I was recently notified that the APR on one of my Amex cards has been increased 2 200 basis points, from 19.49% to 21.49%, based solely upon my FICO score. (distinct from the .25% raise to 19.49% generated by the Fed's credit tightening). This despite the fact that my payment record with Amex has been pristine, for decades.
To me, this is just one more illustration of the importance of maintaining one's FICO scores at optimal level at all times, not just when making a major credit application.
Many people are fond of saying "Finances > FICO". This is an example of "FICO = Finances"
How much of a decrease are we talking about?
@wasCB14 wrote:
@SouthJamaica wrote:I was recently notified that the APR on one of my Amex cards has been increased 2 basis points, from 19.49% to 21.49%, based solely upon my FICO score. (distinct from the .25% raise to 19.49% generated by the Fed's credit tightening). This despite the fact that my payment record with Amex has been pristine, for decades.
To me, this is just one more illustration of the importance of maintaining one's FICO scores at optimal level at all times, not just when making a major credit application.
Many people are fond of saying "Finances > FICO". This is an example of "FICO = Finances"
That's actually 200 basis points. A 2 basis point increase would be to 19.51%.
Neither 19.49% or 21.49% is an interest rate that anyone should be paying. I'd sooner have a few low-APR no-rewards no-frills credit union cards than pay anything close to 19.49%.
1. Thanks for the correction 
Sorry about that.
2. It's a card I always pay in full, and never pay interest on.
@SouthJamaica wrote:
@wasCB14 wrote:
@SouthJamaica wrote:I was recently notified that the APR on one of my Amex cards has been increased 2 basis points, from 19.49% to 21.49%, based solely upon my FICO score. (distinct from the .25% raise to 19.49% generated by the Fed's credit tightening). This despite the fact that my payment record with Amex has been pristine, for decades.
To me, this is just one more illustration of the importance of maintaining one's FICO scores at optimal level at all times, not just when making a major credit application.
Many people are fond of saying "Finances > FICO". This is an example of "FICO = Finances"
That's actually 200 basis points. A 2 basis point increase would be to 19.51%.
Neither 19.49% or 21.49% is an interest rate that anyone should be paying. I'd sooner have a few low-APR no-rewards no-frills credit union cards than pay anything close to 19.49%.
1. Thanks for the correction
2. It's a card I always pay in full, and never pay interest on.
So, the impact is minimal and you neglect the potential costs of maintaining an optimal Fico score (both in real money and in effort).
My original post was not intended to be about me or my usage of a particular card.
It was intended as a data point to illustrate that one's current interest rates on existing accounts can be affected by a change in one's FICO scores.
@SouthJamaica wrote:My original post was not intended to be about me or my usage of a particular card.
It was intended as a data point to illustrate that one's current interest rates on existing accounts can be affected by a change in one's FICO scores.
This is the first I've heard of that. Also, it's Amex we're talking about, and they can be pretty strict so.
