Is Costco AMEX considered a poor relative of the other AMEX cards?

[Anonymous]

The reason I ask this is that I opened one at Costco and was approved with 1000 CL.  Then when I setup online access, the CL is down to 800.  Doesn't seem very high for an AMEX card.  I do, however, get to use it any place where AMEX is accepted.

[travisr0]

Don't think it's at the bottom, but it's getting dropped by Amex next year so in that aspect guess it would be.

[Anonymous]

There have been many recent approvals for other Amex cards with low limits, some as low as $500. The limit isn't an indication that the card is a poor relative, it's an indication of Amex's perception of the risk in granting a card.

[Anonymous]

I would consider either AmEx Costco or JetBlue to be poor investments. AmEx got dumped by both, so they're relatively short term cards at best.

While we're at it, I would probably throw AmEx Delta cards in there as well. Delta miles have been so devalued that it isn't really worth it. That card is only good as a gateway into AmEx. The only REALLY good co-branded AmEx card, IMO, is Starwood.

[Anonymous]

I wouldnt consider it a poor one at all. Soon to be discontinued but still a way in the door which can be very beneficial. Yeah a friend got the everyday card with a $500 limit. His scores were only 602 but his past year everything was paid on time so that helped a lot even though he still had some negatives on there.

I think as time goes on we will see more and more approvals from amex. They are really starting to expand into many different markets and not just the rich as before. They pretty much have to if they want to compete with the rest.

[Anonymous]

Does anyone here think that AMEX will offer me another one of their cards before dumping the Costco card (having FICO of 700 and no issues on CR) or will I have to apply for one like everyone else?

[Anonymous]

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@Anonymous wrote:

Does anyone here think that AMEX will offer me another one of their cards before dumping the Costco card (having FICO of 700 and no issues on CR) or will I have to apply for one like everyone else?

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It is Amex's intention to offer a different card to True Earnings cardholders. Underwriting criteria will have to be met, but it doesn't sound like you will have any issues.

[cashnocredit]

Apparently the existing Costco/Amex CC portfolio will be turned over to Citi.  Whether Amex will also offer existing cardholders other Amex cards will depend on the deal they negotiate with Citi.

Implementation of the agreements is subject to Citi's purchase of the existing co-brand credit card portfolio, Costco said.

http://www.usatoday.com/story/money/2015/03/02/cost

[Anonymous]

Ken Chenault, Amex CEO, has already stated they will be trying to retain current cardholders. He said something along the lines of them being Amex customers just as much as they are Costco customers. I can't see any way an agreement could preclude Amex from offering a different card to those who wanted one.

[Anonymous]

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@Anonymous wrote:

Ken Chenault, Amex CEO, has already stated they will be trying to retain current cardholders. He said something along the lines of them being Amex customers just as much as they are Costco customers. I can't see any way an agreement could preclude Amex from offering a different card to those who wanted one.

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Right, what matters to Citi (and Costco) is that existing cardholders keep a Costco card (issued by Citi).  Presumably Citi would be happier if Amex didn't give cardholders another card (the fewer cards the more likely they are to spend on the Citi card) but as Captool said, very unlikely an agreement could preclude that: Amex is free to give Amex cardholders new cards by converting existing ones.