American Express Personal Loan offer increased interest rate (despite my excellent credit)

[Gollum]

American Express had been offering a Personal Loan (up to $25,000 at 6.99% interest) to me for the last year or two, but I noticed recently that the interest rate for the offer is now 7.49% instead of 6.99%. I don't intend to accept the Personal Loan offer from American Express, but I'm curious about the offer's interest rate change. The Fed didn't raise the federal funds rate recently, so the prime rate remains the same.

I called via telephone, and the Customer Service Representative who answered said that (paraphrasing) a customer's personal American Express relationship means more than that customer's creditworthiness. Hmm... that's interesting, but I didn't ask what it means.

I bought/financed a new car in September 2023 (72 month loan at 5.09%), but my FICO scores have not changed other than the usual five points or so (plus or minus), and my FICO scores are still currently near 850. The obvious change is the new car loan. My FICO scores are the same as before, though: no change.

I'm just wondering if any readers have noticed something similar.

[FlaDude]

I haven't been paying attention to that page so I don't know what they have offered recently, but my preapproval offer how is for less money and a 0.01 lower interest rate:

You are pre-approved for a Personal Loan of up to $20,000 at an APR of 7.48%.

I also see this boilerplate on the page, maybe the minimum rate has gone up since the first of the year:

Repay a personal loan in terms of 12-60 months and with fixed rates ranging from 5.91% to 19.97% APR (rates as of 01-03-2024).

[CorpCrMgr1]

@Gollum I've received offers the same day with different amounts with different rates. There doesn't appear to be any rationale reason.

[AC20]

I took advantage of the AMEX personal loan at 6.99% 2 times (2019 and 2021). Paid both off early, no lates, etc. These loans were so hastle free and really worked well for me when I took them out

IDK the exact timing, but I frequently had the offer of a PL at 6.99% when I checked. Sometimes, however, I would check and I would not have a PL offer at all. This was true for the entire time I had an open PL with AMEX, but the offer would also be unavailable at times when I had no open loans on my report and it did not seem obviously related to variations in my credit scores. 

In 11-22 I took out an SSL with NFCU for about 3K. It is 91% paid down and the current amount owen is about $300. The AMEX PL offer has been absent every time I have checked since taking out the NFCU SSL. 

As far as I know, I have never been offered an AMEX PL at any rate other than 6.99% and have never been offered a PL at all when I had another loan open. The offer is either available or not available, but I was never offered a different APR.  My scores are also at/near 850 since the SSL hit my report in 11-22. Just checked - scores are 849, 846, 839 and AMEX says there is no PL offer for me at this time. 

[KR66]

Data point - I just took a small personal loan out yesterday with Amex at the 6.99 rate.

Current scores are 800+, only current debt is Mortgage and HEL. The HEL was new last June, but is already paid down to a little over 31% balance to original loan amount.

[Gollum]

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@AC20 wrote:

I took advantage of the AMEX personal loan at 6.99% 2 times (2019 and 2021). Paid both off early, no lates, etc. These loans were so hastle free and really worked well for me when I took them out

IDK the exact timing, but I frequently had the offer of a PL at 6.99% when I checked. Sometimes, however, I would check and I would not have a PL offer at all. This was true for the entire time I had an open PL with AMEX, but the offer would also be unavailable at times when I had no open loans on my report and it did not seem obviously related to variations in my credit scores. 

In 11-22 I took out an SSL with NFCU for about 3K. It is 91% paid down and the current amount owen is about $300. The AMEX PL offer has been absent every time I have checked since taking out the NFCU SSL. 

As far as I know, I have never been offered an AMEX PL at any rate other than 6.99% and have never been offered a PL at all when I had another loan open. The offer is either available or not available, but I was never offered a different APR.  My scores are also at/near 850 since the SSL hit my report in 11-22. Just checked - scores are 849, 846, 839 and AMEX says there is no PL offer for me at this time. 

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I don't know what "an SSL" is.

[FlaDude]

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@Gollum wrote:

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I don't know what "an SSL" is.

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Share secured loan. You borrow money that is collateralized by money that you have on deposit with the institution.

[pizzadude]

I wouldn't take AMEX's offers personally in the sense that you're doing something differently or wrong and now qualify for higher rates or lower loan amounts.   It's just the fluctuation of AMEX's marketing engines & underwriting criteria.   I get emails and direct mail from AMEX all the time with higher or lower offers and it's just part of how they do things.

[Gollum]

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@pizzadude wrote:

I wouldn't take AMEX's offers personally in the sense that you're doing something differently or wrong and now qualify for higher rates or lower loan amounts.   It's just the fluctuation of AMEX's marketing engines & underwriting criteria.   I get emails and direct mail from AMEX all the time with higher or lower offers and it's just part of how they do things.

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OK, thanks. I did feel a little affronted.