Credit Allocation Between Personal and Business Amex Cards

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Mogul of Pineapples
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Credit Allocation Between Personal and Business Amex Cards

Postby Mogul of Pineapples » Wed Dec 17, 2008 8:32 pm

I have a few American Express cards - both business and personal. Now the my business cards are sole proprietorship so that is essentially the same as a personal card and should be reported as such.

I find out today Amex doesn't report business cards at all even if they are sole proprietor - probably the only creditor that doesn't. Besides Amex not reporting biz cards, Amex no longer allows you to shuffle switch available credit between business and personal accounts, despite that all of my cards are basically personal cards (personal and personal business).

Now the use to allow you to shuffle credit around in situations like this no problem at all. At least, that was before the credit crisis. I find out now they don't. Why is this a problem? Because I switched over virtually all my credit to my business card, because I figured it would be better to have one Amex with a high credit limit, than 3 or 4 cards with lower credit limits.

Since my business credit card was my main card, I decided to make that one be the high limit card..... and now I find out (1) that credit card isn't reported on my credit report, and (2) I can't change allocation like they previously offered.

So now I'm stuck with a high limit business credit card and two personal cards with almost no credit whatsoever - $1000 each).

Anyone have any recommendations here?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred


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The Fuzz
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Postby The Fuzz » Thu Dec 18, 2008 4:56 pm

I'm going to have to consider what your problem is a little more before I can really explain why that is, but one thing I can tell you is that the AEFSB (american express federal savings bank) funds all of the OPEN (business) cards while the AECB (american express centurion bank) funds only consumer cards. The AEFSB does fund some consumer cards as well, but it the only bank that does the business ones. That may be one of the problems with transfering available credit between one card and another. If one card was allocated based on risk models with the AECB and the other one with models from the AEFSB, then it may cause problems or provide opportunities for fraud if you allowed people to mix and match. If AECB has stricter standards than AEFSB and you got a high line with AEFSB, then a loop hole would be to then just reallocate that line of credit to the AECB account and avoid the standards. Anyway, it is just a thought.

I'll do some research and see what I can come up with for you. I've got several contacts that work in reallocations and line of credit increases that can answer the question with more knowledge than I have.

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The Fuzz
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Postby The Fuzz » Fri Dec 19, 2008 9:14 am

ok, here is what I have been able to find out. We stopped doing reallocactions 9 months to a year ago for mainly cost savings reasons. It took a lot of time and effort and it didn't make us any money. So in these times it just makes sense to refine processes that aren't profitable. I know I have personal concern for anybody affected by that decision as well as many many others, but it is a business decision that was made without consulting us first unfortunately. We were able to do it between personal lines and business lines when we did do them, however. I've just never been involved with that particular side of the business, so it is new information for me.

As far as your card not reporting, that isn't right. Any OPEN card issued to a sole proprietor will be reported to the individual's credit report. If you provided a Tax ID number then it would be reported under the business, but the applicant would still have responsibility for the charges. If it went into collections then it would get reported on the individual's credit report and it would still be tied to your SSN with AMEX for consideration in any future applications. Certain things may only stay on your credit for seven to ten years, but American Express (or any company for that matter) can remember the event forever if they want to. ;)

Unless you are revolving a balance then I would probably suggest getting one of the charge card products. There is a hidden limit in those somewhere, but it would give you the ability to spend whatever you needed to spend without having to worry too much about running out of credit. The Plum card has worked incredibly well for my business. It allows me to revolve the balance a little bit since I rely on vendors to pay me before I pay the bill sometimes. It isn't a big money maker card for AMEX, but it is a huge money maker for the business owners who use it. I love my Plum card.

