topic Re: AMEX APR Increase in Credit Cards

AMEX APR Increase

Cory88 — Sat, 26 Mar 2022 14:12:30 GMT

I got a letter the other day saying that my APR on my Marriott card was going from 11.24% to 18.24%. They stated that APR was lower then other accounts with other card members plus my credit score they said was a factor (781 EX FICO). They also stated that my APR was lower then other people's account with similar APR's. My EX score has always been in the 770 to 790 range for basically the whole time I have been with AMEX (2011). I never in the 14 years of having credit say that my APR was going up due to my credit score or other card members was that big of a factor. I don't really card as I PIF each statement but still.

Re: AMEX APR Increase

DONZI — Sat, 26 Mar 2022 16:01:31 GMT

How strange.. Seems more like insurance underwriting.

Re: AMEX APR Increase

NRB525 — Sat, 26 Mar 2022 16:07:56 GMT

Credit score is a factor. Good one AMEX!

#sarcastic

Re: AMEX APR Increase

tjs19593 — Sat, 26 Mar 2022 16:28:54 GMT

Could it possibly be that most cards will be raising APR as the cost of money is rising due to FED rate hikes? I assume this will trickle down to all consumer accounts as 2022 rolls on.

Re: AMEX APR Increase

LADave — Sat, 26 Mar 2022 17:02:26 GMT

@tjs19593 wrote:
Could it possibly be that most cards will be raising APR as the cost of money is rising due to FED rate hikes? I assume this will trickle down to all consumer accounts as 2022 rolls on.

The Fed increased increased their rates by 0.25%. The interest rate @Cory88 was taking about for the Amex card is a jump of 6%, from 11.24% to 18.24%.

It's true that more increases are expected from the Fed, but nothing in the neighborhood of 6%.

It seems that Amex is doing this hike because they believe they can get away with it without looking too uncompetitive – and they're probably right.

Re: AMEX APR Increase

Remedios — Sat, 26 Mar 2022 17:47:21 GMT

Previous apr was well below current published range, 15.99% - 24.99

New apr is probably just market adjustment, and listing score etc is just Amex slapping things in the notice.

"accounts with other card members" is reference to current range, and the real reason behind apr hike.

With that said, they do this periodically (other lenders, too) and it's legally mandated to notify cardholder in advance so they can reject terms.

If OP was carrying a balance, rejecting terms would preserve curreny apr, but card would end up closed.

While I think I understand the logic behind it, it's also so 2008ish.

By increasing apr on existing accounts, they are also increasing default risk for those who are carrying balance, but I guess they did the math, calculated risk, and decided it was within acceptable limits.

As far as them increasong my apr, good luck with that Amex.

When Reserve was approved, I'm fairly certain it had highest APR for 2019, so right now they have about 2% wiggle room to increase mine.

Given my recent experiences with Delta, I'm almost hopefully they go for it. It would make decision process so much easier

Re: AMEX APR Increase

fittiger — Sun, 27 Mar 2022 02:48:43 GMT

@Remedios wrote:
Previous apr was well below current published range, 15.99% - 24.99
New apr is probably just market adjustment, and listing score etc is just Amex slapping things in the notice.
"accounts with other card members" is reference to current range, and the real reason behind apr hike.
With that said, they do this periodically (other lenders, too) and it's legally mandated to notify cardholder in advance so they can reject terms.
If OP was carrying a balance, rejecting terms would preserve curreny apr, but card would end up closed.

While I think I understand the logic behind it, it's also so 2008ish.
By increasing apr on existing accounts, they are also increasing default risk for those who are carrying balance, but I guess they did the math, calculated risk, and decided it was within acceptable limits.

As far as them increasong my apr, good luck with that Amex.
When Reserve was approved, I'm fairly certain it had highest APR for 2019, so right now they have about 2% wiggle room to increase mine.
Given my recent experiences with Delta, I'm almost hopefully they go for it. It would make decision process so much easier

I had the same issue with my Delta platinum, high apr, and almost closed the account immediately. I'm actually planning on closing it in the next few months.

Re: AMEX APR Increase

fittiger — Sun, 27 Mar 2022 02:48:04 GMT

@Cory88 wrote:
I got a letter the other day saying that my APR on my Marriott card was going from 11.24% to 18.24%. They stated that APR was lower then other accounts with other card members plus my credit score they said was a factor (781 EX FICO). They also stated that my APR was lower then other people's account with similar APR's. My EX score has always been in the 770 to 790 range for basically the whole time I have been with AMEX (2011). I never in the 14 years of having credit say that my APR was going up due to my credit score or other card members was that big of a factor. I don't really card as I PIF each statement but still.

Keep in mind Marriott is planning a points devaluation soon so it may be worth closing or sticking in the drawer. Chase is always an option as well.

You could always call ask request this be reevaluated or request a retention bonus.

