feel insulted by amex, should i call them?

[parakleet]

I have to agree with @lawstudent and @youngandcreditworthy here. While I completely agree that having an emergency fund is absolutely essential, sometimes, it's just not practically feasible to do so. And that doesn't make those people who are unable to save terrible people or anything. 

To the OP - I don't think you should be personally insulted per se by Amex by I agree with those who have suggested that you call Amex and ask about an apr reduction. Since you just opened your account and honestly, your credit history isn't that long, it may take 6-12 months of good history with them before they agree to lower it. I also believe that since the SPG is one of their premium rewards cards, it really wouldn't be the card that you'd want to carry any balances on. If you want to have the option, get a card like the Slate with a low apr or BoA always sends me their 0% BT checks that you can just write to yourself. Of course, those "blank" checks usually come with the 3-4% fee but that's a lot better than carrying a balance on a high apr card. 

[LawStudentCivilis]

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youngandcreditwrthy wrote:
Interesting post.
The usual pessimists trollin' 'round.

Firstly, I've called Amex to reduce my apr twice - they say no go til 0% is over. Okay, that's cool- I'll pif before that anyway. Lol

I heart Amex. While Barclay's and Citi have been harrassing me, Amex has been cli'ing me and I've been redeeming cashback like crazy!

Additionally, the suggestion that people can just "borrow" money from their wealthy parents is rediculous! What is this? A re run of the 2012 Presidential Campaigns?
You think everyone's parents have $100s of thous for your Harvard Edu? #mr2012? LOL
Nah. I apologize if this offends anyone.
No disrespect, just puttin' another perspective out there. :-)

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Agreed, you and I said something similar in more or less words.  I tried to highlight the young age in my last response to point out there was no need for further discussion.  (I am young myself but a few years his/her senior).

Anyway, maybe this forum can impart wisdom on the inexperienced youth.

[LawStudentCivilis]

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@parakleet wrote:

@I have to agree with @Anonymous and @youngandcreditworthy here. While I completely agree that having an emergency fund is absolutely essential, sometimes, it's just not practically feasible to do so. And that doesn't make those people who are unable to save terrible people or anything. 

To the OP - I don't think you should be personally insulted per se by Amex by I agree with those who have suggested that you call Amex and ask about an apr reduction. Since you just opened your account and honestly, your credit history isn't that long, it may take 6-12 months of good history with them before they agree to lower it. I also believe that since the SPG is one of their premium rewards cards, it really wouldn't be the card that you'd want to carry any balances on. If you want to have the option, get a card like the Slate with a low apr or BoA always sends me their 0% BT checks that you can just write to yourself. Of course, those "blank" checks usually come with the 3-4% fee but that's a lot better than carrying a balance on a high apr card. 

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Great insight, thanks. I'm learning from other posters, and also about things I didn't initially believe I had a question about.

[Open123]

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@parakleet wrote:

While I completely agree that having an emergency fund is absolutely essential, sometimes, it's just not practically feasible to do so. And that doesn't make those people who are unable to save terrible people or anything. 

---

*Off topic, but can't resist*  

This goes against all the pontifical financial advice every parent gives, but when starting out in life, it's best without a safety net.  

Necessity makes even the timid brave.  Cortez upon reaching the "new world" burned his shops ships to ensure his men didn't have "plan b" to fall back upon.  I've always believed that in America, the only safety net necessary is the willingness to work hard, take chances, and survive on one's wit.

The best safety net is the belief that if you take away everything I've got (which can always happen), I'll just go out and make it back.  But, this time, with the advantage of prior experience, I'll make it all back in half the time.

[LawStudentCivilis]

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@Open123 wrote:

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@parakleet wrote:

While I completely agree that having an emergency fund is absolutely essential, sometimes, it's just not practically feasible to do so. And that doesn't make those people who are unable to save terrible people or anything. 

---

*Off topic, but can't resist*  

This goes against all the pontifical financial advice every parent gives, but when starting out in life, it's best without a safety net.  

Necessity makes even the timid brave.  Cortez upon reaching the "new world" burned his shops ships to ensure his men didn't have "plan b" to fall back upon.  I've always believed that in America, the only safety net necessary is the willingness to work hard, take chances, and survive on one's wit.

