Amex is closing inactive accounts

[MyFault]

Article here:

https://travelupdate.com/amex-card-application-restrictions-reconsideration/

Looks like Amex is going back to their old days of being more prestigious.

Don't let your accounts sit long with no use.. I usually put a few dollars on my sock drawer cards every 6 or 8 months, looks like I'll be using them every 3 months now, for the foreseeable future.

[M_Smart007]

@MyFault, Thanks.

I got a couple Amex cards that have not seen daylight in a while.

Guess I will put a few $$$ onto the Starbucks Card via G-Pay

[staticvoidmain]

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@MyFault wrote:  looks like I'll be using them every 3 months now, for the foreseeable future.

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I usually consider 3 months the stretchiest stretch. In these uncertain times, even 3 months can get risky. Who knows...

(Personally, I put spend on an SD card every other month — 2 months without a spend is a personal stretch.)

[NRB525]

I would not characterize this as being more prestigious.  Closing inactive credit lines is a risk management method.  

The comments about AMEX positive view toward the expanded temporary bonus categories is interesting.  I am pleasantly surprised by the volume of credits showing on my AMEX statements.  I wonder how affordable those are, but will utilize them as available.  

The drop in corporate T&E is expected. But the lack of alarm in the comments leads me to think consumer spend is a large share of AMEX volume now. 

[Anonymous]

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@staticvoidmain wrote:

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@MyFault wrote:  looks like I'll be using them every 3 months now, for the foreseeable future.

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I usually consider 3 months the stretchiest stretch. In these uncertain times, even 3 months can get risky. Who knows...

(Personally, I put spend on an SD card every other month — 2 months without a spend is a personal stretch.)

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I also generally rotate my spend onto cards every 2-3 months. Usually my TD card is the only one sock drawered, but my Amex use has declined some too as it just doesn't make as much sense. I'm trying to put spend on cards every other month since the pandemic started.

Amex has been good with giving some credits and things of that nature, but I'd still like to see them give bonus categories that are easy to use and require little thought like Chase has. 

[MyFault]

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@NRB525 wrote:

I would not characterize this as being more prestigious.  Closing inactive credit lines is a risk management method.  

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I thought it was in the article i included, but it was another article that i cannot find now. Essentially said that Amex was looking to approve less customers moving forward as well. I'll try to find it, and post it.

[simplynoir]

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@MyFault wrote:

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@NRB525 wrote:

I would not characterize this as being more prestigious.  Closing inactive credit lines is a risk management method.  

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I thought it was in the article i included, but it was another article that i cannot find now. Essentially said that Amex was looking to approve less customers moving forward as well. I'll try to find it, and post it.

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But again that's not an attempt to regain their prestige but risk management. Growing concern once unemployment benefits run out there will be growing defaults so attempting to limit that by having stricter standards (less approvals) and retain their current customer base by introducing new benefits is their way of keeping things afloat especially with the travel/corporate sector not looking to recover anytime soon which is AMEX's bread and butter

[FlaDude]

I thought I had read on some thread here that Amex typically looked at usage in general and not on individual cards, I wonder if that still holds? If not, out of my 6 Amex cards, 2 haven't been used in a while. I got my ED card for BT purposes about a year and a half ago, and other than SUB requirements and the BT, have never used it. The BT was paid off about 6 months ago, so no activity of any kind for that long, and no charges for almost 1.5 years. I really have no use for it, although I'd rather not lose the 20k CL so I guess I'll have to remember to put something on it. I don't want to lose the DL card so I'll have to tickle that one too.

[M_Smart007]

I wonder if Amex would close a AF card for Inactivity?

[simplynoir]

@FlaDude

No definitive way to know atm but my guess is with current environment it helps if your overall credit profile spends money. Makes the decision whether or not to perform a closure or at least a CLD more difficult at least