topic Re: AMEX Raising Interest Rate on Hilton Credit Card in Credit Cards

AMEX Raising Interest Rate on Hilton Credit Card

NAVYCHOP — Mon, 29 Jul 2024 03:45:15 GMT

I have had AMEX cards for about 38 yrs. Last year I applied for the Hilton AMEX card that provides perpetual Diamond status. In September I am coming up on the one year anniversary of this card. I have PIF with no interest. Yesterday I received a letter in the mail saying that on my one year anniversary AMEX is raising my interest rate from 20.99 percent to 25.99 percent on the card. I never carry balances so this is all academic but they sent the standard canned statement that they are raising the rate because I have a lower rate than comparable cardholders with my credit profile. Then it stated that they based this decision on my Experian FICO score of 806 and that I could send a request to Experian to better understand my score.

Does AMEX reserve their best interest rates for something like 825 or higher? I was a bit miffed and surprised that they would raise my interest rate based on an 806 credit score. I called AMEX and they told me there was no further information they could give me about the rate increase other than the fact they based that on my 806 credit score... I guess the message is don't carry a balance on AMEX which I have not done other than with the Platinum card's credit line which I paid off about five years ago. I have something like a 1 percent credit utilization rate. They just quadrupled my credit line on my Marriott card this past month after they asked for access to my checking accounts which have about $100k on deposit.

Re: AMEX Raising Interest Rate on Hilton Credit Card

IsambardPrince — Mon, 29 Jul 2024 08:17:58 GMT

@NAVYCHOP wrote:
I have had AMEX cards for about 38 yrs. Last year I applied for the Hilton AMEX card that provides perpetual Diamond status. In September I am coming up on the one year anniversary of this card. I have PIF with no interest. Yesterday I received a letter in the mail saying that on my one year anniversary AMEX is raising my interest rate from 20.99 percent to 25.99 percent on the card. I never carry balances so this is all academic but they sent the standard canned statement that they are raising the rate because I have a lower rate than comparable cardholders with my credit profile. Then it stated that they based this decision on my Experian FICO score of 806 and that I could send a request to Experian to better understand my score.

Does AMEX reserve their best interest rates for something like 825 or higher? I was a bit miffed and surprised that they would raise my interest rate based on an 806 credit score. I called AMEX and they told me there was no further information they could give me about the rate increase other than the fact they based that on my 806 credit score... I guess the message is don't carry a balance on AMEX which I have not done other than with the Platinum card's credit line which I paid off about five years ago. I have something like a 1 percent credit utilization rate. They just quadrupled my credit line on my Marriott card this past month after they asked for access to my checking accounts which have about $100k on deposit.

I'm not sure why, but our interest rate on the AmEx Hilton Honors seems a bit high 27.99, but that's typical for co-brands.

No intro APR on this one either.

That's fine. I only wanted it for the free night certificate and bonus points so we can go somewhere nice next year and then possibly sock drawer unless we're going to stay in a Hilton sometime.

People who worry about the APR on a hotel card are probably not the target market for AmEx. I think most people agree if you can't pay the vacation off at the end of the month you should skip it that year.

27.99% APR on a vacation someone cannot afford is likely to put them in the hole with something else later, which would be seen as a mere "bother" if they had emergency savings. Like the alternator on their car blowing up.

Re: AMEX Raising Interest Rate on Hilton Credit Card

ptatohed — Mon, 29 Jul 2024 09:00:14 GMT

The higher the APR, the better. Let other people support our rewards.

Re: AMEX Raising Interest Rate on Hilton Credit Card

IsambardPrince — Mon, 29 Jul 2024 09:10:00 GMT

@ptatohed wrote:
The higher the APR, the better. Let other people support our rewards.

It would be nice if the sci-fi convention we like to go to would move over to the Hilton.

We were back there last year. Last time the convention was there was 1992 and it was an Adam's Mark. Oh lord, that place was classy.

It's not as nice now, but still has that cool "old school, rugged build, this was an upscale hotel" feel to it.

Next year I'd really like to stay at the Hilton in the keys and that's sorta what I had my eye on for this card's SUB.

Or possibly a Waldorf Astoria.

The free night certificate reminds me of our former governor who said "I know what I've got and it's[...]golden, and I'm not giving it up for[...]nothing."

I'm not blowing it at a Hampton or a Doubletree.

