Is Amex in decline?

[LS2982]

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@CreditScholar wrote:

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@Open123 wrote:

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@CreditScholar wrote:

Wealth moves from the poor to the rich, and it will continue to happen regardless of whether Amex exists or not. This is just how things work. People need to understand this isn't changing. If Amex wanted to truly become a more egalitarian company and act accordingly, that's fine. However it seems like they're trying to portray themselves as something they were never intended to be. In the meantime the things they used to do very well have been watered down in the process.

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For now, until November, no one is really sure what the politcal climate will be the next four years.  I can understand AmEx feeling the need to hedge their bets here, especially since the DOJ has them in their target hairs.

You make a very salient point, and I know that many in AmEx's old guard feels as you do regarding how to run their business.  In the last few years, there is no question the quality of their credit portfolio has eroded considerably when compared to what it was a decade ago.  For instance, they understand the need to offer revolving credit no fee cards to mainstream credit card user, and do a wonderful job of marketing the Blue lines, but the moment a cardholder carries a balance making minimum payments, they lack the inestinal fortitude stick it out and instead conduct FRs and credit limit chasing.

I'm not sure what the future of Amex will be, but I'm sure if and when they win this battle with the DOJ, I suspect you'll see Amex return to how they've always operated in the past, where their ideal cardholder spends money and PIF every month, a la the charge card.

Of course, depending on what happens this November, you can either have a DOJ that will pursue aggressively to legislate how Amex runs their business, have the suit dropped entirely, or be disbanded along with the IRS should Ron Paul win!

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I think reality is that economics will trump politics. It won't matter who gets elected really. Politicians can say what they like, but I do believe that economics is the strongest driving force in the world. When there is money to be made, someone will find a way to circumvent the political system and the desires of politicians.

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+1

[CreditScholar]

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@LS2982 wrote:

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@CreditScholar wrote:

After reading some of the posts about overseas call centres, poor CS and the like, it got me thinking... Is Amex in decline, even if it's a very slow one?

They used to be undisputed when it came to being at the top of the pile. Now it's not so clear-cut anymore. Lately I hear more and more about them "cutting corners", see them taking people with lower FICOs, etc.

Anyone have any ideas on this?

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I wouldn't say this is putting them on the decline, in fact it should be making themmore positive to the consumers. You have to give someone a chance eventually if they are showing they are being more responsible and taking care of their finances.

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I disagree, they don't have to give anyone a chance if they don't want to. If Amex really wants to be a company for the affluent, they should be able to tell people to "improve on someone elses time, not theirs". Once they've hit super prime territory (740-750 FICO or so) then they're welcome to try. I just don't see Amex as a company for those trying to improve or establish their credit. It was supposed to be for those who were already well-established by the time Amex took their application.

[Anonymous]

I just think it's a company, just as any other, who has looked right into the eyes of these "hard" times over the past 4 years and decided to make some changes.

I don't know that I would say that AMEX is in decline, because to be honest, the stigma of "Ooooh, it's an AMEX" really isn't that prevalent in the lower class and probably most of the middle class. To most it's just another credit card, but to most of us, AMEX is the "upper echelon" as we ooh and aah over a Centurion.

[drkaje]

Amex's decline in prestige began when they started offering credit products.

[LS2982]

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@drkaje wrote:

Amex's decline in prestige began when they started offering credit products.

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[LS2982]

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@CreditScholar wrote:

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@LS2982 wrote:

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@CreditScholar wrote:

After reading some of the posts about overseas call centres, poor CS and the like, it got me thinking... Is Amex in decline, even if it's a very slow one?

They used to be undisputed when it came to being at the top of the pile. Now it's not so clear-cut anymore. Lately I hear more and more about them "cutting corners", see them taking people with lower FICOs, etc.

Anyone have any ideas on this?

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I wouldn't say this is putting them on the decline, in fact it should be making themmore positive to the consumers. You have to give someone a chance eventually if they are showing they are being more responsible and taking care of their finances.

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I disagree, they don't have to give anyone a chance if they don't want to. If Amex really wants to be a company for the affluent, they should be able to tell people to "improve on someone elses time, not theirs". Once they've hit super prime territory (740-750 FICO or so) then they're welcome to try. I just don't see Amex as a company for those trying to improve or establish their credit. It was supposed to be for those who were already well-established by the time Amex took their application.

