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AMEX Limit 4 on Credit Cards now ?

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MrDisco99
Valued Contributor

Re: Amex now limits revolvers to 4


@Shadowfactor wrote:

Didn't see this anywhere. Terrible news, hopefully it gets moved back to 5 when Covid ends and the economy stabilizes.

 

https://milestomemories.com/confirmed-american-express-does-have-a-new-4-card-limit/


Well that's unfortunate.

 

At least the charge cards are still separate (do they even have 10 charge products?).

 

No use complaining.  They make the rules.  We'll just have to figure out new strategies.  I have plans that I will need to rethink.

 

Thankfully you guys have armed me so I can be proactive instead of having to react to my plan not working.

Message 21 of 50
kdm31091
Super Contributor

Re: Amex now limits revolvers to 4


@Shadowfactor wrote:

@kdm31091 wrote:

@Shadowfactor wrote:

Didn't see this anywhere. Terrible news, hopefully it gets moved back to 5 when Covid ends and the economy stabilizes.

 

https://milestomemories.com/confirmed-american-express-does-have-a-new-4-card-limit/


To be honest I would say it probably will remain at 4. Most average consumers are going to have 1, maybe 2 cards with Amex, and would go nowhere near the limit. Most who are at 4-5 cards are unprofitable churners or even if not churning, they are reward maximizing, which is also unprofitable. In short, no business reason for them to allow more cards IMO, as disappointing as we may find it.

 

4 seems to be a somewhat common number. BoA used to allow basically unlimited cards and IIRC they shut people off at 4 now for the most part. Maybe not 100% of the time but frequently. Maybe banks feel 4 is a good number.


You have 4 basic types of people in the credit card sphere.


The average consumer

 

the casual hobbyist which churns/maxizimes rewards. this group is the least profitable. 

 

business people who earn a lot of rewards but don't know how to use them. They also spend a lot of  money and don't care about maximizing earn/redemption potential.

 

The Heavy hitters. This group may be unprofitable at first but with enough volume, they become extremely profitable to a bank. There's only so many cards/categories you can push until you maximize them and have to switch to earning 1X which definitely earns the bank money. I know several of these people and they are doing mid 6-7 figures a month and I'd imagine that Atleast half of it is at the most basic reward category. 

This change will not affect the first group but will largely affect 2-4 with 3 affected the most. Businesses usually have some sort of loyalty to an airline/hotel so that could potentially take 2 slots which only leaves you 2 slots on the personal side. This will push away some spend from that issuer in its most profitable group.

 

I know there's lots of other things to consider like risk and just how unprofitable group 2 is, but I don't see these changes lasting more then 2 years provided the economy recovers. It could be wishful thinking though. 


Obviously I don't know and am just speculating, but I assume that a huge chunk of people who have 4 cards with a single bank are intentionally maximizing rewards and/or churning cards. Yes, when rules change it does always screw over some amount of legitimate consumers (in your example group 3), but apparently Amex has decided for now that it makes sense to do this. We will see how permanent it is.

Message 22 of 50
wasCB14
Super Contributor

Re: Amex now limits revolvers to 4

Has there been any hint that Amex may force the 5+ revolver crowd to trim? Or, at least for now, do we seem to be grandfathered?

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 23 of 50
MrDisco99
Valued Contributor

Re: Amex now limits revolvers to 4


@wasCB14 wrote:

Has there been any hint that Amex may force the 5+ revolver crowd to trim? Or, at least for now, do we seem to be grandfathered?


I don't think Amex can legally do that.  And there's no real incentive for them to do so anyway.  You already got the SUBs for the cards you have.  I think this is an anti-SUB-churning measure, not going after long term card use.

 

Message 24 of 50
kdm31091
Super Contributor

Re: Amex now limits revolvers to 4


@MrDisco99 wrote:

@wasCB14 wrote:

Has there been any hint that Amex may force the 5+ revolver crowd to trim? Or, at least for now, do we seem to be grandfathered?


