AMEX denied rate reduction - question

[Anonymous]

Hi all, 

I started with AMEX 2 years ago. Went from 5k to 28K CL and I've always on time. My FICO went up 50 points from 650 to 700.  I stopped using all of my cards and only use BC, since the limit is the highest I have, so my utilization on that is 42%. I could spread it out, but I like the convenience of one card, so I'll take the hit until I pay off the balance in the spring. My APR started at 24% and that's where it remains. So, I called them and they said no.  I told them that I would transfer my balance and stop using their cards and he said it would look into my account personally and they would let me know via snail mail.  

I recently got a card with NFCU and USAA. USAA gave me 14% with a 12k SL and NFCU 12% with 8k SL. So, that's what started me looking at APRs.

I've always preferred AMEX, but this is leaving a bad taste in my mouth. How can they jusify 24% considering the circumstances? No baddies or other negative changes. They keep sending me preapproval offers for platinum and gold cards (which I don't want), so they love my money LOL. Thoughts?

[Anonymous]

---

@Anonymous wrote:

Hi all, 

I started with AMEX 2 years ago. Went from 5k to 28K CL and I've always on time. My FICO went up 50 points from 650 to 700.  I stopped using all of my cards and only use BC, since the limit is the highest I have. My APR started at 24% and that's where it remains. So, I called them and they said no.  I told them that I would transfer my balance and stop using their cards and he said it would look into my account personally and they would let me know via snail mail. 

I recently got a card with NFCU and USAA. USAA gave me 14% with a 12k SL and NFCU 12% with 8k SL. So, that's what started me looking at APRs.

I've always preferred AMEX, but this is leaving a bad taste in my mouth. How can they jusify 24% considering the circumstances? No baddies or other negative changes. The score is lacking due to having all balances on one card. They keep sending me preapproval offers for platinum and gold cards (which I don't want), so they love my money LOL. Thoughts?

---

Welcome to the forum. Question, do you pay interest? If not, the APR should be of little significance. I can understand wanting to reap the benefits of having excellent credit and all that it should entail (higher limits, lower APRs) but unfortunately, with a lot of creditors, the APR your account was assigned at opening is the APR that stays with the account. 

My Chase Freedom was at 13.9% and, like all other Chase cardholders that had lower APRs, they recently increased our APRs to 16.49% (give or take .25%) despite our account age or FICO scores/spending. 

Basically, its not personal, its business. I would suggest using your AMEX (not sure which one you have) for the rewards and pay in full. If you need a card to carry a balance with, you could open a card with a low rate as you have done with NFCU and USAA. 

[Anonymous]

Thanks! 

No, my intro period ended a year ago. Wow, that's a bummer. Even losing a customer won't get them to move? I've heard of people contacting their execultive offices in situations of SLs and such. Do you think that would be warranted for this?

[Anonymous]

---

@Anonymous wrote:

Thanks! 

No, my intro period ended a year ago. Wow, that's a bummer. Even losing a customer won't get them to move? I've heard of people contacting their execultive offices in situations of SLs and such. Do you think that would be warranted for this?

---

In terms of losing a customer....they anticipate losing customers and either don't care or may offer a lower rate if you call to cancel. The latter has become a game of Russian Roulette as of late as more and more banks are allowing for automated closure without ever having to speak to an agent. So you kind of take a chance with that. As far as Amex Executive Office...I don't remember seeing too much about EO for Amex to be honest as that seems to be more of a Capital One and Citibank thing. You could try to reach out to them via social media (facebook/twitter) to see what they may be able to do for you. It is certainly worth a shot at contacting them if it means a lot to you. Just don't get yourself upset over it. I had to learn that the hard way with other cards/card issuers that sometimes its best to let it go or let them go. 

[Anonymous]

Times sure have changed and not for the better LOL. I guess customers are just numbers. That's why I recently started with PenFed and NFCU. Definitely a lot more personal. I sure appreciate your reply!

[UncleB]

---

@Anonymous wrote:

Hi all, 

I started with AMEX 2 years ago. Went from 5k to 28K CL and I've always on time. My FICO went up 50 points from 650 to 700.  I stopped using all of my cards and only use BC, since the limit is the highest I have, so my utilization on that is 42%. I could spread it out, but I like the convenience of one card, so I'll take the hit until I pay off the balance in the spring. My APR started at 24% and that's where it remains. So, I called them and they said no.  I told them that I would transfer my balance and stop using their cards and he said it would look into my account personally and they would let me know via snail mail.  

I recently got a card with NFCU and USAA. USAA gave me 14% with a 12k SL and NFCU 12% with 8k SL. So, that's what started me looking at APRs.

I've always preferred AMEX, but this is leaving a bad taste in my mouth. How can they jusify 24% considering the circumstances? No baddies or other negative changes. They keep sending me preapproval offers for platinum and gold cards (which I don't want), so they love my money LOL. Thoughts?

---

If I understand you correctly, you're currently carrying a balance of around $11k, and plan to PIF in the spring?  If that's the case, I'm not too surprised they won't entertain a reduction at this time.  Much like CLIs, the best time to request a lower APR is when you don't need it. 

Once you get your balance paid down (again, assuming I'm understanding correctly) they might be more open to a reduction, although it will still be YMMV.  I've not seen many reports of Amex reductions lately, so I'm not sure how widespread the practice is with them these days.

Note:  Even if you were to get a reduction, it would probably only apply to new purchases, not your existing balance.  I'll defer to those who have experience with Amex APR reductions to confirm, but I know that's how it is with some other issuers (such as Discover).  Edit:  See @Anonymous's reply below.

[Anonymous]

To clarify, trying to make a point of "threaten" to leave won't do anything. When you call (whether it's customer care or retentions), all they do is press a button to check for a lower APR eligibility and it is only applied if the offer exists. The lower APR eligibility is loaded in by credit operations, a completely separate department that doesn't care about losing a customer.

I would suggest trying via live chat every other month or so. If the offer gets loaded into your account, they will gladly activate it for you.

And to answer Uncle's point.. if a lower APR is applied, it is indeed applied to the existing balance.

[UncleB]

---

@Anonymous wrote:
To clarify, trying to make a point of "threaten" to leave won't do anything. When you call (whether it's customer care or retentions), all they do is press a button to check for a lower APR eligibility and it is only applied if the offer exists. The lower APR eligibility is loaded in by credit operations, a completely separate department that doesn't care about losing a customer.

I would suggest trying via live chat every other month or so. If the offer gets loaded into your account, they will gladly activate it for you.

And to answer Uncle's point.. if a lower APR is applied, it is indeed applied to the existing balance.

---

+1

Words of wisdom from @Anonymous... and thanks for the heads-up on reductions applying to existing balances! 

[Shadowfactor]

Rewards cards were never designed to carry balances. They are designed to reward customers who PIF.

Any interest you pay far outweighs the amount of rewards you will ever earn.

If you need to carry large balances outside of promo periods. I would suggest looking into a low rate APR card from a credit union.

[sjt]

I understand the fustration of not getting a lower APR. I believe CC companies have tiers in determining APR during the application process and it probably applies to APR reduction for current customers. I think your score would  have to be 720-740 to get a lower APR and even then it will never be as low as your credit union cards. They key is to do a get a CL increase and then balance transfer to your CU cards. Keep the Amex card and only use it when you know you can PIF. When your score goes up call them for a rate reduction. Also, CC companies tend to offer low APR rate for balance transfers on cards with no balance. So you might get a low APR from Amex in the future that you can take advantage of.