Amex Personal Loans

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CC Deville
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Amex Personal Loans

Postby CC Deville » Thu Nov 24, 2016 10:28 am

This morning I logged into my online accounts with Amex to check my balances. When I changed from my Blue to Zync I got a pop up telling me that I was pre-approved for a personal loan of up to $24,300 at 6.98%. Anybody else? I did not even realize that Amex offered personal loans. That is a great rate as well....

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JustRewards
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Re: Amex Personal Loans

Postby JustRewards » Fri Nov 25, 2016 9:31 pm

I've seen these from Discover but not AmEx. That is a pretty decent rate on an unsecured personal loan.

mountaindewvoltage
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Re: Amex Personal Loans

Postby mountaindewvoltage » Sun Nov 27, 2016 11:35 am

JustRewards wrote:I've seen these from Discover but not AmEx. That is a pretty decent rate on an unsecured personal loan.


It has a lower rate than most for a few reasons:

1) AMEX customers typically have good to excellent credit.
2) AMEX will close your cards if you default on the loan, and make marks on your credit report.
3) AMEX will not welcome you back for any product for at least 20 years if you default on the loan.
4) And/or AMEX will take out a cash advance from your credit card to pay for a loan if you miss a payment.
5) AMEX doesn't have the overhead costs of a typical bank.. .They don't have to operate branches.

I would say that's a terrific rate but it comes with risk to the cardholder that you don't see if you take out loans at a credit union or typical bank.

Tubpbs
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Re: Amex Personal Loans

Postby Tubpbs » Sun Nov 27, 2016 8:53 pm

mountaindewvoltage wrote:
JustRewards wrote:I've seen these from Discover but not AmEx. That is a pretty decent rate on an unsecured personal loan.


It has a lower rate than most for a few reasons:

1) AMEX customers typically have good to excellent credit.
2) AMEX will close your cards if you default on the loan, and make marks on your credit report.
3) AMEX will not welcome you back for any product for at least 20 years if you default on the loan.
4) And/or AMEX will take out a cash advance from your credit card to pay for a loan if you miss a payment.
5) AMEX doesn't have the overhead costs of a typical bank.. .They don't have to operate branches.

I would say that's a terrific rate but it comes with risk to the cardholder that you don't see if you take out loans at a credit union or typical bank.


Is this conjecture or fact? Seems like the former...
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ingramjuan
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Re: Amex Personal Loans

Postby ingramjuan » Sun Nov 27, 2016 9:07 pm

CC Deville wrote:I did not even realize that Amex offered personal loans. That is a great rate as well....

Image


This looks like a a great offer!! Hope i get one to... :cheers:
CARDS:
Capital One Platinum (2001) |Capital One QuickSilver World (2002) | Amex Gold Delta (2013) | Best Buy Visa (2013) |Discover It (2015) | Amex Platinum (2015)

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Personal: Chase Freedom Unlimited
Business: Amex Plum
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amexmember12
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Re: Amex Personal Loans

Postby amexmember12 » Sun Nov 27, 2016 11:29 pm

Nice - I would take one of those to get some stuff done.
CSR $24K | Discover IT $22.9K | AMEX BCE $15K | AMEX EveryDay $12.9K | Marriott Premier - $11K | Delta Platinum $10K | Freedom $6.5K | Freedom $6K | BOA Travel Rewards - $2.7K | AMEX Platinum

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CarefulBuilder14
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Re: Amex Personal Loans

Postby CarefulBuilder14 » Sun Nov 27, 2016 11:57 pm

What's the loan term? What sort of payments do you make?

It would seem to me that a "write yourself a check" BT would be much cheaper. 7% non-deductible isn't really so great for someone with decent credit.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

mountaindewvoltage
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Re: Amex Personal Loans

Postby mountaindewvoltage » Mon Nov 28, 2016 2:09 am

Tubpbs wrote:
mountaindewvoltage wrote:
JustRewards wrote:I've seen these from Discover but not AmEx. That is a pretty decent rate on an unsecured personal loan.


It has a lower rate than most for a few reasons:

1) AMEX customers typically have good to excellent credit.
2) AMEX will close your cards if you default on the loan, and make marks on your credit report.
3) AMEX will not welcome you back for any product for at least 20 years if you default on the loan.
4) And/or AMEX will take out a cash advance from your credit card to pay for a loan if you miss a payment.
5) AMEX doesn't have the overhead costs of a typical bank.. .They don't have to operate branches.

I would say that's a terrific rate but it comes with risk to the cardholder that you don't see if you take out loans at a credit union or typical bank.


Is this conjecture or fact? Seems like the former...


1,3, and 5 are facts.

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CarefulBuilder14
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Re: Amex Personal Loans

Postby CarefulBuilder14 » Mon Nov 28, 2016 11:07 am

mountaindewvoltage wrote:
Tubpbs wrote:
mountaindewvoltage wrote:
It has a lower rate than most for a few reasons:

1) AMEX customers typically have good to excellent credit.
2) AMEX will close your cards if you default on the loan, and make marks on your credit report.
3) AMEX will not welcome you back for any product for at least 20 years if you default on the loan.
4) And/or AMEX will take out a cash advance from your credit card to pay for a loan if you miss a payment.
5) AMEX doesn't have the overhead costs of a typical bank.. .They don't have to operate branches.

I would say that's a terrific rate but it comes with risk to the cardholder that you don't see if you take out loans at a credit union or typical bank.


Is this conjecture or fact? Seems like the former...


1,3, and 5 are facts.

1. Generally...but some people under 650 do get charge and low-limit credit cards. A $1k Amex is a lot easier to get than a $50k Amex.
2. Look at MF. Issuers can and do close accounts over much smaller matters, and most issuers do report defaults.
3. It's true Amex doesn't forgive quickly, but 20 years would be an extreme case (and there certainly are extreme cases). 10 years, sure. They definitely aren't like Capital One who sometimes forgives within months.
4. I have no information about this, but given the accuracy/relevance your other "facts" I'm hesitant to believe it.
5. They aren't unique in this. Discover doesn't have branches, either.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card

mountaindewvoltage
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Re: Amex Personal Loans

Postby mountaindewvoltage » Mon Nov 28, 2016 1:21 pm

CarefulBuilder14 wrote:1. Generally...but some people under 650 do get charge and low-limit credit cards. A $1k Amex is a lot easier to get than a $50k Amex.
2. Look at MF. Issuers can and do close accounts over much smaller matters, and most issuers do report defaults.
3. It's true Amex doesn't forgive quickly, but 20 years would be an extreme case (and there certainly are extreme cases). 10 years, sure. They definitely aren't like Capital One who sometimes forgives within months.
4. I have no information about this, but given the accuracy/relevance your other "facts" I'm hesitant to believe it.
5. They aren't unique in this. Discover doesn't have branches, either.


1. True, but most don't.
2. Yeah but the result is #3, where more lenders are more forgiving after a handful of years as long as you pay them back.
3. Agreed, but it's extremely hard to get back in.
4. That's why it says "and/or", lenders do take money from other accounts to pay pasts due balances if you owe them money.
5. Discover isn't the same company as American Express. Discover has a checking account and operates differently with the CC's. You can also apply for a loan through Discover whereas this AMEX loan offer appears to be for select members.

Point is AMEX has obviously targeted these loans towards very low risk customers; thus, the lower interest rates and can also lower them a bit more because they have lower overhead costs than Chase, Citi, etc. If I were a lender with higher overhead costs, I'd bump up the interest rate by 3%-5% to make up for that cost.



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