The best safety net is the belief that if you take away everything I've got (which can always happen), I'll just go out and make it back.  But, this time, with the advantage of prior experience, I'll make it all back in half the time.

---

Encore! Bravo Bravo! It's getting philosophical in here

[NewtoCredit80]

Many myfico members seems to forget later 2008 and 2009 period. People with scores above 750 were balance chased by Amex who was very generous in giving credit limits to people several years prior to that. These were people who never ever late on their payments but were carrying balance for long periods by paying minimum or slightly more than minimum. Some of them were from stable jobs. When CLD happened from Amex their scores were devasted due to util ratio and it took time to recover.

OP I would suggest never think that your credit cards companies would think twice cld you during the emergency period you requrie their help the most. Many people say some credit card companies are bad at increasing credit limits but I would still have their credit cards as a way for lender diversification. Never use all your spending on one card thinking that you are impressing the credit card company because for most them you are just a customer number. Amex saved itself from lot of credit card deliquency issues during 2009 and 2010 period by actively CLD many of its members. Always have a small relationship with the local CU which would help during though times.

Also one should take long term student loan instead of using credit cards during graduate studies. I sometimes shake my head when I hear future business leaders maintaining their personal liquidity through credit cards. Most companies have cash on balance sheet and use multiple lines of credit to protect themselves during period of difficult times. A person should have a similar balance sheet. Making investment in yourself through an education is a great long term decision but many people just don't maintain enough liquidity for tough times. Think of it as paying small amount of interest for the assurance of having a emergency fund.

Also rewards card are not best way for revolving credit. You should get yourself a card like Chase Slate or Citi Simplicity or Barclys Rings card which is for revolving balance. These generally prefer people who have rotating balance. Most rewards credit card are for short term (3-6 months) revolving credit.

[LawStudentCivilis]

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@NewtoCredit80 wrote:

Many myfico members seems to forget later 2008 and 2009 period. People with scores above 750 were balance chased by Amex who was very generous in giving credit limits to people several years prior to that. These were people who never ever late on their payments but were carrying balance for long periods by paying minimum or slightly more than minimum. Some of them were from stable jobs. When CLD happened from Amex their scores were devasted due to util ratio and it took time to recover.

OP I would suggest never think that your credit cards companies would think twice cld you during the emergency period you requrie their help the most. Many people say some credit card companies are bad at increasing credit limits but I would still have their credit cards as a way for lender diversification. Never use all your spending on one card thinking that you are impressing the credit card company because for most them you are just a customer number. Amex saved itself from lot of credit card deliquency issues during 2009 and 2010 period by actively CLD many of its members. Always have a small relationship with the local CU which would help during though times.

Also one should take long term student loan instead of using credit cards during graduate studies. I sometimes shake my head when I hear future business leaders maintaining their personal liquidity through credit cards. Most companies have cash on balance sheet and use multiple lines of credit to protect themselves during period of difficult times. A person should have a similar balance sheet. Making investment in yourself through an education is a great long term decision but many people just don't maintain enough liquidity for tough times. Think of it as paying small amount of interest for the assurance of having a emergency fund.

Also rewards card are not best way for revolving credit. You should get yourself a card like Chase Slate or Citi Simplicity or Barclys Rings card which is for revolving balance. These generally prefer people who have rotating balance. Most rewards credit card are for short term (3-6 months) revolving credit.

---

I didn't specify what was used to finance my graduate studies so I am not sure where the unsolicited advice is coming from.  I was trying to point out not everyone who doesn't have the means to fund any and every type of emergency thrown at them is being irresponsible.  If it has to be known I am entering my last year of studies.

[navigatethis12]

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@NewtoCredit80 wrote:

Many myfico members seems to forget later 2008 and 2009 period. People with scores above 750 were balance chased by Amex who was very generous in giving credit limits to people several years prior to that. These were people who never ever late on their payments but were carrying balance for long periods by paying minimum or slightly more than minimum. Some of them were from stable jobs. When CLD happened from Amex their scores were devasted due to util ratio and it took time to recover.