Re: AMEX APR Increase

Trini88 — Sun, 27 Mar 2022 07:05:32 GMT

Yep my Apr went from 23.99 to 24.24 this month......don't get it....my credit score is higher and I don't owe them a penny 😑

Re: AMEX APR Increase

Adkins — Sun, 27 Mar 2022 07:07:10 GMT

@Trini88 wrote:
Yep my Apr went from 23.99 to 24.24 this month......don't get it....my credit score is higher and I don't owe them a penny 😑

Your APR increase is probably from the Fed raising interest rates 0.25%

Re: AMEX APR Increase

Trini88 — Sun, 27 Mar 2022 07:11:45 GMT

@Adkins wrote:
@Trini88 wrote:
Yep my Apr went from 23.99 to 24.24 this month......don't get it....my credit score is higher and I don't owe them a penny 😑
Your APR increase is probably from the Fed raising interest rates 0.25%

Oh ok good to know.

Re: AMEX APR Increase

NoHardLimits — Sun, 27 Mar 2022 08:41:13 GMT

Citibank raised the APR on my Dividend card in November from 10.24% to 13.99%. The preceding statement explained the increase this way:

"Your APR for Purchases and Citi Flex Plans are below the lowest APR(s) we offer on the same or similar accounts. As a result, we are increasing your APR(s)."

In other words: Your rate is lower than everyone else's rates, so we are going to raise yours.

Fortunately, I always PIF so this has no financial impact on me. Still, it's a bit irritating.

Re: AMEX APR Increase

Gollum — Sun, 27 Mar 2022 10:24:23 GMT

The Fed is (slowly, so far) increasing interest rates in an attempt to reduce 40 year highs in inflation.

I'm guessing American Express is proactively increasing interest rates for borrowers who were already seen as higher risk.

Re: AMEX APR Increase

Anonymous — Sun, 03 Apr 2022 15:54:46 GMT

As was mentioned up thread other lenders move rates like AX. Chase does this and I had US Bank along with Citi Bank adjust for the market (not Fed Rates). Note, the Fed rates certainly do trigger adjustments on cards with variable rates and most every one knows this?!

Re: AMEX APR Increase

Anonymous — Sun, 27 Mar 2022 15:05:26 GMT

@Cory88 wrote:
. They also stated that my APR was lower then other people's account with similar APR's.

If they really said that, you should sue for crimes against logic!

Re: AMEX APR Increase

Cory88 — Mon, 28 Mar 2022 16:09:40 GMT

@NoHardLimits wrote:
Citibank raised the APR on my Dividend card in November from 10.24% to 13.99%. The preceding statement explained the increase this way:

"Your APR for Purchases and Citi Flex Plans are below the lowest APR(s) we offer on the same or similar accounts. As a result, we are increasing your APR(s)."

In other words: Your rate is lower than everyone else's rates, so we are going to raise yours.

Fortunately, I always PIF so this has no financial impact on me. Still, it's a bit irritating.

I will have to see what Citi does with my account as my dividend card is like 7.45% opened in 2016, I don't know how it got that low.

Re: AMEX APR Increase

NoHardLimits — Tue, 29 Mar 2022 02:09:03 GMT

@Cory88 wrote:
@NoHardLimits wrote:
Citibank raised the APR on my Dividend card in November from 10.24% to 13.99%. The preceding statement explained the increase this way:

"Your APR for Purchases and Citi Flex Plans are below the lowest APR(s) we offer on the same or similar accounts. As a result, we are increasing your APR(s)."

In other words: Your rate is lower than everyone else's rates, so we are going to raise yours.

Fortunately, I always PIF so this has no financial impact on me. Still, it's a bit irritating.
I will have to see what Citi does with my account as my dividend card is like 7.45% opened in 2016, I don't know how it got that low.

My Dividend started its life in 2009 as a Forward. IIRC, that product featured an APR that would automatically reduce after every 3 months of on-time payments.

Re: AMEX APR Increase

Gollum — Tue, 29 Mar 2022 08:45:12 GMT

I thought I remembered that I had a pretty low interest rate on my Blue Cash Everyday card, but when I checked, it's 13.24% (variable). That seems pretty high, but it's 1% lower than currently advertised/available:

https://www.americanexpress.com/us/credit-cards/card-application/apply/prospect/terms/blue-cash-everyday-credit-card/36660-10-0/?pznOfferCode=3BAW-PJ9LO-EWVS-R8#FeeTable

Re: AMEX APR Increase

AverageJoesCredit — Tue, 29 Mar 2022 11:46:21 GMT

@Gollum wrote:
I thought I remembered that I had a pretty low interest rate on my Blue Cash Everyday card, but when I checked, it's 13.24% (variable). That seems pretty high, but it's 1% lower than currently advertised/available:
https://www.americanexpress.com/us/credit-cards/card-application/apply/prospect/terms/blue-cash-everyday-credit-card/36660-10-0/?pznOfferCode=3BAW-PJ9LO-EWVS-R8#FeeTable

For n Amex card 13% is pretty good.

Re: AMEX APR Increase

Gollum — Thu, 31 Mar 2022 07:43:54 GMT

@Anonymous wrote:
As was mentioned up thread other lenders move rates like AX. Chase does this and I had Socks adjust for the market (not Fed Rates). Note, the Fed rates certainly do trigger adjustments on cards with variable rates and most every one knows this?!

Dinosaur,

What/who is "Socks?"