I don't think Amex can legally do that.  And there's no real incentive for them to do so anyway.  You already got the SUBs for the cards you have.  I think this is an anti-SUB-churning measure, not going after long term card use.

 


Well banks are pretty much free to close your account at any time for any (or no) reason, so, I don't think there's anything legally preventing Amex from retroactively applying the rules.

 

They probably won't because it's a crappy thing to do to your customers, but I don't think there's anything illegal about it.

Message 25 of 50
FieryDance
Frequent Contributor

Re: Amex now limits revolvers to 4

Now Amex directly confirmed it on Twitter it seems to be the policy going forward in foreseeable future.  

For some it does plays into the decision between downgrading vs canceling, doesn't it?  

Message 26 of 50
wasCB14
Super Contributor

Re: Amex now limits revolvers to 4


@FieryDance wrote:

Now Amex directly confirmed it on Twitter it seems to be the policy going forward in foreseeable future.  

For some it does plays into the decision between downgrading vs canceling, doesn't it?  


I had vaguely considered a second BBP under a different TIN, but that is less likely now.

 

My BBP and Delta Platinum are fine as they are.

 

With Bonvoy and BCP I might continue to play the upgrade/downgrade game. I wish I could get a nice offer to PC my ED back to EDP (just for the bonus, not as a long-term nuisance with a transaction tracker and AF).

 

I might be willing to let go of 2 of (ED, BCP, Bonvoy) for another Delta bonus at some point...but I'm inclined to leave things as they are.

 

I have an excess of hotel points in general so I have no appetite for any Hilton products.

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 27 of 50
morgacj2004
Valued Contributor

Re: AMEX Limit 4 on Credit Cards now ?

Yes my wife was recently declined due to already having 4 credit cards with them. I know of others as well. 


AX Hilton Aspire 20k, AX Bonvoy Brilliant 15k, AX BCP 2k, AX Blue Bus Cash 15k, AX Delta Air Platinum 49k, (AU) AX Delta Gold 15k, AX Amazon Prime Bus 25k, BC Uber 29k, AKUSA FCU -10k , CITI AAdvantage Exec World Elite MC 16.5k, Discover (2) 16k, Kohls-4k, VS Comenity $3k, BofA AK Air Siggy 9.8k, WF Propel AX 5k, JCP $10k PFCU Plat Rewards Siggy 39.5k, PFCU Power Cash Rewards AX 10.5k, NFCU Flagship 50k, CLOC 15k, CITI Costco 9.5k, GAP VISA Synchrony $9k,Target MC 9k, Ulta MC Comenity 9k, Pay Pal 1k, CO Venture One 23k, US Bank Radisson Rewards Signature 10k, US Bank Fred Meyers World MC, 11k, US Bank Plat VISA 15.7k, VS Comenity 2k, 240k total available credit. Utiliz-2%, Current FICO EQ-724, EX 763,TU 802 ,Chapt 7 BK D/C 11-2012. Starting scores 520-550
Message 28 of 50
Anonymous
Not applicable

Re: AMEX Limit 4 on Credit Cards now ?

Well that's a bummer, but it's not exactly like I need more cards. And honestly, as has been mentioned, other banks have a similar rule.

Which brings up the question, does anyone relly need 5 cards per issuer? Talk about point dilution. 

 

Curious though, will they still offer to close an existing account to open the new one?

Message 29 of 50
wasCB14
Super Contributor

Re: AMEX Limit 4 on Credit Cards now ?


@Anonymous wrote:

Well that's a bummer, but it's not exactly like I need more cards. And honestly, as has been mentioned, other banks have a similar rule.

Which brings up the question, does anyone relly need 5 cards per issuer? Talk about point dilution. 

 

Curious though, will they still offer to close an existing account to open the new one?


Well, one reasonable case:

Hyatt $95 or $75

CSR

CFU

CF

Maybe an Ink card, a 2nd Freedom, or a United card

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 30 of 50
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