AMEX APR Increase

[Cory88]

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.

[DONZI]

How strange.. Seems more like insurance underwriting.

[NRB525]

Credit score is a factor. Good one AMEX!

#sarcastic 

[tjs19593]

 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.

[LADave]

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@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.

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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.

[Remedios]

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 

[fittiger]

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@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 

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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. 

[fittiger]

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@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.

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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. 

[Trini88]

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 😑

[Adkins]

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@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 😑

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