OP I would suggest never think that your credit cards companies would think twice cld you during the emergency period you requrie their help the most. Many people say some credit card companies are bad at increasing credit limits but I would still have their credit cards as a way for lender diversification. Never use all your spending on one card thinking that you are impressing the credit card company because for most them you are just a customer number. Amex saved itself from lot of credit card deliquency issues during 2009 and 2010 period by actively CLD many of its members. Always have a small relationship with the local CU which would help during though times.

Also rewards card are not best way for revolving credit. You should get yourself a card like Chase Slate or Citi Simplicity or Barclys Rings card which is for revolving balance. These generally prefer people who have rotating balance. Most rewards credit card are for short term (3-6 months) revolving credit.

---

I was only 18 during that time and didn't know much about credit card so I have no experience with that. However, I have read posts of people having credit limits decreased by American Express and especially Bank of America for having balances on accounts. You are right that the credit card company couldn't are less about your troubles if they think for one second that you may default and they will lose money on you. It's unrealistic to treat credit cards as an emergency fund because at any time they could be gone. You may have a 20,000 limit and for whatever reason the lender decides to decrease it to 2000. The next thing you know you need $15,000 for an emergency and you weren't saving because you treated the credit card as actual money. In my opinion, credit cards should be a last resort for financing anything, unless it's 0% and you want to let the cash earn some interest or use it for bonuses.

I also agree with the non rewards credit card for balance carrying. I personally do not have one and never will attempt to get one, but for people who see credit cards as cash, they should definitely get one.

[scenery_guy]

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@Open123 wrote:

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@parakleet wrote:

While I completely agree that having an emergency fund is absolutely essential, sometimes, it's just not practically feasible to do so. And that doesn't make those people who are unable to save terrible people or anything. 

---

*Off topic, but can't resist*  

This goes against all the pontifical financial advice every parent gives, but when starting out in life, it's best without a safety net.  

Necessity makes even the timid brave.  Cortez upon reaching the "new world" burned his shops ships to ensure his men didn't have "plan b" to fall back upon.  I've always believed that in America, the only safety net necessary is the willingness to work hard, take chances, and survive on one's wit.

The best safety net is the belief that if you take away everything I've got (which can always happen), I'll just go out and make it back.  But, this time, with the advantage of prior experience, I'll make it all back in half the time.

---

+1 as I have done this once. Actually Twice. I hear the third time's the charm. 

[LawStudentCivilis]

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@navigatethis12 wrote:

---

@NewtoCredit80 wrote:

Many myfico members seems to forget later 2008 and 2009 period. People with scores above 750 were balance chased by Amex who was very generous in giving credit limits to people several years prior to that. These were people who never ever late on their payments but were carrying balance for long periods by paying minimum or slightly more than minimum. Some of them were from stable jobs. When CLD happened from Amex their scores were devasted due to util ratio and it took time to recover.

OP I would suggest never think that your credit cards companies would think twice cld you during the emergency period you requrie their help the most. Many people say some credit card companies are bad at increasing credit limits but I would still have their credit cards as a way for lender diversification. Never use all your spending on one card thinking that you are impressing the credit card company because for most them you are just a customer number. Amex saved itself from lot of credit card deliquency issues during 2009 and 2010 period by actively CLD many of its members. Always have a small relationship with the local CU which would help during though times.

Also rewards card are not best way for revolving credit. You should get yourself a card like Chase Slate or Citi Simplicity or Barclys Rings card which is for revolving balance. These generally prefer people who have rotating balance. Most rewards credit card are for short term (3-6 months) revolving credit.

---

I was only 18 during that time and didn't know much about credit card so I have no experience with that. However, I have read posts of people having credit limits decreased by American Express and especially Bank of America for having balances on accounts. You are right that the credit card company couldn't are less about your troubles if they think for one second that you may default and they will lose money on you. It's unrealistic to treat credit cards as an emergency fund because at any time they could be gone. You may have a 20,000 limit and for whatever reason the lender decides to decrease it to 2000. The next thing you know you need $15,000 for an emergency and you weren't saving because you treated the credit card as actual money. In my opinion, credit cards should be a last resort for financing anything, unless it's 0% and you want to let the cash earn some interest or use it for bonuses.

I also agree with the non rewards credit card for balance carrying. I personally do not have one and never will attempt to get one, but for people who see credit cards as cash, they should definitely get one.

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I'm 25 and don't 15k in emergency funds, and it's my fault, got it thanks. Duly noted.