topic Re: When did AMEX lower APRs on BCE/BCP in Credit Cards

When did AMEX lower APRs on BCE/BCP

Anonymous — Thu, 08 Nov 2012 23:45:34 GMT

not that it matters that much since its still not great, but i see BCE/BCP APR now varies from 12.99 to 21.99. I know it was just earlier this year when 17.24 was the lowest tier APR. Maybe this is what they're giving in return for the incoming groceries cap.

Re: When did AMEX lower APRs on BCE/BCP

Anonymous — Thu, 08 Nov 2012 23:54:31 GMT

@Anonymous wrote:
not that it matters that much since its still not great, but i see BCE/BCP APR now varies from 12.99 to 21.99. I know it was just earlier this year when 17.24 was the lowest tier APR. Maybe this is what they're giving in return for the incoming groceries cap.

I don't think that would make much sense because if you do end up carring a balance the lowesr 12.99% apr would cancel out the 6% groceries rewards. Rewards cards are really useless if you ever carry a balance on them unless they are in a 0% promo period.

Re: When did AMEX lower APRs on BCE/BCP

Walt_K — Fri, 09 Nov 2012 00:35:04 GMT

@Anonymous wrote:
@Anonymous wrote:
not that it matters that much since its still not great, but i see BCE/BCP APR now varies from 12.99 to 21.99. I know it was just earlier this year when 17.24 was the lowest tier APR. Maybe this is what they're giving in return for the incoming groceries cap.
I don't think that would make much sense because if you do end up carring a balance the lowesr 12.99% apr would cancel out the 6% groceries rewards. Rewards cards are really useless if you ever carry a balance on them unless they are in a 0% promo period.

Why doesn't it make sense? It was always a bad proposition to carry a balance on the card. But they devalued one benefit, so perhaps, they gave something back by adding value somewhere else. And it also makes sense because by placing a cap on the 6% you can earn, they have incentivized people to spend less on their card. Lowering the APR potentially incentivizes you to spend more on the card, even if you are someone who carries a balance.

I have paid no attention to whether this actually coincided with the cap or whether interest rates have moved or anything else, but I think YahComb's presents a plausible explanation.

Re: When did AMEX lower APRs on BCE/BCP

youngandcreditwrthy — Fri, 09 Nov 2012 00:37:47 GMT

It may have something to do with the prime rate?

I know I have the highest at 22.24%, but I never plan to carry a bal outside of the promo with Amex.

does anyone know if Amex ever does APR reductions?

Re: When did AMEX lower APRs on BCE/BCP

Walt_K — Fri, 09 Nov 2012 00:59:52 GMT

@youngandcreditwrthy wrote:
It may have something to do with the prime rate?

I know I have the highest at 22.24%, but I never plan to carry a bal outside of the promo with Amex.

does anyone know if Amex ever does APR reductions?

There's anecdotal evidence that they will, even lowering below whatever the published rate is for the card. Search through some of smc733's posts (something like that, can't remember if I have the numbers right). I remember not too long after he started posting here, he went through an aggressive campaign to lower all of his APR's escalating it to executive offices and such. I'm pretty sure he reported getting APR reductions on just about all of his cards, even rewards cards where they only advertize one rate for the card on the application page.

ETA: one such thread (different author). I imagine if you search around this date and search for threads started by smc733, you'll find others. http://ficoforums.myfico.com/t5/Credit-Cards/SWEET-APR/td-p/1203673/highlight/true

Re: When did AMEX lower APRs on BCE/BCP

Anonymous — Fri, 09 Nov 2012 01:08:27 GMT

@Walt_K wrote:
@Anonymous wrote:
@Anonymous wrote:
not that it matters that much since its still not great, but i see BCE/BCP APR now varies from 12.99 to 21.99. I know it was just earlier this year when 17.24 was the lowest tier APR. Maybe this is what they're giving in return for the incoming groceries cap.
I don't think that would make much sense because if you do end up carring a balance the lowesr 12.99% apr would cancel out the 6% groceries rewards. Rewards cards are really useless if you ever carry a balance on them unless they are in a 0% promo period.
Why doesn't it make sense? It was always a bad proposition to carry a balance on the card. But they devalued one benefit, so perhaps, they gave something back by adding value somewhere else. And it also makes sense because by placing a cap on the 6% you can earn, they have incentivized people to spend less on their card. Lowering the APR potentially incentivizes you to spend more on the card, even if you are someone who carries a balance.

I have paid no attention to whether this actually coincided with the cap or whether interest rates have moved or anything else, but I think YahComb's presents a plausible explanation.

If you can explain to me why it makes sense to carry a balance and negate all rewards due to paying interest, I'd be interested in hearing. If this really was AMEX's intention, it is not a good one because anyone who can do simple math knows that a rewards card is useless if your carrying a balance and paying interest.

Re: When did AMEX lower APRs on BCE/BCP

Walt_K — Fri, 09 Nov 2012 01:22:38 GMT

@Anonymous wrote:

If you can explain to me why it makes sense to carry a balance and negate all rewards due to paying interest, I'd be interested in hearing. If this really was AMEX's intention, it is not a good one because anyone who can do simple math knows that a rewards card is useless if your carrying a balance and paying interest.

It doesn't make sense. It never makes sense to carry a balance on a rewards card. But just because people can do math, doesn't mean they can keep their spending in check. Rewards cards encourage spending. People act irrationally all the time. That's just one of the ways CCs make money. If you think everyone who has a rewards card is a PIF customer, I don't know what to tell you.

ETA: There are also plenty of people for whom 12.99 might be their lowest APR. Faced with a choice between no rewards or 1% and a higher APR, getting 6% and a lower APR would be a better deal.

Edited again to Add: You get the 6% all at once. The APR is annualized. So it's actually not that bad of a deal if you are going to only carry for a short amount of time. You'd pay about $11 in interest for one month for a $1000 purchase, but you'd earn $60 in rewards.

Re: When did AMEX lower APRs on BCE/BCP

navigatethis12 — Fri, 09 Nov 2012 02:29:57 GMT

@Anonymous wrote:
If you can explain to me why it makes sense to carry a balance and negate all rewards due to paying interest, I'd be interested in hearing. If this really was AMEX's intention, it is not a good one because anyone who can do simple math knows that a rewards card is useless if your carrying a balance and paying interest.

You are putting way too much faith in your fellow humans. A lot of people are too dense to realise this, and credit card companies love them.

Re: When did AMEX lower APRs on BCE/BCP

youngandcreditwrthy — Fri, 09 Nov 2012 14:37:02 GMT

Hahaha. People typically spend based on habit/ emotion.

I know I've bought a few things on impulse. In either case, a good low 0% card is much better to use. Don't ever expect Amex to like you revolving a balance. Even though I have the BCE ar 0% right now, I'm pif no matter what. Of course, revolving a balance can come in handy in times of a financial crisis. Sort of a personal Keynesian view...