Amex Charge Card Prestige is OVER

[MidnightVoice]

Personally, I get cards that are useful to me for whatever reason.  Free gas, free airmiles, free books, low APR, and in the case of Amex - warranty assurance and when I have to pay for my own travel in the future, good back up.

Prestige is nice but does not pay the bills

[Anonymous]

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MidnightVoice wrote:

Personally, I get cards that are useful to me for whatever reason.  Free gas, free airmiles, free books, low APR, and in the case of Amex - warranty assurance and when I have to pay for my own travel in the future, good back up.

Prestige is nice but does not pay the bills

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I agree, thats what I said on my old purse they just work for me.

[Anonymous]

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lurknomore wrote:

No one in this thread (as I recall) has challenged the notion that Amex has lowered its lending standards; on this point, we can agree.  In fact, many of us have benefitted from it, including the OP.

Our argument diverges because we differ as to what constitutes the source of Amex's prestige. 

If Amex's prestige stems from its approval criteria, then OP may be correct as though standards have been lowered. 

If Amex's prestige comes from marketing and image-building, then I am correct. If the source of the prestige came from lending practices alone, why bother spending millions of dollars with advertising to the masses who likely wouldn't qualify?  Because Amex wanted to build an image of prestige and exclusivity among its consumers and its wannabe consumers.

Upon further thought, it seems as though both points hold much validity and in fact it was Amex's TOTAL business strategy (lending PLUS marketing) that fostered its image of prestige.  If either part is lacking, it makes for a less prestigious Amex.

Message Edited by lurknomore on 02-06-2008 08:11 AM

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OMG thank YOU thats all I have been saying for 100 plus post

[Anonymous]

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cheddar wrote:

ajg wrote:

And in the future, I think you'll start seeing Amex raise their standards if this *MAYBE* sub-priming starts to hurt them.

It already has started to hurt them. See the company's latest quarterly results.

Q4 2006 profit from U.S. Card Services: $473 million

Q4 2007 profit from U.S. Card Services: $7 million

2007 provisions for losses due to default rose 70% over the prior year, to $1.52 billion.

I agree they may go back back to their old ways sooner rather than later.

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Me and Cheddar Agree WOW Obamama might win WEIRD day.

[Anonymous]

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lurknomore wrote:

So true, ajg.  Change is inevitable.  Businesses must adapt to the changing economic climate to continue to grow.

Most of the people on here can agree that Amex has relaxed its credit criteria over the recent years because Amex traditionally had a conservative business model (cater to credit-worthy, big spenders) which became more liberal to reach a new consumer base and grow company revenue. I suspect that with the present credit crunch Amex (and other lenders) may be regretting its decisions to move so far away from the previous lending standards and is now trying to lessen its credit exposure and resulting risk. 

While it seems to us that Amex is handing out cards like hotcakes, there are also many discussions of adverse action (i.e. CLD and account closings) taken by Amex.  In my opinion, the freewheeling days of monthly astronomical CLIs are long gone.  It appears that New Amex may be heading back towards its more conservative roots, but that change will take time as well.    Perhaps Amex will never get back to its "old" self, and there's no real reason for it to strive to do so if it wants to grow profits.  Some (moderate) change is inevitable to survive.   

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Agree also I tihnk they are pulling back Now

[Anonymous]

I can't believe that I read this ENTIRE thread...

Only read it out of curiosity and because I have had an Amex card since 1987.   Love my green, blue, and clear.

[Anonymous]

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Scout1965 wrote:

I can't believe that I read this ENTIRE thread...

Only read it out of curiosity and because I have had an Amex card since 1987.   Love my green, blue, and clear.

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You can't believe you read it.  I can't believe I participated in it.

Ack!  There I go again.

[Anonymous]

Cheddar,

Shhh,  (don't tell anyone)...

My favorite post was yours - post  #110.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

No one in this thread (as I recall) has challenged the notion that Amex has lowered its lending standards; on this point, we can agree. In fact, many of us have benefitted from it, including the OP.

Our argument diverges because we differ as to what constitutes the source of Amex's prestige.

If Amex's prestige stems from its approval criteria, then OP may be correct as though standards have been lowered.

If Amex's prestige comes from marketing and image-building, then I am correct. If the source of the prestige came from lending practices alone, why bother spending millions of dollars with advertising to the masses who likely wouldn't qualify? Because Amex wanted to build an image of prestige and exclusivity among its consumers and its wannabe consumers.

Upon further thought, it seems as though both points hold much validity and in fact it was Amex's TOTAL business strategy (lending PLUS marketing) that fostered its image of prestige. If either part is lacking, it makes for a less prestigious Amex.

Message Edited by lurknomore on 02-06-2008 08:11 AM

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OMG thank YOU thats all I have been saying for 100 plus post

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well said lurknomore...::cheers::

[Anonymous]

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@pjriverap wrote:

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@Anonymous wrote:

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@Anonymous wrote:

No one in this thread (as I recall) has challenged the notion that Amex has lowered its lending standards; on this point, we can agree. In fact, many of us have benefitted from it, including the OP.

Our argument diverges because we differ as to what constitutes the source of Amex's prestige.

If Amex's prestige stems from its approval criteria, then OP may be correct as though standards have been lowered.

If Amex's prestige comes from marketing and image-building, then I am correct. If the source of the prestige came from lending practices alone, why bother spending millions of dollars with advertising to the masses who likely wouldn't qualify? Because Amex wanted to build an image of prestige and exclusivity among its consumers and its wannabe consumers.

Upon further thought, it seems as though both points hold much validity and in fact it was Amex's TOTAL business strategy (lending PLUS marketing) that fostered its image of prestige. If either part is lacking, it makes for a less prestigious Amex.

Message Edited by lurknomore on 02-06-2008 08:11 AM

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OMG thank YOU thats all I have been saying for 100 plus post

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well said lurknomore...::cheers::

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Lets Get This one Going AGAIN IT IS FUN!!!!!!!!