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I can see where your coming from. But from an average credit profile where I stand, I would hope they look at my creditworthiness since my rebuild started and judge me from that.

[CreditScholar]

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@LS2982 wrote:

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@CreditScholar wrote:

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@LS2982 wrote:

---

@CreditScholar wrote:

After reading some of the posts about overseas call centres, poor CS and the like, it got me thinking... Is Amex in decline, even if it's a very slow one?

They used to be undisputed when it came to being at the top of the pile. Now it's not so clear-cut anymore. Lately I hear more and more about them "cutting corners", see them taking people with lower FICOs, etc.

Anyone have any ideas on this?

---

I wouldn't say this is putting them on the decline, in fact it should be making themmore positive to the consumers. You have to give someone a chance eventually if they are showing they are being more responsible and taking care of their finances.

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I disagree, they don't have to give anyone a chance if they don't want to. If Amex really wants to be a company for the affluent, they should be able to tell people to "improve on someone elses time, not theirs". Once they've hit super prime territory (740-750 FICO or so) then they're welcome to try. I just don't see Amex as a company for those trying to improve or establish their credit. It was supposed to be for those who were already well-established by the time Amex took their application.

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I can see where your coming from. But from an average credit profile where I stand, I would hope they look at my creditworthiness since my rebuild started and judge me from that.

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I think what should matter is what your credit profile is when you apply. Even if you've rebuilt in the past, if youve cleared the criteria at the time of application then that's what you should be judged on. I frankly wouldn't care so much if you were 650 5 years ago but are 750 now. Where I think the problems come is when they accept people with 680s who are supposed to be "on their way", which is something Amex wasn't designed for. Its like trying to start in the major leagues without having done your time in the minors. Very few people come from literally nowhere and then get called up to the majors, but Amex seems to be doing exactly that.

[navigatethis12]

When I applied for American Express I didn't really know who they were. I actually kind of thought they were a branch of Capial One. They were offering a $100 bonus and 3% on groceries so I took it. So to me, they were never elite or anything. I don't really see why a charge card is so much better. You have to pay to have one and the rewards I see aren't as good. Most people with credit cards pay it at the end of the month so it's the same.

I only got a foreign representative when I used the telephone number on the American Express website. When I used the number on the back of Blue Cash Everyday I got a United States person. I have no problem with foreign representatives. I can understand them and I have found that with a lot of companies, the foreign representaives are usually more willing to find a solution to the problem.

A few years back I had an MP3 player that would freeze every few months. It had a lifetime warranty so I rang them up to get it replaced. The United States representatives said there was nothing they could do and to just reset it(tried multiple times and it wouldn't work). The foreign ones apologized for the difficulty and sent out a replacement right away. This happened multiple times and each time the United States said no.

If American Express chooses to use foreign customer service I would not have a problem with it

[CreditCrusader]

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CreditScholar wrote:

I disagree, they don't have to give anyone a chance if they don't want to. If Amex really wants to be a company for the affluent, they should be able to tell people to "improve on someone elses time, not theirs". Once they've hit super prime territory (740-750 FICO or so) then they're welcome to try. I just don't see Amex as a company for those trying to improve or establish their credit. It was supposed to be for those who were already well-established by the time Amex took their application.

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With all due respect, that isn't YOUR decision to make, it's AMEX's. And let's not forget that some of your "super prime" FICO applicants didn't earn a thing. They piggybacked on their parents' credit, hardly "well-established" when they applied for AMEX. Does that make them less deserving of the AMEX logo? After all, by definition THEIR credit profile is thin at age 19. Frankly, I'd rather take a chance on someone with a 680 who has worked for years rebuilding a stronger credit profile than someone who has proven NOTHING except the ability to properly choose their parents. But I'd understand AMEX approving both or neither .IT'S THEIR CHOICE.

Let’s not get caught up in some “He is deserving, he is not, my logo is damaged” nonsensical argument here. If you wish to assert your status via another card, by all means roll with it. Let’s allow AMEX and other companies to determine their own business model and judge their prestige individually because in the end, it is completely subjective.

[Anonymous]

Remember when centurion used to be this magical card that would get you a free upgrade to first class on any airline? Remember when it would provide a domestic companion ticket? Ive read several things about it from past holders. They all seem to say the same thing: the benefits go down but the price goes up.