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Cucumber
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Postby Cucumber » Sat Dec 20, 2008 12:01 am

Why would they not report the credit card on any report at all :confused: I thought there was some kind of law where all major credit cards had to be reported to the credit bureaus as part of their agreement with them.
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Postby Multi-Purpose » Sat Dec 20, 2008 10:10 am

Ask them if they could raise the limit on your personal card and if required tell them they can slash the limit on your business card to do that - that's technically not a reallocation of credit.
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Mogul of Pineapples
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Postby Mogul of Pineapples » Sat Dec 20, 2008 9:41 pm

Thanks Fuzz for looking into all this I really appreciate it. My main concern with the Amex charge cards is since there's officially no credit limit, or at least there is but not one knows it except Amex. What is reported to the credit bureaus is your spending closing balances on statements only as far as I know. I was seriously considering the Amex Platinum but since they took away the companion airfare I can't see how it's worth the $450 annually.

I tried customer support again and the reps were still trying to tell me all the business cards, even if they're OPEN cards, as sole proprietor with social security, still don't report. I went ahead and raised the limit on my Blue Cash but of course in this environment, it's iffy if they will approve the full amount of my request.

P.S. I noticed the business customer service late at night is India - is that new? Well the woman that answered my call was American but she transferred it to an Indian. He was nice but not surpringly, told me quite a bit of incorrect information and wasn't able to help me. I called back during the day and he CSR was very helpful and able to do what the Indian man said wasn't possible - which was putting in a credit line increase on the Blue Cash w/o having the card on me. He let me use the security code from my Simply Cash instead and the Indian man told that was not an option, go figure.

I guess I'm stuck with a high credit limit business card that does have an excellent interest rate at the lowest possible tier they have, but serves no purpose for my credit report unfortunately. I don't have a balance on it now but I like knowing that option is there.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

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The Fuzz
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Postby The Fuzz » Sat Dec 20, 2008 10:47 pm

They are moving more of the customer facing jobs back over to America where the stigma isn't as bad when you get someone with an accent. The fact is that it is still easier to get good help in India when it is night time in the US since their clock is backwards from ours. The morons you talk to over there in the day are the people working graveyard shifts over there. Just like how you are going to get worse customer service from a graveyard rep in the US versus someone with the experience and seniority to hold a day shift. Anyway, that is one thought.

Amex is going through a lot of restructuring right now. Who knows... I could be restructured out of a job come this time next month. My guess is that when the dust settles you'll find yourself getting transfered around a lot less. They are integrating a lot of departments together so they can eliminate redundancy as well as just gaining efficiency when it comes to solving problems.

However, with all that being said, the situation still sucks for you and you have my apologies for the inconvenience that it causes. If it makes you feel any better, I know several AMEX employees who are in the same boat as you in this situation. The new rules are impacting everybody, but I have it on good authority that things will start to go back to the way they were come this time next year. Things are in the works... ;)

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Cucumber
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Postby Cucumber » Mon Dec 22, 2008 10:07 am

I had customer service before for an online company and the back and forth communication was all done with people in India using email. It didn't bother me though because they were forthright about it and even showed the pics and bios of the employees working from their India office on their site. So when you were emailing back and forth setting up your account, you knew who you were talking about. Plus since it was typed and not verbal there was none of that misunderstanding of words like if you say "That's the biggest hurdle" they reply "What turtle?" :ppp

Speaking of that I noticed American Express has chat boxes on their website to talk to someone live on instant messenger. Are they outsourced? Those are the type of jobs they should move overseas because no one will know the difference.
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The Fuzz
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Postby The Fuzz » Mon Dec 22, 2008 10:45 am

I'm not sure who handles the chat feature. It could be outsourced, but it could also be just another function of customer service that is handled in-house. I'll see what I can find out for you.

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fffresh
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Postby fffresh » Mon Dec 22, 2008 8:42 pm

I've been discounted accidentally more than once while speaking with the Indian CSR's at American Express. It occurred when I was told the call would be transferred or placed on hold. I was extremely polite therefore I know they did not disconnect my call intentionally for a reason related to my attitude. I would like to see them do away with the outsourced call centers altogether. They do not reflect positively upon the company.



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