

Regarding the warranty, how long does it last?  I broke the screen on my laptop that I purchased on Black Friday last year in August or so of this year.  Would Amex have covered that? if you broke it intentionally or by accident, then it is not covered. However if it died on its own, then it is covered. Accidentals are only covered for first 90 days of purchase. Other issuers have this coverage too. Amex just have an easier claims process.

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There are carriers that don't charge fees for checking a bag.  Some carriers let you check two bags. 

Your counterargument about the cell phone industry doesn't seem to answer the question: why does it make sense to pay up front for fees that you A. Don' have to pay if you pick the right carrier or have the right status or B.  Probably aren't necessary for travel any way.  Essentially, you're saying that every company and industry does it this way, so it's ok. I reject that notion.

Regarding the $400, you're still paying up front for things that you don't NEED.  Sure, you might want a drink or an inflight movie. You get these things free or cheaper through other avenues.  The comment about laughing all the way to the bank is relevant because banks can charge exorbitant and ridiculous fees and consusmers will argue about the right and necessity to pay them.  Again, their marketing department is outstanding.

I understand that Amex has an easier claims process.  How frequently do people use claims? I've never broken a cell phone, though I've cracked a screen. I've owned several computers and just recently cracked a screen.  I've bought one electronic device that failed on me in the past 5-6 years; maybe longer.  Insurance is one of the biggest ripoffs in this great nation of ours. You're paying for ACCESS to something that you may not even need. 

I haven't even discussed the lack of rewards that the card earns. 

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Yes, there are carriers that do not charge fees for checking in a bag. For instance, if your air ticket is 900, and your baggage fee is 100, then your total airfare is 1000. If competitor A is offering 900 without baggage fees, then competitor A's price is 900. If you are on a budget and price is your top priority, obviously go with competitor A. How hard is it to just factor the luggage fees into the total cost of the air ticket? 

But whether you choose carrier A or B is entirely up to you and due to your personal preference. For instance if I can fly to Asia for just 10000 with a typical airline, whereas SQ is charging over 13000. Does this mean that I am mentally challenged if I decide to fly with SQ? To me, price isn't the only concern. My top priority is comfort and luxury, which is why, I don't mind splurging more especially when I can afford to, rather than to stuck in a not-so-comfortable situation for 19 dreadful hours.

The right status can only be obtained if you fly enough with that carrier. You don't get PPS with SQ or Diamond Medallion with Delta just because you been flying a lot on SW for example.

I can get a lot of things for a lot cheaper elsewhere. Anyone can. Rather than to pay for an inflight drink, one can always wait till he lands, then head over to the dollar store and buy a drink for a dollar. The reason why you are paying more is because of the convenience and setting. I can pay less to dine at a fast food restaurant in a ghetto area as compared to dining at a decent restaurant in Beverly Hills as well. Do I need to dine in Beverly hills? Nope. I can always drive 40 miles to some ghetto area and dine for a fraction of what I would be spending. Do I want to? Definitely not.

There are many things that people don't need, but they still choose to buy. As long as they can afford it, who's to stop them? Why buy a BMW when you can buy a Toyota for a fraction of the cost? One can also argue about why should you buy a Toyota when you can ride the bus for a fraction of the cost? Heck, why should you even the ride the bus when you can ride a bike for free?

As to claims........here's my question. How frequently do people use their insurance? Why buy any form of insurance then? Why does the government mandate me to pay for workers comp? My employees haven't had any workplace injuries though it sorta almost happened once. Still, no big deal right? The reason why people buy insurance is because they do not have enough liquidity to pay for something if an accident occurs, or that they don't want to fork out lots of money over an accident. Insurance is always going seem as unncessary until the time comes where you actually are going to use it. One claim alone can be equivalent to years or decades of premium payments. As for card claims, if you do end up filing a claim, the claim alone can offset years of AF.

Once again, People get the Plat cards not for rewards, but for perks, such as lounge access. For rewards, Amex has a few great cards as well, such as the BCP, but the usefulness of each card's rewards program can vary on the individual.

If the card doesn't seem like it's going to be of any use to it, don't get it. Simple as that. Not everyone needs or wants a ferrari (No, I am not saying Amex is equivalent to a ferrari; simply using it as an example). Some people are happy with their Prius, which is great too especially if it services their needs well.

[cashnocredit]

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@Luscher wrote:
I don't even understand the question: "why do SO MANY people have amex?" They don't. Visa and Mastercard have waaayyy more marketshare than amex. I think visa is somewhere around 35%, MC close to that and AMEX is like less than 10%

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Yeah, there really aren't that many Amex users compared to the others. The main difference is that Amex holders charge more, a lot more, per month so merchants do see a lot of Amex usage. At least in dollar volume.  And that is what Amex is all about. They claim their customers are more spend centric and they include lots of people with expense accounts that are employer reimbursed. That's been their model for 50+ years and they do it better than anyone else. One side effect is very high effective spend limits. Much more than regular CCs. That's the primary reason  I have and value Amex. The bennies, airport lounges, MR points, and such are, to me nice but secondary.

For peeps that don't need the spend capability Amex is perhaps less attractive. That's why there are so many other cards and rewards packages and they are more valuable for many if not most people.

A card is a card.  Get whatever fits your lifestyle and needs. No card is ideal for everyone.

[enharu]

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@FutureBillionaire wrote:

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@Anonymous-own-fico wrote:

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FutureBillionaire wrote

Insurance is one of the biggest ripoffs in this great nation of ours. You're paying for ACCESS to something that you may not even need.

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If there are two things that I have come to know about people, it is that they don't like upfront costs, say a monthly bus pass instead of paying cash every day, and that they don't like to be regulated, say being told a bottle of soda can be only so big. You can make of this what you like, but for the discussion here it helps to take a step back and be reminded that insurance is not the problem, not considering the unexpected is. In the land of credit cards, one unlucky day without perks can wipe out years of rewards. Or put differently, you cannot scratch a lottery ticket to see if it's winning or losing until you have purchased it!

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I see the wisdom in what you are saying.  But, that doesn't justify paying a hefty fee to Amex for 90 days worth of protection. Now, if it protected it from loss or damage for a year, I'd be all over it.  I invest in cases or items of that nature to help protect my purchases.  (I get rewards on those purchases, too.)

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May I ask, what hefty fee are you paying for 90 days worth of protection?
The BCE has 0 AF and it offers the same protection. So once again, what fee?

The 90 days protection is just offered as a convenience / goodwill. The caps are also relatively low, especially for valuables, and there's a lot of exceptions that are not covered as well. If you need real insurance, get an insurance policy.

If you are getting the card solely for the protection, then you're obviously getting the wrong product for the wrong reasons. What you need is an insurance policy, not a credit card.

And just to add, other issuers offer similar forms of insurance as well. What varies however is the service. Some issuers, such as Discovere, are well known to make it a living hell experience for anyone who's trying to file any kind of disputes. Some, such as Chase, will still throw you some hurdles to jump through along the way, which can be irritating to some customers. This is pretty much the same for insurance companies. I can go with a well-known national insurance company that has a reputation for its claim process, or I can scrimp and go with a ghetto company that's going to make my life a living hell whenever I try to file any claim. It's up to you on which you decide is right for you. There's no right or wrong answer.