Re: AMEX Raising Interest Rate on Hilton Credit Card

unsungivy — Mon, 29 Jul 2024 11:07:51 GMT

@NAVYCHOP wrote:
I have had AMEX cards for about 38 yrs. Last year I applied for the Hilton AMEX card that provides perpetual Diamond status. In September I am coming up on the one year anniversary of this card. I have PIF with no interest. Yesterday I received a letter in the mail saying that on my one year anniversary AMEX is raising my interest rate from 20.99 percent to 25.99 percent on the card. I never carry balances so this is all academic but they sent the standard canned statement that they are raising the rate because I have a lower rate than comparable cardholders with my credit profile. Then it stated that they based this decision on my Experian FICO score of 806 and that I could send a request to Experian to better understand my score.

Does AMEX reserve their best interest rates for something like 825 or higher? I was a bit miffed and surprised that they would raise my interest rate based on an 806 credit score. I called AMEX and they told me there was no further information they could give me about the rate increase other than the fact they based that on my 806 credit score... I guess the message is don't carry a balance on AMEX which I have not done other than with the Platinum card's credit line which I paid off about five years ago. I have something like a 1 percent credit utilization rate. They just quadrupled my credit line on my Marriott card this past month after they asked for access to my checking accounts which have about $100k on deposit.

Wait, wait.

So Amex refuses to ever lower the APR they assign you when you get the card (even if every other card you have with them is the best APR and that card is 20,+ years old), but now they're randomly increasing it without it being a penalty APR?

What the actual...? Come on AmEx. I like everything else about you, why you gotta be like this.

Re: AMEX Raising Interest Rate on Hilton Credit Card

Anonymous — Mon, 29 Jul 2024 12:07:44 GMT

@unsungivy wrote:
Wait, wait.

So Amex refuses to ever lower the APR they assign you when you get the card (even if every other card you have with them is the best APR and that card is 20,+ years old), but now they're randomly increasing it without it being a penalty APR?

What the actual...? Come on AmEx. I like everything else about you, why you gotta be like this.

We see this with lots of issuers (the bit about increasing, not necessarily refusal to decrease!) Seems to come in batches, I remember lots of posts here when Chase did it. Basically "We are raising the interest rate because we can"

Re: AMEX Raising Interest Rate on Hilton Credit Card

FlaDude — Mon, 29 Jul 2024 15:14:50 GMT

Don't take it personally, CC interest rates have been rising in general and you aren't the only one getting notices like this.

Re: AMEX Raising Interest Rate on Hilton Credit Card

Windchill92 — Mon, 29 Jul 2024 16:48:56 GMT

@FlaDude wrote:
Don't take it personally, CC interest rates have been rising in general and you aren't the only one getting notices like this.

+1. As long as you PIF, don't sweat it. I did find it interesting how an intro 0% APR is somewhat of a "gold" standard nowadays, but the current Hilton Surpass card has an immediate ≥ 20.99% APR applied.

But I do think they really want all their high FICO users to PIF anyways since it'd increase their available cash. They've also dinged the APY on their HYSA, too.

It'd be interesting to see if they decreased (unlikely) or didn't touch the APR on 1 of their AF Hilton cards on someone with a lower FICO or someone who carries a balance.

Re: AMEX Raising Interest Rate on Hilton Credit Card

IsambardPrince — Mon, 29 Jul 2024 20:17:03 GMT

@unsungivy wrote:
@NAVYCHOP wrote:
I have had AMEX cards for about 38 yrs. Last year I applied for the Hilton AMEX card that provides perpetual Diamond status. In September I am coming up on the one year anniversary of this card. I have PIF with no interest. Yesterday I received a letter in the mail saying that on my one year anniversary AMEX is raising my interest rate from 20.99 percent to 25.99 percent on the card. I never carry balances so this is all academic but they sent the standard canned statement that they are raising the rate because I have a lower rate than comparable cardholders with my credit profile. Then it stated that they based this decision on my Experian FICO score of 806 and that I could send a request to Experian to better understand my score.

Does AMEX reserve their best interest rates for something like 825 or higher? I was a bit miffed and surprised that they would raise my interest rate based on an 806 credit score. I called AMEX and they told me there was no further information they could give me about the rate increase other than the fact they based that on my 806 credit score... I guess the message is don't carry a balance on AMEX which I have not done other than with the Platinum card's credit line which I paid off about five years ago. I have something like a 1 percent credit utilization rate. They just quadrupled my credit line on my Marriott card this past month after they asked for access to my checking accounts which have about $100k on deposit.
Wait, wait.

