topic Re: From a reddit thread: changes coming to Amex? in Credit Cards

From a reddit thread: changes coming to Amex?

darwin_wins — Tue, 15 Mar 2016 12:47:23 GMT

So I just read that someone spoke to CSR at Amex and they said in about 90 days there is going to be a change and at any given time a person can have only 2 credit cards (reducing it from 4).

If that's true a lot of us are going to miss out on a lot of offers. Heck if I apply in Dec I would be able to only apply for one more card because of existing Optima card. Can anyone else confirm this?

Re: From a reddit thread: changes coming to Amex?

Anonymous — Tue, 15 Mar 2016 12:50:52 GMT

I hope its not true but then again I wonder why that would happen?

I have 2 accounts with them already.

Re: From a reddit thread: changes coming to Amex?

Anonymous — Tue, 15 Mar 2016 12:55:11 GMT

i wouldn't trust anything those CSRs say. they could tell me it's raining and i'd wanna see it before i believed it

Re: From a reddit thread: changes coming to Amex?

odd_dog — Tue, 15 Mar 2016 13:22:10 GMT

Interesting, I have 4 with them right now....I just talked to CS yesterday about a new Delta gold card....wanted to upgrade to Platinum Delta, the CSR could not have been more helpful, even getting me POINTS with the upgrade...mentioned NOTHING about limits...but then again I did not ask, He did notice however that I had Six accounts with them and THANKED me for being with them for over 30 years.....interesting development if true.....

Re: From a reddit thread: changes coming to Amex?

Anonymous — Tue, 15 Mar 2016 13:27:07 GMT

If true, it makes the 5/24 rule look like a walk in the park. Wonder if that's 2 credit cards at any given time OF THEIRS or 2 credit cards from any lender.

Re: From a reddit thread: changes coming to Amex?

Anonymous — Tue, 15 Mar 2016 13:26:27 GMT

I would consider that highly doubtful. One could justify holding say a Delta card because that is their exclusive airline, a Hilton card for chosen hotel of choice, SPG, Mercedes etc.

If they are hedging risk that is one thing, they could tighten UW if needed. Amex is struggling (by their standards) and 2015 was its worst year since the financial crisis.

Re: From a reddit thread: changes coming to Amex?

Anonymous — Tue, 15 Mar 2016 13:28:27 GMT

@Anonymous wrote:
I would consider that highly doubtful. One could justify holding say a Delta card because that is their exclusive airline, a Hilton card for chosen hotel of choice, SPG, Mercedes etc.

If they are hedging risk that is one thing, they could tighten UW if needed. Amex is struggling (by their standards) and 2015 was its worst year since the financial crisis.

Like any other credit card company (if this is indeed true) they want loyal users who they can make money off of and who will use their products, they aren't looking for churners with 20+ cards just chasing bonuses.

Re: From a reddit thread: changes coming to Amex?

Anonymous — Tue, 15 Mar 2016 13:33:02 GMT

@Anonymous wrote:
@Anonymous wrote:
I would consider that highly doubtful. One could justify holding say a Delta card because that is their exclusive airline, a Hilton card for chosen hotel of choice, SPG, Mercedes etc.

If they are hedging risk that is one thing, they could tighten UW if needed. Amex is struggling (by their standards) and 2015 was its worst year since the financial crisis.
Like any other credit card company (if this is indeed true) they want loyal users who they can make money off of and who will use their products, they aren't looking for churners with 20+ cards just chasing bonuses.

The algo can be tweeked to better identify churners.

Re: From a reddit thread: changes coming to Amex?

takeshi74 — Tue, 15 Mar 2016 13:41:03 GMT

@darwin_wins wrote:
So I just read that someone spoke to CSR

Be aware of the pitfalls of relying on what one CSR says with any company. Not saying that this CSR is wrong or right but CSR's can be mistaken, misinformed, etc.

Re: From a reddit thread: changes coming to Amex?

kdm31091 — Tue, 15 Mar 2016 13:50:03 GMT

@Anonymous wrote:
@Anonymous wrote:
I would consider that highly doubtful. One could justify holding say a Delta card because that is their exclusive airline, a Hilton card for chosen hotel of choice, SPG, Mercedes etc.

If they are hedging risk that is one thing, they could tighten UW if needed. Amex is struggling (by their standards) and 2015 was its worst year since the financial crisis.
Like any other credit card company (if this is indeed true) they want loyal users who they can make money off of and who will use their products, they aren't looking for churners with 20+ cards just chasing bonuses.

Pretty much this.

Whether this particular rumor is true or not I don't know, but it's obvious that the banks are tightening the clamps on reward chasing. It's pretty clear they prefer someone to pick a product and use it for basically everything. Of course, that doesn't maximize one's rewards, but does Amex/Chase/Citi care about that? No. I don't think it's even just about "churners"...they also don't want people collecting 20 cards to use just for specific bonus categories, probably because those 3 or 5% bonus categories are loss leaders and they expect you to make a lot of 1% purchases. When that doesn't happen, well, they don't like it!

Re: From a reddit thread: changes coming to Amex?

darwin_wins — Tue, 15 Mar 2016 14:46:29 GMT

I would be more than glad if this turns out to be a rumor that didn't really mean anything. I have several cards on my wishlist that I want based on their rewards. With Chase using 5/24 rule it already is going to be a long time before I can get their cards the way I want them but hopefully Amex doesn't do something.

Off topic: anyone know why I get emails about applying to Amex Delta when I have Optima which means I shouldnt be able to apply for more cards till I am 12 months into the card usage. I have been turned down for that card in the past when I hadn't paid off Amex and I don't want to apply for one because I don't fly Delta but I wonder if it's just marketing and nothing else? When I get the offer it has my name and the Delta User Id which I have taken out from this image

Re: From a reddit thread: changes coming to Amex?

Open123 — Tue, 15 Mar 2016 15:11:16 GMT

If true (CC/Bank CSRs are amongst the most uninformed people in the history of Civilization), it likely would not affect existing cardmembers, since Amex tends to grandfather in their new rules. For instance, once upon a time, a person may have more than 4 Revolvers, but not anyone today. Some older Amex cardmembers I believe are allowed to have more than 4.

Unless one is "new" to the CC game (these are really the late innings guys), every CC enthusiast has already earned multiple Amex/Chase bonuses, where these new draconian rules no longer have much impact. Given Amex's one per lifetime bonus for both bus/personal and loss of backdating, there's little motivation to app for their cards, if only because I, and most CC enthusiast (euphemism for churner, I suppose) have most of them and have earned multiple bonuses.

So, even if true, it's no longer relevant. Big Banks are pretty dumb (generally) and slow to react. Like the old WW2 Generals, they always fight the present war with the rules of the last one. With margin pressure, these Banks/CCs are much less tolerant of "free stuff," and will likely systematic purge or change them dramatically, like Serve. Really, these Banks thought they could utilize predatory products on one group and not pay the price of the Arbitragers? We're going to just stand on the sidelines, obey their rules, and allow them to freely reap this surplus? LOL...yeah, dream on!

In terms of stopping churners, too little too late to really curb anything, since all the free points have been harvested. We're talking Millions for each CC enthusiast/churner/gamer/hacker. More PR and people justifying their jobs. All the pros have eaten their fill, and will move on to something else. Per the old Wall Street adage, always be amongst the first in, and amongst first out. I think this is particular relevant in the CC rewards/MS game.

*Edited* PS - Now, let's look to the "next" opportunity. This one is over.