Lower interest rate with AmEx? CLI?

[Anonymous]

So I applied for an American Express Blue Cash Everyday card. To my delight, I was approved! However, once I saw the actual terms that I was approved for, I was not nearly as happy.

It appears that they have given me what I assume is the lowest possible credit limit at $500. And even worse, the highest interest rate at 21.99%. The limit is bad enough but the interest rate is just not acceptable at all. I don't expect to get the best rates out there, but about 15.99% is about as high as I can go without feeling violated.

So what's the situation here? The card is already in the mail. If I hang out for six months, charge a little here and there and pay it off every month, and then ask for a lower interest rate should I get it? And how about that CLI?

Because if 20+% is the best they can do on the interest rate I might just close the account and forget I ever opened it. 

[improvingmycredit]

Hey SorenX!  Welcome to the forums!

Congrats on your approval!  It appears that you were just right at the minimum requirements for their card.

Nice thing about Amex- as you use their cards and your profile improves- so will your internal score with them.

With time, your account will grow and you will be able to get that APR reduced.  Use the card.  PIF every month.  Focus on your credit profile and you will see Amex as a great partner.  Good luck with your credit building and again.... Congrats!

[370Z]

Check out the Amex 3x CLI thread at the top. Also, Amex will lower APRs for those who deserve it. There were a couple threads yesterday about this topic.

[Anonymous]

Thanks for the info and the warm welcome guys.

I have been wanting to get with AmEx for a while. My credit isn't great, but it's not terrible either. 

What I guess has me stroking my chin a bit is the fact that maybe 4 months ago I was approved for a Discover IT with a $2500 limit and a 15.9% interest rate, and just last week I was approved for a card through Security Service credit union for a $2000 limit at 9.5% interest. So to get such a low limit with a poor interest rate feels kind of like a slap in the face. 

Has anyone here had success getting AmEx to reduce their interest rate? Is there some timeframe I should abide by before asking for (or expecting) it?

[improvingmycredit]

Yes- there's been a lot of success with APR reduction.  I personally have had them reduce my APR.  Take care of the account if you decide to keep it and it will grow.

As 370Z said- check out the thread about 61 day CLI.  As long as your profile stays the same or improves- you'll likely be at $1500 CL At the 61 day mark.  

[Weights]

I'm in a 

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@Anonymous wrote:

Thanks for the info and the warm welcome guys.

I have been wanting to get with AmEx for a while. My credit isn't great, but it's not terrible either. 

What I guess has me stroking my chin a bit is the fact that maybe 4 months ago I was approved for a Discover IT with a $2500 limit and a 15.9% interest rate, and just last week I was approved for a card through Security Service credit union for a $2000 limit at 9.5% interest. So to get such a low limit with a poor interest rate feels kind of like a slap in the face. 

Has anyone here had success getting AmEx to reduce their interest rate? Is there some timeframe I should abide by before asking for (or expecting) it?

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I'm in a similar situation myself, haven just gotten this card recently as well with a higher than expected apr.  All of my other cards are below 10%; heck, even my Discover IT card was recently lowered to 9.9%.  My current apr after the promotion period is 17.9%.  From what I've seen others post on here, it's probably best to call and ask once your promotional apr expires, presuming you've used it responsibly with at least moderate activity.  That's what I'm planning to do, but if anyone else has better advice for either of us, please do chime in.  Also, be sure to check out the 3X CL sticky post.  AMEX is good about giving CLI once you've had some time with them; always a SP as well to my understanding.   I think you'll find that this card will grow with you overtime.  Getting your foot in the door is the key. 

[Anonymous]

improvingmycredit, I'm happy to keep it if it will indeed grow and improve.  My first thought was, "Maybe I should've waited to apply." But if these are merely introductory rates and limits then I can deal with it, for a little while at least. 

I will check out that 3x CLI thread everyone keeps talking about. . .

[Anonymous]

Weights, maybe that is their M.O. but that surprises me. I have always thought of AmEx as a premiere lender. I actually kind of expected to get a limit at least as high as the Discover, if not higher, and with an interest rate that didn't remind me of the street corner "everyone's approved" car lots. 

But I am listening to what everyone's saying. I'll charge a bit on it and pay in full for a few months and then contact them. 

[improvingmycredit]

+1

I'd recommend waiting till the promo APR has expired also.  That's what I did and got it reduced.  Tried before the Promo expired and was told to wait till my 0% APR promo had ended.  Btw- I since have had my APR lowered to below the current minimum APR offered.  With time they will go lower then the current minimum APR available at new card approval.  Please note though- it's based on internal score and how you've handled the account. 

[FastForward]

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@improvingmycredit wrote:

Yes- there's been a lot of success with APR reduction.  I personally have had them reduce my APR.  Take care of the account if you decide to keep it and it will grow.

As 370Z said- check out the thread about 61 day CLI.  As long as your profile stays the same or improves- you'll likely be at $1500 CL At the 61 day mark.  

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@+1 - and your CL could be as high as $4.5k in about 241 days (3xCLI request @ day 61, another 3xCLI request 180 days thereafter). 

@Anonymous first AmEx starting CL is @ $1k.  Not disappointing primarily because of its potential growth within the next year.  Not sure about AmEx's guidelines for interest rate reductions - but,. as the previous posters mentioned, the recent threads re: successful interest rate reductions w/AmEx is definitely encouraging.  PIF is what I typically try to do, but knowing that a lower interest rate may be possible in the future is a good thing to know!

Anyway, I agree with the others that keeping your AmEx is advisable.  I think that, in the long run, you'll be happy that you did.  Just take good care of it & the rest should take care of itself.