So Amex refuses to ever lower the APR they assign you when you get the card (even if every other card you have with them is the best APR and that card is 20,+ years old), but now they're randomly increasing it without it being a penalty APR?

What the actual...? Come on AmEx. I like everything else about you, why you gotta be like this.

The only thing they owe you is....*drumroll please*

The law says you have to get a 45 day notice and they can't retroactively apply it to money you already owe them.

Sucks huh?

Re: AMEX Raising Interest Rate on Hilton Credit Card

IsambardPrince — Mon, 29 Jul 2024 20:21:47 GMT

@FlaDude wrote:
Don't take it personally, CC interest rates have been rising in general and you aren't the only one getting notices like this.

Yeah, I had the conversation with Discover Bank the other day about all our cards. They lowered all three of our cards by 5 percentage points permanently.

God I hope I never have to use it, but at least the interest would just be odious instead of catastrophic if somehow we did.

Re: AMEX Raising Interest Rate on Hilton Credit Card

IsambardPrince — Mon, 29 Jul 2024 20:31:53 GMT

@Anonymous wrote:
@unsungivy wrote:
Wait, wait.

So Amex refuses to ever lower the APR they assign you when you get the card (even if every other card you have with them is the best APR and that card is 20,+ years old), but now they're randomly increasing it without it being a penalty APR?

What the actual...? Come on AmEx. I like everything else about you, why you gotta be like this.
We see this with lots of issuers (the bit about increasing, not necessarily refusal to decrease!) Seems to come in batches, I remember lots of posts here when Chase did it. Basically "We are raising the interest rate because we can"

That's not actually a recent thing. More of a long term trend.

Remember in the 1990s when almost anyone could file bankruptcy and some people did it every 7 years like they were timing it to a Swiss watch (which was probably paid for with one of their credit cards) and the banks sent credit cards to Fluffy the Poodle in New Orleans, and the interest rate was 12%?

Then they said that if Congress made it so you'd have to be so destitute that it was like expecting a turnip to bleed to file a real bankruptcy, and it was every 8 years, and there was all this extra crap, they'd lower interest rates? The rate was about 14% then.

Then the Credit CARD Act passed and they jacked it up to about 17% to compensate for all those "Hahaha, poor people, amirite?" fees they'd been charging.

And now the average sits at about 22%. And that's just an average. Now, here we go again.

The truth is the banks set interest rates so sky high that they can absorb massive losses and still come out ahead. They drive so many people into the ground that if they weren't offering us all cards again after they ruined us the last time, there'd be few people to lend to.

In the 2000s I was dating an older man briefly. Mid 30s. I was in my early 20s. And he would joke about all the times he filed bankruptcy because they were letting him do it every 7 years. One time he even bought a boat he couldn't pay for knowing that by the time they took it back he'd just file bankruptcy again.

It's people like this that ruin it for everyone. I can attest that there were actually people like that out there. But in this day and age it's basically going to the hospital where they "name their own price" and mail you a bill that leads to the majority of bankruptcies, not even credit cards are as bad as they are.

Re: AMEX Raising Interest Rate on Hilton Credit Card

FicoMike0 — Mon, 29 Jul 2024 21:57:56 GMT

I'll admit, I never pay attention to interest rates. I just checked my amex hilton, it's 27.99%. Pretty high! Then again, I think 10% is too high.

Re: AMEX Raising Interest Rate on Hilton Credit Card

CardHunter — Mon, 29 Jul 2024 22:40:47 GMT

@IsambardPrince wrote:
@ptatohed wrote:
The higher the APR, the better. Let other people support our rewards.
It would be nice if the sci-fi convention we like to go to would move over to the Hilton.

We were back there last year. Last time the convention was there was 1992 and it was an Adam's Mark. Oh lord, that place was classy.

It's not as nice now, but still has that cool "old school, rugged build, this was an upscale hotel" feel to it.

Next year I'd really like to stay at the Hilton in the keys and that's sorta what I had my eye on for this card's SUB.

Or possibly a Waldorf Astoria.

The free night certificate reminds me of our former governor who said "I know what I've got and it's[...]golden, and I'm not giving it up for[...]nothing."

I'm not blowing it at a Hampton or a Doubletree.

The Waldorf Astoria's are amazing! I got the Hilton Honors Card (no AF) a couple of months ago just for the free night and 70K SUB. and booked a room in the keys during Thanksgiving weekend at the Bakers Cay Resort Key Largo, Curio Collection. No Hampton or Doubletree for me on a free night cert.